JustAnswer



| |FUN Company |

Memo

To: MARK WEATHERS, FUN COMPANY CEO

From:

CC:

Date: 10/9/2011

Re: Target Marketing Campaign Electronic Educational Toys

Dear Mark Weathers:

Thanks for suggesting that we explore psychographics as well as demographics. Base on the following report, using psychographics as well as demographics will not only help the FUN Company reach its target market for the electronic toys but also cultivate brand loyalty from these 7-10 year old consumers. The research substantiates your contentions.

ELECTRONIC EDUCATIONAL TOY MARKETING

Marketing educational toys in an emerging and highly competitive market need not be as ambiguous and overwhelming as it seems. Using market demographics and psychographics, the marketing department can successfully engaged the children aged 7-10, appeal to their sense of inquiry and love for learning through doing ( Sullivan, 2011; Wilson, 2009; John, 1999). More importantly, perhaps, using these marketing demographics, psychographics and segmentation, the FUN Toy Company can successfully pique interest and sales from the parents, and grandparents. In fact, the informational side of the ads, the product descriptions and the supplemental information can assure effective and efficient marketing (John, 1999; Williams & Page, 2010).

Target marketing

Knowing your target market is critical, but understanding your target customers gives the FUN Company a competitive edge. After all, Wilson (2009) demonstrates that smart marketing not only harnesses this information but discerns the demographic and psychographic differences therein. Utilizing the subsets, marketing can develop the personalized messages for the target groups. After all, customers are not one-size-fits all. This is especially true for the FUN Company electronic educational toys.

Selecting Target Demographics

Since the FUN Company products are designed for children aged 7-10, this represents one demographic. Part of the group known as Gen I or Gen Z, these children were born into the Internet and technology age (Wilson, 2009; Williams & Page, 2010). Since their Gen Y parents are also technology savvy, process information quickly and are especially brand loyal, marketing to the children in the middle class will inspire sales (Williams & Page, 2010, p. 7). While Wilson (2009) reveals that few theories exist to explicate successful marketing techniques to Gen I (Gen Z) because they are emergent, FUN Company will use its tried and true techniques for marketing to these children. It will employ a synthesis of the developmental stages, the motivations for ownership and appeal to the children’s sense of inquiry and desire for more independent learning (John, 1999).

After all, Erik Erikson and Piaget hold that children during this stage become increasingly independent and seek ways to resolve questions relative to construction, confidence and self-efficacy (John, 1999, p. 190; “Kids”). Since they are becoming increasingly independent and less reliant on their parents, peer groups play a more prominent role. For this reason, marketing to the 7-10 year olds in the middle class will not only cultivate demand but also inspire the “me, too” trend of ownership.

Benefits of Marketing to 7-10 year olds

According to published by Package Facts in 2000:

• Kids 5-14 have buying power

• In 2000 this market segment equated 39 million

• This market is becoming increasingly diverse

More importantly, perhaps, (2000) also reveals:

• Kids are natural consumers

• Kids select their own Cereal, Toys, Snacks, and More

• Kids Establish Shopping Independence

• Kids establish where they shop

• Kids’ retail preferences change with age.

• Kids are generally Brand- Kids Influenced by TV Advertising and internet advertising.

• Kid Accommodation Now Mainstream Practice

For all of these reasons, the FUN Company must market to the kids aged 7-10.

They are independent and consumers with buying power. More importantly, kids are brand conscious. Therefore, purchases now will inspire brand loyalty in the future. Moreover, the children of Gen I will most likely follow their parents’ actions by example. Even though this pattern continuation would be subconscious and extend from acculturation, target marketing cannot ignore its effects.

Middle Class kids 7-10 years old Demographics (, 2000, “Kids”)

• Middle class kids have more purchasing power.

• They tend to live in homes that are purchased instead of rented.

• Attend schools with technology.

• These kids are more independent because they have more options.

• They more regularly make decisions relative to products.

• Their exposure to electronics and electronic toys greater than that of the lower class.

