MKT101A - Marketing Fundamentals: Apple's STP Strategy Analysis Report

This report provides a comprehensive analysis of Apple's segmentation, targeting, and positioning (STP) strategies. It begins with an introduction to Apple's market position and customer engagement model, highlighting the importance of empathy, focus, and impute. The report then delves into a situational analysis, outlining the five marketing steps involved in customer decision-making, from problem recognition to evaluation. Psychological and social influences on consumer behavior are also examined. The core of the report focuses on Apple's segmentation approach, detailing demographic, geographic, behavioral, and psychological factors. It identifies the specific customer segments targeted by Apple's various products. A positioning statement is proposed, emphasizing Apple's commitment to offering the latest technology and excellent customer service. Finally, the report concludes by highlighting the importance of effective marketing plans in implementing the positioning statement and includes a comparison of Apple with competitors like Samsung and LG, based on price and quality.

Segmentation, Targeting, & Positioning Strategy of Apple 0
Title: Segmentation, Targeting, & Positioning Strategy of Apple.
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Segmentation, Targeting, & Positioning Strategy of Apple 1
Contents
Introduction................................................................................................................................2
Apple Customer Engagement Model.........................................................................................2
Situational Analysis...................................................................................................................3
Psychological & Social Influence..........................................................................................4
Segmentation, Targeting, & Positioning....................................................................................4
Segmenting & Targeting........................................................................................................4
Positioning Statement.............................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

Segmentation, Targeting, & Positioning Strategy of Apple 2
Introduction
The organization Apple, is one of the biggest brand names in the technology industry,
be it revenue wise or in the brand ranking. The organization has attained this position by time
and again introducing new products in the market, which has brought a revolution and started
a new trend in the market. The organization caters to the needs of the diverse audience with
their different products which include iPhone, Macbook, iWatch, iPad, iTunes, and many
others. In this assignment, the segmentation, targeting, and positioning strategies of apple will
be analyzed, along with some macro and micro environmental factors that are bringing a
change in the organization’s functioning. The main marketing concept followed by Apple
enhancing the level of customer satisfaction by offering unique products in innovative ways.
Apple Customer Engagement Model
Apple has created a huge fan base due to special and unique ways they serve their
customers and help them in formulating their decision for every purchase (Krstic & Becic,
2011). The organization Apple is able to increase the level of customer engagement with the
help of the following three aspects, which also help in influencing the decision of the
customer, they are –
 Empathy – When it comes to understanding the needs of the customers, Apple beats
all its various competitors. Thus, by fulfilling the needs of the customers, Apple
increases customer engagement.
 Focus – the customer engagement model of Apple excluded all the unimportant things
and thus, perfectly prioritize their approaches.
 Impute – To increase the customer engagement, it is important that the product should
be presented in a creative, desirable and professional manner. Apple follows all three
aspects while positioning products (Strauss, 2017).

Segmentation, Targeting, & Positioning Strategy of Apple 3
Situational Analysis
The decision-making process is conducted in five marketing steps that help in formulating
the customer buying decision, they are –
 Problem Recognition
For influencing the decision, an organization should address a problem of the
customer. Therefore, it is crucial that Apple should identify and address this problem
with an effective solution.
 Search Process
The customers formulate their decision through the company’s image, the
customer’s experience with the organization and products, and review from
professionals. Thus, the potential customer conducts a research process by visiting
various websites that provide information about different products along with the
customer experience. Therefore, Apple should ensure that they continuously work on
building a good image of the organization amongst the customers.
 Evaluating Alternatives
It is important for Apple to analyze the various alternatives like quality,
quantity, price, guarantee and many other, in accordance with the customer’s needs
and the other substitutes available in the market. Now, Apple has to pitch the
customers with a unique approach as their products are expensive, therefore for
curbing the decision of the customers, it is needed (Koklic & Vida, 2011).
 Selection Stage
The advertising approaches of an organization play a huge role in succumbing
a customer’s decision. Therefore, Apple has to develop an effective advertising
campaign addressing different audiences.
 Evaluation of Decision

Segmentation, Targeting, & Positioning Strategy of Apple 4
The marketing strategy should continue even after the product has been
purchased, it is crucial for increasing the customer retention rate of the organization
(Diaconescu, 2017).
Psychological & Social Influence
Customer behavior is governed by psychological and social influencing factors. For
Apple, the psychological factors include beliefs, perceptions, motivation, and attitude, which
governs customer buying behavior. In the same way, some of the social factors include the
social status of the organization, reference groups, and family (DeMers, 2014).
Along with these factors, there are also some macro and micro environmental factors,
which influences the decisions of the customers.
Segmentation, Targeting, & Positioning
Apple is an organization that targets multiple markets, therefore it is crucial that the
segmentation process should include all the four aspects which are demographic,
geographical, behavioral, and psychological (Culiberg & Bajde, 2013).
Segmenting & Targeting
Type of
Segmentatio
n
Segmentation
Criteria
Apple Targeted Customers
Devices –
iPhone,
IPad, iPod
Services –
iTunes,
Apple Play,
Mac App
Store
Software &
Operating
system –
iOS, iLIFE,
OSX
Accessories
– Apple
watch,
Apple TV,
and many
more.

