Smartphone Market Analysis and Segmentation: Consumer Targeting

This report provides a comprehensive market analysis and segmentation for smartphones, focusing on key customer segments based on profession, psychological factors, and age. It identifies the primary target market as young professionals and students who are technologically inclined. The analysis delves into demographic, geographic, behavioral, and psychographic segmentation, highlighting the influence of cultural elements on consumer behavior. The report also examines the competitive landscape, dominated by Android-based smartphones, and suggests product innovation strategies, such as easier payment options and design improvements. The pricing strategy emphasizes market penetration through competitive pricing and reduced skimming prices. Ultimately, the report aims to enhance customer orientation, adapt to market changes, and attract a diverse customer base by leveraging product positioning to create a strong emotional connection and ensure brand sustainability. Desklib offers this assignment among a plethora of resources for students.

Running head: MARKET ANALYSIS AND SEGMENTATION
Market Analysis and Segmentation
Name of the Student:
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MARKET ANALYSIS AND SEGMENTATION
Market segmentation is one of the key aspects to consider while marketing a product
as it divides the market in a number of groups to have a better understanding of the target
audience. Identifying the specific buyer group is advantageous for the product sale and better
designing. The breaking up of the market into different heterogeneous segments allows the
company to better identify needs and preference of the consumers. The three customer
segments within which my product (smartphone) resides are:
Profession: the identified buyer group is based on the professional backgrounds of students,
bankers and lawyers. Their dependency on smartphone supported apps has doubled the sale
of products over the last year. Medical personnel are also dependent on my product to
maintain a swifter operation of their professional works like meeting, accessing data and
performing other professional procedures.
Personality and Psychological Factors: my product has identified the group of customers
who have shown a high level of dependency on technology and internet for their daily
activities and information. Therefore my product is aimed for the group of users who have
shown traits of introverted nature, emotional instability and high dependency on mobile
phone apps for their daily communication with colleagues, family members and friends.
Instant gratification that my product provides is essential for sale.
Age group: as per statistics the users of smartphones are generally aged between 12 to 29
year old comprising almost 94% of the total population worldwide (Chung et al.,2016). In
U.S alone it has 18.5 million users aged between 12 to 17 (Güçdemir & Selim, 2015). The
product that I am selling therefore will be responsible for targeting the teenagers and young
professionals with an inclination towards technologically evolved smartphones.
The consumer segment that will be targeted for the promotion of my brand will be the
profession segment. The education variable has been a huge factor for integrating

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MARKET ANALYSIS AND SEGMENTATION
smartphones in daily lives. A huge group of students depend on apps for accessing text books
and classnotes and therefore developing marketing strategy and advertising principles
designed on the profession of these customers will help for better product customization.
Smartphone has influenced people behavior and impacted on their daily professional life and
is therefore a potential criteria to improve sales.
Target Market of Product
Demographic: this includes age, gender, ethnicity and cultural background and my market
segment has identified the users are dependent on frequent consumption of data, and camera.
The age group between 12 to 22 uses data for educational purposes while professionals use
for daily newspaper, accelerating the sale of products (De Keyser et al., 2015). Product is
popular from early teen to middle aged population due to apps like maps, job search and
health tracker my product provides.
Geographic: product sale is in 61 countries where customers have better living conditions
and has access to marketing and advertising where they can know in-depth about the
technological superiority of my product (Bilgihan, 2016). Customer behavior can be
predicted because of their qualification level and comfortable living conditions. The product
has identified a market where socio-economic circumstances enable consumers to upgrade
with the usage of technology. It has highest range of customers in U.K.
Behavioral: divided into occasion, benefits, status, loyalty, readiness and attitude, the
customers of my chosen market have an enthusiastic attitude towards the product because of
the multi-faceted advantages. Due to the brand image, my product has gained a loyal
customer base who depend on the brand for their daily usage. The facilities have improved
their awareness and interest towards the product generated by advertising and marketing.

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MARKET ANALYSIS AND SEGMENTATION
Psychographic Segmentation: the product appeals to the young student, vibrant
professionals who have in-depth knowledge about gadgets. It is compatible for the
technology inclined generation and with the introduction of sleek design and vibrant colors
has started to appeal more customers with aesthetic appeal.
Cultural Elements on Demographic
The cultural elements like language, beliefs, lifestyle pattern, norms, attitude, values
differ based on age groups profession have a huge influence on selling of smartphones.
Lifestyle pattern will decide whether the person will invest in a technologically advanced
smartphone or other necessities (Floh et al., 2014). Norms and values will decide their
approach towards the usage of technology and whether it should be linked with their daily
needs. Products are needed to be aligned with customers’ attitudes and emotions so as to
create a strong loyalty base and ensure the sustainability of brand image in the long-run.
Competitive Landscape
It is dominated by cheaper Google Android based smartphones which impress
customers with sleek designs and cheap pricing strategy (Chung et al.,2016). Many
smartphone companies are today improving its camera quality to promote its reputation
amongst the Asian countries which is today more reliant on selfies and social media platform
for photo sharing. The increasing competition with hardware and design lead of rival
companies has led to a greater demand in product innovation. Introduction of Microsoft and
other operating system have given users more options to select from by Nokia and Xiomi
(Bilgihan, 2016).
Product innovation according to demographics: the product should concentrate on easier
payment option since the users are mainly students and busy professionals. Innovation in

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MARKET ANALYSIS AND SEGMENTATION
designing such as round corners and sober colors can help in product differentiation and more
sales.
Pricing Strategy: this would be designed to increase market penetration and target the rising
middle class towards brand. Using competitive pricing strategy will help to fetch their interest
towards the technological innovations that my product has. The skimming price would be
reduced in order to attract more customers towards the brand. This would cater to the desires
of customers who want to buy a technologically advanced smartphone.
Key Benefits of Product Positioning
i. To make the products more customer-oriented and attaching a strong emotional
connection with their self and personality. This will accelerate in the sale of
product and customer reliance.
ii. Better coping strategy for market changes and consumer buying preferences. The
product should be able to match up with the dynamic of changing pattern of
environment
iii. It would attract a variety of customers based on their different preferences like
novelty of design, updated operating system, cheaper price and better quality
camera.

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