Segmentation and the Target Market

MT219-3: Describe market segmentation and target marketing in a case scenario.

Using the information on the target market you learned from reading Chapters 6 and 8 in your text, original research on the Internet, and the various Learning Activities provided, read the scenario and respond to the checklist items in a business memo format.

Case Scenario: The product is a portable multimedia center, to be marketed in the U.S., called “Media Popup” and made by the startup company Porttron, Inc. The multimedia center is a glossy compact 10ʺ×12ʺ entertainment box. It includes a screen with optional additional screen extension that pops out of the right side; a computer keyboard that folds down; four surround-sound mini-speakers that can be adhered to any hard surface with the stick strips at the back of each speaker; and a subscription to streamed movies, music, and videos for 2 years — all for $499. It is available in three different colors (black, silver, and white).

Business Memo: You are a marketing assistant at Porttron, Inc. tasked with providing a business memo (i.e., an internal company document) to the U.S. executive management team of Porttron, Inc. concerning the checklist items provided below.

Write a minimum 500-word original business memo. In a concise manner, describe to executive management the data you will analyze to determine a potential market for this product. State your purpose in the opening paragraph and provide sufficient information to explain the required items. Finally, provide a concluding paragraph to summarize your suggestions.

Checklist:

-Identify either a consumer or business market.
-Describes a minimum of four (4) bases each for segmenting the market for at least one market
-Identify four (4) segmentation descriptors (e.g., if a company chose usage-rate segmentation they might decide between heavy and light users).
-Explain your rationale for the four (4) segmentation descriptors for at least one market.
-Describe a minimum of 4 factors of the target market.
-Identify a marketing mix (product, place, promotion, price) for the product.
-In a minimum of 2 pages (500 words) in a Microsoft Word document, write the business memo using the current APA format and citation style

ANSWER

Segmentation and the Target Market

Date: March 13 2021

To: Porttron, Inc. U.S Executive Management Team

From: Marketing Assistant

Subject: ‘Media popup’ product

This is to inform you on the introduction of the ‘Media popup’ product to the market and the need to analyze the potential of the product in the market. The market for media popup is the consumer market with the demographic, geographic, psychographic and behavioral as the market segments. These are some of the data that will be used to analyze a probable market for the product. It is imperative to identify the market so as to identify the target market and work towards promoting the product to this target group.

Media popup is an entertainment product as it is an electronic that provides for subscription to movies, music and videos and focusing on the consumer market would enable breaking it out to the general population. The market segment for this product is demographic, geographic, psychographic and behavioral. Demographic segment will look into the age, gender and income of the consumer market. This entails identifying the target group of people around the age of 25-35 years who are people with an income and are able to afford buying the product. Geographic segment will majorly focus on those people living in the urban areas while the psychographic segment targets the introverts who prefer watching a movie instead of going out to socialize. The behavioral segment focuses on heavy users who spend a lot of time on their screens.

The four segmentation descriptors include heavy users, introverts, urban and young with an income. Heavy users as a descriptor because those who use a product a lot would look into getting an upgrade of the product which creates a gap in the market that would be good for Media popup. Introverts are people who do not like social interactions and can be characterized as being gamers which would be an ideal target market for our product. This is because people with this kind of personality mostly prefer using their screens either mobile phones, TVs, laptops which makes media popup an ideal product to this target group. People living in urban areas are more likely to have the latest technology updates and this creates a perfect opportunity for Media popup to enter the market. Finally, those who are young and have a source of income are more likely to spend money buying new products in the entertainment sector. (Camilleri, 2018)

Factors affecting the target market include geography, lifestyle, age and income. Geography entails making the product accessible to people who are able to use and access the products and any other product related issues. The lifestyle of a person would have an effect on them being able to buy one product and not buy another. People have different lifestyles that make an impact on their day to day activities including which kind of products they buy. An example is those with an extravagant lifestyle will buy whichever product they want while those living tight do not enjoy this luxury. Young people are more likely to buy entertainment products as compared to those who are older. In particular, those who are young and have a source of income fit into the target market for Media popup. (Talukder et al., 2019)

The marketing mix for Media popup would be the product and promotion which would be focusing on the specs of the product in promoting it to potential buyers.

In conclusion, identifying the target market for Media popup is the first step to bringing the product to the market. This enable the potential positive receipt of the product as it would cater to specific needs of the people.

References

Camilleri, M. A. (2018). Market segmentation, targeting and positioning. In Travel marketing, tourism economics and the airline product (pp. 69-83). Springer, Cham.

Talukder, A., Alam, M. G. R., Tran, N. H., Niyato, D., & Hong, C. S. (2019). Knapsack-based reverse influence maximization for target marketing in social networks. IEEE Access, 7, 44182-44198.