The target market for Xbox is a difficult one. The target demographic is constantly changing and it’s hard to know who the target audience is these days. There are so many different types of games with such different target audiences that it becomes very difficult to choose which group should be targeted in marketing campaigns. In this essay I am going to talk about what the target market for Xbox could be, why they might not exist anymore, and how Microsoft can still sell xbox consoles without a target audience.
Microsoft must first identify the sort of consumers it wishes to target in order for it to become the leader in the console business. According to Isaiah King’s Fundamental Marketing essay, Microsoft Xbox users’ target market is composed of three key elements: demographics, psychographics, and behaviors (1).
Prices start at $12
Prices start at $11
Prices start at $12
The age, generation, and gender of Xbox users may vary. The hardcore gamers ages range from 16 to 30 years old. Generation, on the other hand, has a major influence on the demographic of the console. Students between the ages of 18 and 24 are targeted much more than those over 25 as they are leaders in technological innovation. This aspect of demographic is crucial since this age group will be the driving force behind future industry innovations.
A hardcore gamer’s lifestyle is to be antisocial with other humans, but through the Internet, they may connect and create friendships and relationships by playing video games. To communicate with gamers in real time or instantly chat, Xbox has developed a live chat while gaming. Gamers are divided into social classes based on their financial position.
The upper and middle classes have the financial means to invest in new gaming consoles, while the lower class does not. The gamer’s behavior is the most crucial element of the demographic component.
For each new generation of consoles, it’s critical to have a strategic target plan; nevertheless, gamers’ conduct is the marketing target for any new development. Behavior gamers are the most dedicated customers, and their spending has a significant impact on a firm’s profitability. As a result, the target market is made up of three separate components, and being strategic with the strategy and knowing your prospects are essential.
The Xbox is a new Microsoft product on the market. This is a Microsoft-produced adult video game. It was founded in 2001 in the United States. The sixth to eighth generation of Xbox games have undergone changes. The Microsoft brand has some great software and online services that have made it very popular in the marketplace. The best example of an Xbox online service is Xbox live, which offers an excellent online service.
Millions of people around the world use Xbox live. This internet service’s virtual market services have helped businesses sell and acquire video games. Millions of users can play games from a variety of multimedia forms through the Xbox Live Marketplace. The Atari Jaguar was a modification of the Microsoft Xbox series. The most recent generation developed by Microsoft is the Xbox One, which is the third evolution within the eighth era.
Although the device has not yet been launched, it has earned the respect of many video game players throughout the world. Lowensohn (2013) notes that the Xbox One features include an improved random access memory, a more powerful core central processing unit, and a USB port with a faster connection. The hard drive incorporates architectural software built in.
This device can run three different operating systems simultaneously. The capacity to use Windows eight and RT makes it more pleasurable because it may be utilized with new devices like tablets. Because of its characteristics, the Xbox one is superior to the Playstation 4.
The Xbox One’s target market segments are casual and hardcore gamers. Casual gamers are people who play video games on a lesser basis. They play video games as a side pursuit and are not enslaved by them. Hardcore gamers are individuals who will play any video game at any cost and cannot live without playing them. Microsoft conducted market research to determine the greatest market segment for its Xbox One console.
The study revealed that hardcore gamers are the most profitable market segment. This is due to the fact that the Xbox One’s pricing is rather high. As a result, casual gamers would be inclined to abandon it. The new hard core gamers would, however, be discovered in Asia. Because the initial Microsoft product had failed in Japan, Japan was identified as a target market (Hollister, 2013). In order for the Xbox one to succeed in Japan, it must have many of the same characteristics as its predecessor did.
The ideal scenario would be where the product is at the top of its class. Because video gaming isn’t the only form of entertainment, this product provides gamers with more entertainment than just video game playing. Another significant feature of the product is that it allows you to use your Xbox One as a television. All-around enjoyment is therefore provided by the Xbox One. This is what sets apart the product from others and makes it successful. The brand image I would create would be to add a TV to existing Xbox 360 pictures. Using your money, you’d get an all-around experience under one item in brand equity.
Casual gamers are the first group of customers. This is a group of people who play video games for enjoyment. It’s tough to get this group of individuals excited, especially if the thing is pricey. The superior quality of the Xbox 360’s Xbox One would be the most appealing selling feature for this clientele. In this series, I’ll show you how the new product mixes all types of entertainment together.
A potential new product will be able to alter the attitude of these consumers. The most difficult aspect in selling the product to this consumer group would be pricing. In addition, there is a second category known as “hardcore gamers.” Hardcore gamers would embrace the Xbox one because they are hooked on gaming. Explaining the new ways in which the Xbox one may be combined is an excellent approach for the hard core market. The notion that the Xbox one is too costly would have an impact.
