Market Segments for Apple IPad
MarketSegments for Apple IPad
MarketSegments for Apple IPad
Businessesare always striving to come up with strategies that will allow forthe maximization of their profits in the long-term and short-term. Itis well acknowledged that marketing comes as one of the mostfundamental and effective techniques for accomplishing this objectiveor goal considering that it allows for the enhancement of thepopularity of a particular company’s offerings to both the existingand potential clients. As much as marketing plays a crucial role,managers have acknowledged that their products and services willalways be more appealing to particular groups of people. In essence,it is more economical and effective to design strategies that will beattractive to these people rather than the entire population. Thisgave rise to market segmentation (Kotler & Keller, 2012). Marketsegmentation underlines a marketing strategy that revolves around thedivision of a broad target market into subsets of countries,businesses or consumers that have shared priorities and needs, andthen coming up with and implementing strategies that would targetthem (Kotler & Keller, 2012). Different business entitiesundertake different forms of market segmentation for its differentproducts, as would be the case for Apple Inc’s IPad.
Variablesfor segmenting the target market for Apple’s iPad
Thereare several variables that the segmentation of the target market forApple would have to take into account. First, there is thedemography. The trendy and fashionable nature of iPad is bound to bemore appealing to individuals between the age of 16 and 29, who maybe businessmen, youth or middleclass among others (Schewe &Meredith, 2004). The main target for the company would be high classand middle class income segments, particularly considering that theirproducts are a bit high up in the price scale. Age comes as crucialin determining the appeal of the company’s products to thepotential consumers, as well as the potential consumers’ financialcapability and willingness to purchase them (Schewe & Meredith,2004). A large number of individuals within the ages of 16-39 arelikely to have more disposable income and be fashion or trendconscious.
Onthe same note, the segmentation must take into consideration theincome brackets within which a target market falls. Low-end marketsmay not particularly have sufficient clients with enough disposableincome to afford the luxurious gadgets that are offered by thecompany.
Further,the company would have to evaluate the gender composition of thetarget markets. This would determine the features that would be moreattractive to the potential clients including color, size and form ofiPads, with scholars acknowledging that things such as color andsleekness would be quite appealing to lady consumers (Tonks, 2009).
Othervariables that would be crucial to evaluate would be the geography.Geographical segments are known to have variations in consumer tastesfor products. It is well acknowledged that items such as iPads aremore appealing to individuals in the urban areas than rural areas.Geography offers convenient organizational framework where thedistribution networks, salespeople and products may be organizedaround specific and central locations (Schewe & Meredith, 2004).As much as geography may not have a bearing on the tastes andpreferences of the consumers, it may be an indicator of theirfinancial wellbeing as to determine their ability to purchase thegadgets.
Evaluationof the Attractiveness of the Variables
Inassessing the attractiveness of the variables, it is imperative thatthe marketers determine whether the markets have certaincharacteristics. First, the segment variables must be identifiable.Apple Inc must determine the individuals within the market who havethe financial capacity to purchase the gadgets. Second, theattractiveness of the market will be determined by how reachable itis (Reisenwitz & Iyer, 2009). The best service or product wouldnot have any impact in instances where it is not easily reachable oreven reached via persuasive communications. It is imperative thatconsumers in a particular segment have the capacity to receive themarketing messages so as to known the existence of the services andproducts, comprehend its usefulness and recognize how they canpurchase it (Kotler & Keller, 2012). On the same note, thesegments must be responsible for the segmentation strategy to besuccessful. Indeed consumers in the segments must have the capacityto react in a more or less similar and positive manner to theofferings of the company. A company must never pursue a market ininstances where it is not responsive to its products, even if itmeets all other criteria.
Whatshould the company pursue?
Itwould be most appropriate that the company pursues marketspecialization. This would entail a mode of production in which thefirm would focus on producing a limited scope of services andproducts so as to gain a higher level of product efficiency in theentire area or system of businesses (Reisenwitz & Iyer, 2009). Inthis regard, the company could dedicate its efforts to determiningthe products that would be most appealing to particular areas andthen having the products specialized to the particular markets so asto make them more appealing (Reisenwitz & Iyer, 2009).
Kotler,P., & Keller, K. L. (2012). Marketingmanagement (14thed.). Boston, MA: Pearson Education, Inc.
Reisenwitz,T., & Iyer, R. (2009). Differences in generation X and generationY: implications for the organization and marketers. Marketingmanagement journal,19(2), 91-103.
Schewe,C., & Meredith, G. (2004). Segmenting global markets bygenerational cohorts: determining motivations by age. Journalof consumer behaviour,4(1), 51-63
Tonks,D. (2009). Validity and the design of market segments. Journalof marketing management,25(3/4). 341-356.