MKTG 630 Unit 1: Analyzing MM's New Product Target Market

This assignment analyzes the target market for MM's new product, focusing on demographic, geographic, psychographic, and behavioral characteristics. The demographic segmentation targets millennials aged 23-38 with specific income and education levels. Geographic considerations involve operating within a 400km radius of the warehouse. Psychographic analysis highlights the importance of social media and e-commerce. Behavioral characteristics emphasize the millennial's interest in healthy living. The discussion covers the importance of political, economic, and technological factors in marketing and the opposing viewpoints on socio-cultural and technological factors. It also includes a discussion of an expense tracking application, environmental factors affecting its launch, and SMART goals for the application, including sales, market share, and profit targets.

Running head: BUSINESS MEMO
BUSINESS MEMO
Name of the student
Name of the university
Author note

1BUSINESS MEMO
To: ::::::::::::::::::::::::::::
From: :::::::::::::::::::::::::::::::
Date: :::::::::::::::::::::::::::::::::
Subject line: Conceiving an idea on the target market of MM’s new product
Opening
It is to bring to your notice that our organization, MM, is planning to introduce a new proposition
in the market. Therefore, it is necessary to identify the target population that might be considered
by our business. In this regards, the purpose of the memo is to conceptualize and recommend the
most suited target market for our business.
Discussion
The business is proposing a new offering for which we are considering the target market
assessment with the purpose of positioning the propositions effectively. The target customers
will be divided between four criteria- demographic, geographic, psychographic and behavioral.
Demographic characteristics of the target market
The demographic segmentation of the target customers will be people within the age group of
23- 38 years, the millennial population. The primary target market will include both male and
female customers and are job holders with an annual salary ranging from $50,000- $75,000.
The organization will also target the customers with minimal educational qualification of a
university graduate. The assessment of the demographic characteristics supports an organization
in idealizing the most suited customer base while developing an idea on the age, gender, income

2BUSINESS MEMO
or education (Büger & Hylkén Olsson, 2017). Therefore, the demographic segmentation of the
customers would empower the marketing operations of our business.
Geographic characteristics of the target market
Our organization will be operating at regions that falls under the radius of 400 kilometers from
the established organization’s warehouse facility.
The delineation of the geographic segmentation enables an organization in gaining a cognition of
the market reach that might be covered by the same while expanding (George et al., 2016).
Therefore, the geographic characteristics would allow our organization in improving the market
reach.
Psychographic characteristics of the target market
The psychographic criterion specifies the buying habit of the millennial population and their
increased inclination towards the use of social media and e- commerce platforms. Therefore, our
organization will take the initiative of targeting the social media users as our primary customer
base.
Prasad (2016) opined that the psychographic classification of customers allows an organization
in identifying the specific buying habits of the customers. Therefore, the psychographic
segmentation would allow our organization in calibrating the promotional activities while
targeting the millennial population.
Behavioral characteristics of the target market
The behavioral characteristics of our target customers would be the interest of the millennial
towards healthy living conditions. It has been noted that the millennial population prioritizes the

3BUSINESS MEMO
experience based buying which is one of the major considerations that our company might
attract.
Keng and Kim (2016) stated that the behavioral criterion supports an organization in conceiving
the buying intent of the customers. Our company is aimed at proposing offerings that would
support the customers in leading a healthy lifestyle.
Therefore, the study of behavioral characteristics of our customers, specifically their inclination
towards experience based buying would help us in improving the line of propositions.
Closing
Therefore, we wish to improve the marketing and positioning based operations of our
organization through appropriate identification of the target market.
From,
::::::::::::::::::::::::::::

4BUSINESS MEMO
References
Büger, M., & Hylkén Olsson, R. (2017). Multichannel Segmentation vs. Demographic
Segmentation.
George, W. B., Smith, K. G., Hansen, I. M., Aurigemma, P., & Sandquist, C. J. (2016). U.S.
Patent No. 9,269,091. Washington, DC: U.S. Patent and Trademark Office.
Keng, B. J. L., & Kim, E. D. J. (2016). U.S. Patent No. 9,367,603. Washington, DC: U.S. Patent
and Trademark Office.
Prasad, S. (2016). Psychographic segmentation of online consumers and its antecedents of online
purchase experience–an analytical study. IJAR, 2(2), 748-753.