ADDIS ABABA UNIVERSITY

SCHOOL OF COMMERCE
Principle of Marketing Management
Submitted by; section 3
Group Members
Name Student Identification number
Kidan Tegegn UGR/0582/15

Mahder Tesfaye UGR/3602/15

Desta Abebe UGR/1542/15

Hailemaryam Melak UGR/3931/15

Eldana Yohannes UGR/9450/15

Submitted to; Dr Hailemariam

Date;18/04/16 E.C

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Table of Contents
page
Introduction.................................................................................................................................................4
Market Segmentation..................................................................................................................................5
Levels of Marketing Segmentation..........................................................................................................5
Segmenting Consumer Markets..................................................................................................................6
Using Multiple Segmentation Bases........................................................................................................8
The Requirements for Effective Segmentation........................................................................................8
Market Targeting.........................................................................................................................................9
Evaluating Market Segments...................................................................................................................9
Selecting Target Market Segments........................................................................................................10
An Undifferentiated Marketing Strategy...............................................................................................11
A Differentiated Marketing Strategy......................................................................................................11
Choosing a Differentiation and Positioning Strategy.............................................................................12
Identifying Possible Value Differences and Competitive Advantages....................................................12
Choosing the Right Competitive Advantages.........................................................................................13
Selecting an Overall Positioning Strategy..............................................................................................13
Communicating and Delivering the Chosen Position.............................................................................13
Market Segmentation of Apple.................................................................................................................14
Geographic Segmentation of Apple.......................................................................................................14
Demographic Segmentation of Apple....................................................................................................15
Psychographic Segmentation of Apple..................................................................................................16
Behavioral Segmentation of Apple........................................................................................................16
Apple’s Levels of Marketing Segmentation...............................................................................................17
Apple’s Pattern of Market Segmentation..................................................................................................18
Targeting of Apple.....................................................................................................................................18
Apple's Positioning Strategy......................................................................................................................19
Apple's marketing plan..........................................................................................................................19
Apple's positioning in designing the company offering and image........................................................19
Apple's positioning on cost performance and usage.............................................................................20
Differentiation of Apple.........................................................................................................................20
Positioning error that Apple company avoid.............................................................................................21

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 [Link] Segmentation, Targeting and Positioning
Introduction
Businesses may not be able to satisfy all their customers, every time. It may prove difficult to
meet the exact requirements of each customer. People do not have identical preferences, so
rarely does one product completely satisfy everyone. Therefore, many companies may usually
adopt a strategy that is known as target marketing. This strategy involves dividing the market
into segments and developing products or services for these segments. A target marketing
strategy is focused on the customers’ needs and wants. Hence, a prerequisite for the
development of this customer-centric strategy is the specification of the target markets that the
companies will attempt to serve. The marketing managers who may consider using target
marketing will usually break the market down into groups (segments). Then they target the
most profitable ones. They may adapt their marketing mix elements, including products, prices,
channels, and promotional tactics to suit the requirements of individual groups of consumers.
We will explain the three stages of target marketing, including
(i) Market segmentation
(ii) Market targeting and
(iii) Market positioning.

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Market Segmentation
What is a market segment?

A market segment is a group of individuals, groups, or organizations who may share the same
interests, traits, and characteristics. The consumer segments may have similar needs, wants,
and expectations. Therefore, businesses should ask themselves which segments they should
serve. To answer this question, businesses must determine the most appropriate ways to
distinguish and differentiate their segments. Once the segments have been identified they must
customize their offerings to satisfy every one of them.

Market segmentation is the actual process of identifying segments of the market and the
process of dividing a broad customer base into sub-groups of consumers consisting of existing
and prospective customers. Market segmentation is a consumer-oriented process and can be
applied to almost any type of market. In dividing or segmenting markets, researchers typically
look for shared characteristics such as common needs, common interests, similar lifestyles, or
even similar demographic profiles. So, market segmentation assumes that different segments
require different marketing programs, as diverse customers are usually targeted through
different offers, prices, promotions, distributions, or some combination of marketing variables.

Buyers in any market differ in their wants, resources, locations, buying attitudes, and buying
practices. Through market segmentation, companies divide large, heterogeneous markets into
smaller segments that can be reached more efficiently and effectively with products and
services that match their unique needs. There are four important segmentation topics:
segmenting consumer markets, segmenting business markets, segmenting international
markets, and the requirements for effective segmentation. However, we will see the
segmenting of consumer markets and international markets in detail.

