SEGMENTATIO

N, TARGETING
AND
POSITIONING
STRATEGY OF
APPLE Inc
 APPLE Inc– Company Background
• Established in 1977 in California, Apple Inc. is a global designer, manufacturer and
marketer of mobile communication and media devices, personal computers, and portable
digital music players.
• Apple is the largest IT company in the world by revenue and total assets and the second-
largest mobile phone manufacturer. The company also sells a variety of related software,
services, accessories, networking solutions, and third-party digital content and applications.
• Apple’s ability to design and develop its own operating systems, hardware, application
software and services to provide its customers products and solutions with innovative design
is placed at the core of its business strategy. Apple business strategy comprises focusing on
design and capabilities of products.

• CEO Tim Cook practices ‘quiet leadership’ and he is widely recognized as an

effective leader. At the same time, a number of industry watchers and analysts criticize Tim
- Apple has hierarchical organizational structure. Moreover, the company’s organizational
structure also integrates product-based grouping with a focus on collaboration between
different groups and divisions.

- A high level of secrecy and focus on diversity and inclusion can be also specified as
important elements of Apple corporate culture. Today, Apple is faced with a range of
business threats such as quality problems with negative implications on the sales and the
company brand image and intensifying competition from China and India.
SEGMENTATION, TARGETING AND
POSITIONING IN ORGANIZATIONS
- SEGMENTATION, TARGETING AND POSITIONING are strategic marketing models
used by organizations to attract the right customers for their goods, products or service.

- It is done to position the brand image of their organization in the mindset of customers
against their rivals in the market.

- For a good marketing strategy it is important for a compony to understand its target
customers in oder to communicate and market them products accordingly
SEGMENTATION
-Apple 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.

-Apple has divided its consumer market into –

1. Geographic
2. Demographic
3. Psychographic
4.Behavioural
DEMOGRAPHIC SEGMENTATION
It is based on Consumer Demongraphic variables such as Age, Gender, Income and
Occupation.

1. Age Group.
- The solitude age group is 22-55. its conveniently a market for the compony but with
different products.

- Compact devices are more used by people of the 20-45 age group.

- Itunes, Apple Pay, and app store are used by the age range 18-30

- Apple watch, tv apple and accessories users are from 20-45+ age.
2. Gender.

2011, the product market was not gender-dominated. The male-female user ratio
was close 1:1 (53/48)

- The male user count rapidly grew and Soon it became almost 2:1

- The current male to female user rate is 60.8% and 39.2%.

- The target market is expanding in the male market spontaneously.

3. Average Income Group.

Apple targets the market with medium to high-income households or inviduals.

- Showed that 1/3 of the users have a household earning of $100,000.

- The target market of Apple is undoubtedly conserved in close to standard to high

payroll individuals.

- Average individual income of a user stands to be around $98,000

4. Occupation Group

Most of the Apple’s users are highly educated millennial. They are career-oriented
and lead an active social life.

- Students, executives, managers, professionals are the primary target market of

Apple inc.

- 64% of App;e product users tend to have college degrees

-Apple market is wealthier, more educated and older than the rest of the cell phone
users as the compony offers premium service.
GEOGRAPHIC SEGMENTATION
Divided from a market by the geographical region of the division, such as city, state,
directional region, country, and continent. Apple Inc.

Specifically targets
-United States
-Europe
-China
-India
-Australia, and South America market.

-Apple sellsits products online (shipped to customers) via the Apple store and other e-
commerce sites
PSYCHOGRAPHIC SEGMENTATION
Apple has a branding strategy that focuses on the emotions.

-The Apple brand personality is about lifestyle; imagination; liberty regained; innovation;
passion; hopes, dreams and aspirations; and power-to-the-people through technology.

- The Apple brand personality is also about simplicity and the removal of complexity from
people’s lives; people-driven product design; and about being a really humanistic company
with a heartfelt connection with its customers.
BEHAVIOURAL SEGMENTATION
Kotler (2007), discuss about behavioural segmentation that is dividing a market into groups
based on consumer knowledge, attitude, use or response to a product.

- Apple uses this segment technique very smartly by the innovations that lead to brand
switching.

- Apple introduced its iphone 3 by considering consumer’s behaviour, their attitudes

towards new technological changes

- What consumer aspects from the one smart-phone that provides multifunction facilities.
TARGETING
Targeting implies selecting market segments that companies want to focus on and then
customize or position thir products to each segment,

- Apple inc chooses below market segments to target for driving their business strategy,
sales and marketing.

appreciating quality and

design, performance of
technology services over their
products prices
POSITIONING
- Apple believes in continuous improvement and they look into all the key sectors like
environment, health and safety management systems and the quality of our products,
processes and services.

- introduction of its own operating system, hardware, software application, and with a
completely new design, Apple looks to meet all the customer requirements like new products,
ease of use, and an innovative design of the product

- Apple is currently focusing on, brand awareness and improving the product by increasing
the financial investment on marketing and advertisement

-they are looking to continue the reputation of being the leader in innovation for new
technology by implementing product differentiation strategy.