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Quiz no. 3

Course: SAMINAR IN MARKETING

North Campus
Class ID 103934
Student ID 62636

Faculty: Ma’am Quratul Ain Kazmi

Topic:“A Segments which need to be considered

for critical evaluation of research”

Date: -Mar-2020

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Segments to be considered for critical

evaluation of research

INTRODUCTION:

A large, heterogeneous market is comprised of smaller group with homogeneous preferences.

Market segmentation is the practice of dividing a large heterogeneous market into smaller

subgroups with shared characteristics in order to deliver the marketing offering that satisfies

unmet needs as closely as possible. There are many ways of segmenting consumer markets that

is geographic, demographic, gender, income, psychographic segmentation and etc. Segmentation

of consumer market give road map to marketers to develop the marketing strategies as consumer

with in a segment have similar characteristics and they respond the marketing strategy in almost

similar ways.

A critical evaluation of Segmentation:

EXAMPLE OF IPHONE:

A Market segmentation strategy means dividing the market into groups, on the basis of similar

needs and wants of individuals for services and products. Segmentation can also be on the basis

of peoples’ behaviour, culture and economic status. In other words it could be further defined as,

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“Process of defining and sub-dividing a large homogenous market into clearly identifiable

segments having similar needs, wants, or demand characteristics” (Meadows, 2008).

Apple Inc., led by Steve Jobs virtually rewrote the book of strategy as well as the history of

consumer electronics, with its pioneering “i products”: the iPod and iphone (Peckham, 2010).

Apple produced differentiated products with features that multiple niche market segments and

pay for but Apple also makes products in the form of competitive cost so that greater pool of

customer can also buy its products and services. So Apple products offered so many different

features that help them to attract different customer segments and on the other hand competitive

cost strategy also help them to segment the consumer markets. Following are the apples

segmentation strategy that they are utilizing for iphone:

According to Jobber (2004), there are three broad groups of customer segmentation criteria that

are Behavioural, Psychographic and Profile.

1.1. Behavioural Segmentation: Kotler (2007), discuss about behavioural segmentation that is

dividing a market into groups based on consumer knowledge, attitude, use or response to a

product. Apple uses this segment technique very smartly by the innovations that lead to brand

switching.

Firstly, Apple introduced its iphone 3 by considering consumer’s behaviour, their attitudes

towards new technological changes. What consumer aspects from the one smart-phone that

provides multifunction facilities. Innovations of new features can appeal and influence in the

behaviour of customers. Iphone with its new technological features combines three products into

one small and lightweight handheld device. Iphone 3 is a mobile phone with a widescreen iPod,

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and the availability of Internet in your pocket with best-ever applications on a mobile phone for

email, web browsing and maps. iphone users in an era of software power and sophistication

never before seen in a mobile device, which completely redefines what users can do on their

mobile phones hence it get fit in innovations category.

Secondly, by influencing with the differentiated product or by behavioural segmentation, Apple

has grabbed 17.3 % ( Canalys) of the smart-phone market, placing it second in the world with

growth of 523 percent from third-quarter 2007 to third-quarter 2008. RIM capture 15.2 % of the

smart-phone market. Nokia share shrunk 3.4 %. Also adding an easy way for iphone users to

access Microsoft Exchange e-mail made the iphone more attractive to customers looking to

integrate the device into their work life. About 40% users replaced smart-phone (Rubicon

consulting, Inc.2008). This shows strong brand switching capability enforced by iphone in smart-

phone market.

Thirdly, by influencing behavioural attitude with their innovative product like iphone 3 Apple

made its perceptions in consumers’ mind and is regarded as an innovative company. It has a vast

customer loyalty base. Customers trust Apple for its technology and security. It is the result of

this loyalty that 52% of iPod users bought iphone according to a research from Solutions

Research Group.

1.2. Psychographic Segmentation: According to Kotler (2007), psychographic segmentation is

dividing a market on the basis of social class, life style, and personality characteristics etc.

Apple very carefully investigates psychology of consumer’s trends and their life styles. The

lifestyle of a person is linked to his or her preferences. Lifestyle is reflected in activities, interests

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and opinions. Now different people have different lifestyles. Apple identified this and provided

different features for different people in one phone like touch screen, iPod for a trendsetter

youngster, or calendar and fast web browsing for a sophisticated businessman.

1.3. Demographic Segmentation: Kotler (2007) describe that the division of market into the

group on the basis of demographic variables such as age, gender, family size, family life cycle,

income, education, religion and nationality.

Apple iphone 3 segmentation is based on gender and age variables. Around 2/3 of the 2.3 million

US iphone users are men (Nielsen). A recent research done by Solutions Research Group has

showed that Apple was successful to attract youngsters as 63% of its customers were under 34

years and average age of its customers is 31 years. The typical iphone user is a young, wealthy,

male tech geek type. Why youngsters are more interested towards apple iphone 3 because it

provides a features that are more attracted to youngsters like i-tunes, video player, net browsing,

gaming, and more disk space for downloading. Basically, apples product iphone 3 features are

designed which are more demanded by the youngsters.

Apples target market segmentation is basically undifferentiated because in this strategy of market

coverage where firms ignore the specific market segment and go after the different market

segments with one offer. This is because iphone 3 offers so many different features that help

them to segment its market on the basis of psychographic, demographic and behavioural

segmentation. Further iphone 3 cost is competitive with the brands of same category in smart-

phones provide Apple opportunity to serve large pool of consumers of different segments.

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