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Bateman Case Challenge Popmoney

Allison Pecevich, Jennifer Salomon, Amanda Taddeo, Kelsey Russell

Executive Summary
Salem State is a thriving campus with a diverse student body and many active organizations. Despite the diversity, each student shares the same need: a fast, safe, and reliable means of paying bills and transferring money. Theres certainly a need. Students need money from their parents and need to pay bills. Popmoney offers a perfect solution to address these needs. Our research found that college students value technology, notably in a portable form such as with smartphones and tablets. Additionally, theres a strong focus on the internet and social media within this audience. Our study, which consisted of a ten question survey, found that students had a need for a better money transferring service and that one that fit into their technology and media use would benefit them the most. This shows that Popmoney has a real opportunity to grow amongst Salem State students. Our strategies and tactics reflect these trends, including ways of reaching out through the internet and social media. We also intend on using incentives to draw prospective users in. The secondary audience, which our research and survey showed does not appreciate technology as much, we plan to reach through more traditional methods such as through the mail or email.

Situational Analysis
There are 42,219 people living in Salem, Ma. according to the Census Bureaus 2012 estimates. Salem State University has itself 7,143 undergraduate students alone, according to the Salem State website. There are roughly 28 banks serving the city

according to yellowpages.com, but we seek to add another financial aid into the lives of these thousands of people: Popmoney. The median household income in Salem is $56,203, according to the Census Bureau, and the average bill of a Salem State student for an entire year is $8,530, according to estimates given by Salem State. With how inexpensive Salem State is compared to other schools in the area, students may have some disposable income. If parents are paying the bill, they may be more willing to send their child money, given how inexpensive the school is. For students living in off-campus housing, Popmoney offers a fast and secure way to pay their bills. The Census bureau also states that 12.3 percent of people in Salem are living below the poverty line. For these consumers, Popmoney could allow for a secure way to send money to family members in need or to pay bills. Despite the ease of Popmoney, the brand name is not well known among consumers, competitors such as the services PayPal offers being better known. What consumers dont know is how easy Popmoney is in comparison to PayPal. PayPal has to draw from your bank account to the website to send money. Popmoney lets you send right from your bank account to another person. Also, all you need to use Popmoney is an email address or phone number. No banking information, no hassle. Financial institutions that do offer Popmoney do not prominently display the service on their webpages, so consumers have no idea the service exists. Popmoney has an opportunity to grow in Salem among both students and residents to provide easy and secure money transfers. Particularly for students, the service will allow for ease and peace of mind in paying bills, and peace of mind for worried

parents also who are too far away to give their children money.

Target Audience (Revised)


The audience directly impacted by this campaign is Salem State University students. A population of 61 percent women and 39 percent men constructs Salem State. The student body is 73 percent Caucasian, 9 percent Hispanic/Latino, 8 percent African American, 3 percent Asian, 3 percent non-resident alien, and 1 percent ethnicity unknown. The average age for all students is 24; for full time students its 22. Massachusetts students make up 97 percent of the school and 3 percent are out of state. Salem State students are from 29 states and 66 countries. Salem State is comprised of 7,143 undergraduate students, 1,095 of which are incoming freshmen. There are 1,348 graduate studentd. The median household income in Salem, Ma. from 2007 to 2011 was $56,203. In Massachusetts it was $65,981. From 2006 to 2010 in Salem Ma., there were a total of 15,769 males over 15. 6,437 were never married, 6,958 are married, 533 are widowed, and 1,841 are divorced. For the same set of years, there were 18,423 females aged 15 years and over. 7,005 were never married, 6,958 are marries, 1,886 are widowed, and 2,747 are divorced. The secondary audience of this campaign is people the primary audience will exchange money with. This includes roommates, friends, but most importantly, parents. The age of the parents is likely to be between 40 to 60 years of age. In Salem, 12.9 percent of people age over the age of 65, according to the Census Bureau. High school graduates over the age of 25 make up 87.8 percent of Salems population, and holders of bachelors degrees over the age of 25 make up 37.6 percent. There are 2,768 veterans in Salem.

