My Product is: Xbox One

Learning Outcomes

1. Consumer decision-making process. Identify how marketing strategy can

influence each of the steps in the consumer decision-making process.

2. Segmentation.Use the segmentation characteristics to identify and describe

market segments.

3. Target market & strategy. Identify a usable market segment to be a target

market and determine an appropriate target-market strategy

4. Positioning.Develop and interpret a perceptual map.

Directions

So far, you have only been considering the customers of your product or service as one

big group, or a mass market.More astute marketing breaks down this large group into

smaller market segments of consumers who have similar characteristics.For any specific

product or service, there could be numerous market segments.However, company

resources may only allow a company to pursue one or two or these market segments,

which then become target market(s). You should divide the mass market for

your product or service into at least two market segments and then pick one target market

you think would have the most potential for future growth.

Think outside your own box.Chances are you picked a product with which you are

familiar. That is a good starting point, and you may represent one target market.But you

may represent a target market that is saturated and therefore not the best target market to

pick for the remainder of the semester.So be sure your second target market is different

enough and represents growth potential.

If you did not did thorough analysis of the competition in the prior writing assignment,

you may need to go back and figure out the nature of the product's or service's

competition.This will be important when you address the positioning of your product for

your newly identified target market inasmuch as positioning is a competition-based

concept.

We understand you are not an employee of the company and do not have access to the

insider data that you feel will allow you to discuss the questions to the degree you would

like.Take your best educated and reasoned guesses whenever you need to do so.

Your job will be to critically examine all of the segmentation bases and arrive at your

own description of potential market segments for your product or service.

You may want to visit this resource for more information on how to construct a

perceptual map

o Foley, B. (2018, February 16). How to construct perceptual maps from survey

data. https://www.surveygizmo.com/resources/blog/perceptual-map/

You will be constructing your map from general knowledge rather than

survey data, but the process is similar and the output will look similar,

most likely with more competitors.

Remember to label both axes of your perceptual map.

Part 1

1. Consumer decision-making process.Go through the six steps of the purchase process

outlined in the readings and identify where marketing can influence each of the six steps.

For example, if a consumer just identified a need for your product in step one, then the

company can advertise how your product fills that need.Or, if a consumer purchased

your product, the consumer can be called and asked about their satisfaction with the

product and if there is any dissatisfaction steps can be taken to ensure the customer

satisfaction.Be sure to be more specific with respect to your product or service than this

example.

2. Segmentation.Using the various criteria of the segmentation bases described in the

week's readings and in Table 4.1, identify at least two distinct market segments for your

product or service.Each market segment description must include at least three (more if

needed) of the characteristics from amongst any of the four bases categories, e.g. one

from demographic variables, one or two from psychographic variables, and one from

behavioral variables, or a similar scheme.Be sure to explain your choices based on what

customer need the product or service offering can fill for each segment.

Part 2

1. Target market & strategy.Select one of the market segments you described in

your segmentation response as the one you believe is or can be the most profitable

for your product or service offering and explain why you feel they can represent

growth for the company.Refer to the six criteria for an attractive market segment

as described in course content under 'Selecting Target Markets'.Name your

target market so you can use this name throughout all of your remaining writing

assignments.Your name should be descriptive of the segments& characteristics

like savvy young shoppers' or 'educated baby boomers', or 'urban hipsters', or the

like.The goal is for your faculty member to get a mental image of your target

market for the remainder of the semester. Should the company focus all their

resources on this new target market (concentrated marketing) or should they

continue to pursue both the new and the existing target market as well as other

market segments (multi-segment marketing)?Alternatively, is the market so

saturated might they be more successful by focusing solely on an even more

narrow market segment, perhaps an even narrower version (niche marketing) of

your selected target market, as their best chance for growth?What is your

reasoning?

2. Positioning.Draw yourself a perceptual map as illustrated in the week's readings

or the website in the directions. Be sure to pick two criteria that are important to

your new target market for your two axes, perhaps two of the criteria you used in

Week 1 in your competitive analysis.Map at least the two major competitors you

noted in the previous writing assignment and add any others that you may have

discovered since then.Describe what the perceptual map is telling you regarding

how each product is perceived in the minds of the new target market you

described above.You may have to make a series of educated guesses for some of

the data points.Ideally, you want to find uncontested space. If your product

overlaps with a competing offering discuss whether or not your product or service

should try for an 'uncontested' space on the map and 'reposition' itself; or if it

should keep the same position and compete head on with the other product.