Apple Segmentation, Targeting and Positioning

Apple Segmentation, Targeting and PositioningApple segmentation, targeting and positioning represents the core of its marketing efforts.

Segmentation involves dividing population into groups according to certain characteristics, whereas targeting implies choosing specific groups identified as a result of segmentation to sell products. Common set of characteristics shared by Apple target customer segment include appreciating design, quality and performance of technology products and services over their prices. Positioning refers to the selection of the marketing mix that is the most suitable for the target 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.

Under the leadership of late Steve Jobs, Apple mainly used mono-segment type of positioning, appealing to the needs and wants of a single customer segment. However, after Tim Cook became CEO, the multinational technology company has been consistently increasing its product ranges shifting from mono-segment type of positioning to multi-segment positioning.

As the name implies, multi-segment positioning attempts to target multiple customer segments at the same time with different product or service packages. Accordingly, “no longer do the barista and the corporate executive use the same iPhone — today, there are high-end models, consumer models, and a long line of old products the company keeps around to fill every niche and price point.”[1]

Apple segmentation, targeting and positioning is illustrated in table below.

 

 

Type of segmentation

 

 

Segmentation criteria

Apple  target segment
Devices: iPhone, iPad, Mac, iPod Services: iTunes and the iTunes Store, Mac App Store, iCloud, Apple Pay, Operating system & software: iOS, OSX, iLife, iWork Accessories: Apple TV, Apple Watch and related accessories
 

Geographic

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

Demographic

Age 20 – 45 18 – 30 20 – 35 20 – 45
Gender Males & Females Males & Females Males & Females Males & Females
Life-cycle stage Bachelor Stage

Newly Married Couples

Full Nest I

Full Nest II

Bachelor Stage

Newly Married Couples

 

Bachelor Stage

Newly Married Couples

 

Bachelor Stage

Newly Married Couples

Full Nest I

Full Nest II

Income High earners High earners High earners High earners
Occupation Professionals, managers and executives Students

Professionals, managers

Professionals, managers and executives Professionals, managers
Behavioural Degree of loyalty ‘Hard core loyals’

‘Switchers’

‘Hard core loyals’

‘Switchers’

‘Hard core loyals’

‘Switchers’

‘Hard core loyals’

‘Switchers’

Benefits sought Sense of achievement and belonging

Self-expression

Speed of service, advanced features and capabilities

Speed of service

Efficiency

Efficiency

Speed of service

Recreation

Self-expression

 

Personality Determined and ambitious Determined and ambitious Determined and ambitious Determined and ambitious
User status Non-users, potential users Users

Non-users, potential users

Users

Non-users, potential users

Non-users, potential users
Psychographic Social class Middle and upper classes Middle and upper classes Middle and upper classes Upper class
Lifestyle[2] Resigned

Aspirer

Succeeder

Explorer

Aspirer

Succeeder Explorer

Aspirer Succeeder Explorer Aspirer Explorer

 Apple segmentation, targeting and positioning

Apple Inc Report contains a full analysis of Apple segmentation, targeting and positioning and Apple marketing strategy in general. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. Moreover, the report contains analyses of Apple leadership, organizational structure and organizational culture. The report also comprises discussions of Apple business strategy, ecosystem and addresses issues of corporate social responsibility.

Apple-Inc.-Report-1

[1] Marx, P. (2019) “Apple’s Product Line Is a Mess” Medium, Available at: https://medium.com/s/story/apples-product-line-is-a-mess-5a9a5730cafa

[2]According to Young &Rubican lifestyle classification model

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