Segmenting and Targeting Markets

A market is made up of people or an organization with needs or wants with the ability and willingness to buy. If the person or organization lacks any part of this, it is not a market.

When creating all of his products, Steve Jobs was slowly segmenting his products. He was segmenting his products by consumers. Who were they used for? Were they made for students, offices, colleges, elementary schools, college staff or for creativity? Most of Apple products share similar product needs. They are easy to use and now have iOS. They have also created each product to have a specific use; iPhone (Apps), iPad (Reading), iPod (listening to music).

Apple segments their products by demographics. Includes age, gender, income, family life cycle.
The products that Apple creates are made easy to use. When creating these products; whether it is a phone, computer or media player, the company just want the device to be sold. The demographic segment that most likely purchase these products are members of Generation Y (people born between 1979 and 1994). This generation makes purchasing decisions based on peers. They like to know how well the product works, what better way to know how they work then to ask a person who already has it? Generation Y is also aware of how companies market their products so they don't always pay attention to them. They are into brand names that everyone knows of, but get tired of new items they have purchased very quickly.
Generation X (people born between 1965 and 1978) are not brand loyal. They want items that will give them an experience. Many people born between these years don't really find to think that Apple is useful. Many actually feel that Apple is pointless and people who have their products wasted their money on nonsense.

Apple also makes its product somewhat difficult to purchase. Income segmentation is a huge factor for Apple. The prices that Apple has on its products affects the choices consumers make. Whether you have a family or not. If you don't have a family, it may be easier for you to purchase an iPhone, iPad, or iPod, as oppose to those who do have a family. Those who have families have to make choices as to whether to buy a $200-$700 phone, $200 media player, or a $400 reading device. Families pay a huge part on Apple as well because most kids do want the latest electronics but may not be able to have it because their parents have other priorities.