Homework answers / question archive / Target Market Analysis       Author Affiliation Course Instructor Due Date           Target Market Analysis The concept of understanding target markets will focus on the marketing plan of Microsoft Inc

Target Market Analysis       Author Affiliation Course Instructor Due Date           Target Market Analysis The concept of understanding target markets will focus on the marketing plan of Microsoft Inc

Psychology

Share With

---

Target Market Analysis

 

 

 

Author

Affiliation

Course

Instructor

Due Date

 

 

 

 

 

Target Market Analysis

The concept of understanding target markets will focus on the marketing plan of Microsoft Inc. the focuses of the research will be on various elements that include demographics and psychographics on consumers. It will also focus on the company's major threat, opportunities, customer analysis and insight that impact the target market. The marketing mix is a vital component of business that helps address product—price, promotion and place of a company. Microsoft company can benefit from primary research, current opportunities, continuous monitoring, potential future threats and secondary research. The demographics and psychographics of its consumers provide the company's position concerning its target market.

Demographics

The current consumer demographics of Microsoft are individuals between the age of s6-32. It is mainly individuals raised in single-parent family homes and loyal to the Xbox gaming console idea since its launch. The gaming system has been a massive influence in the television industry. Despite being applied for a specific target group, it has revolutionized the entertainment industry. At the onset of creating the Xbox system, there was a limited scope of technology and online systems. The number of individuals with television was 96% at the time. Those with gaming consoles in the United States stood at 49% (Gough,2019). These data indicated the need for Microsoft company to change the statistics and close the gap. The emergence of Xbox one was aimed to target such a market and ensure each household with television could purchase a console. Several families enjoyed streaming music, watching movies and tv. It provided such consumers with an option of buying items that were not manufactured by Microsoft. The business looks forward to an inclusive experience of its target market beyond young people.

Psychographics

The use of psychographic information is critical in establishing buyer behavior, purchase habits, values, hobbies and spending habits. Psychographics relate demographics as it is focused on people who purchase and spending. They help explain people's behavior on how they buy and why they engage in such activities of buying products. It benefits the organization to assist in comprehending issues on reasons behind consumer purchases (Mittal, 2016). It is difficult to understand the purchase behavior of a single mother with children on a piece of gaming console. However, such data are critical in establishing a forecast for sales. These entail concerns associated with the purchase of items for the children, such as health and benefits emerging, such as exercising in some gaming programs. It is a critical aspect of measuring various factors that play a major role in buyer decision-making.

Secondary and Primary Research

The use of primary research in understanding consumer behavior is critical for Microsoft business. It measures information obtained directly from the consumer through various platforms. These include online forums that Microsoft utilizes in gaining complaints and feedback on customer satisfaction levels. Besides, the company conducts town hall meetings, online surveys and questionnaires that provide the input required for understanding various market measures (McCollough& Shook, 2017). These data helped the company build and gain knowledge implemented in meeting consumer expectations and requirements for their products. Customer relationships are created by interacting with them in the form of surveys. Besides, the organization remains successful in building customer loyalty through primary research feedback. Secondary research applies reports and data that were collected by the company within a region. It requires insight. These include the unemployment rate, consumer price index, inflation and demographic that establish demand patterns in an area. Such ideas must meet the needs of the business and provide necessary information for implementation.

Continuous Research and Monitoring

The company should engage in constant monitoring and research that will ensure its vision is accomplished. It entails executing initiatives that promote market growth by making decisions inspired by consumer feedback. There is a need to limit business exposure to compliance and operational risk demand that business executives should understand the need for accelerating change within the dynamic and complex business environment. The modern business environment required adherence to changes and appropriate strategies that cause shocks to firms (Husnain& Toor, 2017). Consumers are in a position to understand and know the business through constant research and continuous monitoring. They will be in the know of the activities and measures taken to meet their needs. These include expectations concerning the use of a gaming console.

Current Opportunities

Microsoft business stands at a position that would ensure its success within the target market. These include the presence of several current opportunities that include technology and favorable demographics that have embraced gaming culture. The use of the gaming system is geared mainly towards the young age group. However, there is still a large market currently involved in gaming, and their purchase patterns remain unpredictable. As a tech firm, Microsoft has an efficient online experience for its consumers, which curbs competition from rivals such as Nintendo and Sony.

Conclusion

Microsoft aims to understand both the demographics and psychographics of its market using appropriate research from primary and secondary sources. It entails understanding the behavior of consumers in terms of purchases and their buying patterns. These tools offer an opportunity to become successful within the competitive target market.