Market Segmentation, Targeting & Position

Market Segmentation, Targeting & Position

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May 28, 2012

The company Apple is a highly successful company when it comes to computers, music players, and other consumer electronic computer related equipment. Ipad’s are a common accompaniment that individuals world over possess, with the iPad 2 being out on the market, Apple had to ensure that in launching this product that they implemented the appropriate strategies within the market to prevent the product from failing. Some of the key areas they had to address before placing the iPad 2 on the market were: market segmentation, targeting, and position. These elements are always pertinent to any company product or service success, because one wrong move within either one of these areas could deem detrimental for that individual product/service, or perhaps even the entire company.

Apple has to define what target market they are going to focus on. This can be done by breaking the market into segments. Knowing your target market is key to knowing how to manage your market segmentations. A target is the consumer(s) that a company wants to sell products or services to, and whom they will focus their marketing efforts on (Investopedia.com, 2012). A target market such as the iPad 2 can be separated in a number ways. It can be separated by age, buying power, demographics, as well as psychographics. This is done this way because companies realize that all products are not for all consumers. For instance, most elderly adults will probably not purchase or use the iPad 2. So they would not be a part of the target market and in the market segmentation for Apple.

Market segmentation is what allows you to market your product on individuals (a market) that are most likely to purchase what you are offering. Considering that Apple had an iPad previously, this new iPad had to have something different, or something more than what the...