Understanding Target Market: Apple Inc.

Running head: Target Market 6

Understanding Target Market: Apple Inc.

MKT/571

Melissa Simmons

August 27, 2018

Roberto Ancis

Apple Inc.

Apple Inc. is one of the largest technology companies it designs, develops and sells a range of consumer electronics (hardware) and software providing the most innovative technology to their customers. Key products of Apple include smartphone, tablet computers, portable media players, personal computers, smart watches, digital TV and much more (Thurm, 2010). However our selected B2C (Business to consumer) product is iPad. iPad has been widely in demand on domestic as well as international level.

Buyer’s profile using demographic variables

Customers are domestically segmented on the basis of age, gender, income level and their occupation etc. Particularly, demographic variables are identified to get help in understanding the targeted group of customers with regard to product features and company can design a convincing marketing campaign to generate further market base (Heracleous, 2013).

2a Buyer’s Profile using the Demographic Variables (Domestic Market)

Demographic Segmentation Variables
Age 20-45 years
Income High income
Occupation Students

Business man

Artists

Density Urban

Rural

2b Buyer’s Profile using the Demographic Variables (Foreign Market)

Demographic Segmentation Variables
Age 20-45 years
Income High income
Occupation Professionals

Students

Music lovers

Artists

Density Urban

Two designed geographic areas

Geographic segmentation has made on the basis of regions or areas because characteristics of people living in different areas can be different. Apple is a multinational company and it is working at the international level targeting different countries and regions for their products and services (statista.com, 2018).

3a Domestic market description

Domestic market targeting for the Apple iPad is the New York USA that have targeted first for every product/service.

· 10 economic factors

Economic factors are important to categorize the customers with geographical areas are altitude, latitude, climate, immigration conditions, cultural factors, government policies, infrastructure, transportation condition, technology adoption and types of occupations etc. These factors are related economic condition of the selected region. iPad target people who have high income and have the purchasing power to purchase high prices products like iPad.

· 5 population factors

According to the census of 2017, the total population of New York, USA is 19,849,399 that has targeted for iPad in different categories. Other population factors in the region of New York are high education, cultural diversity among people, professional, executives, people who come to visit the place.

3b Foreign market description

The UK is one major targeted country for sale of iPad that has selected on the basis of geographic factors.

· 10 economic factors

The UK is the developed country and people have more purchasing power that is a requirement for the iPad. Second, people in the UK are educated and awarenessof technology that increases demand for iPad. Other economic factors for this segmentation are better business conditions, immigrants, and foreign students for education, foreign employee, multinational companies, occupation, technology adoption and innovative culture.

· 5 population factors

In 2018, the total population of the UK is 66.57 million while the major target has targeted by Apple for iPad. Main population factor includes high aware customers, high educated, diversity of culture, white collar job or occupation and immigrants or visitors that like to have adventure and enjoyment in life.

Data about buyer’s profile in geographical areas

4a Domestic market findings

According to the analysis of 2012-2016, the average income of people living in New York is $34212 while total employers and businessman are 544073 that is a main targeted occupation for iPad. 51.4% of the population are female while 20.9% are young people that have increased the marketforiPad. 69.6% are white and others belong to other races like Hispanic, Asian and Black etc. that increases diversity in the region (census.gov, 2017).

4b Foreign market findings

People in the UK are highly educated and the literacy rate is 99% that results in aware and educated customers in the market. On the other hand, 37% of the population is between 24-40 years that is a main targeted market for iPad (census.gov, 2017).

Description of the psychographic and demographic profile using Nielsen Claritas

Claritas PRIZM is one effective market analysis tool that helps to give a rich and comprehensive market yield with different customer preferences. This tool analyses customer on the features of behaviour, geographic data and combination of demographic customers.

5a Domestic Market

In the domestic market, customers are young people with high income who have the behaviour of market awareness and adopt high technology in light of Nielsen Claritas (Brower, 2017). Psychographic and Demographic profiling of the target domestic market would allow determining the individual as well as collective consumer patterns and behaviours of the target market. It would become quite an easy task to find out if the domestic market has a niche or a larger audience in the market.

5b International Market

In the international market, customer’s traits have targeted on the basis of education and people who have a high income. On the basis of behaviour, people who like adventure and fun in life. This psychographic information on people can be used to determine whether the target market is the right choice, and what steps are needed to be taken in order to prove this venture to be a success. Other than this the collective psychographic profiling can be combined to determine the demographic patterns of the international markets. This would determine whether there is a niche audience or a larger target audience in the target market, in the international market.

Insights from analysis of demographic and psychographic information

On the basis of these factors, it can be described that a company can understand the behaviour of the customer with demographic and psychographic factors. Psychographics are used to determine individual preferences of consumers, by applying methodologies of studying personality traits, and determining values, opinions, attitudes, interests and lifestyles. Demographics can be used to determining individual consumer preferences of the target market, a demography approach, however, targets a broader audience. Demography is used to target and determine the consumer patterns of large masses of audiences, instead of individual consumers. A demographic approach can be used to determine the changes and similarities to determine the consumer behaviour of a target market. Both, the psychographic and the demographic approaches are immensely useful tools while determining consumer patterns and behaviours while researching a target market.

References

Brower, M. (2017). Claritas (formerly Nielsen) Segmentation and Market Solutions. The Charleston Advisor 18, no. 4 , 15-20.

census.gov. (2017). QuickFacts: New York USA. Retrieved from census.gov: https://www.census.gov/quickfacts/fact/table/US/PST045217

Heracleous, L. (2013). Quantum strategy at apple inc. Organizational Dynamics , 42 (2), 92-99.

statista.com. (2018). Apple’s iPad market share of global tablet shipments from 1st quarter 2012 to 2nd quarter 2018. Retrieved from statista.com: https://www.statista.com/statistics/268711/global-market-share-of-the-apple-ipad-since-2010/

Thurm, S. (2010). Your apps are watching you. The Wall Street Journal , 17 (1), 2-5.