Marketing Principle 2 TO: Tiffany Morrow, Vice-President of Marketing-Apple TV plus Marketing FROM: Marketing Strategist DATE: 07/03/2022 SUBJECT: Apple TV plus market segmentation Introduction The...

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Marketing Principle2 TO: Tiffany Morrow, Vice-President of Marketing-Apple TV plus Marketing FROM: Marketing Strategist DATE: 07/03/2022 SUBJECT: Apple TV plus market segmentation Introduction The worldwide streaming industry is as yet growing because of how rapidly TV content is advancing and logically compelling more purchasers to quit utilizing their link or computerized TV memberships. This opens up a fresh out of the box new market for tech behemoth Apple to run the show. The choice to send off Apple TV+, another web-based feature, on November first, 2019, was made by Apple, and it was simply recently uncovered. Apple TV plus effectively focused on a small lineup of movies and series, and the early reviews have been mixing for those titles. After the launch it was found that about one third of the US consumers are aware about the service which puts the awareness rate of 30% and the awareness rate among the Apple device owners of Apple TV is around 51% versus 25% for non-Apple device owners and excuse towards a younger demographic. The core target group for the Apple TV plus in the short term are the customers who are the device owners, and mainly belongs to the age group of 18 to 34. The given popularity of the Apple devices in the households had been a potential aspect for the customer pool. In order to sustain the subscriber growth for TV plus in the long term, it is effective for Apple to move beyond its own device universe and ensure that it appeals to those who belongs outside the brand ecosystem. Social analytics have released a data regarding the social media marketing strategy regarding the marketing segmentation of Apple TV plus by effectively considering the target market of younger single men. The analysis has also consolidated that the males contribute to the larger target market than the female. Subsequently the younger age group contributes to a larger segment of the market. It can be contemplated that the Apple TV plus is mainly focusing on the millennial and the middle aged single male audiences that shows Apple wants to appeal to cord cutters. Market Segmentation Behavioral Segmentation The behavioral segmentation that the company will effectively provide customers contains over 100 million subscribers every day on the basis of automation. It is based on machine learning to learn about the customers through their behavior on the TV streaming app. The app can store the pieces of information to segment customers into the different groups that are based on their actions and allow the media services provider to provide customer experience based on their behavior in a personalized and customized manner. For instance, Apple TV can track the movies or the show that the customers have watched in the last month, and based on this information Apple TV can determine the genre that the customers love and select the recommended content for the customers to view in the future. According to the degree of loyalty and the behaviours of the customers, it has been attributed that most of the customers and the segmentation has been contemplated with the hardcore loyal and the switches who would specifically switch the platform on the basis of the content they are accessing. In most cases the age group of 18 to 30 are the rapid switchers, and the age group of 30 to 45 contributes to a hardcore loyal. It is apparently observed that the younger age group has observed the availability of the Apple TV plus as a sensor achievement and belonging and they have often found it as an aspect of self-expression. The younger age group views eat on the basis of the speed of the services, and the advance features and capabilities of the particular platform. On the other hand, the older age groups determine the benefits on the basis of the efficiency and the recreation that they obtained from the usage of the products. When all segmentation has identified target market who are determined and ambitious and these appeals to mostly the younger set of target segment. On the other hand, the users who are potential and effectively contributes to determined aspects of the content that have been presented in the platform. Demographic Segmentation In terms of demographics Apple TV target consumers who are young adults, teenagers, and families with higher and middle income. The Apple TV shows the movies, and the TV shows that appeal to different ethnic and racial groups with a wide range of foreign and international films. The age group of the customers are mainly ranges from 20 to 45 and it comprises 61% of males and 29% of females. With further categorization, it was found that 30% of the customer segment belong to the bachelor stages, while 12% were newly married couples. While 58% of the customers belongs to the democratic categorization of Full Nest I and Full Nest II. The most of the customers belong to the high- and middle-income group, and they are either manager and executives. However, there are contemplative percentage of students who effectively falls under this segment. In most cases the baby boomers are the ideal segments of the market who had shown interests in the products launched by Apple TV plus. There are professionals for example a content of Apple TV plus that appeals to American male adults would have a potential audience of about 100 million. However, the content that appeals to the women PHD physicist who have won Nobel Prize would be, maybe 3. Somewhere in the middle it is suitable candidate target audience. Geographic Segmentation Geographic segmentation would not value in this scenario because it is streaming that is particularly held on an online platform, and hence it can be accessed from anywhere in the world. Geographic segmentation is not quite appropriate in this scenario. However, the content that is based on the racial, or ethnic aspects can effectively enhance the customer segmentation based on the ethnicity, and race to where it belongs to (Rajput, 2021). For instance, if a show is focused on an Indian story, then it is likely to occur that there are effective Indian customers in that particular genre. Categorizing the aspects of segmentation criteria according to the regions, it has been found that 50% of the customers are the citizens of the United States. However, the relative international customers for Apple TV plus have been an exorbitant positive impact. Most of the segmented customers belongs to the urban setting, and belongs to the population of higher density. Psychographic Segmentation In regards to psychographic segmentation, Apple TV has targeted 3 basic groups. People who are too busy to go out to the cinema, or any other DVD shopping. People who are regularly into renting movies, and love movies. The demand avoids the selection of media ranging from big-budget Hollywood films to less known international films. People want to get the most value for their money and seek fair prices and convenience to watch movies without incurring advertising. Also, Apple TV can effectively attract people who are looking for value, and accounted for a large part of the Apple TV subscriber segments. VALS Model of Market Segmentation The market segmentation ascertains the aspects of values and lifestyles of customers by grouping consumers according to the psychological, and social logical theories to predict they are behaving in the Purchase Decision Process. There are three main categories which are classified as need-directed consumers who make purchases based solely on need, outer-directed consumers who make purchases based on their perceptions of the way others view them, and inner-directed consumers who purchase out of some inner need. The lifestyle of the consumers who prefer to be the targeted market of Apple TV are the groups that need to relax after a hard day of work, or just groups that seek relaxation. This group watch series or movies for their relaxation. This identifies some end users who have to live with the need for their relaxation. Another lifestyle that some end users may have been they are fans of some movies or series genres (Lena, 2021). They love to watch some specific genre, and that is where Apple TV service is based on. Apple TV is an online showing service that is programmed to search and find the perfect movie or series for users; it means that any kind of personality preferences can get the right choices to use for full potential user, and they may prefer any characteristics, and in general according to their personality. Innovators These groups exhibit ideas and they are effective to express themselves confident about their values and lifestyle. They are future-oriented and utilize science to explore the world. Thinkers These groups contemplate so highly motivated personalities who utilize resources, and are not influenced by any trends or research. Believers There are highly motivated by their personality, and the values that they acquired and spiritually motivated by values of stability (Learning Resource, 2022). Achievers The achievers are highly motivated by their achievements, and focus on those online streaming that is only of their liking. Strivers Strivers are motivated by achievements, and they enjoy fantasies and are fun-loving. Experiencers Highly motivated by their self-expression, and values and they are social and are spontaneous in their simulation. Makers These groups form to be highly motivated by self-expression and they change to have nature-driven interests and want to see themselves in a straightforward aspect. Survivors These particular group resources are the primary motivation; however, they are risk-averse and have no concern with the trends. These groups contribute towards the segmentation of the consumers in terms of VALS model. Market Segment Unrecognized The market segment that Apple TV plus has not effectively recognized are the people who are not into any profession, and their unemployed and contemplates most of the time for watching the contents in the online platforms, and college students. These market segments are effectively strong, and effectively provide a potential user base. The unemployed people mostly spend the time in extracting the aspects of entertainment from events, and the contents that are uploaded in the online series platforms. In the cases they are innovators, since they can express themselves, and their lifestyle is effectively relaxed that offers then the reliability of spending more time on the online platforms of Apple TV plus. These groups are mostly unemployed, and therefore they are motivated to think about the content that are presented more effectively, and they offer valuable time for the content that have been provided in the platform of Apple TV+. More potentially these groups believe about the values that they have acquired, and motivated by the values of stability that they observe in the content that has been presented. In most cases they are the device users of apple and all effectively loyal who believes about the viability of the product, and the content of Apple TV plus. The college students on the other hand are the potential users, and the market segment that has not been identified by Apple TV plus. In most cases the younger students are more interested about the
Answered 2 days AfterJul 05, 2022

