Market Differentiation and Segmentation of Technol...

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Market Differentiation and Segmentation of Technologies

Differentiation of a market is distinguishing goods between sellers on any basis that is important to buyer’s preference. Market segmentation is developing products depending on customer segments that can vary by age, race, gender, marital status, income, and so on (Dickson & Ginter, 1987). Market differentiation can be seen in mobile phone business due to the continuous technological advancements and availability of a large number of features. The mobile phone products can be differentiated by various levels of competition. The products are differentiated by their product categories like GSM, TDMA, CDMA, DoCoMo, NAMPS, NMT, and GlobalStar. The product lines of same product category are differentiated like GSM smartphones against GSM cell phones. There may be variations in product type of same product line like Smartphone with Symbian OS and Smartphone with other OS. There are further differences between brands of same product type (Andonov, 2006).

The markets are segmented by price, technology, products, user experience, and customer service. Apple Inc. adopts market segmentation strategy to offer different products to meet the needs of different market segments (see figure 1). The big impetus given by Apple to its research and development enables it to achieve technological advancements and variations in product categories. Apple has segmented its market broadly by sectors and the users falling in each sector. It has identified the target for each of its products from the various segments. The technological needs of college students differ from big organizations. Product price is another important factor that drives market segmentation (“Apple, Inc,” n.d.). The impact of technology on market differentiation and segmentation has been analyzed with respect to the way Apple differentiates its products to meet needs of its customers in different segments.

Figure 1. Market segmentation strategy followed by Apple, Inc.


Andonov, S. (2006). Levels of product differentiation in the global mobile phones market. Retrieved from

Apple, Inc. (segmentation strategy). (n.d.). Retrieved from

Dickson, P., & Ginter, J. (1987). Market segmentation, product differentiation, and marketing strategy. Journal of Marketing, 51, 1-10.

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