I-PAD CASE STUDY
Introduction
Apple is a multinational corporation based in the United States that specializes in making of consumer electronic devices, supplies content software and their associated hardware. Apple Inc has been successful in establish a competitive edge in the computer and electronics industry and is considered as one of the largest competitors in the sector. This has been achieved by using product differentiation that focuses on the product quality, elegance and a top-notch customer service compared to its competitors (Sigal 2011). With a focus on iPad, it is arguably evident that Apple relies on diversification to establish a considerable value for its category-defining products such as the iPad. The consumer electronics market in Australia is very competitive and in order for apple to upbeat the increasing competition in the personal computer business, it develops other complimentary products in other sectors in order to increase its sources of revenue through focusing on markets that has saturated customers and less competition. This paper identifies and explains the rationale of the segmentation criteria that Apple would use to identify its target markets for iPad2. In addition, the paper outlines the main characteristics that are likely to influence the behavior of iPad2 consumers in Australia (Sigal 2011).
The PC and consumer electronic is Australia is very competitive, implying that manufacturers of electronics and computer devices have take into consideration the customer needs of its potential target market. As a result, the marketing segmentation strategy should take into account the changing consumer needs of iPad2 consumers in Australia (Steve & Gina 2006). The changes in consumer tastes have played a significant role in shaping technology. Basing on this, it is arguably evident that the marketing segmentation strategy that Apple Inc deploys should take into consideration the dynamic nature of the iPad2 consumers in Australia. In addition, the company must take into account the increasing need for consumers to use newly developed devices that have incorporated new features, as in the case of iPad2 (Haines 2004). The first criteria that Apple has to consider is that market segments are needed to generate adequate profit potential that can be used for the development and sustaining a marketing mix (Perner 2011). This is rationalized by the fact that the consumers of electronics and digital devices in Australia is ever increasing, meaning that the target market has the potential of generating adequate revenue for the deployment of a marketing mix. Additionally, Apple must take into account is that the segmented consumers must have similar needs. This is because most of the iPad2 users in Australia crave for similar functional characteristics of the device (Hill & Cronk 2010). Therefore, this is a justified segmentation criteria. It is evident that the PC industry and associated devices is very competitive and requires the deployment of effective market dynamics to upbeat the intense competition. The firms in the industry can be broadly classified into low-end, middle-range and high-end, which is determined by price that ultimately influences the capability of devices produced. Apple focuses on the development of high-end products that are specialized to address the needs of specific consumer group. Apple implements this strategy through product differentiation as a form of market dynamic (Sigal 2011).
The consumer behavior is an important factor to take into consideration when deploying market segmentation approaches. In fact, changing consumer tastes are behind the core contributors of the company’s success (Haines 2004). This is because Apple makes use of the change in consumer tastes to develop new products aimed at addressing this needs. Consumer behavior of iPad is mainly determined by the level of product functionality and features, which is determined by variables such as usability and ease of adaptation of new product applications. Another factor that influences iPad consumers in Australia is the price of the product, whereby Apple focuses on the development of high-end products aimed at meeting the requirements of a particular market segment. The extrinsic marketing dynamics deployed by Apple include the price, product design, quality and enough support. Product elegance is an aspect of Apple marketing owing to the fact the firm develops high-end products (Duane & Hoskisson 2008).

References
Duane, I & Hoskisson, R 2008, Understanding Business Strategy: Concepts and Cases, Cengage Learning, New York.
Haines, S 2004, ABCs of strategic management : an executive briefing and plan-to-plan day on strategic management in the 21st century, Cengage Learning, New York.
Hill, C & Cronk, T 2010, Global Business, McGraw Hill/Irwin, New York.
Perner, L 2011, CONSUMER BEHAVIOR:THE PSYCHOLOGY OF MARKETING, viewed 5 September 2011, < http://www.consumerpsychologist.com/ >.
Sigal, M 2011, Apple’s segmentation strategy, and the folly of conventional wisdom, viewed 5 September 2011, < http://radar.oreilly.com/2010/09/apple-segmentation-strategy-an.html >.
Steve, W & Gina, S 2006, iWoz: From Computer Geek to Cult Icon: How I Invented the Personal Computer, Co-Founded Apple, and Had Fun Doing It, W. Norton & Company, New York.