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Psychographics

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Influencing your customers with affiliates or influencers?

 

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Are you in doubt if you are going to use affiliate marketing or influencers for your brand?

Let us first explain what is each of these marketing strategies and then, according to your public and budget, you decide what is best for your company!

In affiliate marketing, a brand partners with affiliates (bloggers, instagrammers, companies, publishers) to promote the brand through offers, sales, deals, etc.

These affiliates are then paid a share of the revenue of the sales they helped generate. Because the amount paid to the affiliates is based on the revenue they helped generate, this type of marketing is very cost-effective.

On the other hand, influencer marketing is when someone that usually has a big and active audience, receives a flat rate fee to promote the brand.

Affiliate marketing is in general more focused in new customers and sales, while influencer marketing focus on the brand awareness.

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Let’s think of an example to picture better what option would be better:

A company that manufactures protein bars and wants to promote its brand might contact affiliates and influencers.

The affiliates would share content (pictures, reviews, videos) on their social media about the bars and spread the word of a sale or a special offer. They would then tell their followers/connections that in order to get the offer, purchasers would have to mention a specific code when making the check out. With the sales generated with the code, the affiliate would receive a percentage, that would then vary in the gross sales they stimulated.

The influencers would promote the brand by using/eating the products the brand pays them to and sharing this content, using pictures and videos. As for the protein bars example, influencers from the brand would receive a certain flat fee in a monthly basis while the contract lasts. These influencers have to promote the brand/products regularly following what was settled in the contract between them and the company.

In order to choose what is better for your company you will have to take into consideration who are your customers – basically their demographics and psychographics (read here and here more about this) and with all information about them, see how you could better influence them to purchase your products.

Regardless of being an affiliate or an influencer, it is important to be aware that both should disclosure publicly that they are being compensated to promote the brand as defined by the Federal Trade Commission (FTC) which enforces the U.S. Truth in Advertising Laws. And when it comes to the FTC, it is the brand that gets penalized with a fine, so be careful to have this explained in the contract between the company and the affiliates/influencers.

People in the Business – Lisa Hyman and Max Kabat

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Do you need inspiration on how to define your target and build the right campaign to reach them?

This month’s Spotlight features two marketing professionals: Lisa Hyman and Max Kabat. They both work at GoodDog, a company from the LeadDog Marketing Group.

They worked on a campaign for Plum Organics, a company that produces organic baby food, snacks and mealtime solutions for toddlers and kids. Along with Something Massive, LeadDod developed “Parenting Unfiltered”, a campaign made to connect to parents by acknowledging their day-to-day struggles and the messy reality of parenthood.

The video wasn’t product-specific, but a lifestyle campaign, planned to catalyze conversation, inspire genuine engagement and position Plum as the brand that gets it.Toddler girl playing with daddy in the garden

LeadDog created a manifesto for the campaign and developed a two-year long marketing plan to make Plum stand out of the clutter of emerging organic brands. Key people to Plum’s campaign was Max Kabat – that on LinkedIn calls himself a GoodDog – and Lisa Hyman – partner and head of strategy.

Max Kabat and Lisa Hyman wanted to surpass the first goal of obtaining video views and start a conversation about the topic in social media, creating a connection between the brand and the parents/clients. After the publication of the Plum’s video, showcasing parents in unfiltered, real situations, Plum promoted it by partnering with influential parents across the web, that created and shared their own honest parenting unfiltered in a variety of platforms, such as Youtube, Facebook and Instagram, generating organic awareness of the campaign and adoption of the hashtag #ParentingUnfiltered.

We will leave you with inspirational quotes from Max and Lisa.

  • Marketing has an innate ability to influence people and effect change so we harness it to do good – Max Kabat from LinkedIn.
  • The best idea can come from anyone – you just have to be listening – Lisa Hyman from LinkedIn.

Plum’s campaign is a great example of targeting the right public, the niche group that will buy the product you offer. Studying the psychographics of your customers and target customers will tell you what would be the best means of targeting them, influencing them on creating brand awareness, reach them at the right place and right time in an attempt to satisfy their needs.

The Importance of Psychographics in the Marketing Industry

Defining the target market of any product or service is a task that marketers around the world take at heart. After all, many great ideas fail constantly when they are not delivered at the appropriate time to the appropriate customer base.

Historically, understanding the demographics of different sectors of the population and their core characteristics has proven to be an effective way to segment and evaluate target customers. It has also served

as a portal to develop effective marketing campaigns and position businesses in their end consumers’ mind. However, in a highly globalized world where competition is the norm and not the exception, demographics have fallen short to consider all aspects that guide the customers’ purchase decision and psychographics have gained greater importance in defining and narrowing these key elements.

Psychographics, which measure customers’ attitudes and interests rather than “objective” demographic criteria, has proven to be an effective approach to the modern market segmentation and according to these, marketers should have answers to a set of questions pertaining psychographics in order to effectively define a product or service customer base.

  • Customer Concerns: Is there a real problem or need that my product or service can satisfy?
  • Customer Lifestyle and Limitation: What are they genuinely interested on and is their something preventing them from fulfilling these interests?
  • Customer Likes: Where do they spend their free time and how does my product or service fit on their schedule?
  • Customer Values: Do they value quality or quantity? What is their real capacity to acquire this product or service?
  • Customer Motivations: Are the family or career oriented? Is my product or service fuelling their motivation?
  • Customer Emotions: Do they socialize with a larger or smaller groups of people? How my product or service attends to their personal needs?

The above are just a small group of questions for a good-practice psychographics evaluation. Demographics, although still current and important, are no longer the only considerations to create an effective marketing campaign, that reaches and fulfils a real need in the market by catering to a specific group wants and needs. Knowing and understanding these customers’ motivations will help you to effectively design your next ad, craft your next blog post and most importantly deliver all this at the right time.