Apple Market Segment

Apple is one of the most enigmatic and successful technology companies to arise in the late seventies to the present. Apple was founded in April 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne and survived several trying periods including the firing on Steve Jobs. The Company survives because it had carved out a niche, a devoted following of the Apple brand and its product. What makes Apple a dominant player in the technology industry is its ability to target specific segments of the market. Contrary to its competitors that try to stuff a product with as many different features as possible, Apple is adept at targeting specific user experiences, and builds its products accordingly.

In order to understand how Apple is using market segmentation, it is important to comprehend what it is. According to Kotler and Keller (2011), “Market segmentation divides a market into well-defined slices. A market segment consists of a group of customers who share a similar set of needs and wants” (p. 214). The authors state that it is the “marketer’s task […] to identify the appropriate number and nature of market segments and decide which one(s) to target” (Kotler & Keller, 2011). There are four primary segmentation variable: geographic,demographic, psychographic, and behavioral.

Apple’s Market Segmentation

Geographic Segmentation

Geographic segmentation refers to a location such as home or business address, city, county, country, and region. Apple has been adept at using geography to their advantage: initial launching of their products has been in the main cities like Los Angeles and New York. Apple, however, has established their business all over the world including. Their releases target major cities where population is large enough to be profitable, the market is big enough to have room to grow and for competition, population is easy accessible, company has resources to compete in the market, and the market is a good fit with the company’s mission and objectives....