Chapter 8: Segmenting and Targeting Markets

The Xbox 360 is a part of a rapidly growing Gaming Market that is expected to reach 117.9 Billion dollars by the year 2015 and is worth more than 74 Billion as of July 2011. In compliance with our text book MKTG 5 Student Edition the definition of a Market is "people or organizations with needs or wants and the ability and willingness to buy". This is only but one of the many interpretations of Marketing but it boils down to needs or wants and the ability to buy if these two requirements are met along with other factors such as successful market segmentation then a Market can strive.
 Marketing Segmentation- One of the major Marketing Segmentation's in the Gaming Market is made upon different age groups. The markets are divided by age. In reference to a chart that I presented in an earlier post (shown below) the ESRB rating group created a rating system to divide content amongst different age demographics.

 

ESRB rating chart for video games

Based on the content within each game Microsoft is then able to choose which age groups to target. The children will be targeted for the sale of rated ec games while ages 13+ will have rated T games marketed towards them. This way the segmenting and targeting of consumers is made in an effective and appropriate manner.