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Transcription of this question: Marketing in a new technological environment, Second LifeSecond Life is an online, virtual (computer generated) world that exists only on the Internet.Using a 3D virtual character, subscribers lead a second life, mimicking everything from visiting anightclub to a career in real estate. Millions Of dollars change hands daily online as residents create,buy and sell virtual products and services, which may include designer clothes, vehicles or casinos.Second Life registered its one millionth resident in late 2006 with one user making more thanUSSI million buying, selling and renting virtual property.Many companies such as Dell, IBM and Kmart use Second Life to market products or services toa niche audience and to target younger customers and technologically aware market segments.Dell, for instance, has an “in-world island” with a virtual replica Of the Dell factory and aretail store where customers order PCs to be delivered to their virtual homes. On the island,customers pay in Linden Dollars, the official Secy.nd Life currency. The Linden can be convertedinto US Dollars and vice-versa. Rates fluctuate, but over the last few years have remainedfairly stable as 250 Linden Dollars (IS) to the US Dollar. Customers can also order a realDell computer that can be delivered to their real home and pay in US dollars. IBM recentlypurchased 12 islands within Secy.nd Life for virtual business training and simulations.Musicians and news organizations, including the BBC and the Reuters news agency, have a presencewithin Second Life. The BBC, which is frequently an early adopter, uses the island to debut newbands at virtual rock festivals.According to Business Week, the biggest Second Life design shops charge corporate clients betweenUSSIOOOO and USS200000 to establish a virtual world presence.(a)(b)(c)[Source: adapted from httpwsecondlife_reuterscom and http:/,/whatistechtarget comlDefine the term niche market.Explain the advantages to major corporations, like Dell and IBM, Of marketsegmentation and consumer targeting.Discuss how firms may adapt their marketing strategies and marketing mixes to[2 marks][8 marks]changes in technology such as the growth Of Second Life.[l O marks]

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