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Analyzing Apple market segmentation strategy
In the real world of building products and attacking market opportunities, market segmentation is the process of defining and sub-dividing the aggregate, homogeneous market into addressable, targeted needs and aspirations buckets. Buckets that are in turn, thresholded by demographic, psychographic and/or budgetary constraints.
Market segmentation strategy enables a company to drive complete, unified product solutions that are harmonious with messaging, customer outreach, and channel strategies for selling and supporting customers.
In this regard, Apple’s product strategy is a study in market segmentation. Versus merely trying to stuff a product, burrito-style, with as many different features as possible, they target specific user experiences, and build the product around that accordingly.
Consider the recent iPod event in September, where Apple completely rebooted the iPod nano, rolled back the iPod shuffle to an earlier interaction model, and majorly forked the iPod Touch in a way that also speaks to iPhone positioning.
Mind you, each of these efforts represent major strategic iterations of successful products, not reboots of failed ones, so it speaks volumes about how the company thinks about its users, their workflows and corresponding segments.
Moreover, it underscores the integral-ness of continuously re-calibrating on the definition of the situation; not merely doing more for the sake of an added bullet point or to support a desired price point.
Does Apple have a perfect crystal ball on these things? The history of the nano and the degree of iteration of this generation’s shuffle, suggests that no, in fact, they don’t always have a perfect read. But make no mistake: While they may not always be right, they are never confused or haphazard in their approach, and that is the hallmark of sound market segmentation

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