• Their parents are more likely to have disposable income.

By marketing to the middle class kids 7-10 years old, this cultivates brand-loyalty. It inspires consumption among a group with more disposable income. It also starts a trend for consumption. Since this group constitutes approximately 12 million, this not only makes children and appropriate target market but also inspires peers to consume the same products (, 2000, “Kids”).

Psychographics

Psychographics are important, too. Just as the product is designed to cultivate demand, psychographic-oriented marketing develops target market campaigns based on lifestyles, behaviors and psychology (All Business, 2008; Sullivan, 2011). It explains why the target consumers buy what they buy (All Business, 2008).

7-10 year old, Middle Class Psychographics (, 2011, “Kids”)

• Kids in this target market segment:

• Are more independent because they live in homes where both parents work.

• About 50% receive allowances.

• Kids embrace the internet.

• Kids embrace technology.

• Kids want to belong.

• Kids are more global oriented.

• They look up to their parents.

• They look to their peers.

• They are increasingly interested in more complex technology and electronic toys.

• Kids realize that humor can illustrate products.

Based on these psychographics, kids aged 7-10 would buy electronic toys by the FUN Company because they are more technology oriented. They like its appeal and have been cultivated in a technologically-based environment. In fact, Williams & Page (2010) contend that these youngsters are increasingly independent and “[…] accustomed to high-tech and multiple information sources, with messages bombarding them from all sides.”

For Generation Z (also known as Generation I), peer acceptance is particularly important (Williams & Page, 2010, p. 7). Therefore, consuming a product one’s peer has coauthors a sense of belonging. However, these children increasingly make purchases themselves, exerting a sense of independence and pride in ownership. However, this generation is bombarded by choices. Therefore, Generation tends to consider purchases longer before they make their selections (p. 7). Like their parents, they tend to purchase quality (p. 7).

Summary

In conclusion, the target market for the new line of FUN Company electronic educational toys should be the 7-10 year olds in the Middle Class. Because they comprise more than three-fourths of the 7-10 year old demographics and have the purchasing power, this segment is appropriate (, 2000, “Kids”). Additionally, of course, tailoring ads to cultivate demand by appealing to the global nature of the learning the electronic educational toys promote, the ways purchases would initiate children into their peer groups and inspire greater independence and self-efficacy reflect the psychographics of this market segment (Sullivan, 2011).

Recommendations

Based upon the research conducted, the Fun Company should develop its marketing campaign:

• Using that target market segment, 7-10 year olds in the Middle Class

• Engaging the appropriate psychographics, tailoring content and messages to appeal to the reasons why this segment buys.

It should conduct further research relative to the appropriate media format for its advertising campaign.

• More than likely these will include teen magazines. After all, “tweens” want to belong to the next group.

• Channels might also include TV ads and the Internet or YouTube videos.

After researching its options, the FUN Company should test its marketing in a small population.

• If the results are suboptimal, the marketing messages or mediums may need to be altered (Wilson, 2008).

References

All Business (2011 Aug. 8). What demographics and psychographics mean for small business

marketing. Retrieved from

1.html#ixzz1aFGyLFoM

John, D.R. (1999). Consumer socialization of children: A retrospective look at twenty-five years

of research. JOURNAL OF CONSUMER RESEARCH, Inc. 1999 (26): 183-213.

Retrieved from

readings%20kidcult/course%20readings/320readings/cmns320_06/readings/

roedder_john_consumer_socialization.pdf

(2000, Mar.) The kids market. Packaged Facts. Retrieved from



(2000) Marketing to the internet generation. Packaged Facts. Retrieved from



Marketing%20Online%20Generation.pdf

Sullivan, L. (2011, Feb.) Psychographic, demographic, or geographic ad targeting. Behavioral

Insider. Retrieved from

1.html

Wilson, E. (2009). Know your target market. Entrepreneur. Retrieved from



Williams, K.C. & Page, R.A. (2010). Marketing to generations. Journal of Behavioral Studies.

Retrieved from

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download