Targeting / Segmentation Hierarchy List

The target marketing hierarchy in terms of segmentation, from no targeting at all to the highest level of targeting.  Keeping this list in mind when you are developing your programs is important, because your chances for success of selling products/services to an audience is greatly dependent on where on the hierarchy the audience you are targeting falls.  

As direct marketers we've always looked at a hierarchy of segmentation and targeting, and it is for the most part based on buying behavior with other factors overlaid . And our goal as direct marketers is to go out and find more potential buyers just like the buyers we have in our house file. We do this by renting lists of buyers from other direct marketers or publishers. We learned that buyer list always out performed subscriber list in terms of purchases and response. We developed profiles of our buyers and used them to go find others like them and if we didn't go directly to them, we used media that typically had audiences that were similar to our customer base or our best customer/buyer characteristics.

Enter the age of big data...The hierarchy of segmentation now includes not just content consumption, but also content creation.

So, this list now includes not only buying behavior data, but also data related to content consumption and creation, but the bottom line is that actual buying behavior is still far more relevant and important.

• Lowest level - No targeting at all
• Targeting/segmenting people based on content consumption
• Targeting/segmenting people based on paid content consumption
• Targeting/segmenting people based on content posted
• Targeting/segmenting people based on form data provided by them
• Targeting/segmenting people based on downloaded content
• Targeting/segmenting people who bought something else from a similar type of company
• Targeting/segmenting people who have bought a different product in an identical price range
• Targeting/segmenting people who have bought a similar product in a different price range
• Targeting/segmenting people who have bought an identical product in a different price range
• Targeting/segmenting people who have bought a similar product in the same price range
• Targeting/segmenting people who have bought an identical product in the same price range
• Highest level – targeting/segmenting people who have bought an identical product in the same price range overlaid with demographics, psychographics, lifestyle and other factors – and further segmentation based on these criteria