This is due to the fact that the major targeted demographic includes casual gamers. It’s a crucial memory to explain the characteristics of the Xbox 360. Consumers will be able to distinguish between the two series since the Xbox one has more advanced services and features than most consumers will buy it. The best learning idea would be to create a new brand identity that showcases how innovative your product is. Most people love buying new things, and if Xbox one appears cutting-edge, most customers will embrace it.
The consumer groups will have varying decision-making criteria. The first group will look at the price of the Xbox One compared to that of the Xbox 360. The majority of people in this category will be hesitant about buying an Xbox One. The rule for selecting the cheapest video game will be used by this segment. This segment’s decision-making criterion will be to choose a video game that offers the finest quality services available.
Consumers in this category would choose the Xbox One as the most sensible option. The alternatives under this section would be compared to those of competitors such as the PlayStation 4 and smartphones. In this category, consumers would be responsible for selecting the finest alternative. Consumers’ choice in deciding how decision-making rules should be made is based on their own expectations.
The main issue with selling this new product is its cost. The Xbox One costs more than the Xbox 360 and Playstation 4 (Hollister, 2013). Because most customers play video games for fun, the price will determine whether they acquire it. Others will select the less-expensive series, while others will switch to rivals such as smartphones. All forms of entertainment will be sold through the single console promise to free consumers from paying for multiple services. I’ll argue that if you buy an XBox One, you’ll get access to all forms of entertainment.
The price will be overlooked by most people, who will choose quality instead. Another issue to consider is the competition from other gaming companies. Maintaining the series’ high level of quality would be the greatest method to guarantee that consumers purchase an Xbox One. The best way to ensure that customers buy an Xbox One is to maintain its quality higher than its competitors. This will allow customers to have more freedom when choosing whether or not they want an Xbox one over its rivals.
The success of a new product is determined by the attitude change. I will apply the attitude-toward-the-ad model to change people’s feelings about Xbox One. The response to a new product’s introduction may be positive or negative, depending on what features were incorporated. To promote attitude switch, I’ll use the new features of the Xbox one to entice consumers. The new version will most likely persuade consumers to alter their perceptions about the product. This will be accomplished through a marketing campaign that displays all of the updated features to customers. Because it will serve as a moderator, the model is vital for the casual sector (Heider, 2006).
The adults are the key subculture in this category. Adults will benefit from the products, which will develop complex applications that only people over 18 years of age can comprehend. Apart from playing video games, the product may deliver television and virtual market services that are utilized by adults. As a result, the target segment’s best subculture would be those over 18 years of age since they can utilize the product for various activities. Adults place a premium on items that provide value to their lives. Xbox One enables online services for adults through improvements to their lives.
They will no longer be afraid to touch it. It is likely that they will begin to believe in the product and desire it more than anything else (Mitchell, 2001). Adults’ attitudes towards the new product may change as a result of this belief. The Microsoft Corporation is responsible for creating the product. This is a major industrial firm that causes global warming through its production processes. During the manufacturing of the Xbox one, greenhouse gases were released into the atmosphere, contributing to climate change.
Another disadvantage of the development is that it relies on hazardous chemicals to fabricate the Xbox systems. Flame retardants are an example of one such chemical. When exposed to air, this chemical causes death. To counteract the environmental consequences, the firm should consider using non-toxic materials instead. Alternatively, emissions to the atmosphere that contribute to global warming might be reduced. Alternative energy sources that produce less pollution should be utilized instead.
The nuclear family and social service providers will be interested in the new product. The nuclear family is a family made up of parents and children. They are a good target because the parents will use online services like the virtual market while the children will play video games. Also, both parents and children will watch the television using the new product. Social service providers are a household category that is a major market for the product.
Most people go to these locations to play games, and this product will be essential for them. The most effective way to reach a interested audience is through advertising. This may be achieved by newspapers, television, or the internet. Gamers who live a hardcore lifestyle are likely to be the greatest consumers of this product. Market segmentation using the Values, Attitudes, and Lifestyles system provides the best analysis of this product. The value of this item reflects how superior it is in comparison to other competing lines. Because this item is pricey, the attitude toward it is critical.
Consumers will develop a poor opinion of the product. As a result, regaining their confidence is critical. Lifestyle is the greatest method to market the item. Gamers who play for hours on end are likely to be excellent consumers of the product since they will be unaffected by price and will change their attitude. Yankelovich (2006) identified several consumer lifestyles into categories such as survivors, owners, sustainers, emulators, I-am-me people, achievers, I-am-me people, and integrated individuals.”
