Market segmentation is based on variables such as behavior, demographics e. While apple leads by profits, samsung leads by market share. Its all good as the smartphone market matures, apple is doing the right thing to maximize revenue and profit for its stockholders. A recent research done by solutions research group has showed that apple was successful to attract youngsters as 63% of its customers were under 34 years and average age of its customers is 31 years. One market segment is totally distinct from the other segment. Basically marketers use the market segmentation process to divide big markets into smaller segments according to characteristics of individuals, different groups and locations.
A market segment is a small unit within a large market comprising of like minded individuals. A priori segmentation technique is generally used when a product or service has a strong. Some of the variables in this segmentation method include usage rate, brand loyalty, sought benefits, readiness to buy, and user status. Apple is a very highly regarded brand as it should be and can charge premium prices for its products. A great example of segmentation marketing was the release of the iphone 5s and the iphone 5c in 20. Market segmentation iphone and blackberry market segmentation according to the business directory 2012, market segmentation is the process of defining and subdividing a vast market that is mostly homogeneous into segments that possess similarities in. A study on market segmentation of samsung electronics ltd. Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference. Get the knowledge you need in order to pass your classes and more. Segmentation, targeting, positioning in the marketing strategy of apple iphone apple is a famous multinational technology company in the world. Apples segmentation strategy and why it works engadget. The firms can segment the market on the following bases.
Segmentation can also be on the basis of peoples behaviour, culture and economic status. Now, the challenge for apple is to get their product beyond the youthful technophiles and into the hands of mainstream users in order to maintain sustained growth to conclude, segmentation is a basic and important strategy to. Here is a quick overview of some examples of how to segment a market. Apple is pursing aggressive segmentation that results in rising prices for the iphone, writes keybanc analyst andy hargreaves, and the resulting profit margins should offset slowing of. Segmentation of market consumer behaviour bbamantra. The purpose of market segmentation is to enable the marketer to adjust marketing mixes product, price, promotion, place to meet the needs of one or more specific segments. It is one of the crucial bases of segmentation because the choices, preferences, interests, and requirements of males and females differ at many levels.
Apple segments the smartphone industry is dominated by two giant companies. Most of the marketers nowadays believed that the demographic segmentation bases are the most popular and practical segmentation bases. Critically evaluate the segmentation utilised by apple i. Since i wrote that article, we have seen some more data on the market share trends of the ipad and other android tablets, including some very interesting data on the kindle fires impact. However, iphone chooses the segment with young and middle age, high income and also middle level of familiarity to technology as the target. Aug 20, 2014 how apple took over the only segment of the pc market that still matters.
These are classified as segmentation bases and include profile. We should subtract those operator customer bases out of the addressable market. This segmentation consists of dividing customers by how much of the product is used or consumed. The product is a subsegment in the smartwatch market because without an iphone you cannot access the full potential of the watch. Apple was already an immensely popular brand name in the smartphone.
If we include all users as addressable, china is about 0. To help them in this process, they need to analyses and break down the different markets into segmentation categories. First of all, based on the theory of means end chain, the product is analyzed through product attributes, consequences of use and personal values. Segmentation marketing first appeared in the 1950s. Understand the brand positioning of apple and learn how having the right segmentation, targeting and positioning have allowed apple to form an emotional connect with its customer base that no other brand has been able to do. The geographical segmentation is based on the premise that people living in one area have different purchasing or buying habits than those. Mar 05, 2012 if all operators would agree to distribute the iphone i.
