Behavioral Segmentation Of Apple

automobile insurance, GEICO recognizes that in order to have parts of the market the company

Market segmentation is specific sections of the market that an organisation is aiming at. In order for an organisation to engage its market segmentation the organisation has to match its products to the customers wants and needs to appeal to the customer to buy the good or service. Market segmentation allows an organisation to have a competitive edge and it is a key factor for the organisation profitability and survival. Company use target marketing which is when a business aims all of its marketing effort to a certain group of customers which is affective as these are the group that spends the most. There are many ways to segment the market to create that certain group such as demographics, psychographic, geographically and lifestyle. Demographics is consists of dividing the market into groups based on variables such as age, income, occupation, religion, race and nationality. Psychographic segmentation is based on social class and lifestyle. Lifestyle is based on knowledge, attitude, their uses and segmentation. Geographic segmentation is the segmentation which divides the market but location, regions, countries and cities. Asos as an organisation is aimed at people of the ages of 15-34 year olds who are very fashion forward and who enjoy the culture of online shopping. In geographical segments Asos has created their website differently for 9

In order to market the product into the market successfully, marketers need to have some marketing strategy to enter the desired market and make profit. Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics (Schiffman et al., 2011). Understanding the market size and segmentation is valuable, but the keys to effective targeting is to know just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends ( Berry, 1999).

As its name suggests,behavioral segmentation targets how people behave. This however, emanates from a customers response to, use or knowledge of to a certain product.

The segmentation has been done on the basis of buying behavior of the customers. Knowledge of segment buying behavior can help redirect marketing resources for profit gain.

Market segmentation is a process of segregating the market into different smaller groups. A market comprises of large number of heterogeneous customer base with distinct tastes and preferences. A marketer needs to classify and segment people into smaller homogeneous groups basis similar characteristics, tastes, preferences, likes, etc. so that they will respond in a similar fashion to a particular product launched for that segment. Thus, market segmentation can be defined as, “the sub-dividing of a market into homogeneous subsets of customers from the

As every customer has unique needs and expectations towards certain products, the ultimate goal of market segmentation is to organize customers into groups which allows targeting of customers with similar needs of and response to the products. The key is to minimize differentiation within each segment

Segmentation brings benefits not only to the marketer, but to the customer as well. When segmentation attains higher levels of sophistication and perfection, customers and companies can conveniently settle down with each other, as at such a stage, they can safely rely on each other’s discrimination. The firm can anticipate the wants of the customers and the customers can anticipate the capabilities of the firm.

The first part of the process is segmentation “The purpose of market segmentation is to identify relatively homogeneous groups of consumers with similar consumption patterns” (Pervez &Cateora 2014.) segmentation is the application of grouping the customers into segments which may have the same common needs or that will respond similarly to a marketing activity. It is the ability to recognise the consumers which exist that have different needs. For example do the consumers prefer speed and performance or do the customers prefer safety and quality.

Furthermore, market segmentation is an extension of market research for the purposes of identifying targeted groups of consumers in order to tailor products and branding in a way that it is attractive to that group. There are three general criteria used to identify different market segments: homogeneity, distinction and reaction (Investopedia, n.d).

In order to satisfy all the customers’ preferences and different requirements companies use the segmentation process to identify and satisfythe different customer groups. In mass MARKETING, same strategies and marketing mix can be applied to all the customers where as in target marketing the strategies can be made based on different categories of customers. Thus, targeting market can provide effective results to an organization.

In the area of sociocultural, marketers look at culture, religion ad rae, nationality, and class. This helps to understand the person background and how to better modify a proudct to attract more consumers. Affective and cognitive segmentation explains the knowegle, attitude, and involvment of the sonumer. It tell us if the consumer falls into the niche and prestige market, or the mass market. Behavioral segmentation uses media, newspapers, and situations to explain how the consumer is purchasing th product. Whether it is through cash or loans, and if because it is from brand loyality. Finally, the last approah is a combination of the others and tell us the personailty type the marekters are working with and how to get them in the door and persude them to purchase. When looking at each market, these segmentations are used, but in different ways.

The decision of dividing the entire market into different consumer segments is just what Paul Elio did when he saw a potential for his three-wheeled efficiency vehicle. Before a business can target a specific market, the market needs to be divided into segments based upon similar needs, wants, or desires. “It is not feasible to go after all customers, because customers have different wants, needs and tastes” (Suttle). Identification of target demographics is necessary for market segmentation research. Consumer demographics range from gender, age, ethnic and religious groups, household size and income, and even geographic regions. Markets can also be segmented based on consumer’s behavioral and psychographic characteristics. Elio took notice that many consumers drive larger vehicles on their commutes and often only have one person inside the car. He saw a need for a

Market segmentation is an approach used by a company to select their target market and provide data for a marketing plan. “Market segmentation consist of a two-step process; naming broad product markets and segmenting these broad products-markets in order to select target markets and develop suitable marketing mixes” (Perreault, Cannon, & McCarthy, 2014, p.97). There are 4 categories pertaining to market segmentation; behavioral, geographic, demographic, and behavioral.

* Apple has the customer base mainly in the United States that is devoted to the company and its brands.