When applying to colleges, kids are generally looking into the programs the school offers, what sports they could play, and what is there to do for fun and keep them busy. Salem State University is a fairly small college. It doesnt have a football team or a partying reputation like some schools might. However, if you ask any Salem State student why they love to be part of Salem State, they would not hesitate to respond positively. As many will tell you;, when that calendar hits Oct. 1, the fun begins. From the ghost tours, haunted houses, and historic museums the fun is unlimited. Halloween is unlike any other holiday that is celebrated in Salem. Its not just celebrated on the 31 or the week before. Halloween is celebrated the entire month of October and to some, the entire year around. It is home to the Salem witch trials of 1692. The town becomes flooded with over 250,000 people in just the month of October alone. Salem is known for its mix of important historical sites, witch-themed attractions and a vibrant downtown with more than 60 restaurants and coffee shops. Salem is the perfect college town. Imagine living in a town where Halloween is celebrated year around, and ghosts and witches are just a small part of the fun! In addition to the Halloween fervor, Salem State students are fans of sports. Walking around campus will give you signs of Red Sox, Bruins, Patriots, and Celtics pride on clothing. The secondary audience, the parents of Salem State Students, has a large interest in sports. Many stores in the area sell clothing and memorabilia for the different sports teams for Boston, including the Red Sox, Patriots, Celtics, and Bruins. Many regional commercials that play feature these teams, and the games are heavily promoted. Additionally, the coffee chain Dunkin Donuts plays a big role in the culture of the

secondary audience in the area. One can be found on nearly every street, and the company often partners with local sports teams such as the Red Sox. Sources: Census Bureau, Collegboard.com, Salemstate.edu, USA.com

Secondary Research (Revised)


Technology Use Students aged 18-24 typically have a reliance on technology, mostly with cell phones, laptops, and tablets. According to the New York Times, students spend an average of 123 minutes a day on personal computers. The New York Times also reports that students dont like using email and are not always comfortable using it. According to Insidehighered.com, the percentage of students with smart phones is rising. Most students have grown up immersed in technology and are naturally comfortable with it. Most students spend an average of 18 hours a week online, and about 53 percent of college students own a smart phone.

Social Media Its no surprise that the use of social media has dramatically increased throughout the last several years. According to Effective Student Marketing, as of January 2013 there were 1 billion monthly active users on Facebook. Youtube has 800 million users, Google+ has 343 million users, Twitter has 200 million users, and LinkedIn has 200 million users. In an article from the University of Maryland, college students admitted to being addicted to social media. When asked what kind of phone they owned, 43.3 had smart phones and 56.7 percent did not.

Another article, written by Lauren Miller from ME Marketing Services, states that many college students find that being connected to peers via the Internet is most helpful. With little amount of time due to busy schedules, they find it more convenient to interact through social media. Adults use of social networking has increased substantially since 2005. Today, 72% of online adults use social networking. Although younger adults have always been the higher number of social media users, social networking among the older generation has been the most surprising growth in recent years. 78% of adults ranging from ages 3049 use social networking sites. As of December 2012, 15% of online adults said they use Pinterest, 13% said they use Instagram, 6% said they use Tumblr and 67% said they use Facebook.

