• Segmentation: Segmentation involves division of the entire market in to various small segments in order to select few of them for targeting the customers of that segment. Segmentation could be on demographic, psychographic, geo demographic etc. (Kotler, 2000). A company could segment the market on the basis of demographic and psychographic behaviour.
• Demographic: The factors involved in demographic segmentation are age, gender, nationality, occupation, social standards etc.
• Psychographic: The factors involved in psychographic segmentation are values and lifestyle. Apple focuses on the consumers that have a rich lifestyle as its products are expensive as compared to others.
• Targeting: After selecting an appropriate segment the next step is to target that market with the help of various strategies like customized marketing, mass marketing, differentiated marketing etc. According to Kotler (2000) Differentiation is the only appropriate strategy in a segmented marketing and developing brand equity is one way to differentiate form competitors.