Levels of marketing segmentation

Mass Marketing: refers to mass-producing, mass-distributing, and mass-promoting the same
product in about the same way to all consumers.

Segment Marketing: Consists of a large identifiable group within a market with similar wants,
purchasing power, geographical location, buying attitudes, or buying habits.

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Niche Market: a more narrowly defined group, typically a small market whose needs are not
well served. Marketers usually identify niches by dividing a segment into sub-segments or by
defining a group seeking a distinctive mix of benefits. i.e., the segments of heavy smokers
include those who are trying to stop smoking and those who don’t care.

Micro marketing: It is the practice of tailoring products and marketing programs to suit the
tastes of specific individuals and locations.

Local marketing: involves tailoring brands and promotions to the needs and wants of local
customer groups- cities, neighborhoods, and even specific stores. Drives up manufacturing and
marketing costs by reducing economies of scale and creates logistical problems as companies
try to meet the varied requirements of different regional and local markets, The brand's overall
image may be diluted if the product and message vary in different localities its disadvantages
and helps a company to market more effectively and meets the needs of the company’s “first-
line customers”- retailers are its advantages.

Individual marketing: Individual Marketing: The ultimate level of segmentation leads to

“Segments of One” customized marketing, or ‘one-to-one marketing. Refers to the practice of
tailoring products and marketing programs to the needs and preferences of individual
customers.

Segmenting Consumer Markets

There is no single way to segment a market. A marketer must try different segmentation
variables, alone and in combination, to find the best way to view market structure. There are
major variables that might be used in segmenting consumer markets. Such as geographic,
demographic, psychographic, and behavioural variables.

Geographic segmentation
Geographic segmentation involves selecting potential markets according to where they are
located. This segmentation approach may consider variables such as climate, terrain, natural
resources, and population density, among other geographic variables.

Geographic segmentation calls for dividing the market into different geographical units such as
nations, states, regions, counties, cities, or neighborhoods. People’s attitudes towards products
and services may differ based on the geographical location they live.

Demographic segmentation
Demographic segmentation divides the market into segments based on variables such as age,
gender, family size, family life cycle, income, occupation, education, religion, race, generation,

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and nationality. Demographics are the most popular basis for segmenting customer groups.
One reason is that consumer needs, wants, and usage rates often vary closely with
demographic variables. Another is that demographic variables are easier to measure than most
other types of variables. Even when marketers first define segments using other bases, such as
benefits sought or behavior, they must know a segment’s demographic characteristics to assess
the size of the target market and reach it efficiently.

Because of the reason that Consumer wants, preferences, and usage rates are often associated
with demographic variables & the easiness of demographic variables to measure, demographic
customer segmentation is the most popular and the most used variable in segmenting process.

Psychographic segmentation
Psychographic segmentation could be used to segment markets according to personality traits,
values, motives, interests, and lifestyles. A psychographic dimension can be used by itself to
segment a market, or it can be combined with other segmentation variables. The psychographic
variables are used when purchasing behaviors correlate with the personality or lifestyles of
consumers. Diverse consumers may respond differently to the businesses’ marketing efforts.

Behavioral segmentation
Behavioral segmentation is defined as the segmentation of the market according to individual
purchase behaviors. Behavior-based segmentation is conspicuous with the benefits sought from
the product, with the identification of specific buying behaviors, in terms of shopping frequency
and volumes of purchase.

Occasions: Buyers can be grouped according to occasions when they get the idea to buy, make
their purchase, or use the purchased item. Occasion segmentation can help firms build up
product usage. For example, most consumers drink orange juice in the morning, but orange
growers have promoted drinking orange juice as a cool, healthful refresher at other times of
the day. By contrast, Coca-Cola’s “Good Morning” campaign attempts to increase Diet Coke
consumption by promoting the soft drink as an early morning pick-me-up.

Benefits Sought: A powerful form of segmentation is grouping buyers according to the different
benefits that they seek from a product. Benefit segmentation requires finding the major
benefits people look for in a product class, the kinds of people who look for each benefit, and
the major brands that deliver each benefit.

User Status: Markets can be segmented into nonusers, ex-users, potential users, first-time
users, and regular users of a product. Marketers want to reinforce and retain regular users,
attract targeted nonusers, and reinvigorate relationships with ex-users.

