Apple's iPod and Market Segmentation

Paper Summary:

This paper examines how Apple's iPod is the first entry into the marketplace that addresses the needs of the portable digital music market segment. It explains how it is small enough to fit comfortably in a shirt pocket. It shows how the device addresses the shortcomings of other portable MP3 music devices. It also looks at how market segmentation has been one of the most vital factors fueling the demand for technological products, as companies recognize that segmentation equips them to generate more sales than the mass marketing approach of the late 20th century. The paper examines how Apple understood the needs of the digital music community, together with the strengths and weaknesses of other products in the marketplace prior to designing the iPod.

From the Paper:

"The iPod is distributed through traditional retail outlets. The company wants to maintain its strong relationship with the retail brick and mortar stores which have become a back bone of there distribution channel. The company could have their own online purchasing system, but they have chosen to reinforce their ties with traditional retailers by not offering the products directly to the consumer. This approach continues to build good will into eh retail community, which is important to the small computer manufacturer. In a world of goliath computer manufacturers producing windows based operating system, Apple is the David of the technology world."

More papers on Apple's iPod and Market Segmentation:

• Term Paper # 109334 : "Apple's iPod"
• Case Study # 112239 : "Apple Inc."
• Marketing Plan # 114726 : "Apple's iPhone"

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