Market Segmentation

Market Segmentation

Doreen Schram

University of Phoenix

MKT

571

Heidi Kelley

August 12, 2013

Market Segmentation

Marketing segmentation is the process of dividing the market into subgroups with similarities ("Market Segmentation," 2010). Market segmentation is a tactic that allows companies to target different categories of customers who have the same values and needs and helps the company produce profit making products. Marketing segmentation gives companies a “road map” for the developing of successful products. Apple, a successful company, uses market segmentation to identify needed products. Below is an analysis of Apple’s marketing segmentation. Also included is how they select their target audience

Marketing segmentation is divided into three criteria; homogeneity, distinction, and reaction and there are four basic segmentation strategies; behavior, demographic, geographic, and psychographic ("Market Segmentation," 2010). Steve Jobs, the founder of Apple, had an unique perspective on marketing by offering products with a number of features to attract several types of customers. Apple’s position as a company’s is “to make great products that the people want” (Rabil, 2010, p. 1). Prior to the production of a product, Apple does a market segmentation to understand their market and their customer’s desire in order to find products to fulfill their customers wants. This tactic is very important for them to remain in competition and to build brand loyalty. When determining what products to produce, Apple uses the four basic segmentation strategies to ensure their products are successful.

Four Basic Marketing Segmentation Strategies

The basic marketing strategies are a focused form of segmentation that enables companies to produce products targeted toward s specific groups. Behavioral segmentation is dividing groups based on behavior patterns such as spending, consumption, lifestyle, usage, and benefit (Bhasim, 2011). Apple looks at...