Marketing 360 Degree Corp

TARGET MARKET, SEGMENTATION

E.S.P. Electronics has created a 360 Degree Television using state of the art projection technology. This unique brand of engineering could revolutionize today's existing markets. The boundaries of flat screen televisions can finally be broken. E.S.P. will have access to a wide array of markets using older flat screen technology. The markets that exist today for this new technology defy boundaries. Television sales alone have reached 25 billion dollars annually and are expected to grow substantially over time. Teleconferencing, theaters, stadium systems, video arcade systems, outdoor signage, automobiles, aircraft, trains, and ships are other formidable multimillion dollar markets with explosive growth potential for E.S.P.'s 360 Degree Technology.

In the determination of the target market, E.S.P. Electronics must identify the possible market segments. Once the segments can be readily identified E.S.P. can select a target market from these segments.

As quoted in our textbook, Marketing Management; all marketing strategy is built upon STP. (Segmentation, Marketing, and Positioning) Through expansive research we will determine the different needs and groups within the marketplace. Our goal will be to target our customers in a superior way and bring satisfaction while offering a unique image and product. Our first goal is to pursue a market which presents the greatest opportunity. This will be the target market in which we wish to pursue.

Market segmentation is the division of consumers who require different products or marketing mixes. It is the division of a heterogeneous market consisting of buyers with different needs and wants, creating a homogeneous market segment of buyers with similar needs and wants. In segmenting a market, marketers look for broad classes of buyers who differ in their needs. The marketing department will combine many variables to identify smaller and better defined target groups.

Any segmentation system requires our firm to know the benefits customers want and their characteristics. To define a market segment, we need to know the benefits that customers are seeking to enable us to group these customers together. We will also need to be able to describe and label the groups in some way so we can find all the customers in that specific segment. We will define geographic, demographic, psychographic and behavioral segmentation in determining our prime target market.

The two target groups that offer the most opportunities for 360 Degree Television are the Home Theatre and Video Game Market. In order to determine the various segmentation levels we can observe the statistical reports in these specific industries.

The intended audience for this given product is divided according to geographic units, such as nations, states, regions, counties, cities, or neighborhoods. Our firm will tailor marketing programs to fit the needs of individual geographic areas, localizing the product, advertising, and sales effort to geographic differences in needs and wants. Our firm will also study the population density or regional factors of geographic segmentation.

Geographic Segmentation

In order to divide our target group by geographic segmentation we have used the following data;

Studies in the video game market reveal that this market will increase from $31.6 billion in 2006 to $48.9 billion in 2011. This makes video games the third-fastest-growing segment of the entertainment and media market after TV distribution (up 9.3% to $250.7 billion in 2011). Video game growth will be strongest in the Asia Pacific region. Asia is the largest market, with a 10% annual growth rate through 2011, but will increase in the Europe/Middle East/Africa region (10.2%), the U.S. (6.7%), Canada (9.4%), and then in Latin America (8.2%).

To give a comprehensive insight, we can further break down the numbers, giving consumer spending by region on games played on consoles, handhelds, PCs, and mobile phones, including online games and subscriptions to online services such as Xbox Live (MSFT).

Certain trends are continuing to hold steady across many regions. One specific trend is the increased penetration of broadband access. This variable contributed to the surge of online gaming. In the U.S. and Europe/Middle East/Africa, online gaming represents the fastest-growing consumer segment (19.3% and 24.6%, respectively); in Asia Pacific and Canada, online growth came in second only to wireless (at 16.1% and 13.9%, respectively).

Tremendous potential is available in our future if we can expand from the US markets onto a global scale.

Other trends are more regional. The in-game advertising market is expected to increase 64% in the U.S., for instance, while these studies are difficult to track in other regions. China is expected to have the largest growth rate of any country in the region, rising at a compound annual rate of 14.3% to $2 billion in 2011. The majority of all of that growth will come in online games.

In the region of the United States retail sales of video games, which includes portable band console hardware, software and accessories, saw sales of over $9.9billion - a decline of less than one percent when compared to $10 billion in Annual 2009. The dollar sales were down slightly, total industry unit sales were up 4 percent over the same period last year. Sales remained strong, largely in part to the console software, portable game software and portable game hardware categories. This is an important figure for E.S.P. Dollar sales percentages had increases of 7 percent, 11 percent and 10 percent, respectively in the past three years. For the first time ever, sales of portable software titles broke the $1 billion mark. Total software sales also continued to set new records, with sales exceeding $6.2 billion, an increase of 8 percent in overall sales when compared to $5.8 billion in 2008. For 2009, console software, portable game software and portable game hardware also experienced healthy unit sales increases of 8 percent, 13 percent and 9 percent, respectively.

The U.S. computer and video game software sales grew four percent in 2009 to $9.3 billion -- a more than doubling of industry software sales since 1996.

Our second main focus is the home theatre market. On a global level the market for home theater technologies and services is expected to grow from $1.9 billion in 2006 to $2.9 billion in 2013, a compound annual growth rate of 6.9%, according to Electronics.ca, an industry research company.

Home theater products include sound systems, display systems, players, media storage devices, and theater-in-a-box systems, which are seeing the fastest increases in sales. This market offers