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Marketing Assignment: Segmentation, Targeting & Positioning Approach Of Apple Inc


Task: Marketing Assignment Task:
1. In addition, Segmentation, targeting and positioning (STP) is a familiar strategic process in modern marketing. It is one of the most commonly applied marketing models in practice that you are required to demonstrate an understanding of segmentation, defining targets and positioning strategies for the specified brand and explain how the STP process has been applied by the chosen firm.
2. A marketing campaign consists of strategic and operational or tactical, marketing activities. The strategic part is based on research into your competitive environment, target customer buying habits and the characteristics of your products and services within your overall marketing environment; whereas, operational marketing uses tactics to meet the strategic goals of the company. Your task is to demonstrate the elements of operational marketing which are being used by the chosen firm and show your ability to understand the strategic tactics that satisfy the key needs of timing, budget, inventory availability and customer buying habits as those could make an appropriate balance of elements to achieve the firm’s marketing objectives.
3. In addition, you are required to research, develop and present a viable new product for the chosen firm (NPD). You need to study the market of your chosen firm to find out what their market wants, making smart product improvements and developing new products that meet and exceed their customer’s expectations.


Apple Inc., selected in this marketing assignment, is a leading technology company with a specialization in consumer electronics, software, and other online services. It is one of the most valuable companies in the world. Apple is well known for its innovation in products with a range of products like smartwatches, iPhones, iPad, Mac, AirPods, and many more. The company was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne.
This essay will define the STP approach and strategic aspect of the company. The STP will help in signifying the segmentation, targeting, and positioning of Apple. A presentation of the new product will be covered under the strategic and operational marketing with the product life cycle.

STP approach
An effective marketing practice makes a successful company. Apple is a leading technology company and went successful due to rapid growth in technology (PUSH, 2016). It signifies a good R&D department with optimum marketing efforts to maintain things on right track. For more effective understanding, the STP of the company is discussed as below:

The distribution of market on the basis of region, age, caste, income and other factors known as market segmentation. The marketing segmentation enables a business to cater to the needs of the market. Segmentation helps in defining the market group of particular users and treating them accordingly.It helps in defining the particular section of the market so that businesses can run accordingly. The market segmentation works in four domains: Demographic, Geographic, Psychographic, and Behaviour.Apple is innovatively working on the product development process and segmenting its user as per the requirement. The company typically use demographic, behavior& psychographic segmentation process(Apple Segmentation, Targeting, and Positioning, 2022). The demographic segmentation of Apple applies when businesses signify a diversified range of products for all sorts of users. A professional Mac for business people and an iPad for a gaming experience. The benefits of apple are much more effective. It has one of the most secured networks with unique apps that do not share your information with third parties. It triggersbehavior segmentation. If a person once used Apple, then it is hard for them to switch on other brands. Apple creates a psychological mindset of a person with its innovative attribute.

The choosing of right group or segment for the distribution of product is known as targeting. It helps in reaching the right audience for the delivery of product and services. The targeting segments of Apple are simple to identify: high-income class, age group of the 20s-40s, the benefit sought, emotionally attached with the products. The company position itself as a premium provider of high-quality product with advanced functions and capabilities. Apple chooses those who want to spend more money on technology, function, and design. The Apple user appreciates its quality, design, tech, and performance over the price.

Positioning of the product differentiate itself from the other brands and products. Maintaining a position in the market is quite hard for business. Apple maintain a strong brand position in the market for years due to its technological innovation. Apple wants to launch a new iPhone in the market with more advanced features and design(Apple Segmentation, Targeting, and Positioning, 2022). Apple already positioned itself as a premium brand with the most valuable company in the world. All such factors state that the business is doing well with a strong marketing position.

While launching a new product, the business can apply Keller Brand Equity Pyramid. This process includes a keen knowledge of the users and their thought towards the products and brand.

Keller Brand Equity Model 2022 in marketing assignment

Figure 1: Keller's Brand Equity Model, 2022
Source: MindTools, 2022

The four steps signify critical aspects of the user's mind. The first step is to build brand resilience and awareness (Vasilevaand Vasileva, 2017). Many people are already aware of the features and qualities of the Apple iPhone. So, Apple should use some new and creative aspects to greet the customer rather than updating memory, they can provide a free lifetime space on the cloud. The second stage is to define your brand as what it stands for. Apple is known for its innovative tech, design, and performance. This time, Apple should do something different in technology, design, and performance so that it meets all social and psychological needs of the consumer.

The third stage helps find out the feeling of the users. Many users of Apple still think that they hardly believe in invention but promote innovation(Keller's Brand Equity Model, 2022). They just put some more cameras with a slight change in design. Now, Apple should do a different thing and make users amazed with the new and modernized features and functionality of the iPhone. The fourth stage is Brand Resonance which is already achieved by Apple in terms of previous products list. There is a good psychological bond of Apple users with the product. They prefer and suggest only Apple products to use. So, it puts more responsibility and pressure on Apple to bring new tech advancementsto their iPhone.

