iPhone vs BlackBerry: Market Segmentation Strategies
This paper examines market segmentation strategies applicable to two leading smartphones — Apple's iPhone and Research In Motion's BlackBerry. It begins by defining market segmentation and identifying the core criteria a viable segment must meet: measurability, accessibility, distinctiveness, durability, and profitability. The paper then profiles each product and their shared features before analyzing four primary segmentation approaches — geographic, demographic, psychographic, and behavioral — along with customer-type targeting. Recommendations are offered for how each brand can strengthen its market position, including BlackBerry adopting a music-library service similar to iTunes and exclusive retail strategies modeled on Apple's own approach.
- Introduction to Market Segmentation: Definition and criteria for valid market segments
- iPhone and BlackBerry: Product Overviews: Background on Apple iPhone and BlackBerry RIM
- Shared Features and Their Segmentation Implications: Common smartphone features shaping shared strategy
- Geographic and Demographic Segmentation: Location and population-based targeting approaches
- Psychographic and Behavioral Segmentation: Values, lifestyle, and usage-pattern targeting
- Customer Type and Additional Strategic Recommendations: Organizational targeting and brand-specific tactics
- Conclusion: Research and judgment drive segmentation success
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What makes this paper effective
- The paper systematically applies a recognized marketing framework — the five criteria for a valid market segment — to a concrete product comparison, grounding abstract theory in real-world brand examples.
- Each segmentation type (geographic, demographic, psychographic, behavioral, customer type) is addressed with specific, actionable recommendations tailored to both brands rather than generic descriptions.
- The paper maintains analytical balance by treating both iPhone and BlackBerry as parallel subjects throughout, making the comparative structure clear and easy to follow.
Key academic technique demonstrated
The paper demonstrates applied comparative analysis: it introduces a theoretical concept (market segmentation), establishes shared criteria, and then applies multiple sub-frameworks to two real products simultaneously. This technique shows how a single marketing theory can yield distinct strategic insights when tested against different brand identities and target demographics.
Structure breakdown
The paper opens with a definition and criteria for market segmentation, then provides brief product profiles for each brand. A section on shared features bridges the profiles to the strategy discussion. The core of the paper works through five segmentation strategies in sequence, each paragraph following the same pattern: define the approach, then apply it specifically to both smartphones. The paper closes with brand-specific tactical recommendations and a brief concluding note on the role of research and managerial judgment.
Introduction to Market Segmentation
According to the Business Dictionary (2012), market segmentation is the process of defining and subdividing a large, largely homogeneous market into segments that share similarities in needs, demands, wants, and characteristics. It is effectively the opposite of a general marketing mix, since it narrows that mix to specific targets. The purpose of segmentation is to help match products to the expectations of targeted clients.
Both the iPhone and BlackBerry should develop market segmentation strategies that account for their specific targets and satisfy the following criteria: the segment must be measurable; it must be accessible through distribution channels and communication; it must respond differently from other phone markets to a given marketing mix; it must be durable; and it must be substantial enough to be profitable. These are among the key factors that both BlackBerry and iPhone must consider when undertaking market segmentation.
iPhone and BlackBerry: Product Overviews
The iPhone is one of the products of Apple Inc., a technology company that designs, produces, and sells goods across the computer, music, and mobile-phone industries. The brand is differentiated by its strong brand perception and identification. Over the last several years, Apple has become a cult brand, sustained by products and services such as iTunes, QuickTime, and the iMac line. Apple Inc.'s short-term goals have focused on increasing sales of newly launched products such as the iPad. In the long run, Apple aims to remain at the top of the market as the number-one industry leader.
Apple is regarded as a large corporation with a startup mentality — its corporate culture is geared toward engineering, and the company is known for minimizing bureaucracy while taking strong care of its employees. The company is run largely by engineers; Apple does not rely heavily on product management, and its project teams are small and engineer-driven (Business Insider, 2011).
The iPhone is Apple's smartphone brand. Its primary targets are upper-class and middle-class consumers who use it mainly for business purposes and for the range of applications it offers, beyond simple calling and texting.
BlackBerry is a product of Research In Motion (RIM), a company that specializes in electronics. Like the iPhone, it is widely used by entrepreneurs and businesspeople. It is a smartphone whose software provides access to a variety of communication services and data capabilities. BlackBerry combines many features that matter to people on the move, including email, texting, calls, music, a camera, games, maps, an organizer, and a broad range of applications (Tech Target, 2012).
Shared Features and Their Segmentation Implications
There are numerous features shared between the two phones, and these shared capabilities are significant determinants of the market segmentation strategy that both brands should adopt. These features include: support for remote administration, message encryption, push email or mail forwarding, a built-in personal digital assistant (PDA), document management, multimedia support, web browsing capability, text messaging, and photo forwarding.
Given the overlapping capabilities they offer users, the market segmentation strategies for the two phones are, in many respects, quite similar.
Geographic and Demographic Segmentation
Geographic segmentation is an approach that can work well for both smartphones. It is based on factors such as population density, population growth rates, industrial growth rates, and international macroeconomic conditions, among others. Both smartphones should target industrializing markets, where populations are highly mobile and need access to email, PDA functionality, and document management to coordinate business activity outside of fixed work locations. They should also target markets with growing population density, since it is generally easier to penetrate such markets and to leverage peer influence — as opposed to already-saturated markets where consumers have established phone preferences.
Demographic segmentation is another important trend that both smartphones should pursue. It is based on variables such as gender, age, education level, ethnicity, occupation, family status, and income. Both phones should target upper-income brackets and the middle-aged working class. Given their advanced features, they should also target educated, literate populations who will make full use of those features — effectively turning satisfied users into advocates who spread awareness through word of mouth. Targeting the working class and upper-income segments across the economies these smartphones wish to enter will also support premium pricing without negatively affecting sales volumes, thereby maintaining healthy profit margins.
Conclusion
Ultimately, the best and most applicable approach to any market segmentation strategy will rely heavily on the marketing research conducted by the organization, as well as prevailing market trends within each target market and the managerial judgment exercised by each company's leadership team.
Apple Inc. (2012). Business conduct: The way we do business worldwide. Retrieved June 7, 2012, from
Business Directory. (2012). Market segmentation. Retrieved June 7, 2012, from
Tech Target. (2012). BlackBerry. Retrieved June 7, 2012, from http://searchmobilecomputing.techtarget.com/definition/BlackBerry
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