Question

Explain the main market segmentation methods used in the selected organization. In your opinion, what segmentation method(s) will be most effective in the organization, and why? (600 words). (B629 TMA)

Answer 1

There are generally four types of market segmentation methods: Geographical, Demographic, Physiographic and Behavioral. For instance, let us take an example of Mobile Manufacturing firm Apple Inc. The most suitable market segmentation strategy for Apple Inc. would be Psychographic method. Apple Inc. is known for its Consumer Electronics products. The psychographic market segmentation approach involves factors like lifestyle, social class, personal values, attitudes, interest, opinions of the customers. The company launches its products into the premium segment of the consumer electronic products in the market. Their products are aligned with the core values of luxury, uniqueness, superiority, premium and latest product into the market.

                Apple Inc. products are more of a fashion and market trend products and are hugely popular among the youths. Since the products are categorized under the premium sector, therefore not everyone can afford their products. People with high net worth, having good sources of income and people who seek luxury and uniqueness are more attracted towards such products. Their product is not just about the technological values and innovation but also feel of a premium product, simplicity in design and features so that a person without having much technical knowledge can be able to handle their products quite easily.

                They have identified their place into the market segment of premium products and deals into that limited market only while their other competitors like Samsung, LG, Motorola, etc. are also dealing into the less costly consumer electronics segments. This degrades the goodwill and the particular image of the brand among their customers. The customers invest more in the goodwill of the branded products instead of the features and economical price. Therefore, the image of the Apple Inc. for their customers is to provide the luxury lifestyle, superior social class, uniqueness in personal values, the attitude of owning the best in the market, trend and style statement interest for the youth. The business class people generally don’t want many features but need a reliable product for their business demands and needs. Apple Inc. although charges more for their consumer electronic goods but they are renowned for their quality services, quicker customer queries redressals, amazing aftersales services and support.

“If you liked my answer, please don’t forget to give an UPVOTE!”

“That will be very helpful and encouraging for me!”

THANK YOU!