Companies today are adopting target marketing in promoting their products, which can efficiently find market opportunities for the product (Kotlet, Brown, Burton, Deans & Armstrong, 2010). By using micromarketing, consumers’ needs and wants could be satisfied through varying marketing elements and performances (Hapoienu, 1990). The three main steps in target marketing, namely segmenting, targeting and positioning are important for companies to deliver the value of a product to customers (Kotler et al., 2010). In the following discussion, the focus will be on market positioning. Various concepts on positioning will be explored and applied to the Apple Inc., to show how Apple has positioned the iPad in the market. The STP Process
Figure 1: Steps in market segmentation, targeting and positioning
Source: Adapted from Kotler, Brown, Burton, Deans & Armstrong, Marketing 8th ed, 2010
Figure 1 above shows the three main steps in target marketing and the key procedures in each of the steps. In the first step, which is market segmenting, it involves dividing the market into several distinct groups of buyers according to their needs, characteristics and behaviour (Kotlet et al., 2010). Kotler et al. (2010) divided the bases for segmentation into four categories (as shown in Figure 2). A profile of the resulting segments will need to be developed. In addition, Dibb and Simkin (1991) claimed that effective segments will have to be identifiable, viable, marketable and stable (refer to Figure 3 in appendix). In the context of Apple, the users of iPad can be categorized into 5 groups (as shown in Figure 4 in appendix). Each of the consumers groups will have different profiles of the segmenting bases because of the unique wants of each group of buyers (as shown in Figure 5). Figure 2: Bases for market segmentation
Bases| Definition| Examples| Advantages/Disadvantages|
Geographic| Dividing market into different geographical units| Nations, regions, states, cities, neighbourhood| Simplest to understand| Demographic| Dividing market into groups based on demographical variables| Age, sex, education level, income level, race, nationality| Most prevalent form of market segmentGood description of segments if segments clearly exist| Psychographic| Dividing market into groups based on psychological traits| Lifestyle, social status, personality| More difficult to explain as further investigation on buyer’s psychological characteristics need to be done| Behavioural| Dividing market into groups based on consumers’ knowledge & attitude towards a product| Purchase occasion, benefits sought, user status & rate, loyalty status| Best starting point for building market segments| Sources: Adapted from Kotler, Brown, Burton, Deans & Armstrong (2010) & Beane & Ennis (1987)
Figure 5: The iPad segmentation profile
GroupsBases| Students| Non-working adults| White collar workers| Gamers| Multimedia Users| Description| -Use iPad mainly for school homework or assignments purposes-Sometimes seek entertainment, chatting, and socializing online| -Use iPad to socialize online, search for information and news, watch movies| -Use iPad mainly for work purposes, eg. Searching information online, preparing reports, communicating with clients| -Use iPad for playing downloaded or online games-Sometimes socializing online| -Use iPad for various purposes in a balanced manner, eg. Work purposes, playing games, watching movie, searching information, online socializing| Age(Demographical)| 13-25 years| 26-50 years| 30-55 years| 18-30 years| 18-40 years| Gender (Demographical)| Males/females| Females| Males| Males| Males/females| Education level (Demographical)| Educated| Educated| Well educated| Lower educated| Better Educated| Income per month (Demographical)| $0-500| $0| $8000-15000| $1000-5000| $3000-7000| Psychographical|...