Market Segmentation And Target Marketing – Business Memo

Scenario:

To: The executive management team Portron Inc.

From: The Marketing Assistant Portron Inc.

Subject: Developing a strategy regarding the creation of a new product.

This memorandum aims at exploring the opportunities that can be afforded through the development of a new multimedia box by Portron Inc.

The product incorporates a number of features that were hitherto unavailable in a single portable product. By adding portability and a whole lot of features it seeks to capture a specific target audience. The market conditions have been analysed and the product has been designed in accordance with the demands of the consumers.

The executive management team is expected to use this memorandum as a reference before embarking upon the development of the product.

A large number of consumers belonging to varied age groups seek for easy and cheap access to multimedia through a varied range of devices. The smartphone boom is one evidence regarding this phenomenon. Regardless, despite the demand this market is a highly competitive one and organizations selling in this market have to maintain a balance between affordability and features provided in order to attract customers (Tan & Carrillo, 2017).

Porttron Inc. would enter the market by providing a multimedia entertainment box that would include surround sound speakers and a few other features like an extended screen and a keyboard. Now if one looks at it, it is really an innovative product as there are hardly any other products in the market that offers so diverse features in portable size. There shall be an additional benefit of getting two-year subscription to Spotify premium. All of this would come for a mere $499. Therefore, consumers who would listen to music on speakers would definitely choose this product over others because there will be no need to carry an extra speaker and simultaneously, a large screen and a keyboard would make viewing videos and usage more convenient.

The record industry is slowly undergoing a paradigm shift and it is quite evident that in a few years the only form of listening to music would be through online subscriptions (Sinclair & Tinson, 2017). It is more convenient in the sense that it provides unlimited access to music. It can also be used people who are not particularly interested in music as it also has the feature of watching videos and surfing the internet. However, it would require a certain degree of familiarity in using technology therefore the it is believed the age group of the target market would not be below eighteen and above forty years.

It must be realized that there is a certain degree of complexity involved in the handling of the product. Therefore, it would appeal to the younger generation (Wee, 2016). And since it provides such a versatile package in portable form, it will be especially useful for people whose lifestyles involve a significant amount of travel.

From the above sections it can be inferred that the target market for the product would consist of young people who require a consistent access to multimedia with ease. The additional features would ensure that the people who travel a lot would find this object indispensable.

The product combines the features of a lot of other items combined and therefore would provide competition to a number of products already existing in the market simultaneously for example bluetooth speakers, portable music players, tablets et cetera. Since, the market in saturated and there is always a certain uncertainty associated with the market, flash sales shall be conducted on an online basis. Advertisement shall be solely online to reduce the expenses of the company (Zaman & Sembok, 2015).

Thank you for taking the time and patience required for going through this memorandum. I can only hope that the insights provided above shall be of use to the organization and shall relieve the executive management team of a lot of unnecessary work. I can only wish the best for Portron Inc.

Sincerely,

(Name)
Marketing Assistant
Portron Inc.

References

Tan, Y., & Carrillo, J. E. (2017). Strategic analysis of the agency model for digital goods. Production and Operations Management, 26(4), 724-741.

Sinclair, G., & Tinson, J. (2017). Psychological ownership and music streaming consumption. Journal of Business Research, 71, 1-9.

Zaman, H. B., & Sembok, T. M. T. (2015). Distributed Multimedia: An Edge to Future Marketing Strategy. In Proceedings of the 1997 World Marketing Congress (pp. 534-539). Springer, Cham.

Wee, V. (2016). Spreading the Glee: Targeting a youth audience in the multimedia, digital age. The Information Society, 32(5), 306-317.