Question

Please complete the following about the apple watch. A. Segmentation. Using the various criteria of the segmentation bases described in the week's readings and in Table 4.1, identify at least two distinct market segments for your product or service. Each market segment description must include at least three (more if needed) of the characteristics from amongst any of the four bases categories, e.g. one from demographic variables, one or two from psychographic variables, and one from behavioral variables, or a similar scheme. Be sure to explain your choices based on what customer need the product or service offering can fill for each segment. B. Target market. Select one of the market segments you described in (1) above as the one you believe is or can be the most profitable for your product or service offering and explain why you feel they can represent growth for the company. Refer to the six criteria for an attractive market segment as described in course content under 'Selecting Target Markets'. Name your target market so you can use this name throughout all of your remaining writing assignments. Your name should be descriptive of the segments' characteristics like 'savvy young shoppers' or 'educated baby boomers', or 'urban hipsters', or the like. The goal is for your faculty member to get a mental image of your target market for the remainder of the semester.

Answer 1

1. Segmentation is an approach to group the customers in various segments using demographic, behavioral or psychographic variables. In general, the customer of apple products are those who value quality and technology. Targeting is the approach of selecting the right segment to which the product will be attractive and suitable. Positioning is the use of marketing mix to which is right for the segment.

For this study, we are selecting the two segments one is working professionals and college-going students.

Segmentation Type	Criteria for segmentation	Working Professional segment: Ambitious Young Professionals	College going Tech-Savvy Students
Geographic	Region	US and outside the US	US and outside the US
Demographic	Age	30-40 years	14-20 Years
Psychographic	Class-Social	Upper Class and Middle class, High Ambition level	Upper class, need to differentiate themselves with style statement of their own
Behavioral	Personality	Ambitious	Tech-savvy

1. Selection of target segment, for being the most profitable segment selection I would select the working professional segment, as the disposable income level is very high and the kind of status statement which they want to keep, apple watch may be the right product for them up to the 30-40 years of age, because under this class after 40 years customer may prefer luxury watches over the smartwatches. Since there peer group is also made up of similar earning who will fall under the same segment hence, this segment should be considered. I would name this segment as “Ambitious Young Professionals”.