Memorandum
To:
From:
Date:
Subject: Target Market of MM Inc
For devising any marketing strategy for a new product, it is needed that the nature of the product and the reach that it needs in the market should be well understood. It would include thorough research on the targeting, segmentation, and the positioning of the product. It is required for directing all the marketing efforts specifically towards the target customers. It would aid in the shaping of expectations, and for the advantage of gaining efficiency and organizational effectiveness.
Target Market
Target marketing is the phenomenon which deals with the analysis and evaluation of the segments of the market and subsequently identifying the one group of the segment which is the most suitable one or has the most potential of consuming the product or service. This one group or segment is targeted to direct all the marketing efforts towards it specifically. This group or segment is comprised of the buyers who all have specific common needs. The target market is to be selected based on the growth and size of the segment; the growth potential of the segment, the objectives, and resources of the company, the structural attractiveness of the company environment including the power of buyers, suppliers, substitute products, new entrants, and competitors (Nayak, 2012). For the MMI, the target market domestically would comprise of college boys and girls, Kids, teens, and working couples. This same segment would also be followed in the market of the UK, China, India, and Germany. The target market of the company should be same as its competitors like that of Samsung which includes trendy people, professionals, common cell phone users, large businesses, organizations, and colleges.
Segmentation
As the product of the MM is a consumable product and which is also very much dependent on the level of satisfaction of its consumers with it, the segmentation can be based on the behavior and the lifestyle of the consumer. The market thus can be divided as per the behavior of the consumers and as per the lifestyle of the consumers. These separate segments would be targeted separately as different lifestyle consumers would not attract a similar marketing effort. Furthermore, based on the different occasions of the consumers, benefits, usage rate, user status and loyalty to the product would also yield different segments. For example, for urban consumers, a different marketing strategy is needed as compared to the upper middle class and lower-middle-class consumers (Bajaj, 2017). Female and male genders have different needs and aspiration which can be highlighted differently to provide the association with the product. Different age groups would yield different segments as well.
Geographic Segmentation
Geographically, as discussed before, MM would focus on launching its product in the US at first, however, after this; it will launch its same product in all global regions as well with full throttle. European countries will provide the most important point other than Indian and Chinese emerging markets. Moreover, cities and regions can also be segmented in order of their density, climate and metro sizes for better segmentation (Bajaj, 2017).
Demographic Segmentation
Demographically, by age, family size, income level, education, race, religion, occupation, gender, and nationality, various segments can be formed in aiding in this process. For MM Mobiles, age group from 16 to 45 years, female and male, all nationals, all religions, college, and university students, and employed persons are the main target (Wilson & Gilligan, 2012).
Psychographics Segmentation
Based on the division of social class, personality, and lifestyle, MM should focus on urban, trendy, modernized, and young lifestyle, and open-minded personalities for segmentation. The mobile is representative of the psychographic segment who choose their products based on their lifestyle priorities.
Behavioral Segmentation
On the basis of usage status, benefits, and occasions, MM can also segment its target market into a further segment for targeted marketing efforts. The usage status can be more in young consumers, which can become a separate behavioral segment. Furthermore, loyalty can be more found in the professionals, employed individuals and companies who want one good package and do not want to switch for minor benefits.
Positioning
It is a process through which distinct and meaningful positions which are also competitive are created for having a competitive position in the minds of its potential customers. It is known that perceptions drive the buying behavior of the customers. Impressions, feelings, associations, and emotions all play a vital role in building a perception of a product. Therefore, it is needed to consider this as well while strategizing on the marketing efforts of the MM (Wilson & Gilligan, 2012).
MM Inc should position itself by adopting the strategy of using concept stores, creating a wider care network, tapping small towns, branding itself as a synonym for quality, and using branding for high value driven customer base (Bajaj, 2017).
Recommendations for Marketing Globally
As discussed before, for global marketing, it is recommended that MM Inc should first let the domestic launch take a strong hold and then gear up for global launch in the European market and Emerging market as well. The company can use the same promotional and advertising strategies it uses in the US for the European market, however, for the Indian and Chinese market, it would need to devise individual targeted marketing effort as suitable for the market.
References
Bajaj, A. (2017). A Study on Market Segmentation of Samsung Electronics Ltd. with Special References to Mobile Phones. International Journal of Advance Research, Ideas and Innovations in Technology, 3(5), 367-372. Retrieved from Ijariit.com.
Nayak, N. (2012, December 11). STP of Samsung. Retrieved from http://stpsamsungmobiles.blogspot.com/
Wilson, R. M., & Gilligan, C. (2012). Strategic Marketing Management (3 ed.). Routledge.
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