Running Head: THE RING VIDEO DOORBELL 1
The Ring Video Doorbell
Debra McMillan
BUSI 520: Strategic Marketing Management
Dr. Ryan Ladner
September 8, 2019
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The Ring Video Doorbell
The Ring Video Doorbell is the type of product that can be marketed to different types of
customers. It can be marketed to customers who are interested in home security and to people
interested in smart home products. Because of this dual appeal, there are many personal factors
that may influence a person to purchase the product.
Personal Factors
Some of the important personal factors that may influence purchasing decisions are age,
economic circumstances, personality, and lifestyle. Age, or stage in the life cycle, is important
because people have different wants and needs at different times in their lives. Economic
circumstances will determine how much buying power the customer has. Personality can be a big
factor because people tend to want to invest in products and companies that reflect their own
self-concept. The lifestyle that a person leads has a big impact on purchasing decisions because it
determines how a person interacts with their environment, as a whole (Kotler, Keller, Goodman,
Brady, & Hansen, 2018).
In recent years, the home security industry has seen a spike in sales. Much of this is due
to a younger audience than might be expected. Millennials and others, age 45 and under, have
been the major contributors to the overall growth in the industry (Scalco, 2017). This is likely
because the security products of today are different from their predecessors. The Ring Video
Doorbell is a wireless technology-based product that may be more appealing to younger buyers.
It can also appeal to those with a budget-friendly conscience.
One of the great things about the Ring Video Doorbell is that the buyer can feel
comfortable in knowing that will not cost them a fortune. Not only is the cost low up front, there
are no expensive monthly monitoring fees for this product required. For buyers who are more
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economically aware, there is the added bonus that some insurance companies offer discounted
rates to customers with home security in place (Scalco, 2017). This benefit alone can appeal to
buyers of all personality types.
There are several different personality types that the Ring Video Doorbell can appeal to.
Convenience-seekers, who typically are late to adopt new technologies, can easily see the
convenience that the product offers. Affluent nesters are another group who could likely see the
benefit of having the product. These people are typically ready to pay for, and experience, new
technologies. Impressers are people who like to get new technologies and show them off, so a
new product like a video doorbell would be right up their alley. Lastly, technophiles, or early
adopters, are a great market for this product. It is new, trendy, and can appeal to their techy
interests (Millman, 2017).
The lifestyle that people choose to lead can also contribute to their purchasing choices.
The Ring Video Doorbell can appeal to people of different lifestyles for different reasons. Apart
from the reasons listed previously, one group that would likely be interested in the product is the
smart home do-it-yourselfer. People who enjoy DIY of this type tend to enjoy technology and
have the skills necessary to install a wide-range of smart home products (Caccavale, 2018).
The Ring Video Doorbell can be marketed to all types of people. It is easy to install, uses
smart technology, can help to keep your home secure, and it is something that the buyer can brag
about to their friends. It is easy to see how different market segments would find this product
attractive.
Market Attractiveness
The market segments for the Ring Video Doorbell are multi-faceted and complex, and it
is necessary to use some basic criteria to determine the attractiveness of the market. There are
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four main topics used to measure this attractiveness: market size, market growth, stability,
competition, and profit. Market size encompasses, not only the expected size of the market, but
also the demographics of the individuals who make up the market. Larger markets are more
attractive because larger markets can mean larger profits. Market growth or growth potential is
important to attractiveness. Anytime a business wishes to enter a new market, it is important to
assess whether there is growth potential. Stability, which is typically characterized by price
stability, is extremely important to attractiveness. If prices are stable, it normally means a lower
cost of capital and lower cost of goods. Competition can be a sign of overall market health, but it
can also push firm’s out of the market. It is important to know when there is too much
competition. Profit is the objective for most companies. If there is profit to be made, the market
is much more attractive (Almgren, 2014).
For Ring Inc. the market looks good. The home security market is expected to grow at a
compound annual growth rate of 8.3% between 2018 and 2026 (Market Watch, 2019). In 2017,
the Global Home Security Cameras Market accounted for $2.76 million, and it is expected to
grow to $8.78 million by 2026 (Market Watch, 2019). With this kind of growth in the market, it
is no surprise that there is plenty of competition from companies like Nest and Wisecam. Clearly,
Ring Inc. can stand with the best of them because the Ring Video Doorbell and the Ring Video
Doorbell 2 made the Consumer Reports best video doorbells of 2019 list (Wroclawski, 2019).
With a massive market, plenty of growth potential and stability, healthy competition, and major
profit potential, it is clear that the attractiveness of the market is excellent.
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References
Almgren, K. (2014). The Four Factors for Targeting an Attractive Market. International Journal
of Humanities and Social Science, 4(9(1). Retrieved from
http://www.ijhssnet.com/journals/Vol_4_No_9_1_July_2014/9.pdf
Caccavale, M. (2018, May 11). Smart Marketing For Smart Home Solutions Companies.
Retrieved from https://www.forbes.com/sites/forbesagencycouncil/2018/05/11/smart-
marketing-for-smart-home-solutions-companies/#6ff1bb1f1e4d
Kotler, P., Keller, K. L., Goodman, M., Brady, M., & Hansen, T. (2018). Marketing Management
[QSR-PRO] (15th ed.). Retrieved from
https://bookshelf.vitalsource.com/books/9780133856606
Market Watch. (2019, January 11). Home Security Systems Market: Global Industry Trends,
Market Size, Leading Players and Forecast 2018-2026, Credence Research. Retrieved
from https://www.marketwatch.com/press-release/home-security-systems-market-global-
industry-trends-market-size-leading-players-and-forecast-2018-2026-credence-research-
2019-01-11
Market Watch. (2019, August 22). Home Security Cameras Latest Market Estimates Showing
Surprising Stability In Key Business Segments. Retrieved from
https://www.marketwatch.com/press-release/home-security-cameras-latest-market-
estimates-showing-surprising-stability-in-key-business-segments-2019-08-22
Millman, R. (2017, April 19). Smart home product manufacturers must target customers in
different ways. Retrieved from https://internetofbusiness.com/smart-home-manufacturers/
Scalco, D. (2017, January 26). Why Home Security Systems Are on Track to Be a Multi-Billion-
Dollar Market. Retrieved from https://www.inc.com/dan-scalco/why-home-security-
systems-are-on-track-to-be-a-multi-billion-dollar-market.html
