Market Segmentation Analysis of Apple iPhone 7

The assignment requires a thorough analysis of market segmentation for Apple iPhone 7, focusing on demographic segmentation and characteristics of customers. The report should identify specific groups of people who can afford and purchase the product, as well as their age, gender, income, and lifestyle. The marketing mix is also discussed in relation to customer segmentation.

Fundamentals of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Consumer segmentation..............................................................................................................1
Target segmentations..................................................................................................................1
Importance of segmentation........................................................................................................2
Segmentation for Apple iPhone 7...............................................................................................2
PART B............................................................................................................................................3
Demographic segmentation.........................................................................................................3
Part C...............................................................................................................................................4
Marketing mix.............................................................................................................................4
How marketing mix reflects on demographic segmentation.......................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Segmentation is defined as division of marketplace in several parts or segment that are
accessible, definable and profitable for potential growth. Company usually finds its target market
because of time, cost and efforts restrictions. This assignment is aimed to identify the brand, sub-
brand and strategy of marketing mix of Apple iPhone 7 (Borshalina, 2015). In this report, there
will be discussion about the cell phone because today's generation depends on mobile or they
cannot live without phones. The project will defines about the segmentation and target market
for particular product and what are the characteristics of that segment as well as how marketing
mix reflects on it.
PART A
Consumer segmentation
In segmentation process, it allows a seller to provide products to the needs, desires, uses
and ability to pay of customers. It helps company in concentrating on their resources, money,
time as well as efforts on a profitable market that helps in growing numbers of usage and values.
Consumer segmentation refers to the practice of dividing a customer base into groups of person
which are similar in specific ways related to marketing including age, gender, interest, income,
religion and spending habits, etc.
There are various types of consumer segmentation that helps to reach at potential
customers. Marketers use communication to connect with target audience. Segmentation can be
done according to geography, demographic, psycho-graphic and behavioural.
Target segmentations
In this, marketers defined its target group of individual on the basis of segmentation that
helps to promote or develop products as well as business. As per the product of Apple iPhone 7,
the high usage target segment has been chosen because mobile phones are using throughout the
phone and most probably persons cannot live without their iPhones (Chaffey, 2016). In present
era, consumers are demanding more featured mobiles from the company as it can be said that
telecommunication sector is growing fast. Customers want exclusive feel to their product that has
higher quality as well as unique look so Apple is providing such kind of products to the desired
customers and it have a unique interface and software system.
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Importance of segmentation
Market segmentation is defined as the process of identifying target demographic and
determine the best advertising medium to reach at that audience. Here are some importance of
segmentations which helps in achieving business goals and objective as well as find potential
customers.
Understand customers: it support in identifying and understand consumer behaviour for
particular goods and services (Davis, 2017). It allows for the development of profile of different
kinds of consumer's groups who can buy company's products.
Maximise product potential: market segmentation helps in maximising product growth
as marketers can understand about how a particular product is being used by different groups of
customer. So it is require to defines about an alternate use of products and services which has not
discussed before.
Improve distribution network: with the help of market segmentation, companies can
develop more efficient distribution networks. It can be determine the way that customer prefer
for purchasing of product through study of buying behaviour of various target groups. Market
segmentation also helps in identifying geographical areas where products are popular.
Gain new customers: through segmentation of market, new customers can be attract and
also can be reach at potential buyers by using effective promotional tools and techniques that
helps to create awareness among consumers.
Segmentation for Apple iPhone 7
For this report, demographic segmentation can be suitable for finding end user of this
particular products. Customers belongs from different community or society which reflects on
their buying behaviour. Through the research, demographics represent statistics, characteristics
and qualities of target market (Ivanov, 2016). Demographic segmentation includes several
components such as gender, income level, age, marital status and occupations etc.
For iPhone 7, segmentation according to income level can be help to reach at potential
customers. In this, market segment is done according to customer's salary and income level in
which it can be determine that they can afford or not for buying high value of products.
