There are three major segments which Apple targets. Apple segmentation, targeting and positioning. 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. Its online The componential segmentation model offers a new conceptualisation for market segmentation because it offers both an analysis of the market segment for a particular product offering and an evaluation of the most desirable product offering or positioning. Our academic experts are ready and waiting to assist with any writing project you may have. In this report, it aims to analyze and evaluate the market segmentation of Apple iPhone 4S. No plagiarism, guaranteed! Product differentiation and market segmentation are consistent with a framework of imperfect competition ( Wendell. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Hence I can say that there is a fierce price competition. A Study on Marketing Strategy of Apple Products 1M. Microsoft also has their own operating system but is providing it to the customers in a very cheap price when compared to Apple. Apple Macintosh was the first personal computer to have a mouse and graphical interface for a user. The user interface is built around the device's multi-touch screen, PCs are differentiated as hardware / software configurations. The best way to go about in running a simple business is to figure out what it is that you should focus on selling and who you should be selling to. University. Apple iPhones claimed a 13.5 share of the market in the second quarter of 2020, a slight increase on the previous quarter. They are more receptive to new and emerging technologies. Looking into Apple they have their own operating system called as Mac and there is no product competing in the market. Looking for a flexible role? This strategy is justifying their premium prices. Looking into Apple, the company is highly dependent on component suppliers. Marketing mix is the combination of the product, the price, place and promotion. 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. However, when the Apple One market segment is totally distinct from the other segment. They are distributing their products into various places and the PCs are categorized on age, family size, for example they would have more games and entertainment in the PCs for the kids and a professional PC with all the latest software’s. The Global PDF Editor Software Market will be analyzed on the basis of key market vendors, their product benchmarking, SWOT analysis, and company’s financial data such as annual revenue, research and development expenses, and net income, and their geographical presence.. When the marketing condition like political, social, economic, and technological factors change even the marketing mix has to be changed. Apple’s marketing campaign, the firm failed to adequately market to the lower end of the market (Rawlinson, 2017). Apple reached 17% increase when compared to the previous year quarter by successfully selling 3.05 million Mac computers during the quarter. Gross margin is 36.6% when compared to the previous year quarter which was 34.7%. Apple’s operating segments are comprised of: The best in the Apple Mac is that songs can be played only from iTunes and hence Apple In 2003, formed a strategic alliance with PepsiCo. Market Segmentation to succeed Customer’s needs must be heterogeneous Segments must be identifiable and divisible Marketer must be able to compare the different market segments –In terms of sales potential, costs, and profits One segment must have enough profit potential to justify developing a special marketing mix In this market segment Apple providing good product knowledge to the customers by advertizing on search engines, T.V. Behavior bases. In 2005, Apple Computer has initiated a partnership with Wal-Mart that saw the iPod shuffle featured at Wal-Mart discount locations around the country. Apple having a very good brand image has very good value for its products as they are different and innovative. 2.2 Geographical bases (states, regions, countries). Store and Mac App Store, and iCloud. Let’s begin the journey with Apple products and target market analyses. Apple relies on the government to give a grant and intellectual property obtained from third parties. Additional company data of your interest can be provided without an additional cost (subject to dat The product is offered in three different lines: the Apple Watch Sport for the entry segment priced at 399€ - 449€ in Germany; the Apple Watch priced between 649€ - 1.249€ for the premium segment; and the exclusive Apple Watch Edition made of gold for the luxury market at a price between 11.000€ - 18.000€, depending on the configuration. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. send texts, GPS navigation, record notes, do mathematical. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Apple and America Online have agreed to put iTunes “buy this song” buttons next to every song that’s listed in AOL’s music service, which its 25 million subscribers can access. The young are targeted due to their love for technology and music and being price insensitive. References. Market Segmentation. The key vendors in the Global PDF Editor Software Market include PDFelement, Adobe, Tracker, Foxit, Nitro, ZEON , … They went out to create exactly what they would like to use. Company Registration No: 4964706. These results can be compared to the revenue of $7.9 billion and net quarterly profit of $1.14 billion in the previous year quarter. Apple market segmentation and Mix - Free download as Powerpoint Presentation (.ppt / .pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online. , Global Fruit Puree Market Revenue, by Type, 2017 (USD Million), , Sources: MRFR Analysis, Segmentation, Banana puree is the leading segment, which is growing at the highest CAGR to reach USD 2,935.1 million by the end of 2023. In this report we are entering the PC industry and hence Porter’s model will help us to find out about: Competitive rivalry for Apple is very high as it is a competition among the big companies and it is fierce as everyone is aiming at a larger market share, intensive price cuts and changes. The segment is usually the urban population with enough buying power for purchasing Apple products. In the world of PCs any company that has a new technology that is efficient in terms of price and performance is considered as a threat to the industry. It focuses on capturing the attention of youth and elite few. Disclaimer: This work has been submitted by a university student. During the strategic planning process the most commonly used tool is SWOT. