Launch Mobile Delivery App: Identify the Right Customers - Essay Sample

Before introducing a new product or idea to the market, one has to first determine the individuals that will act as an avenue to buy the products. Consequently, the number of customers available should be large enough to make the investment worthwhile. Some people will require your services more than others do, and others will accept the services simply because the price is favorable or because the services exist. In this case, the service in question is a mobile delivery application, namely Errand Mate. For individuals very busy or physically unable to go out for their shopping, Errand Mate is a great way to get their goods in the comfort of their places. Errand Mate is a mobile application with a wholly integrated errand service. People looking to order personal goods through the application requirements to pay the price of the goods in addition to a small delivery fee and the products will be delivered right to their doorstep.

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For this mobile application to effectively work, the most crucial aspect is when the delivery has to happen. There will be no point in delivering products a day or two after the day they were required. It would be better if no delivery was made at all. Another important aspect will be how the consumers, online customers, view the services. That is why many online services, such as Uber, ask for an individual's rating of the services delivered. For Errand Mate, it's important to consider the main customers for the services. This includes individuals and organizations. This can be achieved by dividing the consumers in different categories in a process known as market segmentation. The process involves categorizing all potential customers into groups of potential customers having the same characteristics.

Since the marketing budget may be limited, consumers that are interested in the same types of products or services have to be targeted to maximize sales at a low cost. Targeted marketing involves choosing a particular group of individuals and organizations to deliver products or services to. On the other hand, mass marketing involves providing the same type of products or services to everybody. The latter is mainly driven by mass productions while the former is a relatively new phenomenon. In mass marketing, products are advertised generally through all platforms while in targeted marketing advertisement is made to a particular group of people or organizations. For Errand Mate, it's better to work with target marketing. The main audience to aim at here would be busy professionals, caregivers, students, and persons with disabilities.

Most students are technologically advanced in terms of mobile phones making it easy for them to access Errand Mate since it is an online app. busy professionals such as company management, doctors, office workers among others may find it tiresome or simply lack the time to go shopping. Errand Mate will be a great avenue for them to get their products through a click of a button without even leaving their workplaces. People with disabilities will find it more convenient to order products through Errand Mate given that they would require more energy and time to get the products from stores. Through segmenting and targeted marketing, there will be great benefits for Errand Mate as compared to mass marketing which would target all individuals. Some of the benefits include; identifying early adopters, retaining customers prone to defect, developing new deals and expanding brands and product lines, and avoiding direct competition with other companies looking for the same customers.

Market research has to be done in a move to attaining more accurate target marketing. This can be done with the help of tools and research methods to carry out market segmentation. Some government agencies even collect vast amounts of data. A good example is the United States Census Bureau whose data on economic data and population information can be applied to review trends in the consumption of products and services. The presence of modern technology has made it easier for entrepreneurs as well as small companies to collect data on potential clients. The web browsing patterns of individuals can be tracked using the internet. This can help Errand Mate in segmenting potential customers making it easy to carry out effective advertisement. This has been made easier for small companies through Google services such as Ad Words and AdSense programs. Companies no longer require their software to track web browsing patterns of potential customers. All they have to do is sign up with the mentioned Google programs and achieve segmentation at an effective cost.

Other sources of information on potential customers for Errand Mate are discussion forums and blog sites. A good discussion forum is Big-boards .com were potential customers interested in the products and services offered by Errand Mate can be mined from the many discussion forums. Notably, technology isn't necessarily the only way to reach potential target customers. It's also important to apply individual marketing skills through talking to would-be customers. In this case, to source for potential customers an individual may go to would-be buyers in gyms, malls, restaurants, daycare centers, offices and grocery stores to take a survey on the most sourced products and the majority of interested customers.

