Apple Segmentation, Targeting and Positioning
Apple segmentation, targeting and positioning represents the core of its marketing efforts. Segmentation, targeting and positioning is needed because no company or product can be all things to all people. Apple segmentation targeting and positioning initiatives include the following stages:
1. Segmenting the market. Segmentation involves dividing population into groups according to certain characteristics. Specifically, customers can be segmented on the basis of their place of living, demographic variables, behavioural traits, psychographic characteristics and other variables. Market segments need to be measurable, accessible, sustainable and actionable in order to be used for marketing purposes.
2. Targeting selected segment(s). This stage involves identifying segments that are most attractive for the business. In other words, targeting implies choosing specific groups identified as a result of segmentation to sell products to. 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. A common set of characteristics shared by Apple target customer segment include appreciating design, quality and performance of technology products and services over their prices.
3. Positioning the offering. Positioning refers to the selection of the marketing mix that is the most suitable for the target customer segment. It is the final process, where companies attempt to associate their products and services with needs and wants of selected customer segment. Apple targets its customer segment by tailoring products, services and overall business approach to appeal to the members of segment to a maximum extent.
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 | 18 – 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 | |
| Risk aversion | Risk avoiding
Risk neutral
|
Risk avoiding
Risk neutral Risk loving |
Risk avoiding
Risk neutral
|
Risk avoiding
Risk neutral Risk loving |
|
Apple segmentation, targeting and positioning
Apple Inc. Report contains the above 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.
[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