Payments Segment Market Analysis and Strategy
The target market for the application is extremely large because safe, fast, and efficient payment services are always in demand. Because of this, the memo will aim to explore the market of smartphone apps and analyze appropriate marketing strategies for promoting the product.
Market Analysis: App for Convenient Payments
Anyone from tech-savvy millennials to baby boomers who have recently started using a smartphone can benefit from the app. In 2016, the market for mobile apps reached 149.3 billion downloads (“Mobile App Usage – Statistics & Facts”). The key competition will come from apps such as Alipay, which specializes in mobile online payments; however, the focus of the new app will be both online and offline payments, which sets it apart from competitors.
The most relevant developments in the industry have been going on for the past decade, with the scope and coverage of available apps growing with each year. New companies need to fill the demands of convenience, versatility, streamlined design, and affordability when it comes to developing a mobile application for payment services. Customers who will choose the app are diverse and can be both impulse buyers and bargain shoppers since the service will allow them to make payments quickly.
The appeal of not having to spend time in lines to purchase something will be the key motivation for customers to buy the app. A relevant demographic for the target market will be customers aged between 18 and 65 who use smartphones in their daily lives; their income is average to high. Customers can be of any marital status, ethnicity, and occupation. It is expected that the customers will have at least a high school education. The location of the target market depends on the concentration of consumerism; for instance, customers in states such as California, New York, Miami, or Texas are more likely to attract the app due to the abundant shopping opportunities.
Factors that influence industry growth are related to tech development; the more new smartphones come to the market, the greater the opportunities for app sellers. Recent changes in the industry’s needs are associated with the increased simplicity and convenience since customers require their apps for everyday tasks such as payments, maps, or reminders to serve a specific purpose without additional distractions.
Since the product is directly associated with technologies, its marketing strategy will also use technologies to address the unique needs of the business (Small Business Administration). Online advertisements will be the focus of the marketing strategy, with Google ads costing between $0.25 and $20 per click depending on where and how the service will be advertised. For a TV ad, a local station can charge up to $1500 per commercial while national stations can charge as much as $342,000 for a spot, which means that advertising through TV is a marketing step that the company can only implement after attaining a customer base and acquiring revenue to pay for expensive promotion (Wagner).
The key message that the company will convey to customers is that the app will become an irreplaceable assistant that could save time and make shopping stress-free. Although the product is intangible, it will still be beneficial due to its ability to provide customers with free time to do more important things than shopping. The app will be available at customers’ fingertips since it is stored in their smartphones, and the cost of the app will be worth it when users come to see the variety of benefits that it offers. The company will start with online ads on Google and social media platforms (e.g., Instagram, Facebook, Twitter) and later proceed with TV and radio ads to capture a larger audience of potential customers.
Further recommendations on the marketing strategy and the analysis of the target market can be discussed during future meetings.
“Mobile App Usage – Statistics & Facts.” Statista, 2017. Web.
Small Business Administration. “Write Your Business Plan.” SBA, 2017. Web.
Wagner, Nancy. “How Much Does Television Advertising Really Cost?” Smallbusiness, 2018. Web.