As much as it's important to gain new Errand Mate customers, it's also crucial that older customers are retained. A good way to keep the customers is through constantly engaging them to do business with the company. Situations may arise where firms may lack funds to carry out an advertisement for new customers hence the older customers play a big role in the company's fortune. Such situations may present themselves in cases of economic downturn which makes marketing campaigns quite expensive. Demographic segmentation involves segmenting buyers about individual characteristics such as incomes, ages, and ethnicity and family sizes. Demographics are an easy way to segment markets because the information is widely and publicly available in databases. In the United States, demographic information can be obtained from the United States Census Bureau, The World Factbook, and FedStats. Additional information on the sites include possible future demographic trends.

Age

Marketing professionals take into account what the various age groups are likely to buy at a particular age in their life. An example is, an individual at the age of 24 is more likely to purchase a vehicle rather than a burial plot. This a good reason to segment markets in terms of age. In modern societies, a huge population composes of college-age individuals. This is a niche for Errand Mate which can target this age group to provide products that are mainly applicable to college students. Given the different age groups, Errand Mate should aim to provide appropriate products to the same. This should be done following statistics showing the number of individuals in a particular age group to avoid the acquisition of less or in excess products.

Source: Zion, Aric" Food Delivery Apps: Usage and Demographics

-Winners, Losers, and Laggards."

From the data above, it's clear that individuals aged 18-29 make most of consumers of online products. Errand Mate should target the same age group for their products.

Income

Income is crucial as a segmentation variable since it shows the buying power of a particular group. The majority of big spenders in the United States are individuals above sixty given that they have already completed their education and earning periods making them able to purchase vacations, luxury cars among others. However, Errand Mate doesn't necessarily require to target this age provided they also offer products and services at a fair price. The rate of income isn't always an indication of which people will buy Errand Mate's products.

Source: Zion, Aric." Food Delivery Apps: Usage and Demographics- Winners, losers and Laggards"

The data above shows that Errand Mate can provide products that are affordable for lower-income levels and suitable for upper-income levels.

Geography

Segmentation via geography helps in determining where a majority of customers may be located. This helps in targeting potential customers with advertisements or even sending ads directly to their mail. Population size as well as city densities come in handy during segmentation. In areas where the population is large, there is great potential to acquire customers as compared to areas having a small number of people. By using proximity marketing, Errand Mate can employ wireless technology to target potential customers within their location.

Source: Molla, Rani. " What is the biggest food delivery service in your city?

The data above can be helpful to Errand Mate in identifying areas where individuals usually prefer ordering products online. In the same way, the company may target potential customers in such areas.

We currently live in an on-demand economy where timely delivery of products and services is very essential. For Errand Mate to provide products demanded by customers, they will have to depend on local service providers and suppliers. This means that the company will have to negotiate deals with the various local suppliers in the cities they intend to supply products in. The deals can involve a reasonable discount for products over marked prices as well as asking for commissions on products purchased directly by the customers. Consequently, Errand Mate has to source for local delivery agencies in the various cities and areas of business. These local delivery agencies will be crucial in delivering products to customers in a good time. The agencies mode of payment may be through a fixed charge rate or simply a percentage of the amount paid for the product. There should also be an agreement on how the delivery agencies can compensate the company in case of late deliveries to customers, something that will affect Errand Mate in a great way. To counter the amount that has to be paid to delivery agencies, Errand Mate should add a delivery fee to the charges paid by the customer.

A big reason why consumers prefer to use online shopping apps is due to convenience. Therefore, Errand Mate should ensure there is convenience for its customers. Consumers don't require to follow the long queues to be served in the various stores. Making the app easy to use ensures customers can order anything through their phone and expect delivery within a short period. Errand Mate should aim at saving a customer's time. Many individuals who order products online find it frustrating to go to the stores given that they have jobs that require their attention all day. Such customers are looking to save time via Errand Mate. The application should also work to save a customer's resources if at all it is to be efficient. A basic way that online shopping applications achieve this is through cutting traveling costs that customers would have incurred by going to the stores. Errand Mate should avail proportional discounts to their products as well as reward loyalty points as a way of appreciating its customers.