Running head: MARKET SEGMENTATION 1

Market Segmentation
MARKET SEGMENTATION 2
Market Segmentation
Activision !i""ard is a #u$!ic!% traded com#an%& Nasda': AT(I) Activision !i""ard
*as the *or!d+s second !argest gaming com#an% $ased on revenue ,ust a-ter Nintendo
.So-t*areto#1//)org& .2/101) The% have created some o- the most #o#u!ar on!ine games in the
#ast decade inc!uding the 2ia$!o series and 3or!d o- 3arcra-t) This #a#er *i!! seek to take a
!ook at the com#an%+s idea! customer $ase -or a ne* #roduct)
Demographic Characteristics
According to Kot!er 4 Ke!!er .2/111& 5In demogra#hic segmentation& *e divide the
market on varia$!es such as age& -ami!% si"e& -ami!% !i-ec%c!e& gender& income& occu#ation&
education& re!igion& race& generation& nationa!it%& and socia! c!ass5 .#) 216& #ara) 71) These t%#es
o- varia$!es are #o#u!ar *ith marketers $ecause the% are usua!!% associated *ith *hat a
consumer *i!! need or *ant .I$id& 2/111) In regards to the age grou# o- the target consumer
Activision !i""ard can $e !ooking at consumers starting at the age o- around 89%ears9o!d to
adu!ts in their mid9to9!ate 0/+s) This can $e -urthered re-ined to the age that most start *orking
and are sti!! *orking& such as 189%ears9o!d to mid9to9!ate 0/+s) The reason -or this is that on!ine
gaming o-ten inc!udes some kind o- su$scri#tion or on!ine #urchase to kee# #!a%ing) This *riter
has $een #!a%ing on!ine games since 2//0 and has o$served man% variations o- on!ine gaming
and has seen ho* the% have im#roved and -ai!ed) :ami!% si"e does not have to $e necessari!%
taken into account& ho*ever& on!ine games $ecause o- their socia! nature *i!! o-ten have a *ho!e
-ami!% #!a%ing one game) Gamers gro* o!d *ith the games the% #!a% $ecause o- the time
commitment #eo#!e #ut into them) Gen ;+s and Gen <+s are the $est market)
3hen !ooking into the !i-e stage o- the consumer marketers *i!! !ook at varia$!es that
de-ine *hat is their ma,or concern .Kot!er 4 Ke!!er& 2/11& #) 21=& #ara) 21) These varia$!es
MARKET SEGMENTATION 7
inc!ude such things are the% going through a divorce or taking care o- an o!der #arent .I$id&
2/111) In the o#inion o- this *riter understanding *here their consumers are *i!! great!% he!#
the marketers in determining *hat kind o- game content is needed so that the% can he!#
consumers *ith *hat the% are going through) (ideo games have o-ten *orked as an 5esca#e5 -or
#eo#!e so this *i!! $e good -or a gaming com#an%) Gender does not have to $e taken into
consideration too much as video games crosses $oth genders) >o*ever& it is im#ortant to
consider them as men and *omen do have di--erent attitudes and the% a!so $ehave di--erent!%
.Kot!er 4 Ke!!er& 2/11& #) 21=& #ara) 71) This goes the same -or considering race and cu!ture) In
the o#inion o- this *riter the consumers generation is more im#ortant)
Psychographic Characteristics
5?s%chogra#hics is the science o- using #s%cho!og% and demogra#hics to $etter
understand consumers5 .Kot!er 4 Ke!!er& 2/11& #) 22@& #ara) 81) u%ers are divided into di--erent
grou#s on the $asis o- #s%cho!ogica!A#ersona!it% traits& !i-est%!e& or va!ues .I$id& 2/111) Too!s
such as the Strategic usiness InsightBs .SI1 (ACSD -rame*ork are used to he!# identi-%
grou#s) >ere 8 grou#s are determined: Innovators& Thinkers& Achievers& EE#eriencers& e!ievers&
Strivers& Makers& Survivors) 3hen deve!o#ing video games a com#an% !ike Activision !i""ard
cou!d $ene-it $% kno*ing ho* these di--erent grou#s mind sets *ork so as to $ui!d a video game
or game in genera! $ased on *hat -its the customers) The% can add& -or eEam#!e& a -eature that
