Ch. 8 - Segmenting and Targeting Markets

According to MKTG 5 market segmentation is defined as “the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups.” Apple has done a great job in recent years of creating itself as a major player in the computer. Apple does not use one market segment to target its products, in fact it combines different strategies for selecting and segmentation its target market. Instead of targeting different people, Apple creates one product for a particular use, for example an iPad for reading, an iPod for listening, and an iPhone for apps.

Market segmentation and new innovation played a big role in Apple’s success Apple recognized four key market segments within the customer profile, Business, professionals, Education, and “high-end” consumers. Apple tends to focus on middle and upper class income customers, who are willing to pay a little more price for a better user service. Customers mainly turn toward the company that is able to maintain its good brand image, like wise Apple product users come back because they already had a good experience with its previous product. Apple demographic segmentation consist of music enthusiasts and fans ages 12-35. Apple’s winning and realistic segmentation strategy has been psychographic segmentation, which is based on personality, motives, lifestyle, and geodemographics. Apple designs its products as “lifestyle brand”, which appeals to Tweens to Boomers, and their pricing strategy is aimed toward low to high income consumers.

Apple has selected a niche market (one segment of the market) for targeting its marketing efforts. Because Apple is appealing to a single segment, it can concentrate on understanding the needs, motives and satisfactions of that segment’s member and on developing and maintaining a highly specialized marketing mix.