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Usage rate: Another basis for market segmentation is the rate at which people use or consume
a product. A frequently used categorization of usage rate is nonusers, light users, medium
users, and heavy users. Normally a company is most interested in the heavy users of its
products.

Loyalty Status: A market can also be segmented by consumer loyalty. Consumers can be loyal
to brands, stores, and companies. Buyers can be divided into groups according to their degree
of loyalty. Some customers may buy one brand all the time. They are called hard-core loyal. And
some of them might be split loyal when they are loyal to two or three brands. Maybe other
sections of customers might be shifting loyal if they shift from one brand to another. and the
remaining will be called switchers. This type of customer is not loyal to any brand.

Using Multiple Segmentation Bases

Marketers rarely limit their segmentation analysis to only one or a few variables. Rather,
they often use multiple segmentation bases to identify smaller, better-defined target groups.
Thus, a bank may not only identify a group of wealthy, retired adults but also,
within that group, distinguish several segments based on their current income, assets, savings
and risk preferences, housing, and lifestyles.
Several business information services such as Nielsen, Acxiom, and Experian provide
multivariable segmentation systems that merge geographic, demographic, lifestyle, and
behavioral data to help companies segment their markets down to zip codes, neighborhoods,
and even households.

The Requirements for Effective Segmentation

There are several ways how a market can be segmented. However, not all market
segmentations are effective. Market segments must mean something, they must have
relevance to the product being marketed. The market segments must possess the following
characteristics:

Measurability

It must be possible to measure the size and purchasing power of the segment. It must be
possible to gather concrete information on the various characteristics of the market. A
consumer’s profiles and data provide marketing strategies with necessary information on how
to carry out their campaigns.

Substantiality

This is the degree to which segments are profitable enough to be worth pursuing with ‘tailored’
marketing programs. for example, for an automobile manufacturer to develop cars, especially
for people whose height is greater than seven feet.

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Accessibility

This refers to the degree to which one may reach and serve segments. Suppose a fragrance
company finds that heavy users of its brand are single men and women who stay out late and
socialize a lot. Unless this group lives or shops at certain places and is exposed to certain media,
its members will be difficult to reach.

Actionability

This relates to the degree to which effective programs can be redesigned to attract and serve
relevant segments. For example, although one small airline identified seven market segments,
its staff was too small to develop separate marketing programs for each segment.

Differentiable

The segments are conceptually distinguishable and respond differently to different marketing
mix elements and programs. If men and women respond similarly to marketing efforts for soft
drinks, they do not constitute separate segments.

Market Targeting
Once the market segmentation has been completed, the company should be aware of the
needs and wants of its selected segments. It is in the interest of the business to identify any
untapped needs in the marketplace, as there could be customers who may not be adequately
served by competitors. It is then necessary to identify the most profitable segments and to
decide which segments will be served. Three market coverage alternatives can be applied;
undifferentiated marketing; differentiated marketing and concentrated marketing. But before
moving to the three market coverage alternatives let us see the process of evaluating the
segments.

Evaluating Market Segments

In evaluating different market segments, a firm must look at three factors: segment size and
growth, segment structural attractiveness, and company objectives and resources. The
company must first collect and analyze data on current segment sales, growth rates, and the
expected profitability for various segments. It will be interested in segments that have the right
size and growth characteristics.
But “right size and growth” is a relative matter. The largest, fastest-growing segments
are not always the most attractive ones for every company. Smaller companies may lack the
skills and resources needed to serve larger segments. Or they may find these segments too
competitive. Such companies may target segments that are smaller and less attractive, in an
absolute sense, but that is potentially more profitable for them.
The company also needs to examine major structural factors that affect long-run segment

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attractiveness. For example, a segment is less attractive if it already contains many
strong and aggressive competitors. The existence of many actual or potential substitute
products may limit prices and the profits that can be earned in a segment. The relative power of
buyers also affect segment attractiveness. Buyers with strong bargaining power relative to
sellers will try to force prices down, demand more services, and set competitors against one
another all at the expense of seller profitability. Finally, a segment may be less attractive if
it contains powerful suppliers who can control prices or reduce the quality or quantity of
ordered goods and services.
Even if a segment has the right size and growth and is structurally attractive, the company must
consider its objectives and resources. Some attractive segments can be dismissed quickly
because they do not mesh with the company’s long-run objectives. Or the company may lack
the skills and resources needed to succeed in an attractive segment.

