Positioning Paper
...fits in the market (market positioning)” (Kotler, 2002). It is important to understand that video games appeal to a wide assortment of people. The target market for the video game industry is pretty much anyone with a pc or game console. Demographics: Location: 60% of all Americans (145million people) play video games. Gaming is number #1, preferred 2 to 1 over TV By Game-Advertising Age- -40% of gamers 25 and under -60% of all gamers are 25 to 44years old -87% who purchase console games are over 18 -97% who purchase PCs are adults By Game-Advertising Gender- -57% of all gamers are men -43% of all gamers are women By Game-Advertising Psychographics: Psychographics is the science of measuring and categorizing consumer lifestyles”(Kotler, 2002). People who buy video games fall under one of these major tendency groups. “Experiencers: Young, vital, enthusiastic, impulsive, and rebellious people who spend much of their income on clothing, fast food, music, movies, and video. Fulfilleds: Mature, satisfied, comfortable, and reflective people who favor durability, functionality, and value in products. Achievers: Successful, career- and work-oriented consumers who favor established, prestige products that demonstrate success. Believers: Conservative, conventional, and traditional people who favor familiar products and established brands”(Kotler, 2002). Marketing Positioning: As Excel Attachment PC/Console systems and games have become a major form of interactive entertainment. Console systems are by far beginning to lead in the gaming industry with three major consoles available. All allow user to go online for play and basic communication. Competition: The video game industry is a complicated and multifaceted industry. In terms of the video hardware industry, particularly the industry in which Sony, Nintendo, and XBOX operate, the industry’s competition is becoming increasingly intense, with prospects for lower profitability. The following factors seem to summarize the situation: · Profits will increasingly come from software rather than hardware, as the three competitors lower prices in order to build a large customer base. · Personal computers (and computers connected together over the Internet) will increasingly challenge video game consoles as game-playing devices. The three main areas of competition: High level of rivalry Threat of New Entries Competition of Substitutes Optimal Positioning: According to company analyst Jeetil Patel, the next-generation interactive entertainment market for hardware and software is on the cusp of a tremendous growth cycle with U.S. interactive entertainment software sales expected to grow at from $5.5 billion in ...