Companies have to understand their markets, that is, their customers before they manufacture a product. This is because the product to be manufactured has to fit the needs of the customers so that they will get attracted to the product and purchase it. A study of the target markets has to be conducted by the company, and this ensures that the products manufactured are in line with the customers’ needs and characteristics (Villeneuve and Pasquier, 2017). Apple Inc. Company is a company in the technology industry and ensures that it understands its target markets before it launches a new product in the market. The company’s products are designed according to the needs and characteristics of the target markets.
The first aspect that the company analyzes is their demographics which include the target customers’ ages, family composition, and income among other things. The different products that the company manufactures have different target markets, and therefore the demographics of the products are in some instances similar, and in others they are different (Apple Inc, 2018). The products of the company can be divided into four segments which include accessories, software, services, and devices. The accessories segment include television and smartwatches while the software includes iOS, iWork, and iLife. The devices include the iPhone, Mac, iPad, and iPod whereas the services provided by the company are iCloud, iTunes and Apple Pay (Bhasin, 2018).
The device segment has its target customers in the United States and also in the international market, and the same case applies to the other three segments. All the segments target customers residing in the urban areas and can be either male or female. The devices target market involves individuals ages twenty to forty-five and the same applies to the accessories. The services segment has their target market individuals’ ages as eighteen to thirty whereas the software segment has it at twenty to thirty-five (Yeung, 2017). The company targets individuals in the high-income earners’ bracket and this can be clearly shown by the high prices of the company’s products.
This mostly deals with the behavior of people, and it includes the analysis of the opinions, activities, and interests of the target customers (Villeneuve and Pasquier, 2017). Apple Inc. Company considers these aspects also before manufacturing its products. When analyzing the psychographics of its target markets, the company still has its products divided into four segments, that is, the services, accessories, devices, and software. This company develops its products for individuals who are determined and have an ambitious personality. The devices target the people who seek a sense of belonging and attitude and who want devices with the best features and capabilities. The services and software segment seek customers who are looking for products that are efficient and have a high speed of service.
The accessories segment has its target customers as those who seek recreation and self-expression. The company associates its products with people who belong to the middle and upper social classes in the society, and this works for all the segments (Apple Inc, 2018). The activities of the target market also determine the products of the company. The devices are used by the teenagers in socializing and also use the services such as iTunes for listening to music. The devices are used by students in organizing their notes, and also business people use the devices in communications with other business people and clients.
For a company to understand well about its target markets, it is necessary to conduct a SWOT analysis related to the target markets (Villeneuve and Pasquier, 2017). The strengths of the company include a large market share which gives the company revenue. This helps the company in having a large capital base that it uses in its operations. The company also has the advantage of having loyal customers, and this occurs because of the efficient products that the company manufactures. The company also enjoys superior technology, and this makes the company’s products to attract customers in the market (Apple Inc, 2018).
The weakness of the company is the high prices that come along with its products. the company targets individual who are high income earners and those who belong in the middle and upper social class. This cuts out low income earners and this reduces the market that the company can sell its products (Yeung, 2017). The opportunities for the company include the research and development that the company is involved in. This ensures that proper research is conducted before investing in a new product or service and this makes the company make the right decisions (Bhasin, 2018). The threat in the target markets is the competition in the market. The competing companies are researching and developing technologies that offer stiff competition in the market.
A company needs to understand its target customers for it to make the right decision on the right product to launch. Apple Inc. ensures that this is done through its research and development department. This ensures that the company’s products match the needs and characteristics of the customers.
Apple Inc (AAPL.O). (2018). Retrieved from: https://www.reuters.com/finance/stocks/companyProfile/AAPL.O
Bhasin, H. (2018). Marketing Strategy of Apple Inc – Apple Marketing Strategy. Marketing91.
Villeneuve, J. P., & Pasquier, M. (2017). Marketing management and communications in the public sector. Routledge.
Yeung, N. (2017). The marketing strategy of Apple: A concise analysis. Retrieved from: http://www.versiondaily.com/the-marketing-strategy-of-apple-a-concise-analysis/
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