The purpose of lifestyle segments is to divide the market into groups. The hardcore gamers will be regarded as stakeholders since they will offer the most lucrative market. The VAL method can be used to place the product in a position where it is likely to achieve the best market. The Asian market would be an excellent way for the product to find its audience because most people in these areas are hardcore gamers. Taiwan, Hong Kong, Singapore, South Korea, and India would all make good target outlets for this targeted marketing campaign (Mitchell, 2001).
It is becoming more and more difficult for video-game consoles to compete with PCs, smartphones, televisions, and other household entertainment gadgets. However, Microsoft will have a tough time working in foreign markets since the Japanese market appears to be heating up (Lowensohn, 2013). The Xbox One has an advanced level of sophistication; as a result, many individuals will buy it. The current market in the United States and Europe is also appropriate. The product will focus on a new market while still servicing the existing one.
The competition from the consumers is most likely to be determined by the spread of innovation from one firm to another. Other businesses will utilize the innovation to develop more advanced gadgets. Consumers in the market segmentation will face greater competition as a result of this development. The tagline should be inspired by and reflect the culture and lifestyle of the customers in order on promoting word of mouth (Timothy, 2011).
The culture of the customers should be reflected in the product’s greatest brand name. People who enjoy video games are available on the Asian market. The Xbox One is an example of a product designed specifically for Asian gamers. This will enhance the brand since consumers will feel that the goods were made with them in mind.
The name should be included in advertisements and news reports so that the public becomes familiar with it. This will aid in the spread of information through word of mouth using the name. The performance of the product will be determined by the sort of culture prevalent among your consumer base. The memory word should reflect a common culture among your consumers.
Organizations are a viable market for the product. The Xbox One is a social technology that may be utilized by everyone in society (Yankelovich, 2006). Organizations are made up of people’s ability to perform different duties within the company. When employees become weary, they require some leisure activity to provide comfort and relaxation. The video games provided by the product will offer workers with lots of entertainment.
For everyone in any business, television services are vital. To persuade businesses to purchase the goods, I’ll go on the internet and promote it. The product may be advertised on social media sites to get people to use it. It’s critical for marketers to appeal to consumers’ social customs when advertising their products. Promoting consumer social groups is also an effective promotion approach.
The organizations will be primarily concerned with the culture of their customers. Workers in a company that emphasizes culture will also buy the product. The environment’s protection is also a unique marketing tactic. Most environmental conservation-related businesses will purchase the product. Other people outside the organization will force businesses to use environmentally friendly products.
As a result, the marketing effort should concentrate on environmental management. Another effective promotion method is to focus on the quality of the product. Organizations are more concerned about the quality of their products than they are about pricing. Because the product is of high quality, emphasizing on its excellence will encourage customers to buy it.
The most common post-purchase difficulty that is likely to happen with this product is if the clients’ expectations for quality are not met. The Xbox One is a high-quality game console. When a customer purchases an item, he or she expects it to be of good quality. When consumers find out that the standards aren’t met, they may feel disappointed. However, the consumer may not come right out and say he or she purchased a low-quality item with a lot of money (Joel, 2007).
This is referred to as post-purchase rationalization. The buyer will not acknowledge his poor product selection. This is the major post-p purchase problem that this product is likely to face. Other potential problems include a device failure or a product that requires a lot of energy. Because the device has multiple systems that are all running in parallel, it may utilize a significant amount of electricity. The product’s faults may keep it out of the targeted market due on.
The damage will be most severe where the product has yet to be introduced. Customers will see the product as a low-quality item that is being marketed as high quality. When the error is fixed, consumers may continue to connect the brand with defective goods. As a result, the product would find it difficult to replicate its sales in the market again.
It’s critical to handle a dissatisfied customer in order to preserve your company’s sales reputation in the market segmentation. When a dissatisfied client appears, his or her complaint should be heard. This is due to the fact that an irritated consumer is more likely to influence the thoughts of other consumers. A sequence of actions must be followed when dealing with a disappointed customer. The initial step would be to listen to the customers’ complaints. This will encourage the client (Thomas, 2011).
The next step is to remain cool while the consumer gives his or her complaint. The customer will attempt to communicate his or her dissatisfaction in a clear manner. Validation of the customer entails determining whether the client has a genuine case. This may be accomplished by asking some questions about the product. If the complaint is legitimate, respond to the client with suggestions on what caused the problem.
An apology should follow this to demonstrate concern and the need for correction. Making the client feel good again will boost his attitude, making him more receptive to your suggestions. After that, take measures to remedy the problem. Make sure the defective goods have been replaced by checking in with the client again.