The choice of an appropriate target market is crucial to the success of the overall marketing strategy. We have chosen several market segmentation variables in order to determine our target market.
Firstly, the market was divided into demographic segments. The most important approach used was the Living Standard Measure (LSM), which is a unique means of segmenting the South African market by using criteria such as the degree of urbanisation and ownership of cars and major appliances (SAARF, 2006). This measure divides the market into 10 LSMs, with 1 being the lowest and 10 the highest. Our research has shown that the Nokia 8800 is more likely to be purchased by individuals falling within LSMs 8 to 10.
Furthermore, we have identified three more specific categories of people within LSMs 8 to 10 who will form part of our target market. Firstly, high-income earning businessmen will choose this phone because of its simple, yet functional, features. Secondly, affluent housewives will want it because the phone’s gold plated cover makes it a symbol of wealth and status. Thirdly, socialites will opt for this phone as it is a bold fashion statement.
Another demographic factor that we considered was age. We believe that the target market for the Nokia 8800 will be aged between 25 and 50. Younger people will prefer the trendy appeal of the phone, while older individuals will choose it either for its functionality or to keep as a collector’s item.
The last demographic element we looked at was education, and we concluded that the phone is more likely to be purchased by individuals with an advanced level of education as they normally earn higher income and can afford it.
We also considered psychographic factors in segmenting the market. Our research has indicated that our target market will consist of upper-middle and upper class individuals, who enjoy an affluent and trendy lifestyle.
Moreover, geographic variables were taken into account. We have...