This kind of differentiation is usually seen in cosmetics, clothing, jewelry and footwear industries where marketers need to focus on different marketing and communication strategy to reach their potential customers. Market segmentation iphone and blackberry market segmentation. Positioning of apple apple segmentation, targeting and positioning. By using any of these segmentation bases, either individually or in combination, an organization can construct market segments for evaluation to help them select appropriate target markets. The answer is market segmentation through product differentiation. Apples iphone market segmentation linkedin slideshare. Apples segmentation strategy, and the folly of conventional. Apples segmentation strategy, and the folly of conventional wisdom. Demographicsegmentation the word demographic can be related to the structure of populations or a particular sector of a population. Apples iphone market segmentation introduction about apple. Apple segmentation, targeting and positioning represents the core of its. Consumer markets are typically segmented using 5 bases, including geographic, demographic, psychographic, benefit, and usagerate segmentation. Segmentation strategies used by apple and samsung a bit about apple and samsung products segmentation strategies.
May 24, 2019 market segmentation is a marketing term referring to the aggregating of prospective buyers into groups, or segments, that have common needs and respond similarly to a marketing action. Segmentation, targeting and positioning t1 2016 mpk732. Everyone knows the pc market has been in decline for the past few years. Segmentation, targeting and positioning analysis on apple iphone 6 the main benefit that apple products deliver is communication and the search and need for information. Segmentation, targeting and positioning analysis on apple. Assuming no significant growth in user bases, 20% share in the long term 5 years yields a total of about 258 million users. How apple took over the only segment of the pc market that. The positioning of apple represents the core of what the brand stands for.
Samsung has been able to reach different market segments and price points, while apple has remained restricted due to targeting the premium segment. Or to put it another way, market segmentation is the division of a mass market into identifiable and distinct groups or. The market segmentation of apples includes demographical bases, geographical bases, behavior bases and psychographic bases. Describe the target market of the iphone and the segmentation strategy that the company has employed. Read this essay on segmentation, targeting and positioning. The clearcut truth is that apples ios device platform is the staging ground of the. Market segmentation of apple iphone 4s marketing essay. Market segmentation is a marketing term referring to the aggregating of prospective buyers into groups, or segments that have common needs and respond similarly to a marketing action. Customer segmentation refers to the process of placing your customer population into cohorts based on their attributes, interests, and behaviors. Apr 20, 2019 apple inc report contains a full analysis of apple segmentation, targeting and positioning and apple marketing strategy in general.
Dec 19, 2018 demographic segmentation is the process of dividing your market into segments based on things like ethnicity, age, gender, income, religion, family makeup, and education. Solved segmenting consumer and business markets 100. Come browse our large digital warehouse of free sample essays. Market segmentation is a marketing term referring to the aggregating of prospective buyers into groups, or segments, that have common needs and respond similarly to a. Segmentation strategies used by apple and samsung prezi. Market segmentation strategy enables a company to drive complete, unified product solutions that are harmonious with messaging, customer outreach, and channel strategies for selling and supporting customers. Market segmentation basis why market segmentation is. Geographic segmentation is based on variables such as region, city size, density and climate. Positioning describe the next steps position by price and quality introduction of iphone 6 and increase market share apple products generally known to be expensive cheaper, affordable phones will now be available to market customer profiling competive situation and past. This is a followup to my article, from a couple of months ago, analyzing the segmentation trends in the tablet market. Business market can be segmented on the bases consumer market variables but because of many inherent differences like. Apple iphone 3 segmentation is based on gender and age variables. Apple users are 94% more likely to be affluent than others who utilize mobile devices on a regular basis. The demographic market segmentation of apple is successful in that the company develops products based on lifecycle, age, and occupation of the customers.
How apple took over the only segment of the pc market that still matters. Apple is able to satisfy both of these benefits through the iphone 6. Positioning of apple apple segmentation, targeting and. This helps brands spend their advertising and marketing budget more efficiently. The geographical segmentation is based on the premise that people living in one area have different purchasing or buying habits than those living in other areas of the country. Based on variables such as gender, age, family size, income, education, occupation, religion, race and nationality, customers can.