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PART B
Demographic segmentation
It is the market segmentation in which includes age, race, gender, family size, ethnicity,
income, religion and education. Demographics helps to the organisation in identifying target
markets through segmenting into several market. Company generally use this segmentation for
finding potential customers and satisfy their needs or wants by providing effective goods and
services. So an organisation can classify the consumer in different categories according to their
needs and demand (Ivanov, 2016). Marketers conduct research or survey to gather informations
regarding customer's needs and expectations. Through the process of research, marketers come
up with list of demographics such as statistics, characteristics and qualities which represent the
ideal target market. It can be segment into several market that helps in targeting customers more
accurately.
Gender: According to gender, market can be segment as target market for a particular
product can include men and women, so one gender share of firm's largest target market (Lorenz
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Illustration 1: demographic segmentation
source: market segmentation 2017

and Steinert,2015). Businesses can segment their markets by gender as iPhone users can be
males and females so company target both gender for their products.
Income level segmentation: It must be consider while developing pricing strategies as
companies make price strategy for selling products or services then they charge according to
income level of their target market. In the demographic segmentation, businesses use salary and
income level or financial status of customers, when they prepare to introduce a product to the
market (Jones, 2015). Apple also set product's price as well as make pricing strategies according
to customer's income level.
Age: Company generally consider Age factor of consumers while introducing new
products in the market. It play important role in promoting company's product as offline and
online. In this segmentation involves diversifying pricing and colour options, adjusting features
that fit for anticipating needs and expectations of different age group. Apple also focus on Age
group as they target on professional, high class people whose ages are above 20 to 50 or above.
Generally businessman or high people targeted for this product which mention their status.
Occupations: On the other side, occupation is one of the most element of demographic
segmentation as businesses segment their market according to specific profession and industries.
So iPhone 7 is usually for businessman or professional person as they use featured cell phones
for several purpose and utilise this that is made for.
Part C
Marketing mix
It refers to marketing plan in which include 4ps such as product, price, place and
promotion. These are most important elements that are adjusted until the right combinations is
found that serves the product to customers for satisfying their needs and wants. Marketing mix is
a tool which marketers use for formulating of particular products and services and offer to
consumers (Maritz, 2015). In case of product, marketing mix involve 4ps such as product, price,
place and promotions and in service sector there are 7ps that are people, process and physical
evidence. It helps to find the way for offering better customers services as well as provide right
product to client. The main objective of marketing mix is to make right product at correct time at
the effective place with right promotion. There are various elements of marketing mix and these
are as following.
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Product: It is the main part of this element as to offer the product to define customers for
fulfilling their needs and demands. It is most important aspects of the mix. Product is tangible
thing that offer by the company to its consumer and it is something that has some functional
value as well as it can be used by customer for achieving something. A marketer requires to
identify about his company's products and services very carefully and also must thinks regarding
its value, USP, features, market and competition etc.
Price: After product, next more important aspect is pricing in marketing mix. It is
defined as some value that will get in exchange of product. This a term that use in respect of
amount or money which customers have to pay in exchange of getting products or services. So
this what consumer will pay in return of the product utility (Mills, 2015). So pricing determine
the cost of production as well as how much customers would be willing to pay. It can be analysis
that if price is too high then no one buys and if it is low, company make or bear losses. So
marketing mix support in price making strategies that helps in recovering actual cost and
contributes in profit.
Place: It is a essential part of marketing mix. Every organisation have to make plan for
delivering goods and services at right place to increase sales volume and generate profits. So it
also called the distribution. As if a company is making right products at favourable price then it
is required to make available this at various place that consumer can reach easily. So customers
generally prefer right or qualitative products at favourable price which they can afford. Goods
and services must requires to be there, where customers is likely to buy easily. Apple stores also
needs to several place where buyers can approach and buy to fulfil their desired expectations
and company can increase its sales by making available at different place.
Promotions: It play vital role in generating demands by creating market awareness
among customers regarding goods and services. It generally refers to as communications about
the particular product. Promotion is 4th element of marketing mix which means that
communications done or informations regarding products and services provided to the customers
by using several components such as advertising, print media, magazine, billboards, hoardings,
social and digital media that would come under promotions (Rizzo, 2015). Companies
concentrate on making promotional strategies that helps in grabbing customers as well as create
awareness among different end users and try to attract them towards organisation's goods and
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services. This helps in generating demands and beat from competitors by providing unique or
featured products.
