Thursday, January 27, 2011

Market Segmentation Assignment

The article The iPad Leads Apple to the Elderly describes how the ease of use of the iPad appeals to the an aging demographic.  The 55 and over crowd is a desirable market segment. Marketers assume this group has more discretionary spending power because of savings and less pull by outside factors -- children, for example. This group also continues to increase in size as the leading edge of the baby boomer (people born between 1946 and 1964) generation (in the United States about 77 million still living out of 309 million total population, according to Census data) reaches retirement age.  Apple has typically targeted younger consumers (according to a recent AdMob report, 65% percent of iPod touch users are 17 or younger and 72% of iPhone users are between 18 and 54).

What can Apple do to make the iPad more appealing to consumers 55 and older?  Be sure to consider each of the 4Ps.  If you are not familiar with the features of the iPad, you can learn more about them on the Apple web site.  In your opinion, should Apple market the iPad to this segment?  Why or why not?

Post your responses to the blog no later than the beginning of class on Tuesday, February 1st to receive credit (please do not forget to include your name; otherwise it will not be possible to give you credit).

18 comments:

  1. If Apple wants to make the iPad more appealing to consumers of the ages 55 and older, they must first figure out what this demographic looks for in a product like this. The product must be simple for them to use and not require a lot of background information on how to use it. It should update applications automatically, and have familiar icons for the user so they do not have to research what each one does. The price should be fairly high because this age group is not as worried about money especially if they are retired. When promoting the iPad the advertisements should be short and basic to the point that the consumer knows its a media device but keep them curious of what else it does. As far as placement, it should be in upper electronic stores such as Target or Best Buy. A store where the customer can be talked to by a person instead of reading online, and they can hands on test the product.

    I think Apple should market the iPad to this segment because its a not as portable as a iPod touch or iPhone. It is a bigger media device that is easier to read and can be used with other applications that the iPod or iPhone cant. Such as boardgames and watching bigger movies, things that older people would enjoy a lot more than a younger market. The iPad does offer an application with voice commands activated from touching the pictures, this is opens up a market to the disabled as well. I had a child at a camp I worked at that used the iPad to communicate due to disabilities he had. The iPad is a great product, but with the android tablets coming developing, it can destroy the market Apple is going for because of the free applications offered.

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  2. I think it's a great idea for apple to make an iPad for the people 55 or older, because it's handle held but at the same time it's easy to read, which older people look for in products. These people aren't knowledge in the technology, so Apple would have to make in simple to operate. They need to have it perform updates on it's own instead of the user having to do the updates like most people have to do on a regular laptop. They need to have apps that appeal to this age group. The iPad needs to be located in like a Best Buy store that way the person can actually communicate with a person that has knowledge of the product. This product being marketed to this age group I see as being a success and I feel Apple should do it.

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  3. The 55 and older market segment can be really big for Apple. Typically, this age group has already reached the "empty nest" lifestyle and would make good use of any product that makes communicating with their children and grandchildren easier. The iPad is portable, yet big enough to offer easier viewing; technologically advanced, yet easy to use. This product is easier to use than a smartphone and more convenient than a PC. This product would definitely satisfy their needs. This age group should have more discretionary income, so price shouldn't be problem. If Apple can target this segment effectively, their sales could increase exponentially. I would suggest advertising in AARP publications, financial magazines, and other media outlets that typically market to this age group. Apple is in the best position currently to market to this group. They should expand into this segment now, before other companies bring their tablets to market. They could have a strong presence within this group before their competitors arrive.

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  4. I think the Ipad is great for people 55 and older. This 'computer' is lightweight and easily transportable. As people get older a lot of things aren't how they used to be including eye sight, walking, and even understanding the younger generations. With this being said the iPad is easily used by any age really and can fit into your purse or backpack. It is easy to read and there are apps for just about everything. Older people can check their email and stay connected with family and friends as well as look at the news, play games or watch tv. I believe this product could be a success if advertised to the elderly right. Making people know that it not only is a computer but it doesn't require any previous knowledge to use. Even though this product may be a bit pricey if you think about the numerous things that it is capable of I think it would be worth it in the end.