Selecting Target Market Segments

After evaluating different segments, the company must decide which and how many segments
it will target. A target market consists of a set of buyers who share common needs or
characteristics that the company decides to serve. Market targeting can be carried out at

several different levels. The company can consider the five patterns of target market selection.

1. Single–Segment Concentration/Concentrated Marketing: This is a market coverage

strategy in which a firm goes after a large share of one or a few sub-markets. Instead of
going after a small share of a large market, the firm goes after a large share of one or a
few sub-markets. This provides an excellent way for small new businesses to get a
foothold against larger, more resourceful competitors. But involves higher – than – the
normal risks.
2. Selective Specialization: Here the firm selects several segments, each objectively
attractive and appropriate, given the firm’s objectives and resources. There may be little
or no synergy among the segments, but each segment promises to be a money maker.
This multi-segment coverage strategy has the advantage of diversifying the firm’s risk.
Even if one segment becomes unattractive, the firm can continue to earn money in
other segments.
3. Product Specialization: Here the firm concentrates on making a certain product that it
sells to several segments. The firm builds a strong reputation in the specific product
area. An example would be a microscope manufacturer that sells microscopes to
university laboratories, government laboratories, and commercial laboratories but not
other instruments that laboratories might use. The downside risk is that the product
may be supplanted by an entirely new technology.

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 4. Market Specialization: Here the firm concentrates on serving many needs of a particular
customer group. An example would be a firm that sells an assortment of products for
university laboratories, including microscopes, oscilloscopes, Bunsen burners, and
chemical flasks. The firm gains a strong reputation for specializing in serving this
customer group and becomes a channel for all new products that the customer group
could feasibly use. The downside risk is that the customer group may have its budgets
cut.
5. Full Market Coverage: Here a firm attempt to serve all customer groups with all of the
products they might need. Only large firms can undertake a full market coverage
strategy. Large firms can cover a whole market in two broad ways: through
undifferentiated marketing or differentiated marketing.

An Undifferentiated Marketing Strategy

An undifferentiated marketing strategy ignores any differences in the market. Therefore,
this strategy involves approaching the customers with one market offer. Currently,
discerned customers are increasingly becoming more demanding. It will prove difficult for
the business to develop a product or a brand that will satisfy all consumers who may have
different needs, wants, and expectations.

A Differentiated Marketing Strategy

A differentiated marketing strategy will usually involve targeting several segments. This
marketing coverage strategy entails developing an individual product or service offering and
creating a marketing plan for each segment. Hence, the company should carry out thorough
market research to learn about how it can satisfy its selected segments. This will translate to
more costs than an undifferentiated strategy. Therefore, the company needs to decide which
services are of critical importance to its chosen segments. The marketing managers should
determine whether there will be significant margins when opting for differentiated marketing.

Product Differentiation and Positioning

Beyond deciding which segments of the market, it will target, the company must decide on
a value proposition—how it will create differentiated value for targeted segments and what
positions it wants to occupy in those segments. A product’s position is the way the product is
defined by consumers on important attributes—the place the product occupies in consumers’
minds relative to competing products. Products are made in factories, but brands
happen in the minds of consumers. For example, In the automobile market, the Nissan Versa
and Honda Fit are positioned on economy, Mercedes and Cadillac on luxury, and Porsche and
BMW on performance. And Toyota positions its fuel-efficient, hybrid Prius as a high-tech

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solution to the energy shortage: Harmony between man, nature, and machine. Consumers are
overloaded with information about products and services. They cannot reevaluate products
every time they make a buying decision. To simplify the buying process, consumers organize
products, services, and companies into categories and “position” them in their minds. A
product’s position is the complex set of perceptions, impressions, and feelings that consumers
have for the product compared with competing products.

Choosing a Differentiation and Positioning Strategy

Some firms find it easy to choose a differentiation and positioning strategy. For example, a
firm well known for quality in certain segments will go for this position in a new segment
if there are enough buyers seeking quality. But in many cases, two or more firms will go after
the same position. Then each will have to find other ways to set itself apart. Each firm
must differentiate its offer by building a unique bundle of benefits that appeals to a substantial
group within the segment.
Above all else, a brand’s positioning must serve the needs and preferences of well-defined
target markets. For example, although both Dunkin’ Donuts and Starbucks are coffee shops,
they offer very different product assortments and store atmospheres. Yet each
succeeds because it creates just the right value proposition for its unique mix of customers.
The differentiation and positioning task consists of three steps: identifying a set of
differentiating competitive advantages on which to build a position, choosing the right
competitive advantages, and selecting an overall positioning strategy. The company must then
effectively communicate and deliver the chosen position to the market.

