This document discusses Apple's target market for the iPad, including demographic and geographic segmentation. It analyzes buyer profiles in both domestic (US) and foreign (UK) markets based on variables like age, income, occupation, and location (urban vs. rural). For the domestic market, it describes target customers in New York in more detail. For the foreign market, it provides more information on targets in the UK. It then analyzes findings from both markets and describes how Claritas PRIZM can be used to understand customer behavior, preferences, and patterns psychographically and demographically. In conclusion, it discusses how demographic and psychographic factors can help understand customer behavior.
1. Running head: Target Market
6
Understanding Target Market: Apple Inc.
MKT/571
Melissa Simmons
August 27, 2018
Roberto Ancis
Apple Inc.
Apple Inc. is one of the largest technology companies it
designs, develops and sells a range of consumer electronics
(hardware) and software providing the most innovative
technology to their customers. Key products of Apple include
smartphone, tablet computers, portable media players, personal
computers, smart watches, digital TV and much more (Thurm,
2010). However our selected B2C (Business to consumer)
2. product is iPad. iPad has been widely in demand on domestic as
well as international level. Buyer’s profile using demographic
variables
Customers are domestically segmented on the basis of age,
gender, income level and their occupation etc. Particularly,
demographic variables are identified to get help in
understanding the targeted group of customers with regard to
product features and company can design a convincing
marketing campaign to generate further market base
(Heracleous, 2013). 2a Buyer’s Profile using the Demographic
Variables (Domestic Market)
Demographic Segmentation
Variables
Age
20-45 years
Income
High income
Occupation
Students
Business man
Artists
Density
Urban
Rural
2b Buyer’s Profile using the Demographic Variables (Foreign
Market)
Demographic Segmentation
3. Variables
Age
20-45 years
Income
High income
Occupation
Professionals
Students
Music lovers
Artists
Density
Urban Two designed geographic areas
Geographic segmentation has made on the basis of regions or
areas because characteristics of people living in different areas
can be different. Apple is a multinational company and it is
working at the international level targeting different countries
and regions for their products and services (statista.com, 2018).
3a Domestic market description
Domestic market targeting for the Apple iPad is the New York
USA that have targeted first for every product/service.
· 10 economic factors
Economic factors are important to categorize the customers with
geographical areas are altitude, latitude, climate, immigration
conditions, cultural factors, government policies, infrastructure,
transportation condition, technology adoption and types of
occupations etc. These factors are related economic condition of
the selected region. iPad target people who have high income
and have the purchasing power to purchase high prices products
like iPad.
· 5 population factors
According to the census of 2017, the total population of New
4. York, USA is 19,849,399 that has targeted for iPad in different
categories. Other population factors in the region of New York
are high education, cultural diversity among people,
professional, executives, people who come to visit the place. 3b
Foreign market description
The UK is one major targeted country for sale of iPad that has
selected on the basis of geographic factors.
· 10 economic factors
The UK is the developed country and people have more
purchasing power that is a requirement for the iPad. Second,
people in the UK are educated and awarenessof technology that
increases demand for iPad. Other economic factors for this
segmentation are better business conditions, immigrants, and
foreign students for education, foreign employee, multinational
companies, occupation, technology adoption and innovative
culture.
· 5 population factors
In 2018, the total population of the UK is 66.57 million while
the major target has targeted by Apple for iPad. Main
population factor includes high aware customers, high educated,
diversity of culture, white collar job or occupation and
immigrants or visitors that like to have adventure and
enjoyment in life. Data about buyer’s profile in geographical
areas 4a Domestic market findings
According to the analysis of 2012-2016, the average income of
people living in New York is $34212 while total employers and
businessman are 544073 that is a main targeted occupation for
iPad. 51.4% of the population are female while 20.9% are young
people that have increased the marketforiPad. 69.6% are white
and others belong to other races like Hispanic, Asian and Black
etc. that increases diversity in the region (census.gov, 2017).4b
Foreign market findings
People in the UK are highly educated and the literacy rate is
99% that results in aware and educated customers in the market.
On the other hand, 37% of the population is between 24-40
years that is a main targeted market for iPad (census.gov, 2017).