This topic discusses segmentation bases for consumer markets, there is a separate topic area relating to business market segmentation bases variables. Apples iphone segmentation boosts prices, says keybanc. Moreover, the iphone user base consists mainly of young early adopters. This content was copied from view the original, and get the alreadycompleted solution here. Dec 03, 2012 apple also practice market segmentation when they first started off with mac computers in the 90s then in mid 2000 they started to have cell phones then ipod then ipad and knowing they still have more to come. The four main bases, which segment a consumer market, are known as geographic, demographic, cryptographic and behavioral segmentation. Potentially longer term addressable users if all users switch to 3g and all operators distribute the iphone. Please note that this website contains quite a number of market segmentation examples click here. Market segmentation meaning, basis and types of segmentation. The report illustrates the application of the major analytical strategic frameworks in business studies such as swot, pestel, porters five forces, value chain analysis, ansoff matrix and mckinsey 7s model on apple. Special features of the product lead to the consequence of use, which finally stand for the value of the. Cosmetics and perfumes firms could effectively use a. Which of the following are types of segmentation bases. Marketing strategy of apple iphone iphone marketing strategy.
Segmentation, targeting and positioning analysis on. Geodemographic segmentation geo city, demo low income low income city dwellers. A priori segmentation involves division of the market according to existing demographic criteria such as age, gender, occupation, lifestyle etc. Market segmentation iphone and blackberry market segmentation according to the business directory 2012, market segmentation is the process of defining and subdividing a vast market that is mostly homogeneous into segments that possess similarities in needs, demands, wants as well as characteristics. The penetration of the iphone in the us and china combined therefore stands at about 3% today. Apple segment its customer base based on the combination of segmentation. Techniques of segmentation of market 1 priori segmentation it is the most basic way to segment a market. Segmentation allows the firm to better satisfy the needs of its potential customers. In this regard, apples product strategy is a study in market segmentation. Once you have captured customer analytics, the next step is to define groups of customers based on the data you captured.
Oct 20, 20 the answer is market segmentation through product differentiation. Apple also practice market segmentation when they first started off with mac computers in the 90s then in mid 2000 they started to have cell phones then ipod then ipad and knowing they still have more to come. A critical evaluation of segmentation utilised by apple iphone. In this report, it aims to analyze and evaluate the market segmentation of apple iphone 4s. It designs, develops, and sells consumer electronics, computer software, and. Segmentation, targeting, and positioning process of. Combining interest based data with demographic data opens up new horizons in the audience segmentation process. Here, the segmentation is done on the basis of the geographical location of the customers. Iphone segmentation the optimal goal of all companies is to sell their product to as many people they can, but trying to reach the maximum number of people is often counterproductive for the company because it could run the risk that by trying to please everyone at the end it doesnt known its real customer needs and finished not selling. Apples market segmentation difficulties with the new iphones. Segmentation strategies used by apple and samsung by daniyal. Apple has done an excellent job at database marketing for their new products and services. Jun 22, 2017 the market segmentation of apples includes demographical bases, geographical bases, behavior bases and psychographic bases. Apple watch market segmentation hello and welcome to the latest edition of the blog.
As a consumable smart phone brand, iphone identified different segments based on age, income, familiarity to technology, and the expectation for mobile phone. Behavioral segmentation is considered most favorable segmentation tool as it uses those variables that are closely related to the product itself. Oct 16, 2017 apple is pursing aggressive segmentation that results in rising prices for the iphone, writes keybanc analyst andy hargreaves, and the resulting profit margins should offset slowing of iphone. Jul 08, 2015 segmentation, targeting and positioning analysis on apple iphone 6 the main benefit that apple products deliver is communication and the search and need for information. A market segmentation strategy means dividing the market into groups, on the basis of similar needs and wants of individuals for services and products. Sep 29, 2010 market segmentation strategy enables a company to drive complete, unified product solutions that are harmonious with messaging, customer outreach, and channel strategies for selling and supporting customers. Apple inc report contains a full analysis of apple segmentation, targeting and positioning and apple marketing strategy in general. The last type of segmentation is called usage rate. The products are supplied to different areas while categorizing the. Apple segment bases targets group of all age from youth to senior adults. A single user may fall into several segments, the segment device usage depends on whats used more for what activity.
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