Market Segmentation of Apple Inc

Market Segmentation of Apple Inc

Market segmentation is the identification of different portions of a market to satisfy the needs of all the potential customers. Market segmentation allows a company to drive complete, unified solutions that are in agreement with customer outreach, messaging and channel strategies for supporting and selling to customers. This concept calls for understanding potential clients and working to satisfy their needs (Wedel & Kamakura, 2000). Different customers have different needs, and thus, one cannot satisfy them all by treating them alike. Customers need to be treated according to other specific needs. A good example is the older generation and the youth. Both of these groups have different needs and aspiration and satisfying them requires different approaches and products. However, Apple is very innovative not only in products development but also in market segmentation.

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Apple Inc understands the need for market segmentation and thus operates in different market segments. Apple Inc applies the strategy of studying the market and then targeting specific user experiences. The company then builds a product around the experience accordingly. There are two types of market segmentation. These include Psychographic and behavioral segmentation. Psychographic segmentation is the grouping of customers as per their lifestyle. Interests, activities, and opinions are a good way of measuring lifestyle. Behavioral segmentation, on the other hand, is the actual behavior of the customer towards the company’s products. Some of the variables in this segmentation method include usage rate, brand loyalty, sought benefits, readiness to buy, and user status. For different segments to be practical, they must be accessible, identifiable, substantial, unique, and durable. The market segmentation of apples includes demographical bases, geographical bases, behavior bases and psychographic bases.

The demographic market segmentation of Apple is successful in that the company develops products based on lifecycle, age, and occupation of the customers. The products are supplied to different areas while categorizing the PCs on family size and age (Al-Refaie & Bata, 2016). A good example is a PC with more games for kids and a PC with latest software and features for professionals. In addition, the younger generation is more into fun as compared to the older generation. A phone with a high graphic resolution is favored by the young people while a digital watch with the capability to monitor one’s pulse rate would be favored by the older generation.

Another market segment is based on geographical areas. Apple has established itself all over the world. The company’s brand is known all over the world. Apple Inc has retailed stores in 45 states out of the 50 states in the United States of America. It also has stores in more than 18 countries all over the world. In addition, the company’s products can be accessed from the online retail stores from anywhere in the world. In recent times, the company has chosen to apply a vertical growth strategy. This strategy involves expanding the retail stores which are owned and controlled by the company (Al-Refaie & Bata, 2016). In addition, the company is also selling its products through third parties through the Internet, websites, iTunes and other online stores. Through such methods, the company can reach many customers and also expand its market.

The other market segment is based on behaviors of the customers. These behaviors include usage, attitudes, product knowledge and responses. Through advertising, Apple Inc provides enough product knowledge to the customers. Advertising is done on search engines, mass media, and social media. In addition, the company has created a strong brand image. Using the brand image, the company continuously innovate new products and ideas that attract more customers. The company’s response rate is very high given that customers are looking for innovative products, and new designs which are the company is readily providing. The company’s products are also user-friendly.

The psychographic market segment is another segment that the company competes in. the company is successful in this segment in that it develops products based on the customers lifestyle. A good example is the Mac book meant for the younger generation. It is very compatible with the aspiring and fun-loving youths. In addition, personality is very well incorporated in the company’s products (Al-Refaie & Bata, 2016). The products come in different colors for those who like fancy colors. The good brand image of the company also adds value to the products and services.

In all the market segments, Apple Inc has managed to remain competitive over the years. This is due to the company’s efforts to study the market and applying the user experiences into the innovative process. The market segmentation of Apple including demographical based, geographical based, behavior based and psychographic-based enables the company to remain as the world’s largest information technology company by revenue and total assets. Apple Inc understands that people have different needs and thus cannot be handled using the same methods. A specific need calls for a specific method.  Its marketing strategies including pricing and segmentation are also strategic in the competitiveness of the company.



Al-Refaie, A., & Bata, N. (2016). Market Segmentation and Conjoint Analysis for Apple Family Design. World Academy of Science, Engineering and Technology, International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 10(4), 1047-1051.

Wedel, M. & Kamakura, W. (2000). Market Segmentation. Boston, MA: Springer US.

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