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Segmentation

Market segmentation is based on variables such as

Behavior, demographics (e.g., gender, age, education, and income),


geography, and psychographic characteristics, or those based on lifestyle
and personality.

For Apple, the market segmentation and target market

 Age group: 22 – 55

 Gender: Male and Female

 Income: Being an affluent brand, Apple targets medium to high-


income individuals

 Lifestyle: Income becomes synonymous with lifestyle and since


Apple has medium to high-income individuals as segments, the
lifestyle they target is to Modern, young, open to change etc.

 Behavior: Hardcore loyalists – Once an Apple user, always an apple


user!. These customer groups become very loyal to a brand and
hardly change their brand.

Positioning of a brand is a marketing effort and can only be done through


promotion and advertising. A company’s brand identity, its elements, its
product and its communication, they all play an important role in
positioning a product.

Brand Identity: All the intangible brand assets like Apple’s brand values, its
culture, employees, Brand colors, Tagline, Tone of voice, Type of Imagery etc
all these elements contribute in forming a specific position in the minds of
the customer.
Product Design and Quality: Since its inception, Apple has been rolling out
products which have been an epitome of design and quality.

Apple uses mono-segment type of positioning and makes a positing appeal


towards a single customer segment. The multinational technology company
positions itself as a premium brand offering products and services with advanced
functions and capabilities for additional costs. Accordingly, Apple target
customer segment comprise well-off individuals who are willing to pay extra for
technology products and services with advanced design, functions and
capabilities.
Apple segmentation, targeting and positioning is illustrated in the following
table:

Apple target customer segment

Services: iTunes Operating Accessories:


and the iTunes system & Apple TV,
Store, Mac App software: Apple Watch
Type of Segmentation Devices: iPhone, iPad, Store, iCloud, iOS, OSX, and related
segmentation criteria Mac, iPod Apple Pay, iLife, iWork accessories

US and US and US and


Region US and international international international international
Geographic
Density Urban Urban Urban Urban

Age 20 – 45 18 – 30 20 – 35 20 – 45

Males & Males & Males &


Gender Males & Females Females Females Females
Demographic
Life-cycle Bachelor Stage Bachelor Stage Bachelor Bachelor
stage Newly Married Newly Married Stage Stage
Couples Couples Newly Newly
Married Married
Full Nest I
Couples Couples
Full Nest II
Full Nest I
Full Nest II

Income High earners High earners High earners High earners

Students
Professionals, Professionals,
Professionals,
managers and managers and Professionals,
managers
Occupation executives executives managers

‘Hard core ‘Hard core ‘Hard core


‘Hard core loyals’ loyals’ loyals’ loyals’
Degree of
‘Switchers’ ‘Switchers’ ‘Switchers’ ‘Switchers’
loyalty

Sense of achievement
and belonging
Self-expression Recreation
Self-
Speed of service, Efficiency
expression
advanced features and Speed of service Speed of
Benefits
capabilities Efficiency service
sought

Determined and Determined and Determined Determined


Personality ambitious ambitious and ambitious and ambitious

Users Users
Non-users, Non-users,
Non-users, potential Non-users,
potential users potential users
Behavioural User status users potential user

Middle and upper Middle and Middle and


Social class classes upper classes upper classes Upper class

Resigned
Aspirer Aspirer Aspirer
Aspirer
Psychographic Lifestyle[1] Succeeder Succeeder Explorer
Succeeder Explorer Explorer
Explorer