Marketing Principle Exam Sample and Answers

Q.A1: Using geographic, demographic, psychographic and behavioural segmentation bases, identify the segmentation criteria you consider were used by Apple to identify the chosen target market(s) for IPAD2. Explain the rationales for your choice of target market(s). The iPad was a new product category in computers, changing the way consumers interact with their devices. However, the iPad 2 had to meet the demand of touch screen interface that the iPad offered, and respond to the ever changing wants of its consumers who lived in a fast paced technological environment. In order for Apple to identify the chosen target market for the iPad 2, it would have to used segmentation criteria from geographic segmentation bases; dividing into different geographic units such as nations, states, countries, cities, etc., where Apple would have decided to operate in as many geographical areas as possible, but pay attention to geographical differences in needs and wants. For example, retailers such as Coles and Woolworths operate virtually everywhere, but sometimes stock speciality products for specific types of geographic locations. For example, a shopper in Newcastle might find fresh flathead in the deli, but this product might not be stocked in Bathurst stores. Apple would have used geographical segmentation to acquire information about which target markets would be most attractive for the company based on their geographic location. Apple might have targeted 1st world countries first, as these nations have the most proposed profits due to characteristics such as their economy, employed people, etc. which were determined due to their location amongst other consumer countries, for which they can influence. Demographic segmentation would have been used by Apple to identify the target market for the iPad 2, where the consumer’s specific characteristics would be taken into consideration and be targeted specifically; such as age, gender, income, occupation, education, generation and...