How marketing mix reflects on demographic segmentation
In this defined as how the marketing mix helps in making strategies regarding
segmentation that company can use for adopting best strategy tom promote their particular brand
in the market. Demographic segmentation consider the various elements that categorize to
customers a in several ways such as age, gender, religion , nationality, income, marital status,
education, society, lifestyle etc. so these all support in making decision regarding productions as
well as firm identify customers needs and wants and then take decision to produce any goods and
services (Shah, 2015). Segmentation and marketing mix are important tools and techniques that
helps in analysing about market conditions as well as screening the entire environment for find
best alternatives. Marketing mix involves various elements such 4ps and 7ps like product, price,
place, promotions, people, process and physical evidence. That support to an organisations
regarding making decisions and find answers as what to produce, how to promote it for
satisfying consumers needs and wants. Apple is launching its product that iPhone 7 and there are
wide range of market so it is difficult to find potential customers so company should decide to
segment the market according to basis of demographic which helps in classifying the market
according customers, competitors etc. as it reflects on marketing mix as well as segmentations is
related to consumer's products which must in affordable price and it should be available at right
place. These all are combine with customer segmentation. Here are characteristics of
demographic segmentation which is reflecting by marketing mix such as:
Product mix on Gender: Products are providing to both gender as males and females so
marketers have to required about to ensure that what kind of product would be made for
satisfying needs and wants of customers. According to segment of gender, product mix strategies
also consider (Shaw, 2016). Like Apple iPhone usually purchased by the several types of
customers so it does not matter whether they are man or women. So they focus on providing
right product to the right customers for meeting their desired expectation.
Product mix on Income level segmentation: In this defined as for a particular products
and services, it is require to consider about their income status that they can afford or not. It is
based on financial status of the family like level of income, source of earning etc. so company
concentrate on economic class of people if we talk about Apple's products, that they only focus
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on featured products and services so it can be costly in compare of other competitor's products so
most of customers do not prefer iPhone due to high price but on the other side people are moving
towards Apple's products because they are feeling good experience after using it or get satisfied
from its features. Income level matters but quality of product also must be required so generally
its target audiences are high class people, professional, celebrities, very important person etc.
Product mix reflects on Age factor: Every ages or stages of person's life continuously
grow and their taste and preferences also change according to age so it is requires to study about
different groups of age person for target market (Singh, 2016). In this consider about customers
age which is very important to analyse for a particular products and services. Company
generally focus on several groups of people and target them while producing goods. Apple also
consider this factor because adults and children do not afford such kinds of products so this is not
for them. Company target on richest or high class person who usually spend money for
expensive products. Featured and unique product is always more costly so firm segment market
to see the age of person in which include from 20 to 50 or above age as well as they are targeted
audience for the company.
Product mix reflects on Occupations: It is related to the professions and industries that
customers belong as well as do work. Apple also consider about different customers who are
businessman, professional or any working man or women so this products shows their status and
class and also helps them for making work easily by its features (Zhao and Balagué, 2015).
Company use several kinds of system software in this that can make work easy from hard. Apple
iPhone 7 is best unique as well as antique in present era so there are no any competitors here who
can beat such kind of products so it can be said that they used best model, good features and
software in this product.
CONCLUSION
Above this project report, it has been concluded that market segment refers to division of
marketplace which helps in reaching at potential customers and satisfy their needs or wants by
providing right products at defined time period. Apple iPhone 7 is new product which recently
launched in the market for target audience. In this assignment, it defined segmentation and its
bases according to consumers. Demographic segmentation helped in identifying specific groups
of people who can afford and purchase this product. Above following report, it also explained
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about characteristics of segmentation such as, age, gender, income and lifestyles of customers
which has reflected by marketing mix.
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REFERENCES
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Mills, M. K., 2015. Market Segmentation: A New Look at an Old Topic. In The 1980’s: A
Decade of Marketing Challenges. pp. 167-170. Springer, Cham.
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Online
Market segmentation 2017. [Online]. Available through:
<https://www.slideshare.net/wystane/market-segmentation-in-telecoms-industry>.
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