5. Description of the psychographic and demographic profile using
Nielsen Claritas
Claritas PRIZM is one effective market analysis tool that helps
to give a rich and comprehensive market yield with different
customer preferences. This tool analyses customer on the
features of behaviour, geographic data and combination of
demographic customers.
5a Domestic Market
In the domestic market, customers are young people with high
income who have the behaviour of market awareness and adopt
high technology in light of Nielsen Claritas (Brower, 2017).
Psychographic and Demographic profiling of the target
domestic market would allow determining the individual as well
as collective consumer patterns and behaviours of the target
market. It would become quite an easy task to find out if the
domestic market has a niche or a larger audience in the market.
5b International Market
In the international market, customer’s traits have targeted on
the basis of education and people who have a high income. On
the basis of behaviour, people who like adventure and fun in
life. This psychographic information on people can be used to
determine whether the target market is the right choice, and
what steps are needed to be taken in order to prove this venture
to be a success. Other than this the collective psychographic
profiling can be combined to determine the demographic
patterns of the international markets. This would determine
whether there is a niche audience or a larger target audience in
the target market, in the international market.Insights from
analysis of demographic and psychographic information
On the basis of these factors, it can be described that a company
can understand the behaviour of the customer with demographic
and psychographic factors. Psychographics are used to
determine individual preferences of consumers, by applying
methodologies of studying personality traits, and determining
values, opinions, attitudes, interests and lifestyles.
Demographics can be used to determining individual consumer
6. preferences of the target market, a demography approach,
however, targets a broader audience. Demography is used to
target and determine the consumer patterns of large masses of
audiences, instead of individual consumers. A demographic
approach can be used to determine the changes and similarities
to determine the consumer behaviour of a target market. Both,
the psychographic and the demographic approaches are
immensely useful tools while determining consumer patterns
and behaviours while researching a target market.
References
Brower, M. (2017). Claritas (formerly Nielsen) Segmentation
and Market
Solution
s. The Charleston Advisor 18, no. 4 , 15-20.
census.gov. (2017). QuickFacts: New York USA. Retrieved
from census.gov:
https://www.census.gov/quickfacts/fact/table/US/PST045217
Heracleous, L. (2013). Quantum strategy at apple inc.
Organizational Dynamics, 42 (2), 92-99.
statista.com. (2018). Apple's iPad market share of global tablet
shipments from 1st quarter 2012 to 2nd quarter 2018. Retrieved
from statista.com:
https://www.statista.com/statistics/268711/global-market-share-
of-the-apple-ipad-since-2010/
Thurm, S. (2010). Your apps are watching you. The Wall Street
7. Journal, 17 (1), 2-5.
Contextualization and Synthesis: Bacon’s Rebellion
Circle one of the following themes:
Ameircan-Naitonal IdentityWork-Exchange-TechnologyAmerica
in the WorldMigration-Settlement
Politics-PowerGeography-EnvironmentCulture-Society
Explain the BROADER historial context (connect it to theme
chosen above):
Previous historical Context:
Historical Context
(details)
Bacon’s Rebellion:
9. MKT/571
Melissa Simmons
September 3, 2018
Roberto Ancis
1. UK as Foreign Market of iPhone 8
UK has the largest segment of iPhone in foreign market so it
has been chosen as a foreign segment for this part of writing.
Customers of this geographical market are educated and techno
savvy so demand for emerging technologies is always high in
this market. This social factor of market makes it’s among the
most important segments of target geographical markets.
Further, growing GDP rate of 0.4% in recent years also shows
the affordability of consumers in market (Country Economy,
2018).
2. Product Life Cycle
Gmelin and Seuring, (2014) stated that in this fast passed
technological era it has become necessary for companies to
develop new products quicker than ever before. This fast
product development has shorten the product life cycle of
brands. Apple understands this aspect of PLC very well that’s
way they always introduce new product as a pro-active approach
and add on to the existing brands to extend the PLC of their
products. There is a 100% growth shift as blend of growth in
10. both value and growth (Apple Inc., 2018). Introduction, growth
and maturity stages of iPhone 8 are described for both domestic
and chosen foreign market of UK.