Answer To: Marketing Principle 2 TO: Tiffany Morrow, Vice-President of Marketing-Apple TV plus Marketing FROM:...

Parul answered on Jul 07 2022
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Apple TV plus Marketing
Apple TV plus Marketing
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07/07/2022
1
Overview
Overview
Market Segmentation
Behavioral Segmentation
Demographic Segmentation
Geographic Segmentation
Psychographic Segmentation
VALS Model
Tar
get Market
Marketing Mix
Value Proposition
Marketing Communication Tools
Recommendation
References
2
Company background
3
Apple is one of the most recognized and valuable multinational corporation that manufactures computer software products as well as consumer electronics.
It was established in Cupertino, California on 1st April, 1976 by Steve Wozniak, Steve Jobs & Ronald Wayne
Apple enhances the value proposition to its customers by adding Apple TV+ to its portfolio and service offerings in order to capture the business of rapidly advancing TV content
Apple TV+ is a web-based feature that was established in November 2019
This business brings out-of-the box new market for the technology company
Massive opportunity for company to build business beyond owner device
Current problem
4
Apple TV+ is facing massive problem after its launch like low market penetration and reach
Less Awareness – Only 1/3rd of the consumers in USA are aware about the service, making overall rate of awareness to be only 30%.
High Churn Rate – Apple TV+ has faced tremendous churn of the viewers and subscription
Intense Competition – Many big-players who dominating the streaming industry and OTT platforms. For instance, Amazon Prime, Disney, HBO Max and Hulu
Market Segmentation
5
Behavioral Segmentation
Comprehending the behavior of the customers
Gauging customer experience based on their customized and personalized manner
Showcasing movies and series that customers often loves watching in last month
As per the degree of loyalty as well as the behavior of the customer
Therefore, target market identified as ambitious and determined to attain their goals
Demographic Segmentation
In terms of demographics Apple TV target consumers who are young adults, teenagers, and families with higher and middle income
The Apple TV shows the movies, and the TV shows that appeal to different ethnic and racial groups with a wide range of foreign and international films
Age group of the customers are mainly ranges from 20 to 45 and it comprises 61% of males and 29% of females.
Geographic Segmentation
This segmentation would not value in this scenario because it is streaming that is particularly held on an online platform
Hence it can be accessed from anywhere in the world
Categorizing the aspects of segmentation criteria...
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