a!!o*s #eo#!e to create or $ui!d structures *ithin the on!ine s#ace)
Behavioral Characteristics
3hen marketers divide $u%ers into grou#s on the $asis o- their kno*!edge o-& attitude
to*ard& use o-& or res#onse to a #roduct this is $ehaviora! segmentation .Kot!er 4 Ke!!er& 2/11&
#) 22=& #ara) 01) In regards to a needs and $ene-its it is im#ortant to rea!i"e that one #roduct ma%
MARKET SEGMENTATION 0
not ho!d the same $ene-it -or ever% #erson) 5Needs9$ased or $ene-it9$ased segmentation is a
*ide!% used a##roach $ecause it identi-ies distinct market segments *ith c!ear marketing
im#!ications5 .Kot!er 4 Ke!!er& 2/11& #) 22=& #ara) @1)
The Product
One o- the ma,or $ene-its Activision !i""ard has going -or it is $rand a*areness) Man%
*e!! kno*n entertainers inc!uding 3i!!iam Shatner and Mr) T a##eared in T( commercia!s -or
3or!d o- 3arcra-t) In the video game communit% the more hard core #!a%ers *i!! $e more a*are
o- !i""ards other #o#u!ar I?+s such as Starcra-t and 2ia$!o) The #roduct !ooking to $e
introduced *i!! $e a on!ine version o- a chess9!ike ta$!e game in *hich strateg% *i!! $e a ma,or
-actor in its game #!a%) ?!a%ers *i!! have to #osition #ieces around a game $oard *hi!e using
various cards that *i!! contain s#ecia! a$i!ities and #o*ers to over#o*er the o##onent) In this
game& un!ike chess& there *i!! $e an e!ement o- sur#rise as o##onents *i!! not kno* *hat s#ecia!
cards each #!a%er has $rought *ith them)
The game *i!! a!so $e on!ine) One o- the ma,or dra*$acks o- the o!d ta$!e to# games
*as time) A given ta$!e to# game cou!d take u# to 7/ minutes to even an hour ,ust to setu#)
3ith the on!ine version this setu# #rocess *i!! $e 'uick!% #er-ormed -or the #!a%er) Fards *i!!
$e the main -ocus) ?!a%ers *i!! $u% virtua! card #acks to gain more #o*er-u! cards to enhance
their game #!a%)
Maslow's Hierarchy of Needs
The idea! customer ma% -ind this ne* #roduct to $e some*here $et*een midd!e to !o*9
end) The reasoning $ehind this is that Activision !i""ard has man% video game #roducts that
meet various gaming st%!es) This ne* #roduct *i!! attract most!% a niche grou# o- #!a%ers *ho
sti!! !ike to co!!ect and #!a% c!assic ta$!e to# games)
MARKET SEGMENTATION @
ased on Mas!o*+s hierarch% o- needs this *riter $e!ieves that the idea! customer *ou!d
!ike!% -it in the 5esteem5 !eve!) The esteem !eve! !ists characteristics such as se!-9esteem&
con-idence& and achievement) As the #roduct is ,ust a game it shou!d $e assumed that the $asic
needs o- the #erson is a!read% met) A video game or an% game -or that matter is not a $asic need)
A Positioning tatement
:or gamers !ooking -or a game that $rings $ack strateg% and ta$!e to# gaming& !i""ard
att!e F!icks *i!! #rovide the strateg% o- chess9!ike mechanics *hi!e sta%ing in the $!i""ard game
universe) !i""ard att!e F!icks is going to $e make eEtensive use o- the kno*!edgea$!e
#ro-essiona!s in the $oard game and on!ine game industries) Our outstanding on!ine $oard game
#romises to $ring $ack the en,o%ment o- ta$!e to# gaming *hi!e kee#ing it -ami!iar *ith our vast
virtua! characters and universe)
Conclusion
3hi!e attem#ting to create a #roduct that can a##ea! to as man% consumers as #ossi$!e it
is ver% im#ortant to think a$out %our segment)
MARKET SEGMENTATION 6
Re-erences
Kot!er& ?)& 4 Ke!!er& K) C) .2/111) Marketing Management .10th ed)1) G##er Sadd!e River& NH:
?rentice >a!!)
So-t*areTo#1//)org) .2/10& Se#tem$er1) To# 2@ Gaming Fom#anies 2/1/) Retrieved -rom
htt#:AA***)so-t*areto#1//)orgAto#9gaming9com#anies92/1/