A funnel is a good way to think of the advertising procedure. The top is very broad and consists of using mass marketing methods. Mass marketing includes items like mass mailings, national advertising, billboards, and airing commercials during the Super Bowl. The marketing message is sent to a wide audience with little if any discretion. Mass marketing is very expensive, difficult to evaluate, and has a low return on investment. Mass marketing is a stab in the dark, like looking for needles in a haystack. The following section of the funnel narrows the target audience into market segments. The communications still appeal to a massive audience, but they are at least targeted to a particular market segment by way of the preferred media.
Cat Fancy magazine, ESPN, along with the Oxygen site each targets a particular sector of the marketplace cat lovers, sports fans, and girls, respectively. We narrow the target audience into specialty or niche markets. Harley Davidson, Barbie, and Macintosh computers every single appeal to a specialization area of the funnel x roi compensation plan. The base of the funnel is the customized or one-to-one field of the funnel. The customer being on a first name foundation with the item or service provider often characterizes those markets. Mike the mechanic, Bill the barber, Doc Baker is one-to-one relationships where the client and service provider know each other personally. Through the use of technology and mass customization, these relationships can be available on a wide scale like in the case of the My Yahoo page.
ROI stands for return on investment. Each of the techniques from the funnel will gain clients. The question is which technique will offer the best return on investment. The exact amount of money spent in the base and targeted right at ideal customers will create a much greater return on investment. Two advantages of targeting the bottom of the funnel would be the probability of a positive response and the sorts of relationships which are established. Relationships on the base of the funnel are more dedicated and not easily broken. One-to-one clients form the bedrock, the foundation, for any successful product line. These people are unlikely to change to a competitor as a result of mutual commitment they feel between themselves and the brand.
Customers at the Bottom of the funnel may and should become your very best marketing tool. They are positive multipliers that spread the word to friends and loved ones. There are 3 levels of this one-to-one section the client, the referent, and the urge. The client will continue to get the product, not change to the competition. The referent will continue to get the item and will tell others about the merchandise when requested give referrals.