Market segmentation and target marketing has become relevant in the technology market in South Korea. The competition has become so stiff that firms are forced to develop products that meet the demands of consumers in a unique way (Mohr & Slater 2010, p. 87).
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In order to do this, there is need to understand specific market in details as a way of determining their tastes and preferences. This means that the era when a firm targeted the entire market is over.
Currently, a firm must select a specific market segment that it can offer quality goods or services, and target this segment with tailor-made products that are specific in meeting their needs.
After understanding the target market segment, it becomes easier to develop products with specific features that would meet their tastes and preferences. This paper seeks to determine the potential of consumers aged 18 to 40 as an appropriate target market segment in the high-tech market in South Korea.
In South Korea, high-tech industry has become so competitive that firms have come to appreciate the importance market segmentation, and targeting specific segments with desirable products. Most of the high-tech firms have found people aged 18-40 to be the desirable segment to target with these products.
This is not only because of their high number, but also their interest in such products. The graph below shows the percentage of different population segments.
This graph shows that majority of South Koreans fall within the age of 15-65 years. It means that the percentage population of people aged 18-40 is also relatively high. This makes the group very desirable as a target market segment for high tech products.
Source: (McDonald 2012, p. 45)
According to Shanklin and Ryans (2007, p. 90), besides the population, it is important to understand the purchasing power of the target market before making a decision to select them as the desirable segment. This scholar says that the purchasing power of a given population would always be determined by their ability to get employment.
South Koreans aged 18-40 are young and middle-aged adults that should be in stable employment. This means that they have regular earnings from their employment. The chart below shows the percentage of income of this group as compared to other age groups identified in the research.
Source: (Lamb 2012, p. 56)
According to the chart above, the purchasing power of this target group is very impressive. This means that they can afford the products offered in the high-tech market. This target market includes adults that have just been employed and do not have a lot of family-related responsibilities.
For this reason, they have high disposable income that can be directed into this industry. The middle-aged adults found in this group are people who have earned some promotions in their jobs, and therefore, they have attractive salaries. Their desire to appear unique in their way of life makes them an attractive market segment in the high-tech market in this country.
Another factor that makes this segment attractive is their interest in high-tech products. People within this age have higher desire to use these products than other age groups that have been identified in the research. They always want classy phones, iPads, good cars, quality cameras, and other technological products.
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They are always willing to pay high prices for such products. Another factor that makes them an attractive market segment is their changing tastes and preferences. They are easily swayed to purchase new high-tech products whenever a new trend comes to the market.
List of References
Lamb, C 2012, Essentials of marketing, South-Western Cengage Learning, Mason.
McDonald, M 2012, Market segmentation: How to do it and how to profit from it, John Wiley & Sons, Chichester.
Mohr, J & Slater, S 2010, Marketing of high-technology products and innovations, Prentice Hall, Upper Saddle River.
Shanklin, W & Ryans, J 2007, Essentials of marketing high technology, Lexington Books, Toronto.