Identifying Possible Value Differences and Competitive Advantages

To build profitable relationships with target customers, marketers must understand customer
needs better than competitors do and deliver more customer value. To the extent that
a company can differentiate and position itself as providing superior customer value, it
gains competitive advantage.
To find points of differentiation, marketers must think through the customer’s entire
experience with the company’s product or service. An alert company can find ways to
differentiate itself at every customer contact point. In what specific ways can a company
differentiate itself or its market offer? It can differentiate along the lines of products, services,
channels, people, or images. Through product differentiation, brands can be differentiated on
features, performance, or style and design. Beyond differentiating its physical product, a firm
can also differentiate the services that accompany the product. Some companies gain service
differentiation through speedy, convenient, or careful delivery. Firms that practice channel
differentiation gain a competitive advantage through the way they design their channel’s
coverage, expertise, and performance. [Link] and GEICO set themselves apart with their
smooth-functioning direct channels. Companies can also gain a strong competitive advantage

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through people differentiation—hiring and training better people than their competitors do.
Even when competing offers look the same, buyers may perceive a difference based on
company or brand image differentiation. A company or brand image should convey a product’s
distinctive benefits and positioning. Developing a strong and distinctive image calls
for creativity and hard work. A company cannot develop an image in the public’s mind
overnight by using only a few ads.

Choosing the Right Competitive Advantages

Selecting Key Differentiators: From the identified competitive advantages, companies must
choose the most impactful and relevant ones. These are the unique qualities that will set the
product or brand apart from competitors in the eyes of consumers.

Aligning with Target Audience Needs: The selected advantages should align with the needs and
preferences of the target audience. Understanding customer demands and desires is crucial in
ensuring that the chosen differentiators resonate with the market.

Selecting an Overall Positioning Strategy

Target Market Definition: Clearly define the target market and segment the audience based on
demographic, psychographic, or behavioural factors. This precision allows for a tailored
positioning strategy that speaks directly to the intended audience.

Positioning Statement Development: Craft a concise positioning statement that encapsulates

the unique value proposition and differentiators. This statement should be clear, compelling,
and memorable, guiding all subsequent marketing efforts.

Communicating and Delivering the Chosen Position

Consistent Messaging: Once the positioning strategy is established, consistent messaging across
all marketing channels is crucial. This includes advertising, branding, and promotional materials.
Consistency reinforces the chosen position and helps in building a strong brand image.

Customer Experience: Ensuring that the customer’s experience aligns with the promised
positioning is essential. From product quality to customer service, every touchpoint should
reflect the intended position in the market.

Continuous Monitoring and Adaptation: Market dynamics change, and it’s crucial to
continuously monitor the effectiveness of the chosen position. This involves gathering
feedback, analysing performance metrics, and being prepared to adapt the positioning strategy
based on evolving market conditions.

Generally

It is virtually impossible to satisfy all customers, so it is up to the company to select the specific
parts of the market that they can best serve. Therefore, businesses could identify market

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segments, select a few profitable segments, and develop products and marketing mixes that
are aimed at customers. Target marketing is made up of three stages: market segmentation,
marketing targeting, and product positioning.

Segmentation is the identification of customer groups who share similar characteristics. This
process has several advantages and enables a marketing manager to design an effective plan
for each segment. Usually, tourism companies segment their market by using demographic,
geographic, psychographic, behavioural, and product-related variables. The chosen segments
ought to be measurable, accessible, substantial, and actionable.

Businesses should consider the most appropriate market coverage strategy according to their
resources, the type of service to be offered, and the diversities within the market. However,
they should also evaluate their competitors’ market coverage strategies.

The final stage in target marketing is product positioning. Consumers have different perceptions
of products or services. Therefore, businesses should underline their products’ unique
attributes, features, and value propositions to differentiate themselves from other competitors
in the marketplace.

2. Targeting Marketing i

Market Segmentation of Apple

The entire marketing strategy of Apple is divided into market Segmentation, Targeting, and
Positioning. The market segmentation aspect involves dividing the market into segments of
customer needs. Every customer has their needs and preferences. This is a three-step process
that explores products and services and the ways their benefits can be communicated to its
target market. This model allows companies to tailor marketing approaches to meet customers'
expectations.

