Audience segmentation

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School

Southern New Hampshire University *

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Course

20110

Subject

Marketing

Date

Jan 9, 2024

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docx

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Uploaded by MateOxideMandrill22

Audience Targeting Zoey and Brooke, founders of Better You, believe that creating an easy to use digital health application can help balance the challenges of an active life with healthy goals and choices. We are beginning with a focus on the greater Detroit region before branching out nationally. A proper target audience is useful to narrow the application's focus. Followed are a few reference images of the local demographics in their region. ( Claritas , 2023) The population of their region consists of a small cohort of children to young adults. An average fifteen percent proportion of individuals between the ages of 25 and 64. A larger portion, nearing twenty-six percent, over the age of 65. The age range would dictate a more adult population with families or the elderly. Income ranges have a positively skewed bell curve with the median income at 50-75k per year. A large percentage of individuals make less than 15,000 per year. This area shows a below average income compared to the United States average. (Household income in the United States in 2022) The racial makeup of the region is predominantly Black/African American with the second largest group being White. Hispanics do not make up a large majority of the population. Only a fraction of people are Asian or identify as another race.

Single family residences make up nearly half of the households. Another quarter are two-person homes and the remaining quarter are three or more members. Another large proportion are unmarried without children. Targeting a collaborative interaction of local residents could build community connections while using the app. This subset of data can be used to focus the creator's vision of an inclusive digital application. The largest subset would include middle to older ages, predominantly black, and single individuals. The price should be reasonable for any application. Perhaps a free to use version and a premium version that allows for further tools and health tracking features. Allowing access to the user's location can be used to find nearby parks and recreational areas. We can encourage further interaction by creating meetup events that bring single individuals together on their health journey. (BetterYou! Vision and Product Information, 2023) Audience Segmentation A broad scale approach to implementation often targets individuals who are unreceptive to a specific product. In order to have a better advertising campaign we should implement audience segmentation. The strategy is based on identifying subgroups within a target audience to deliver a more tailored message. This can be accomplished in a multitude of ways. A few examples might include personal demographics, psychographic, purchase behavior, distribution, lifestyle, and customer surveys. Segmentation using personal demographics focuses on individual factors. Categorizing a population using age, location, ethnicity, income, or marital status. When targeting a population, advertising this product to children will have a low return on investment. Children have little purchasing power compared to adults. Focusing our target audience to middle to older adults would be a better use of funds. The local region of focus has a predominantly black population. Different advertisements will work better if targeted towards that ethnicity. Another factor that was detailed in the data was that nearly half the populace was single and had no children. This could constitute a large section of consumers that wish to maintain a healthy lifestyle to attract a partner. Psychographic segmentation isolates interests, attitudes, activities, and personal values. Examining the motivations behind behaviors, establishes a better understanding of a target audience. Even allowing a company to develop products that better serve the segmented market. Psychographic segmentation involves deep rooted concepts. Meaning, they take longer to change in a population and have a longer shelf life than demographic segmentation. To create a psychographic understanding, first, a well-defined objective needs to be clear. This defines the businesses goals to be actionable. Next is to design a tool to collect the information. This could include but not limited to surveys and questionnaires using rank-ordering, as well as open ended data like short answer text boxes. When collecting the data you want to have a representative sample of your target audience

and prioritize honesty from the participants. Purchase behavior refers to actions taken by a consumer before buying a product or service. This may include researching competing products, reading customer reviews, and/or contacting the company. Either directly or through a digital chat service to answer questions. Creating methods of information gathering would allow customers to have an invested opinion on their choice. But purchase behavior does not end once a customer pays. Tracking post purchase behavior can be beneficial towards retention and brand loyalty. An example of post purchase behavior would be sending out a thank you or check-in emails. Convincing a consumer they are welcomed into the Better You community gives a sense of connection. This email could link to healthy resources to boost engagement in locally hosted activities. These methods of segmentation allow us to use the regional data to focus our distribution to potential customers. From the research we can identify middle to older ages, predominantly black, and single individuals as a majority target for Better You. A potential means of distributing the product could be through regional dating apps. Focusing on being healthy to attract a potential partner. Find someone after finding a Better You! Identifying the lifestyle behaviors through the Better You application will greatly assist in further audience targeting. According to Zoey and Brooke, the Better You application will have a calendar where users can enter their diet, exercise, mood, and other lifestyle information. The app will provide encouragement and make specific recommendations based on the information people enter. It will also recommend fitness goals that make sense for the user’s lifestyle. (BetterYou! Vision and Product Information, 2023) For example, if the user is elderly, the app might recommend areas where they could walk with other senior citizens, as opposed to going to a gym or park. If the app's location tracking records multiple accounts visiting a given location, like a gym or nature park, it could advertise those locations to similar lifestyled individuals. This process of segmentation requires a continued effort to maintain accuracy. This can be accomplished from some of the previous tracking methods but should also include a Customer feedback survey. Accessing direct response from members will allow a focused effort to better implement actionable requests. Surveying active users can identify features they like and use. Obtaining feedback from infrequent accounts can be used to better understand the wants and needs of the customer base. If a customer ends their subscription we could ask for a reason. Leaving an open text box to respond could give insight into psychographic metrics. While there may not be a perfect segmentation method, every organization needs to develop a holistic approach for success. Diversifying our approach will result in a broader understanding of the customer base and how they interact with Better You! With successful analytics and marketing we can build brand affinity, and overtime, customer loyalty. Messaging Strategy Now that we have a segmented target audience, we need to develop a messaging strategy. A way to bring a variety of different communication tools together to deliver a common message and make a desired impact on customers' perceptions and behavior. Marketing includes any messages, media, and activities used by an organization to communicate with the target audiences and persuade them to take action (Principles of Marketing, n.d.). Our strategy should be different for our online application compared to the local audiences. We should target mobile and stationary applications differently as well. With our digital application we should consider the proportion that have access to Better You.

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