Segmentation, Targeting, & Positioning Strategy of Apple 5
Geographic Region Australia &
International
Australia &
International
Australia &
International
Australia &
International
Density Urban Urban Urban Urban
Demographic Age 20-50 16-30 20-45 20-40
Income People
whose
earnings are
high.
People
whose
earnings are
high.
People
whose
earnings are
high.
People
whose
earnings are
high.
Behavioral Loyalty Hardcore
Loyal
Hardcore
Loyal &
Switchers
Both
Hardcore
Loyal
Hardcore
Loyal &
Switchers
Personality Ambitious
and focused
individuals.
Flamboyant,
show-off,
students.
Ambitious
professional
and
determined.
Show-offs.
Psychological Social Class Upper class Middle &
Upper class
Middle &
Upper class
Upper class
Lifestyle Aspiring
people,
successful
individuals,
and
explorers.
They mostly
use these
products to
show-off
and as a
status
symbol.
They are the
people who
believe in
effective
products
and wants to
invest
money
They live
the life of an
explorer.

Segmentation, Targeting, & Positioning Strategy of Apple 6
effectively
and
efficiently.
They are
successful
people, who
many aspire.
Positioning Statement
The positioning statement thus, for the Apple products should be –
“Best products offering the latest technology, unique features in every product that
address the needs of successful people, students, educators, and various different
lovers of technology and innovation. Along with excellent customer services
throughout.”
In this positioning statement, the brand Apple is promising the customers to provide
excellent service throughout that is even after the client has purchased the product which is a
valuable benefit (Dudovskiy, 2018). The organization is adding value to the customer by
delivering the product in an innovative manner and by providing the latest technology
product, which also highlights the unique selling point of the organization that no other
competitor is providing (Codita, 2011).
The positioning statement should be conveyed with the new trends in the market,
which include AD blocking, social media platforms, emotional marketing with the help of
real stories, and influencer marketing with the help of professional blogger. Also, these
different trends facilitate effective marketing approaches and better communication skills.

Segmentation, Targeting, & Positioning Strategy of Apple 7
 Apple is on the axle of the high-quality and high price, as they offer expensive
products which provide the latest technology products. Their products demand a high
price.
 The LG Products, though, are of low price, but they are also of low quality, with very
less durability.
 The Samsung products are of high quality and they also are expensive, but in
comparison to Apple, they are cheaper.
Conclusion
Thus, this can be concluded that through effective targeting and segmenting method,
formulating a positioning statement for an organization becomes easy. Also, the marketing
strategies of an organization play a crucial role in implementing the positioning statement.
LOW
QUALITY HIGH
QUALITY
LOW PRICE
HIGH PRICE
Apple
Samsung
LG Products

Segmentation, Targeting, & Positioning Strategy of Apple 8
Thus, for effectively implementing the formulated positioning statement for Apple, the
organization needs to create an effective marketing plan and strategies
References
Codita, R. (2011). Contingency Factors of Marketing-Mix Standardization (1st ed.).
Wiesbaden: Gabler.
Culiberg, B., & Bajde, D. (2013). Consumer recycling: An ethical decision-making
process. Journal Of Consumer Behaviour, 12(6), 449-459.
DeMers, J. (2014). Here's The Simple Secret To Apple's Marketing Success. Retrieved from
https://www.forbes.com/sites/jaysondemers/2014/07/08/heres-the-simple-secret-to-
apples-marketing-success/#74d799db11e3
Diaconescu, A. (2017). Apple wins every customer engagement trophy possible | Pocketnow.
Retrieved from https://pocketnow.com/apple-wins-four-customer-engagement-trophies-
survey
Dudovskiy, J. (2018). Apple Segmentation, Targeting, and Positioning - Research-
Methodology. Retrieved from https://research-methodology.net/apple-segmentation-
targeting-and-positioning/
Koklic, M., & Vida, I. (2011). Consumer strategic decision making and choice process:
prefabricated house purchase. International Journal Of Consumer Studies, 35(6), 634-
643.
Krstic, I., & Becic, S. (2011). Implementation of marketing strategy: Factor of competitive
advantage. Marketing, 42(2), 118-126.

Segmentation, Targeting, & Positioning Strategy of Apple 9
Strauss, M. (2017). Why Apple is Best When it Comes to Understanding Customers.
Retrieved from https://betterthansure.com/why-apple-is-best-when-it-comes-to-
understanding-customers-6913acbb19e4