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Market Segmentation and Product Life Cycle

Nike has plans to create a new line of home fitness equipment with the quality that Nike represents. The equipment will be affordable for every household budget and promote family fitness. The products will include inside outside equipment for children such as climbers and a book for parents filled with outside games for children. The idea behind the products is to promote healthy lifestyles by living more active as a family
Prepare a 500-word paper to include the following:

1) Identify the segmentation criteria that will impact your target market selection. Identify your target market.

2) How will the product life cycle impact the marketing of your selected product or service?

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According to Sommers & Barnes, "Marketing, 10th Edition" (http://www.witiger.com/marketing/marketsegmentation.htm) criteria for segmentation can be broken into the following parts:

1. Homogenous: are the people in the segment alike without too many differences. In this case, Nike would be marketing to families with children. The segment would be homogenous in that the segment would all have children.

2. Heterogeneous: the people within the segment should be different- in this case the children of the families could be all different ages. In addition, it would be important to consider the lifestyles of the families: are they urban, rural? What sort of access do they currently have to fitness activities? Are they American? What sports is the family involved in? Do they go to a gym? Play outdoors? Families can be very fragmented with their activities: would the family choose to spend their discretionary income on an item like this if some of the children are already on the swim team or involved with Little League?

3. Substantial: The people in the segment need to be a sizable group. It needs to be worth making and marketing the product. To figure this out Nike would need to determine the number of families there are with the slated demographics which they are looking for: urban families with children 3 years of age to 12 years of age, perhaps. The cost of the product and ...

Solution Summary

This solution identifies the segmentation criteria that will impact the target market selection for Nike's proposed line of home fitness equipment which promotes family fitness. It also outlines the pace at which Nike's proposed home fitness equipment will move through the product life cycle and the factors that will impact its' movement. It further discusses how the product life cycle will impact the marketing of the Nike Home Fitness. This solution is 886 words and provides references and examples.