Image No. 1.
Sales
Introduction Growth Maturity
Time
a. PLC for US (Domestic Market)
With this frequently changing market trends Apple always
introduced new brands iPhone 8 is among one of the latest
brands with two different version as iPhone 8 and iPhone 8
plus. Brand has passed through its introduction phase, where it
has been widely accepted and purchased brand in global market
11. as more than 40 million units were sold in country in current
year (Statista, 2018). In US iPhone grabbed 40.25% of total
smart phone market of 69% in last year (Finder, 2018). Growth
of iPhone brand has declined as in previous year its sale was
around 80 million units so the brand of iPhone 8 is moving
towards its maturity period with the launch of iPhone 9.
b. PLC for UK (Foreign Market)
Introduction of iPhone 8 has been successful in UK as sales of
brand have been increased from previous year as 41.79 million
iPhone were sold in 3rd quarter of this year (Haslam, 2018).
Sale of product is expected to grow in UK with 16 to 17% rate
but after this quarter consumer would have another product
from Apple as iPhone 9 so the product of iPhone 8 is now at its
maturity in UK.
3. Metrics for Measuring Marketing Activities (Positioning,
Targeting, and the 4 P's)
Customer based metrics and business financial performance
metrics are suggested by Leeflang, Verhoef, Dahlström, and
Freundt, (2014) to measure effectiveness of marketing activities
like segmentation targeting and positioning.
a. Domestic Market
For domestic market company needs to measure effectiveness of
newly product launched and promotion activities occurred to
introduced and position the brand. For this purpose these
metrics are suggested;
12. · Product: Pipeline growth and acceleration
· Promotion/Pricing: Customer lifetime value and Revenue
b. Foreign Market
In foreign or host market company has chosen to capture some
new segments so here there is need to measure the effectiveness
of targeting, product itself, place of product, promotion and
pricing. These all are necessary to measure because this will tell
which part is strong and where there is lack to focus more.
· Targeting: Lead Generation and Customer Acquisition
· Product: Pipeline growth and acceleration
· Place: Sales
· Promotion/Pricing: Customer lifetime value
4. Media Methods for the products
a. Domestic Market
1 – Printed Media
US is a developed country, people of the state are educated and
aware of technology so print media has also converted into
digital media as almost of magazines are available online. So,
printing ads on magazines like Smartphones Times and other
magazines of related category are good choice for print media
methods for the brand.
2 – Social Media
This is the most effective and widely used media method of this
age, one who neglects this cannot survive at this time of
business world. Social media campaigns are suggested as there
13. are cloud solutions available to measure effectiveness in terms
of lead conversion and customer loyalty development.
b. Foreign Market
1 – Printed Media
UK is a developed country, people of the state are educated and
aware of technology so print media has also converted into
digital media as almost of magazines are available online. So,
printing ads on magazines like Smartphones Times and other
magazines of related category are good choice for print media
methods for the brand.
2 – Social Media
Social media is widely used in UK as people are techno savvy
and this is the most effective and widely used media method of
this age, one who neglects this cannot survive at this time of
business world. Social media campaigns are suggested as there
are cloud solutions available to measure effectiveness in terms
of lead conversion and customer loyalty development.
5. Product and Promotion List
5.1. Integrated Marketing Communication
a. Domestic and Foreign Market
In terms of developing communication plan for domestic market
there would be almost same plan as both countries have same
language and are developed states. Where, there are educated
people, techno savvy so the message of product would be same.
5.2. Advertising Strategy/Objective
14. a. Domestic Market and Foreign Market
For this purpose print and non print ads are suggested for the
brand (James & Rose-Ackerman, 2013);
· TV
· Radio
· Magazine
5.3. Positioning
a. Domestic Market
There is a difference in economic conditions of country so
positioning strategy would be different on that basis otherwise
social factor are almost same in sense of education and
technology awareness. iPhone has 40% of share in total market
of Smartphones in USA and Google android has more than 50%
share of total market so iPhone needs to stick on their
differentiation strategy and as to adopt competitive positioning
strategy to capture maximum share of domestic market (Statista,
2018).
b. Foreign Market
iPhone has lost their market share in recent share from 52.8% to
49.85% so their differentiation strategy needs to make a set of
positioning strategy along with differentiation (Statista, 2018).
