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Product

1 Product 

characteristics (10)

2 Familiarity and 

confidence (10)

3 Consumer 

attributes (30)

Total

Groceries

 4

8

15

27

Mortgages

10

1

 4

15

Travel

10

6

15

31

Books

 8

7

23

38

Table 8.6

Product scores in de  Kare‑  Silver (2000), Electronic Shopping 

Potential Test

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Chapter 8  Digital marketing

strategy to satisfy these markets to maximise revenue. This is 

target marketing strategy

 and 

involves the four stages shown in Figure 8.14.

The first stage in Figure 8.14 is 

segmentation

. Segmentation involves understanding the 

groupings of customers in the target market to understand their needs and potential as a 

revenue source in order to develop a strategy to satisfy these segments while maximising 

revenue. Dibb et al. (2000) say that:

Market segmentation is the key of robust marketing strategy development . . . it involves 

more than simply grouping customers into segments . . . identifying segments, targeting, 

positioning and developing a differential advantage over rivals is the foundation of market-

ing strategy.

In a digital marketing planning context market segments will be analysed to assess:

1 

Their current market size or value, future projections of size and the organisation’s cur-

rent and future market share within the segment.

2 

Competitor market shares within the segment.

3 

Needs of each segment, in particular unmet needs.

4 

Organisation and competitor offers and proposition for each segment across all aspects of 

the buying process.

The targeting approaches used for online acquisition and retention campaigns will nat-

urally depend on established segmentation. Table 8.7 summarises options for targeting 

customers online. The power of digital technology is that it makes it easier and more  cost- 

 effective to deliver targeted messages on a web page or in an email compared to traditional 

media.

Let’s look at each targeting variable in a little more depth.