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Market research is one of the primary tools that businesses use in order to know who to target and how to use this knowledge in marketing towards this set of people. Marketer … It has created a vision of exclusivity that gives Apple a leg up in the market, helping them to keep their products at the top of countless must-have lists every year. 6+ Market Segmentation Analysis Templates – PDF, DOC, Apple Pages. In the PC world there is high number of suppliers in the industry and Apple being a part of it, has its product price higher than the other company products. There are three major segments which Apple targets. Beatles lawsuit against Apple can affect the reputation of the company in a negative way. Apple Inc. is the largest brand in the technology industry in terms of its revenue generated as well as its brand ranking. And a more comprehensive way to do this kind of consumer survey is by breaking down different segments of your market or customer base. generation iPhone was released on June 29, 2007; the most Lately, however, their new technology and their high cash flow allowed them to lower their price and to offer more discount to certain markets such as the education market. 5+ Market Segmentation Analysis Templates – PDF, Word, Apple Pages The best way to go about in running a simple business is to figure out what it is that you … Apple has high inventory in their products. Make this observation, 11 example the situation is different: Beginning students typically turn to their economic situations. These include Psychographic and behavioral segmentation. Marketing Apple has been very innovative by finding new usages for its Mac computer, such as desktop publishing and strong graphics/animation capabilities. Jayda Galvin. Hobbyists, the initial target market, were not interested in the product. The company is using a differentiation strategy and focuses more on innovation, and quality. Leader in innovation and product differentiation. Now customize the name of a clipboard to store your clips. It’s every important that you’re able to understand that market that you’re in so that you can easily figure out who your target audience is going to be. However the current economy shows consumer spending, some amount of improvement, and investment might increase as well. which were unveiled at a special event on September 9, 2015. There are two types of market segmentation. Apple Inc. is the largest brand in the technology industry in terms of its revenue generated as well as its brand ranking. Apple has got a very good response rate as many of the customers are looking for new designs and innovative products which Apple is successfully delivering. However, competition also influences its pricing. ,play music, send and receive email, browse the web, This is what resulted in us having the iPhone 4, MacBook Air, iMac and all those other amazing Apple products in the market today. The aim of this report is to conduct a Market research, analysis and future prospects of Apple watch Competition is mainly based one cost. Apple Inc understands the need for market segmentation and thus operates in different market segments. 2.1 Demographical bases (age, family size, life cycle, occupation). If the supplier wants to increase his profits he can put pressure on the market by supplying the components at a higher price. The company then builds a product around the experience accordingly. Presentation on Apple's marketing mix Hence there will be lot of options for the customers to buy the cheapest and the best product. Apple has produced an iPod for PC users and the success of this product was a good way for the company to capture non-MAC users. We're here to answer any questions you have about our services. See our User Agreement and Privacy Policy. People who own Apple products tend to be more urban, have a college education, and follow technology news on a regular basis. Apple's iPhone market segmentation 1. Watch smartwatch. International sales also helped 46% of the quarter’s revenue. Key to understanding target market size and needs, as ... Target Market Value: Calculate –important for investors VCs, business angels ... (e.g. For instance, the iPhone was actually developed for the Apple employees who were not satisfied with what they were getting from their mobile phones. In market segmentation by types of PDF Editor Software, the report covers-On-premise Web-based. PEST analysis and Porter’s five forces are very important tools to establish the external environment of Apple: Different countries have different rules and regulations which can act as a positive or a negative barrier which can result in restricting the companies or lend opportunities to the company. This report also looks into market segmentation and the marketing mix of the product. Different types of marketing tools are used in this report. Apple is committed to sell original, good looking products that have an easy-to-use interface. R. Smith, 1995 ). Geographical bases. iPhone is a line of smartphones designed and marketed by Apple In addition, the company offers software products (Mac OS X), server software and related solution; professional application software; and consumer, education and business oriented application software. 1. Apple is running at a higher risk than other as they are working with only few selected suppliers. Apple has set high prices on their products. Course. In US due to the weak economic condition the educational segment is encountering a large loss in many states. There is a direct impact on the overall business of the company (Apple) due to the political uncertainties caused by terrorism. Opportunity to create a new software markets and selling the hardware in those markets. Looking into Apple there is no threats from any new entrants as there is no product competing in the market. While the Apple Watch will certainly be marketed and sold through all of Apple’s traditional channels and to all of its existing customers, it’s also apparent early on that Apple is hyper-focused on one marketing the Apple Watch to one segment in particular: Luxury-oriented iPhone customers who show a propensity to buy premium goods — expensive cars, high fashion, fancy jewelry, etc. 4. Apple has been affected in the last year by the slow economic and that resulted in low consumer spending. 1.Market segmentation 2.Benefits of segmentation 3.The process of segmentation 4.Effective segmentation 5.Bases of segmentation 6.Target market strategies 7.Market positioning 8.Market repositioning •Can be defined as subgroup of people or organization, sharing one or more characteristics that cause them to have similar product needs •Market segmentation is customer-oriented. Apple have designed their own computers and their own software’s which will help this generation as the computer and internet usage is rapidly growing worldwide. The company offers a range of personal computing products, related devices and various third party hardware-products. Segmentation and targeting of Apple: Market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics. The answer is market segmentation through product differentiation. Clicking the button will automatically launch the iTunes music jukebox and begin downloading the song; billing will be handled through the customer’s existing arrangement with AOL. There is a rapid growth in the usage of the internet which is also a good opportunity for the company. Apple price is known to be above average in the industry. Therefore once the market for the Apple Watch has already been defined and correspondingly analyzed, the next step will be to review what the different elements of the Apple Watch Marketing-Mix are and how they interact with each other. 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