Apple, over the years, has masterfully implemented this concept, using several key parameters
to differentiate its consumer base: geographic, demographic, psychographic, and behavioral
segmentation.

Geographic Segmentation of Apple

Apple has a broad geographic reach, covering both developed and emerging markets around
the globe. From North America to Europe to Asia-Pacific, Apple products are universally sought
after. Apple has set up outlets in different areas of the world. There were more than 500 Apple
retail outlets across 25 countries around the world. This ensures that Apple has a physical
presence in many areas of the world.

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 A significant factor driving this widespread appeal is Apple's reputation for delivering high-end,
innovative products that are in sync with evolving technological trends.

Their flagship stores, designed as architectural marvels and strategically located in major cities
worldwide, significantly enhance their global presence. Further, they maintain a robust
distribution network through tie-ups with authorized resellers and leading e-commerce
platforms. Through this online and physical representation, Apple has expanded its market
reach and brought in more loyal customers. The customer has expanded, making the company.

Demographic Segmentation of Apple

When it comes to demographic segmentation, Apple's offerings span across different age
groups and genders. They've strategically broadened their product portfolio to appeal to
diverse demographics. Their Mac computers are widely popular amongst professionals for their
seamless design and high-performance capabilities.

Their iPhones are equally popular amongst teenagers, young adults, and the middle-aged
population, thanks to their user-friendly interface, sleek design, and status symbol
representation. iPads and iPods too, find favor among a broad demographic spectrum - from
kids captivated by interactive learning games to senior citizens using user-friendly apps for
healthcare monitoring.

To see the rough demographic statistics of Apple in age

 As of 2022, 51% of iPhone users are females.

 Considering other types of devices, 34% of the devices are owned by males while 66% of the
devices are owned by females.
 And 60% of the users aged between 18 to 29 years have iOS-based mobile devices in the United
States of America.

Graph: Rough demographic statistics of Apple in age

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Psychographic Segmentation of Apple
Psychographic segmentation is a market research method used to divide a market or customer
group into segments based on their beliefs, values, lifestyle, social status, activities, interests
and opinions, and other psychological criteria. In this context, Apple has done exceedingly well.
They cater to individuals who seek exclusivity and superior design. Apple products are a lifestyle
statement - an embodiment of elegance, sophistication, and innovative technology.

Their products appeal to creative professionals, tech enthusiasts, and individuals who
appreciate an elevated aesthetic appeal in their devices. Consumers who choose Apple value its
sleek design, exclusive features like Retina Display or Face ID, seamless hardware-software
integration, and the prestige associated with owning an Apple device.

Behavioral Segmentation of Apple

Apple's marketing segmentation has been based largely on the behavioral and psychographic
and behavioral elements

Lastly, behavioral segmentation is also at play. This type of segmentation is based on the
consumer's product knowledge, usage rate, loyalty status, and benefits sought.

The loyalty that Apple commands amongst its users is legendary. Many users are dedicated
followers of the brand and consistently upgrade to the latest models on release. Moreover,

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Apple users often use more than one Apple product - an iPhone user might also own a
MacBook or an iPad or use services like iCloud or iTunes – indicating strong trust and
dependence on the brand.

In essence, Apple’s market segmentation strategy reflects its commitment to understanding

consumer needs at a granular level. By segmenting its markets aptly, Apple delivers products
that aren't merely gadgets but extensions of the individual's personality and lifestyle
preferences. This meticulous approach to market segmentation has indubitably played a
significant role in cementing Apple's reputation as a world-class brand.

Apple’s Levels of Marketing Segmentation

On the other hand, when we classify Apple’s level of marketing segmentation based on buyers
who have unique needs and wants, each buyer is potentially a separate market.

Apple’s level of marketing segmentation is not considered as mass or segment marketing.

Instead, it is a combination of both niche and micro-marketing. To see them separately Micro
marketing is a marketing strategy that involves targeting a specific group of customers with
highly customized and personalized messages, products, and services. Apple has been
successful in targeting specific customer segments with its products and services, such as the
iPhone for tech-savvy consumers, the iPad for business professionals, and the Apple Watch for
fitness enthusiasts. The company also uses personalized marketing techniques, such as sending
targeted emails and push notifications to customers based on their preferences and behaviors.
Niche marketing is a marketing strategy that involves targeting a specific and small group of
customers with highly specialized products and services. Apple has been successful in targeting
niche markets with its products and services, such as the MacBook Pro for graphic designers
and video editors, the iMac for creative professionals, and the iPod for music lovers. The
company has also targeted niche markets with its pricing strategy, offering premium prices for
its products to appeal to customers who value quality and exclusivity.

