Unit 2 IP Understanding Your New Target Market

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Jan 9, 2024

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Advertising and Public Relations MKTG320-02-1804A Unit 2 IP Prof. D. Glazer October 17, 2018  Compare and contrast the similarities and differences regarding the needs, wants, and psychographics of your current and new market segment. Currently, our cost per customer is high and that reduces our profits, this will change with our new target. We’ve identified, and need to penetrate this new market segment as this bank’s long-term strategic goal. Our marketing strategy of offering competitive 401K plans and market proven investments will our key advertising plan. The psychographics of my market segmentation shows that there is a great void in the African-American community as far as investments and savings are concerned. The psychographics (personalities and values) are different than what we currently have with our current customer base. An ABCNews study shows that income made a huge difference with African-American investors. A 2001 survey shows that African-American earning six-figure salaries are just as likely to invest in stocks as whites. (ABCNews, 2018) The African- American community is under-invested in the stock market. As for retirement savings, African-Americans averaged $44,000 while whites had $69,000. Our bank needs to capitalize on this void. It is also important to note that the impetus for African-American investment was children, not retirement. African-American s tend to want to invest in educating their children to improve their futures, over saving for their retirements. (ABCNews, 2018) This study also finds that the percentage of African-American people who have most of their funds in mutual fund companies and not in banks have steadily climbed from 26% in the late 1990’s to 37% today. The 51 percent investment level for white investors has been flat over the last four years. The study also concludes that 401(k) plans are a key way for blacks to become invested. 70 percent of those surveyed said retirement plans are a contributing reason for being an investor, compared with 63 percent of whites. (CNBC, O’Brien, S., 2016)  Create and describe the key messages from a branding perspective that you wish to deliver to the new market segment that will provide the greatest impact.  Explain why this message will appeal directly to the new market segment. My key message is “Wealth Goals” For Business, Retirement, Education, and Leisure. This message is simple and easy to identify with. Those that want to start a business, those that want to retire, those that want to send their children to college and those that love vacations, let us help you achieve your goals. Traditionally, blacks have shied away from stocks out of mistrust of Wall Street, partly because Wall Street showed little interest in their

money and partly out of ignorance as to how the stock market worked. (Truell, 1998) We can remove the fear of investing.  Discuss whether digital or traditional approaches will provide the best promotional channels for your new target market, and explain why. Online advertising has been proven to be the most effective way to reach new customers. Reports indicate that around 95% of Google’s revenue comes from online advertising. (Saleh, 2017) Almost everyone has a cell phone, computer and some type of device that has movie or music applications that runs advertising. Maximum coverage at minimum cost.  Identify 2 communication channels that will reach your specific target segment, and explain why these are appropriate for your specific target segment. Facebook and Twitter are the two communication channels that we will use for our advertising. Ages 18-34 show as the users of Facebook with a total of 22% of all women and 35% of all men use Facebook. (Statista, 2018) References: https://abcnews.go.com/Business Black millennials narrowing racial investment gap, https://www.cnbc.com/ Black Investor playing catch-up, https://www.nytimes.com Effective online advertising, https://www.invespcro.com/ Facebook Global user age distribution, /ttps://www.statista.com/

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