Income On average, students graduating with a Bachelors Degree in 2013 will on average obtain a job with an annual salary of $45,000. Students graduating with a Masters Degree in 2013 will on average obtain a job with an annual salary of $59,300. After subtracting expenses such as rent, various bills, student loans and miscellaneous expenses; it is hard to imagine how an individual can stay afloat. However, since expenses add up quickly one would assume college students and graduates would start maxing out credit cards. According to an article by Joshua Eferighe who works for the Washington Times, explained that college students are more wary of credit card debt. Credit card usage among college students dropped by 35 percent in 2012, stated

Eferighe. College students and graduates are becoming more aware of their spending habits because their income is not so high. Spending Habits College is extremely expensive. However, the cost of tuition does not include the cost of spending money. Statistics show that seniors graduate with an average of $4,100 in credit card debt because they spend their money carelessly. Eighty-four percent of college students admitted they need more education on financial management. According to Danielle Romano from the Pioneer Times, in 2011, 46 percent of unrestricted spending went to food; $20 billion on groceries, $12 billion on eating out, and $8 billion on convenience food. Today, students spend over $100 a month on coffee alone, as well as $50 a month on beer. Although there is not much a single student can do about the cost of their tuition, they could definitely learn to manage their personal spending money better. As a college student, the last thing they are concerned with is saving their money. They would rather have a good time and eat a good meal from their favorite restaurant down the street. Sources: Rubin, Courtney. "Technology and the College Generation." The New York Times. N.p., 27 Sept. 2013. Web. <http://www.nytimes.com/2013/09/29/fashion/technology-and-thecollege-generation.html?_r=0>. Guess, Andy. Students Evolving Use of Technology. Inside Higher Ed. N.p., 17 Sept. 2007. Web. http://www.insidehighered.com/news/2007/09/17/it>. The Relationship Between College Students and Social Media: What Makes it so Influential? Effective Student Marketing. Web. <http://effectivestudentmarketing.com/press/the-relationship-between-college-studentsand-social-media/>. Ottalini, David. Students Addicted to Social Media. University of Maryland. N.p. 10, April 2010. Web. <http://www.newsdesk.umd.edu/sociss/release.cfm?ArticleID=2144>.

Income of Young Adults. National Center for Education Statistics. <http://nces.ed.gov/fastfacts/display.asp?id=77>. Salary Survey. National Association of Colleges and Employers. N.p. 4 Sept. 2013. <http://www.naceweb.org/s09042013/salary-survey-average-starting-class-2013.aspx>. Collegian Spending Habits: Booze, Food, Computers. Pioneer Times. N.p. 25 Feb. 2013. <http://www.wpupioneertimes.com/1225.html>. Leclerc, Kristi. Influential Factors Contributing to College Student Spending Habits and Credit Card Debt. University of New Hampshire. <http://cola.unh.edu/sites/cola.unh.edu/files/student-journals/P12_Leclerc.pdf>. Eferighe, Joshua. College Students More Wary of Credit Card Debt. The Washington Times. 1 April 2013. <http://www.washingtontimes.com/news/2013/apr/1/collegestudents-more-wary-of-credit-card-debttoug/>. Digital Dependence of Todays College Students. PR News Wire. <http://www.prnewswire.com/news-releases/digital-dependence-of-todays-collegestudents-revealed-in-new-study-from-coursesmart-122935548.html>.

Primary Research
Primary research was conducted in the form of 10 question surveys that were distributed through various forms of social media. A survey was created for both our primary audience and secondary audience to find out both technology habits and financial preferences of the participants. Primary Audience The primary audience survey received 32 responses, the participants aged between 19 to 23. Of these, 25 were female participants and seven were male. All 32 were college students and all owned smartphones. Of these participants, 30 said they had used an online banking or payment service before, and two had not. The same 30 found these services convenient. Thirty-one participants use the internet more than seven times per week, and one uses it four to seven times per week. Each week, 12 participants transfer

money three to five times, five transfer more than five times, and 15 transfer one to two times per week. Thirty-one participants said they would be likely to use a service that quickly and securely transfers money. Not many in the primary audience listed problems theyve had with online payment services or money transfers, though a few mentioned that it takes too long, and another mentioned they didnt like the fees associated with them. Secondary Audience The secondary audience survey received five responses, the participants aged between 47 and 55. Of these, three were female and two were male. Three of these participants owned smartphones. These same three said that they had used online banking and money transfers before and found them convenient. One participant said they used the internet one to three times per week, and the other four said they used it four to seven times per week. One participant said they transferred money more than five times per week, three participants said they transferred money one to two times per week, and one said they transferred money three-five times per week. Four participants said they would be likely to use a service that quickly and securely transfers money. Three participants said they werent very comfortable with technology, and two felt comfortable. For problems with using online payment services, one participant said they didnt really know how to do it, and another said they didnt feel safe transferring money online. The survey questions used can be found at the end of the proposal.

