New and Existing Customers in AdSim

Two Market Segments in AdSim Advertising Simulation

Your market analyst in AdSim have suggested dividing the market into two segments: Existing Digital Camera owners and New Digital Camera owners.

Existing Customers

This is the base segment of market demand and as stated above the simulation starts off with approximately 1.7 million Existing Customers with approximately half of them expected to purchase a new Digital Camera each year.

Each year the number of Existing Customers will increase by the number of New
Customers purchasing Digital Cameras.

Existing Customers are characterized by being far more technologically savvy and more likely to be ready for a more complex Digital Camera with more features. They already know how to operate a Digital Camera so they are less impressed by firms’ support claims and more interested in Consumer Sales Promotions, Loyalty Programs and Warranty Lengths.

The initial Existing Customer base will largely be made up of technophile early
adopters, but this will change over time as the early majority swells the market from 1 million to 3 million annual sales per year. These adopters are less avid TV and Radio listeners than the general populations, and they read more.

In general, Existing Customers are a little more “price sensitive” than New Customers and they are looking for a deal.

Your firm anticipates approximately 15% growth per year in this market segment.

New Customers

The New Customers will initially be the early majority entering the market and by
the end of the simulation it will be the start of the late majority.

These customers will largely be “Middle America”, Families and Professionals wanting to digitally capture special moments in their life.

In general, New Customers are a little less “price sensitive” than Existing Customers; they are looking for an easy to use Digital Camera with good after sales support, and are prepared to pay a little more to guarantee that.

Your firm expects the number of new customers entering the market to grow by
approximately 15% per year.

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