Apple’s Pattern of Market Segmentation

Apple's pattern of market segmentation is more aligned with cluster preferences. This means
that Apple targets specific groups of customers who share common values and interests, rather
than trying to appeal to a broad and diverse market. Apple's marketing efforts are focused on
identifying these clusters of customers and creating marketing messages that resonate with

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them. For example, Apple's marketing campaigns for the iPhone and MacBook target specific
groups of consumers, such as creative professionals, tech enthusiasts, and high-income
individuals, who share similar preferences and values. This approach allows Apple to create
targeted marketing messages that are more effective in reaching and engaging with their target
audience.

Targeting of Apple
Apple Inc. can be considered a differentiated company. Apple offers a wide range of products
and services, including iPhones, iPads, Mac computers, Apple Watch, Apple TV, and various
software applications. Each product has its own unique features and target audience. Apple's
marketing strategy focuses on creating a distinct brand image and positioning itself as a
premium technology company. Therefore, Apple targets different market segments with its
diverse product portfolio.
Apple uses a combination of marketing patterns, including:

a. Selective Specialization: Apple focuses on a specific range of products, such as smartphones

(iPhone), tablets (iPad), and computers (Mac). They specialize in offering high-quality and
innovative devices in these categories.

b. Product Specialization: Apple places a strong emphasis on creating unique and differentiated
products. Their products have distinctive features, sleek designs, and a user-friendly interface,
which sets them apart from competitors.

c. Market Specialization: Apple primarily targets specific market segments, such as tech-savvy
consumers, creative professionals, and individuals who value premium quality and design. They
tailor their marketing strategies to appeal to these specific groups.

D. Full Market Coverage: While Apple primarily focuses on certain market segments, it also
aims to have a broad market reach. They strive to make their products accessible to a wide
range of consumers, not just a niche audience. This is evident in their global presence and
efforts to expand into new markets.

Overall, Apple's marketing approach combines selective specialization, product specialization,

market specialization, and elements of full market coverage to target specific markets while
also appealing to a broader audience.

Apple's Positioning Strategy

Apple's marketing plan
Apple's marketing plan typically involves a focus on product innovation, sleek design, user
experience, and a strong brand image. They often employ a combination of online and offline

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channels, emphasizing product features and benefits. Apple also leverages exclusivity and
creates anticipation around product launches, contributing to a sense of desirability.
Additionally, their retail stores play a crucial role in providing a hands-on experience for
customers. Overall, Apple's marketing strategy is known for its simplicity, clarity, and emphasis
on the unique value proposition of its products.
Apple's marketing approach extends to ecosystem integration, promoting seamless connectivity
between their devices and services. They emphasize the user-friendly nature of their products,
targeting a wide range of demographics. The "Think Different" campaign exemplifies their
strategy of associating the brand with creativity and innovation. Social media, keynotes, and
high-profile events are platforms they use to engage and captivate their audience. Moreover,
customer loyalty is fostered through continuous updates and support for older devices,
encouraging repeat purchases. In essence, Apple's marketing is a blend of product excellence,
storytelling, and a commitment to customer satisfaction.

Apple's positioning in designing the company offering and image

Apple positions itself as a premium brand with a focus on design, innovation, and a
seamless user experience. They strive to create products that are not only technologically
advanced but also aesthetically pleasing. The company's commitment to minimalist design and
simplicity is evident in both its hardware and software, reinforcing a user-friendly image. Apple
often emphasizes the integration of hardware and software, creating a cohesive ecosystem. The
brand positioning revolves around quality, exclusivity, and the notion that Apple products are
not just devices but lifestyle accessories that enhance productivity and creativity.
Apple also positions itself as a company that sets trends rather than follows them. Their
marketing and product launches often create a sense of anticipation and excitement,
contributing to a perception of constant innovation. The emphasis on privacy and security
further enhances the brand's image, portraying Apple as a trustworthy guardian of user data.
Additionally, the retail store experience is designed to be more than just a transaction; it's a
showcase of the brand's culture and commitment to customer service. Overall, Apple's
positioning is a careful blend of cutting-edge technology, design elegance, and a lifestyle that
goes beyond mere functionality.