For this purpose adopting customization in segment would
encourage to gain the maximum share of market.
15. References
Apple Inc. (2018). iPhone 8 Environmental Report. Retrieved
Sep 2, 2018, from Apple:
https://www.apple.com/environment/pdf/products/iphone/iPhone
_8_PER_sept2017.pdf
Country Economy. (2018). United Kingdom (UK) GDP - Gross
Domestic Product. Retrieved Sep 2, 2018, from Country
Economy: https://countryeconomy.com/gdp/uk
Finder. (2018). Finder. Retrieved Sep 2, 2018, from Finder:
https://www.finder.com/iphone-sales-statistics
Gmelin, H., & Seuring, S. (2014). Achieving sustainable new
product development by integrating product life-cycle
management capabilities. International Journal of Production
Economics , 154 (1), 166-177.
Haslam, K. (2018). Apple Q3 2018 financial results. Retrieved
16. Sep 2, 2018, from Macworld:
https://www.macworld.co.uk/news/apple/apple-financial-
results-3581769/
James, E., & Rose-Ackerman, S. (2013). The Non-Profit
Enterprise in Market Economics (3rd ed.). Sydney: Taylor &
Francis.
Leeflang, P. S., Verhoef, P. C., Dahlström, P., & Freundt, T.
(2014). Challenges and solutions for marketing in a digital era.
European management journal , 32 (1), 1-12.
Statista. (2018). Global Apple iPhone sales from 3rd quarter
2007 to 3rd quarter 2018 (in million units). Retrieved Sep 2,
2018, from Statista:
https://www.statista.com/statistics/263401/global-apple-iphone-
sales-since-3rd-quarter-2007/
Statista. (2018). Market share of Apple iOS in the United
Kingdom (UK) from December 2011 to May 2018. Retrieved
Sep 2, 2018, from Statista:
https://www.statista.com/statistics/271195/apple-ios-market-
share-in-the-united-kingdom-uk/
Statista. (2018). Subscriber share held by smartphone operating
systems in the United States from 2012 to 2018. Retrieved Sep
2, 2018, from Statista:
https://www.statista.com/statistics/266572/market-share-held-
by-smartphone-platforms-in-the-united-states/
17. 9
Running head: MARKETING ANALYSIS ASSIGNMENTS
1
MARKETING ANALYSIS ASSIGNMENTS
6
Researching Marketing Questions
MKT/571
Melissa Simmons
Roberto Ancis
Part 1: Memorandum
TO: Senior Vice President (Marketing)
18. FROM: Jacob Glenns
DATE: August 19, 2018
SUBJECT: Marketing Analysis
Summary Analysis
This analysis of the market report that was presented the market
analyst provides detailed insights from the data that may help in
formulating an effective marketing strategy. The key
information include: revenue performance for the first half
between 2015 and 2016 and revenue trends over the same
period. This information help in deciding whether to the
organization should continue with its growth strategy or to
reverse the decline.
Revenue Analysis
Analysis of the company’s semiannual performance- between
January and June- indicates that there was an increase of 10.18
percent in the generated revenues per day from 96,000 dollars to
105,768 dollars in 2015 and 2016 respectively. The revenues
per day, domestic market, were 93,683 dollars and 85,181
dollars in 2016 and 2015 respectively, over the same period.
Overall, the semiannual revenue for the year 2016 was
13,644,073 dollars with the United States market contributing
12,085,137 dollars, which is approximately 88.6 percent of the
semiannual revenue. The international market contributed
1,558,936 dollars, which is 11.4 percent of the total revenue.
The average gross profit per day was 8.3 percent for the six
19. months between January and June, 2016. For the three months
of April, May and June, 2016 the total revenue was 7,024,096
dollars with the domestic market contributing 6,145,978 dollars
and the international market contributing 878,119 dollars. The
gross profit was 6.5 percent.
