Principles of Marketing
Segmentation, targeting, differentiation and positioning strategies adopted by Apple for its iPad
Rome, November 2011
Paper examines segmentation-targeting-positioning process on the case of newest mass product of Apple – iPad. It is focused on specific nature of iPAd, segment between established market segments – cell phones of third generation and notebooks/laptops. Further iPad is direct competitor to eBook readers as well as competitor to some of the products from Apple portfolio, like iPods of different kinds.
Key words: Apple, iPad, strategy, STP
This essay giving short overview of STP process and analyze as much as it is possible efforts of the Apple in promotion of iPad. It is not easy evaluate efforts of the company which is champion in development of the product greeted coolly and with some extent of irony by IT practitioners. However, at the end Apple is laughing with great enthusiasm for the future projects, and IT practitioners are staying confusing by growing segment of users of it toys. This paper is based on analysis of secondary data from credible web sites as well as from the academic journals. It is mostly reflection of authors own thinking and attitudes in some extent, as well positions of leading commentators of development in hi-tech. The main goal of this paper is to identify key factor of success of Apple brand extension and importance of psychographic variables using.
ANALYSIS AND DISCUSSION
Segmentation is the process of identifying stratums of the customers with common or similar needs and similar patterns of shopping. Understanding of segmentation is essential in preparing appropriate marketing strategies for each chosen segment. Segments are usually described as the peaces of the tangerine that are entities with fragile connection under one surface. (Lehmann, D. and Russell S. 1994) Criteria of segmentation are endless and depend from characteristics of particular markets. Some firms use gender, sex, race, age, education, nationality, class and other well known variables and creates useful segments and choose which of them to target. In the case of more complex products with strong brand equity it is rather issue of using creative variables like extent of freedom i everyday life, sport style, IT fun etc. Indeed if one analyze customers of iPad it is not big wisdom see that this company is not focused on the segments that fits to old-fashioned segmentation. Instead of that basic characteristics that creates one segment are not visible at glance and usually it is issue for human behavior experts. There is short list of common characteristic of segmentation process, for either chocolate or iPad: 1. Viability of segment and chances for revenues harvesting. Fluid and ephemeral segments are not interesting for even middle run marketing efforts. Bearing in mind that IT is everything but not short time business, viability is essence. Further, some segments are coherent and viable, but segment of crack users is not interesting although members share same life style and number of users is constant – their average income is not sufficient to launch this segment on the list of Apple’s targets. 2. Accessibility of segment is second issue. One segment could be homogeneous and with high income but far away from the efforts of the company. Community of Amish is one very logical segment, but access is not possible. (Bernhardt, K. L. and Thomas C. 1991) 3. Measurability is the final issue. One can say that some segment is logical, but the ultimate test of logic is choose segmentation to enable measuring of marketing efforts. Apple is use by psychographics as the criteria for the years - such as lifestyle or beliefs. It is not easy find what are the all segments discussed in Apple marketing teams, but some of them looks like logical choice: ▪ High income young professionals
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