Apple's positioning on cost performance and usage

Apple positions itself as a provider of premium products, prioritizing quality, design, and user
experience over cost efficiency. The company is known for its higher price points compared to
many competitors, emphasizing the perceived value of its offerings. Apple aims to justify these
higher prices by delivering top-notch performance, innovative features, and a user-friendly
ecosystem that seamlessly integrates hardware and software.

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While Apple products may not always compete directly on cost, the focus is on providing a
superior overall experience. The company targets consumers who prioritize quality and are
willing to invest in a brand known for reliability and innovation.
In terms of usage, Apple aims to create products that are intuitive and accessible to a broad
audience. The user interface across devices is designed for ease of use, contributing to a
positive user experience. The seamless integration between Apple devices fosters user loyalty,
encouraging customers to stay within the Apple ecosystem for various needs .

Differentiation of Apple
Apple's differentiation lies in several key areas:

1. Design and Aesthetics: Apple products are renowned for their sleek and minimalist design. The
emphasis on aesthetics sets them apart and contributes to a distinctive and recognizable brand identity.

2. Innovation: Apple is often at the forefront of technological innovation, introducing features and
functionalities that set trends in the industry. Their commitment to pushing boundaries and introducing
new technologies differentiates them from competitors.

3. Ecosystem Integration: Apple has created a seamless ecosystem where its devices and services work
together effortlessly. This integration, from hardware to software, enhances the overall user experience
and encourages customer loyalty.

4. Brand Image: The Apple brand is associated with premium quality, reliability, and a commitment to
excellence. The brand's image is carefully curated to evoke emotions of sophistication, creativity, and
innovation.

5. User Experience: Apple places a strong emphasis on user experience, ensuring that their products are
user-friendly and intuitive. This focus extends to the packaging, retail stores, and customer service,
creating a holistic positive experience for users.

6. Marketing and Perception: Apple's marketing strategies, including product launches, keynotes, and
advertising, contribute to a perception of exclusivity and desirability. The "Think Different" campaign
and the aura of secrecy around product launches add to the mystique of the brand.

7. Retail Stores: Apple's retail stores are designed to offer a unique and immersive experience. They
serve not only as sales outlets but also as spaces where customers can interact with the products and
receive expert assistance.

Overall, Apple's differentiation strategy is a combination of design, innovation, ecosystem, brand

perception, user experience, and strategic marketing.

Positioning error that Apple company avoid

Apple has been successful in avoiding several common positioning errors. Some notable ones include:

1. Avoiding Commodity Perception: Apple refrains from positioning itself as a commodity brand. Instead,
it focuses on premium quality, design, and innovation, steering clear of the perception that its products
are interchangeable with lower-cost alternatives.

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2. Not Competing Solely on Price: Apple doesn't position itself as a low-cost provider. Instead, it
emphasizes the value of its products, the user experience, and the overall ecosystem. This strategic
choice allows Apple to maintain higher profit margins and a premium brand image.

3. Consistent Brand Image: Apple maintains a consistent brand image across its products and marketing
efforts. It avoids positioning that could dilute its brand equity or confuse consumers about what the
brand represents.

4. Balancing Innovation and Usability: Apple strives to position itself as an innovative company while
ensuring that its products remain user-friendly. The focus on both aspects helps prevent the error of
creating products that are too complex or difficult for the average user.

5. Managing Exclusivity: Apple carefully manages the perception of exclusivity without alienating
potential customers. While their products are positioned as premium, Apple also aims for a broad
consumer base, avoiding the perception that their products are only for a select few.

6. Avoiding Overreliance on Features: Apple prioritizes essential features and avoids overwhelming
users with excessive functionalities. This approach helps prevent the positioning error of marketing
products solely based on a long list of features, ensuring that each feature adds genuine value.

By navigating these potential positioning pitfalls, Apple has successfully maintained a strong and
distinctive position in the market.

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References
Kotler, P., & Armstrong, G. (2008). Principles of Marketing (12 th ed.). London: Pearson Education
Limited.

Camilleri, M. A. (2018). Market Segmentation, Targeting and Positioning. In Travel Marketing,

Tourism Economics, and the Airline Product (Chapter 4, pp. 69-83). Springer, Cham, Switzerland

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