Strategic and Operation Marketing
Strategic Marketing

Strategic marketing concept define the potential and ability of a company to withstand in the market. It defines it's purpose, strategy.The company puts some effort into innovative features and capabilities and makes the user aware ofthem (Chernev, 2018). It develops a zeal to purchase it. The unique message delivery process of Apple attracts user and make them buy the product. It avoids the price war with the competitors and provides the most premium segment products of the era. Apple shares the experience of the user through stories and viral videos. It helps in building a bond with the new user as well. The competitive environment of Apple is not so high because it has already ended the price war (Heracleousand Papachroni, 2016). Some products want to compete against it but fail in certain cases. Samsung, OnePlus, Nokia have premium segment phones but users prefer iPhone and find it worth the money. In computers, HP, Lenovo, dell are some major competitors but the professionals prefer Mac over all the above.

Operational Marketing
A key element of success is operational marketing. It is a structural action which usually adopted to achieve the marketing objective and meet the goals of the marketing plan. Apple operational marketing enables a business to draw success with beautiful marketing concepts. The advertisement imposes differently in distinct areas. Apple put a lot of effort into the advertisement by reflecting their brand response.

Recent ads of Apple are focused on the design and camera lens of the iPhone. It helps in attracting the segment that loves the company for its unique design and specification. Moreover, some iconic ads of Apple were (5 of the most iconic Apple ad campaigns, 2021):

• The Rock and Siri (HomePod)
• Romeo and Juliet (iPhone 7 plus)
The advertisement budget is allocated in the operational marketing process with the sole purpose to accomplish the marketing goals and objectives. A business is unique in many terms and Apple ads and its story with visual presentation makes it different from other competitors. Every product ad of Apple signifiesthe true meaning of the product. Hence, the operational marketing process is doing good and gives exceptionally well results to Apple.

New Product Development
The product life cycle of Apple is quite good. Whenever company launch a new iPhone or any of the product, they started to do market research for another innovation (Wicek-Janka, et. al., 2017). That’s why every year Apple launches its one of the shades of iPhone with distinct value and proposition. Apple recently launch its iPhone SE for the moderate-income users who want to purchase it. Along with this, it also launched iPhone 13 pro max for the premium segment users.

The four stages of product life cycle of Apple products are:
Market Introduction & Development: Apple has put efforts to launch iPhone 13 variants and SE variants. Company has advertised both the products differently because both of them have distinct features and functionalities.

Market Growth: The online availability of the models makes it easy for the user to purchase. Apple also provide pre-booking offers to the user. The market growth accelerates when product pre bookings and sales ratio increases. Market Maturity: As the demand of the product increases and company understand the saturation point. They started to put efforts on new product. Similarly, Apple launch iPhone 12 and just after it launch iPhone 13 variants. There is a slight feature difference between both the variables but as the new one launch the older one’s demand get decline with price. Market Decline: The sale of iPhone 12 started decline after the launch of iPhone 13.

Present the product
The new Apple iPhone 14 is a new product in the market. This is completely different from the older one in terms of design and features. It is a foldable phone with ultra-wide lens and a secured biometric scan to unlock the phone. The storage is completely lifetime free up to 512 Gb cloud. No internal storage is provided and phone can charge through the charging plate. The product will be selling initially in UK & US only.

Social Media and digital advertisements will be helpful tool for promoting the new iPhone and its features. Penetration pricing strategy will be used for this new sensation revolution of the market.

The strategic marketing, STP approach, and the new product development process of Apple are unique as they formed a special relationship with the user and deploy a strong brand position. The efforts of Apple signify through branding. They present advertisements by providing the best experience in the world. Apple is the world's largest company in terms of revenue as well as find as the most valuable company in the world. All these things signify Apple not only as a brand but a company that gets love in return from the user.

5 of the most iconic Apple ad campaigns, 2021. [Online] Apple Magazine. Available at: [Accessed on: 24th March 2022].
Apple Segmentation, Targeting, and Positioning, 2022. [Online] Edward Mind. Available at: [Accessed on: 24th March 2022].
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Heracleous, L. and Papachroni, A., 2016. Strategic Leadership and Innovation at Apple Inc. SAGE Publications Ltd. Keller's Brand Equity Model, 2022. [Online] MindTools. Available at: [Accessed on: 24th March 2022].
Vasileva, I.V. and Vasileva, T.N., 2017. Keller''s brand equity model. Marketing assignmentModern Science, (6-1), pp.93-98. Wicek-Janka, E., Papierz, M., Kornecka, M. and Nitka, M., 2017. Apple products: A discussion of the product life cycle. In 4th International conference on management science and management innovation (Vol. 31, pp. 159-164).


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