For a company market segmentation is basically a process in marketing which enables markets to be divided into separate sectors. These markets usually tend to behave in a similar way as each other. Market strategies play a big part in segmentation because since each sector is similar and alike in terms of there attitude and needs they are also likely to respond to a particular market strategy in a similar way as well.
For my company Sony, the segments are not divided into different categories which they operate in. They all operate in one market segment which is the gaming segment. For example my product which is the Sony PlayStation 2 is in the games console division which sells, games consoles, games and accessories. The company Sony sells the Sony Play station 2 which is the console itself, Sony Play station 2 games such as GTA San Andreas, which can be operated by the console and Sony Play station 2 accessories such as a steering wheel or an infra - red controller which are gaming accessories that can be used on the Sony Play station 2 console.
This is one segment as they specialise in selling gaming products and everything involved in this market involves gaming. However if my product was something like an I Pod it may be in different sectors such as portable audio along with computing accessories as it can enter both market sectors.
Each company has a segment which they aim to target and they always have a specific motive behind this. For my company Sony, they are focusing on the electrical segment as all the products that they sell are electronics anyway.
However for the Sony product which I have decided to specifically focus on, the Sony Play Station 2 targets on the gaming sector. This is because everything involved with the Sony Play Station 2 is within the gaming sector.
This market continues to grow regularly as there are always new updates and additions added to it. New games are released on a regular basis along with games consoles from time to time, keeping customers attracted and bringing new audiences in. I think that since changes are always being made to the gaming market this market will continue to grow and it will be quite hard for the market level to decrease as the factors involved make it hard to do so.
Due to these facts I have come to the conclusion that the revenue potential for the Sony Play Station 2 alone is really high. The overall gaming markets including the other consoles such as Nintendo Game Cube & X Box 360 are amazingly high overall but since the Sony Play station 2 tends to dominate its market a substantial amount of potential revenue goes towards the Play Station 2 console. It does this by having a larger collection of games and accessories than its competition & because of this the potential revenue is quite high.
Sony Play station 2's ideal customers are focused more on children, teenagers and young adults as the Sony Play Station 2 consoles, the games & accessories tend to appeal more to this target market. The people involved in this target market are viewed as the type of people who are more in touch with the new generation of electronics. This isn't to say that people in other age ranges such as the elderly wouldn't like the range of products that the Sony Play Station 2 has to offer.
My strategy for Sony's Play station 2 involves the Sony PS2 targeting specifically on what individuals out of each target age range want. Therefore its main objective is finding out what appeals to these people that Sony Play Station 2 can offer. Sony can do this by carrying out lots of research, for example surveys and questionnaires.
By carrying out this extensive research Sony would want to get as much information about the people in there target range. For example if Sony were to hand out questionnaires to people aged from 18 - 30 then they could be able to get more insight on what the people from the young adults age range would want from a games console such as the Sony Play Station 2.
One question which could enable them to gain extensive information about the people in this age range would be what type of games do you like? The choices could be between fighting, sports, and racing or strategy games and let's just say that 70% of the people who were aged between 18 and 30 decided to choose fighting games. This piece of information could be seen as very important because Sony would realise at the present time that the people who are in there target audience are mostly interested in action games & therefore will increase the number of action games released for the Sony Play Station 2. As you can see my strategy's objective focuses mainly more on what the Sony Play Station 2 customers want so the main factor for my strategy is customer satisfaction.
This is so that by obtaining the necessary information from these people they are able to make improvements to the Sony Play Station 2 and come up with new idea's which would attract customers in the same target range. Even though this information will mainly help the Sony Play Station 2 games console it will also overall give Sony better recognition and increase brand awareness. Due to all this the Sony Play Station 2 consoles sales will increase & more consoles, games & accessories will be sold. Along with all this more people may purchase Sony merchandise such as Play Station 2 magazines and they may even attract more people to there promotions. For example more people may be on the Play Station 2website after being attracted to something that Sony realises appeals to them.
Positioning is always a big factor for any company when it comes to selling specific products. Companies have to be able to offer customers things such as special offers, introductory rates or competitions to keep them attracted and interested in your company's products.
Sony Play Station has a lot to offer to customers. Not only do they regularly keep bringing out new updates such as new games & accessories but Sony also manages to have regular special offers and things of this nature to keep customers attracted. For example the below competition was taken from the official Sony Play Station 2 website - www.SonyPlaystation2.com
1 PlayStation 2 Console for the competition winner, 4 PlayStation 2 Game CDs for the other four finalists. (5 prizes in total for 5 contestants).
Designing a PlayStation 2 400 pixels x 1000 pixels banner. We will provide the contestants with a zip file that includes the ONLY external image that they can use in the design and some optional fonts that you may wish to use.
-Each contestant can participate with more than one submissions, but only one may be entitled to the final poll.
-Submissions have to be 400 pixels x 1000 pixels in JPEG format.
-No other external images/photos are to be used in the creation of the banner.
Choosing the Winners:
The Oman3d team is going to choose the best five entries and put them in a poll for the members to vote for the number 1 winner. The first place design will win a PlayStation 2 console and each of the other four finalists will be awarded an Athens 04 Olympics game CD for PlayStation 2.
The last date for submission is the 15th of August. The Poll will be started the next day and the winner will be announced on the 22nd of August.
-The judges team "may" request any contestant to provide them with the source file they used to create their final image(PSD, PNG, etc.), failure to provide the source file is sufficient to disqualify the contestant.
-The moderators and owners of Oman3D and their relatives are not qualified to join in this competition.
-The names of the winners will be sent to Sony Middle East and/or Muscat Electronics to arrange for the collection/delivery of their prizes.
-Members living in the Middle East and Africa are only qualified for the competition.
PlayStation, PlayStation 2 logo and "Dual Shock are registered trademarks of Sony Computer Entertainment Inc.
All rights are reserved to their perspective owners.
As you can see from the above competition Sony manages to position themselves high in the gaming market by keeping customers interested with competitions such as these. This is just one example, Sony Play Station 2's merchandise such as there magazines have there own offers too. One example of this is that inside the magazine every month they have a £5 off discount voucher which can be used on games for the Play Station which are over £40. By doing this they are persuading people to purchase games for the PS2 console and making it look like as if customers are saving money. This is to attract customers more to there products.
Sony gives out promotional offers as well. For example in the PS2 magazine demo disks or DVD's are sometimes attached with the magazine. These promote the new games that are forthcoming and sometimes even allow people to have a little preview by playing the demo. This again is offering a lot to the customer. Lastly discounts are also given sometimes when PlayStation 2's are sold in packages. Its offers like these that keep the Sony Play Station 2 in a good position in the gaming market.