Business marketing homework

Project 3

Market Target and Positioning (Apple Pay)

General Characteristics: Apple Pay operates in the mobile payment market. Consumers using mobile payment are cell phone users, as this is the primary device for mobile payment applications. The mobile payment market is increasing in use at a rapid pace. Total revenue was reported at 450 billion in 2015, 620 billion in 2016, it is expected growth to 1080 billion by 2019 (Statista), and over 3 trillion by 2021 (Evans). Younger generations are driving the transition to mobile commerce. The new generation will control the future of the industry and will likely be technologically advanced. If trends continue mobile payment may become the standard (Evans).

Market Segment: Technology adaption is key to obtain more users. We have broken this down into 4 main categories that describe cell phone users who may be using apple pay/mobile payments.

• Tech Savvy (majority at 40.9% of users). Well informed about or proficient in the use of modern technology, especially computers. These users can’t live without the internet and new technology. They buy and use new electronics often. The more technology the better. These users look for new features and benefits. These users probably already use Apple Pay and are interested in new features and benefits (LLC.).

• Tech Advanced (22.5% of users). This group uses their phones a lot for all sorts of purposes. Internet, eCommerce, entertainment and other apps are all in play for these users. Although they are fully capable of understanding and using new technology, it is not always their top priority. New technology such as Apple Pay may be the next big thing for this group, and they will eventually use mobile payments without further push (LLC.)

• Tech Learners (26.8% of users). This group is not as technologically advanced as the other segments, however show a willingness to learn and incorporate new technology into their lives to make their day to day routine easier. These users are sensitive to price and features, including security. Ease of use is a plus, and plenty of information is needed to learn new technology (LLC.).

• Tech Novice (9.7% of users). This group of users doesn’t use much new technology, and isn’t interested in learning. They don’t understand the benefits, and are against change. They simply don’t seem to be willing to use or even learn about new technology such as mobile payments (LLC.).

Target Segment: Tech Learners. This segment is the most ready and willing to adopt new mobile payment technology. At nearly a quarter of the market, these are potential new users who need more information and a marketing push to show the value of mobile payments such as Apple Pay. This group is ready, willing to learn, and looking for new technology to make their lives easier.

Demographics:

- Age: Younger users. Target age range 18-44. Millennials/Gen X

- Gender: Males and females.

- Class: Middle and upper class.

- Life Stage/Marital Status: Bachelors and newly married couples.

- Occupation: Students, business professionals, managers

- Geographic’s: US domestic market. (Users worldwide, however this plan focusses on US)

- Psychographics: Loyal, High energy, ambitious, seek high value. Explorer (likes unfamiliar area).

- Benefits sought: Speed of Service, Efficiency, Effectiveness, Security

- Situational and behavioral factors: Retail locations must offer apple pay (mobile payment). Consumers must already use card forms of payment, and carry their cell phone with them while shopping. Time crunches could help, as mobile payments are faster and easier than standard payment. (Dudoviskiy)

Target Evaluation: Although the “Tech Learners” segment is made of many different types of people; these demographics explain much of the market. “Tech Learners” will be key to growing the user base and increasing market share in the mobile payment platform. These ambitious users are ready for new technology and are able to use it effectively once they decide to learn. The younger generations will continue to dominate cell phone and mobile payment use and will continue to do so for the foreseeable future. This plan will focus on the US domestic market and will take advantage of the benefits sought by this target market (speed, efficiency, security). The demographic psychographics show new users will be highly engaged and enjoying the new adventure while appreciating the value Apple Pay provides. Users will likely be employed and live in the middle to upper class. Some form of disposable income is likely for new users to need Apple Pay. Retailers adopting mobile payment technology will be an uncontrollable factor that could have major implications in new users.

Slogans: Since its inception Apple Pay has sought to” change the way you pay” (Apple).

• Competitive Advantage: To achieve that goal Apple has laid an extensive groundwork in the last few years. The company has partnered with a growing list of banks and retailers which has greatly broaden acceptance of the payment method. In addition, the company has successfully raised awareness of Apple Pay resulting in substantive recent payoffs, “In the US, three out of four contactless transactions are conducted via Apple Pay” (Apple Pay). However, there is still improvements to be made as several competitors have recently entered the market. Increased retailer acceptance including smaller retailers, growth in repeat users of the application and partner education are all needed.

Apple. Apple.com. 17 Feb 2017. 17 Feb 2017.

Dudoviskiy, John. Research Methodology. 05 March 2016. 17 Feb 2017.

Evans, Michelle. "5 Key Trends That Most Shaped Mobile Payments in 2016." EUROMONITOR INTERNATIONAL (2016): 1.

LLC., Simmons Research. "Technology Adoption Segmentation." Chart/Market Segment. 2014.

Statista. Statista.com. 30 Dec 2016. 17 Feb 2017.