Jul 032012

In this activity you are presented with an excerpt from a manager’s meeting discussing segments in the MP3 market.

Your task is to firstly determine what market segments you can identify (both from the information below and your own knowledge)? And then, based on this information, which target market would you select for the firm?



As we all know, the company wants to enter the growing MP3 market. We have been a significant player in the electronic and entertainment market for many years and senior management has decided that now is the right time to grab a share of the MP3 market. Therefore, the main purpose of today’s meeting is to outline the various segments in this market in order to gain some understanding of the best target market for us. So who has some ideas about the various segments?


Obviously the Apple iPod has made the MP3 a fashion accessory – there’s clearly a segment that are attracted to the fact that it is a trendy thing to have and be seen with.


Another big segment is sporty people. For instance, I know a lot of people who use them when they are exercising or out walking.


But it not just limited to people who exercise. I see lots of people on the bus and train with them. And these days you often see people who have blue-collar jobs (like cleaners and tradesmen) with them as well.


They are certainly very popular these days. I understand that many people buy them as gifts at Christmas, and they are also becoming popular as a birthday gift for children.


That’s right. I know a family where all the kids have their own MP3. But it sounds like many people just have one as a distraction from exercise or traveling – does anyone know if there’s a ‘music lovers’ segment out there.


My understanding is that they fall into two groups. The first love high quality music – and they have been a little slow in adopting MP3’s because they want better quality. The other group love having all their music in one place. And they really like all the features of MP3’s.


But this market is not limited to music. Pod-casts of radio interviews are becoming common. There are people out there who mainly use their MP3 to download radio shows and listen to them when they can. Likewise, putting books onto MP3 format is also starting to grow.


Let’s not forget the traditional ‘shoppers’ segment that is present in every market, as well as the ones who always want the best in the market.


OK, there are quite a few segments here. Let’s firstly list each of them and then describes them.



  1. Outline the various market segments that are identified in the above discussion.
  2. Are there any other ways of constructing market segments for MP3s?
  3. Which of your market segments would you select as the most attractive target market/s?
  4. Why do you think these are the most attractive segments?
  5. On what basis/criteria did you use to select the most attractive target market/s?

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