Understanding Target Audience for Product Development

Narrowing the target audience simplifies planning and enhances understanding of user needs.

### Understanding Target Audience for Product Planning
Narrowing down the target audience makes planning for a product or app easier, with **specific groups or individuals being more manageable**. The actual user and purchaser can be different, so it's important to consider both the **end users and the main target buyers**. Focusing on the primary marketing target, such as **HR personnel in a B2B scenario**, is crucial for understanding the **real issues and identifying necessary features**.

### The Importance of Target Audience in Business
Understanding the target audience is crucial when designing an app, as a **mismatched target can lead to ineffective outcomes**. Successful businesses, like Amazon and Kakao, started with a **narrow focus and gradually expanded**, applying the **long-tail theory**. Monopolies in business, such as Google, often pretend to have a **larger market share**, while non-monopolistic companies try to showcase **uniqueness to attract investment**.

### The Importance of Defining an Initial Target
The initial target for a business or startup should be **narrow and specific**, as it greatly influences standards and practices. The example of securities apps illustrates how different target audiences have varying preferences, with beginners leaning towards **KakaoPay and Toss Securities**, while experienced investors gravitate towards **Mirae Asset**. The shift in terminology from **buy and sell** to **purchase and sale** also highlights the changing standards in the industry.

### Understanding User Segments in App Services
The screen displays charts for stock trading, with a **simple chart** on the left and a **complex one** on the right, featuring various indicators. User segments are identified: **active users** regularly use the app, **engaged users** have high visit and re-visit rates, **loyal users** have long-term engagement and brand loyalty, and there are also **at-risk customers**. The user experience can vary within the same app based on different segments and the app's **main target**.

### Understanding User Churn and Data-Driven Design
Users with decreased activity and low participation are at risk of **churning**, especially if they find **better services**. Churn rates are important indicators of the app's **health**. Designers should avoid identifying with the target users and instead focus on **understanding their needs through quantitative data**, while also being cautious of the pitfalls of a **purely data-driven approach**.

### Understanding Target Audience for Effective Product Design
* 🎯 Narrowing down the target audience simplifies planning, making it easier to **satisfy specific needs**, such as focusing on a **67-year-old father** rather than all Koreans.
* 👶 When selling toys for children aged 6 to 7, it's crucial to consider not just the children as end users but also **parents and places where children gather**, like daycare centers.
* 💼 In B2B contexts, understanding the difference between **end users** and **primary marketing targets**, such as HR personnel, is essential for effective **product design and marketing strategies**.
* 📊 The importance of a narrow target audience is illustrated by examples like Amazon and Kakao, which successfully began by focusing on **specific user needs** before expanding their offerings.
* 📈 Companies with monopolies, such as Google, often project a **larger market presence**, while those without must emphasize **unique aspects to attract investment**, highlighting the significance of **understanding market positioning**.
* 🔍 The initial target should be specific, as seen in the securities app comparison, where different audiences prefer varying levels of **complexity in design and functionality**.
* 📉 User engagement levels, such as **active users**, **engaged users**, **loyal users**, and **churn risks**, are vital metrics for assessing an app's health and should **guide design decisions**.
* 📊 Designers must avoid projecting their own preferences onto the target audience and instead rely on **data-driven insights** to inform their design choices, ensuring they meet **actual user needs effectively**.

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