Revenue Trends
With regards to customer class, commercial customers
contributed 7,195,592 dollars in the six months of January to
June, 2016. The revenue per day was 55,780 dollars, an increase
of 5,008 dollars compared to 50,772 dollars realized over the
same period in 2015. At the second place was the municipal
segment with 1,634,643 dollars. The revenue per day for the
first six months was 12,672 in 2016 compared to 12,034 in
2015. The international market segment contributed 1,535,905
dollars and the revenue per day was 11,906 dollars and 11,700
dollars in 2016 and 2015 respectively. The other important
segments- resellers, industrial labs, government, resell,
education and others- also registered increments in the revenue
per day for the first 6 months between 2015 and 2016. The
revenue trend for the second quarter (between April and May)
illustrate that commercial market contributed 1,130,973 dollars
which is 50 percent of the total revenue from the customer class
segment. The international market contributed 323,990 followed
by the municipal sector which contributed 263,030 dollars.
Resellers, industrial Labs, Government and Resell contributed
20. 266,066, 135,694, 50,261 and 43,464 respectively. Education
and Others contributed 35,846 and 7,600 dollars respectively.
Insights for Marketing Strategy
An analysis of the customer rank section of the data shows that
the company generated 1,312,868 dollars for the first six
months in 2016 from the acquire. The expansion contributed a
lion’s share of 7,634,424 dollars, followed by retain which
contributed 3,026,592 dollars. The serve contributed 1,666,355
dollars and the non-coded contributing 3,834 dollars. The top
customers’ section results for the first 6 months 2016 indicate
that ABC Corporation contributed 601,368 followed by Fish
Limited at 480,717 dollars. Delta Appliance, ALPS Company
and Here4U contributed 424,678 dollars, 398,347 and 269,038
dollars respectively. Others are XYZ Inc, Epert Engineers,
Check Gmbh, Francois and Sons and Euro Limited at 208,819,
207,066, 201,704, 186,532 and 177,660 respectively. This
information may help in providing the right marketing strategy
to pursue.
Additional Analysis
It is also important to perform competitor analysis and
industrial analysis to build a marketing strategy. The competitor
analysis provides important insights about the competitor’s
marketing strategy and market share, which are important for
having a competitive advantage. Industrial analysis provides
important information about the prevailing trends affecting the
21. industry’s overall performance (Kotler, P., & Armstrong, G.,
2010).
Part 2
Company Name
Apple Incorporation
Location
Headquartered in Cupertino, California Apple Incorporation
designs, produces and markets personal computers as well as
mobile communication and media devices. The organization is
renowned for quality products and services such as iPhones,
iPads, Apple Watch, Mac, Apple TV and various operating
systems like iOS, watchOS, tvOS as well as macOS (Boone &
Kurtz, 2013). Other products are iCloud, Apple Pay, software
applications, accessories as well as service and support
offerings. The organization directly sells its products to
consumers in most of its market and also uses its retail stores,
online stores and direct sales force. In addition, it uses various
indirect distribution channels like wholesalers, value added
retailers as well as third party cellular network carriers (Kotler,
P., & Armstrong, G., 2010).
Name of Chosen Product
iPhone
Company Description
Apple is a California corporation started in 1977. In 2017, it
22. had more nearly 123,000 permanent employees. From the
financial perspective, the company’s net sales increased by 6
percent between 2016 and 2017 from 215.639 billion dollars to
229.234 billion dollars (Kotler, P., & Armstrong, G., 2010). The
company’s website is
https://secure.store.apple.com/shop/account/setup/start.
General Description of iPhone 8
In 2017, the Apple Inc., introduced iPhone 8 featuring a new
glass as well as aluminum design, wireless charging, augmented
reality optimization and enhanced cameras plus speakers
(Kotler, P., & Armstrong, G., 2010).
References
Boone, L. E., & Kurtz, D. L. (2013). Contemporary marketing.
Boston, MA: Cengage learning.
Kotler, P., & Armstrong, G. (2010). Principles of marketing.
New York, NY: Pearson education.
United States Securities and Exchange Commission. (2017).
Apple Incorporation: Form 10-K. Washington, DC: United