Key Messages (Revised)


You spend enough time on it, now make the internet work for you!

97 percent of participants use the Internet more than seven times per week. Pop Moneys websites makes transferring money fast and easy. Want privacy? No problem! Thirty-one participants said they would be likely to use a service that quickly and securely transfers money. Pop Money gives you the security you need with your confidential information throughout your entire online banking experience. Need money now? Pop money gives you the money you need in just a click of a button. From our survey, each week 12 participants transfer money three to five times, five transfer more than five times, and 15 transfer one to two times per week. How convenient is it to be able to make these transfers when youre on the go? Download the app on your smartphone and youre ready to send money whenever you want! Wondering how safe Pop Money is? Information sent through Pop Money is encrypted preventing unauthorized access to your information. There are also one-time pass codes that are sent from Pop Money when a new email or cell phone number are added to your account. This way the user has to send the pass code back to Pop Money before any deposits are confirmed.

Goals & Objectives


GOAL: Provide easier means of transferring money and paying bill for college students and young adults.! Objective 1:To raise awareness of Popmoney for paying bills. Strategy 1: Reach the target audience through advertisement! Tactic 1: Create a Popmoney commercial to play on select television channels.!

Tactic 2: Place Popmoney advertisements on billboards near college campuses.! Strategy 2: Entice the target audience with promotional incentives.! Tactic 1: Offer $5 gift card to a nearby establishment to those who use Popmoney to pay bills within a given set of days.! Tactic 2: Provide users an opportunity to win a contest if they use Popmoney within a given set of days.! Objective 2: To raise awareness of Popmoney for transferring money. Strategy 1: Reach the target audience through the use of social media.! Tactic 1: Promote the Popmoney page on Facebook.! Tactic 2: Promote the Popmoney account on Twitter.! Strategy 2: Promote the Popmoney app for smartphones.! Tactic 1: Make the Popmoney app a sponsored app so it displays first in searches.! Tactic 2: Promote the Popmoney app on the companys social media pages.! Objective 3: To target the secondary audience, parents. Strategy 1: Raise awareness of Popmoney among parents.! Tactic 1: Use traditional mail to send flyers to parents of college students.! Tactic 2: Send out emails explaining Popmoney.! Strategy 2: Show parents that Popmoney is easy to use to transfer their child money.!

Tactic 1: Encourage college students to show their parents how to use Popmoney through advertisement. These advertisements should encourage students to do this so their parents will send them money.! Tactic 2: Advertise on television networks the secondary audience watches.

Survey Questions
Primary Audience Questions: 1. How old are you? 2. What is your gender? 3. Are you a college student? 4. Do you own a smartphone? 5. Have you used any kind of online banking or money service? 6. Do you find electronic payments convenient? 7. How often do you use the internet per week? 8. How often do you transfer or receive money weekly? 9. Would you be likely to use a service that quickly and securely transfers money? 10. Have you had any problems with electronic payments? Secondary Audience Questions: 1. How old are you? 2. What is your gender? 3. Do you own a smartphone? 4. Have you used any kind of online banking or money service? 5. Do you find electronic payments convenient?

6. How often do you use the internet per week? 7. How often do you transfer or receive money weekly? 8. Would you be likely to use an online service that quickly and securely transfers money? 9. How comfortable are you using technology? 10. Have you had any problems with electronic payments?

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