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  5. I think apple would benefit if they were to market the ipad to this particular segment of people over 55 years old. Most people from this segment are not familiar with technology so it would be important to have the ipad be simple and easy to use. The product should also include lifestyle needs and wants of the elderly such as applications referring to health care, the news, and travel. The ipad should not increase price, but keep it the same. The elderly are able to afford expensive items but if apple were to raise the price it could affect the younger age segment and prevent them from being able to purchase the ipad. When promoting this product, Apple should advertise the simplicity of this product and how it can benefit the elderly. The ipad should be sold at not only at the Apple store but also well known electronic stores that are placed in many locations. Elderly won’t want to travel long distances to buy this product. As long as Apple focuses on the needs and wants of the elderly but do not ignore the wants and needs of the younger population, marketing to this segment would be a good choice for Apple.

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  6. I think it would be a great idea for Apple to market to people 55 and older.

    People 55 and older are more likely to be traveling now than they did when they were younger with a new family. The Apple iPad would allow them to conveniently travel with their favorite magazines, news, and books in one small piece of technology.

    The iPad would also allow them to connect with the younger generations in their family and bring them closer together. They could share a bond over the interest in new technology or even communicate through their many apps.

    I think people are overlooking the price issue of the iPad because they assume that people age 55 and older have more disposable income. I think Apple would do well with people age 55 and older if they offered an AARP discount, similar to the educational discount they offer to students. I think with the extra incentive of a discount, they would be more willing to spend the money on an iPad which they normally wouldn't.

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  7. For an older generation, some features of the iPad that are turn offs for younger consumers could be turn ons for them. One feature is that there isn't a USB outlet on the iPad. Older generations are past the "education" phase and tend to use computers for looking at news or emailing back and forth. The iPad is perfect for doing these simple things! Another good feature is that it is light. No one, but especially an older individual, likes to carry around a heavy computer. On the website, Apple says that the iPad weighs 1.5 lbs. That's perfect to carry, and it fits conveniently into a purse or briefcase.
    Another beneficial feature of the iPad is that you can zoom in on the screen, which will make it convenient for older people who need glasses or have difficulty reading. The screen is bright and allows for lighting where it could be difficult for one to read. These features, along with the thousands of applications cater to everyone, pose a great argument for reaching out to an older generation.

    As for what Apple could change a bit or leave the same:

    Product: the product itself is very marketable considering the above features that can be helpful for seniors.

    Price: the older generation has more disposable income than the young. That being said, the people of the older generation also save money a lot more and are what I'd call "coupon hoarders." Therefore, I do not suggest any raise in the price if Apple wants it to remain marketable for this segment.

    Promotion: commercials and ads need to involve seniors. When you think of Apple products, older generations are not what come to mind. In order to feel like you need a product, you must think that your peers enjoy using it, and that your life could somehow be enhanced by it. It would be ideal for the segment to turn on the television or open up a newspaper to see an ad that involves something like a grandfather opening up an e-card from his grandchildren saying happy birthday.

    Place: think about where seniors go often. Ads need to be in grocery stores, recreation centers, malls (for all of the mall walkers, bingo halls, etc.

    Ultimatley I think this could be a risky move for Apple to change their target market. But, along with high risk comes high return if they play the game right. if they are able to pull it off, they could breed thousands and thousands more loyal Apple customers!

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  8. I think Apple can make the Ipad popular no matter what demographic they are going for. The reason for this is becuase it is so easy to use and more affordable then a lap top and other computers. The ipad is made for customization. By that I mean you put apps on it that you want. Unlike a normal computer you just push a botton and it takes you there. You do not have to open a web brower if you do not want too. The older generation is not as technologically advanced. So Apple can make there apps more simple and gear them more towards what what retired people want to do on there spare time. It is also a big screen and easily portable.
    So over all i think the ipad can easily push there age demographic by keeping its setup simple and making apps that would entertain older people.

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  9. I feel like Apple trying to sell the ipad to consumers in that age range would be there biggest challenge because the product one of the top technological devices at this point in time. at age 55, you would be lucky enough for that person to even understand how to work a regular computer. The biggest way to appeal to them in my opinion is to find something that the ipad can offer to that age that cannot be offered through any other source. I think of my Grand Parents, and even my Parents in some cases when it comes to this kind of product. They would ask themselves, What would i get out of this thing? is it really necessary with the price?. The ipad can be sold to that age if it is something reliable and easy to use and understand.

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  10. Apple does a very good job in their marketing strategies when trying to promote a product. They capture all audiences, ranging from young to old. With their new product the Ipad in this certain article, they are trying to reach the age market of 55 and up. This might be particularly hard just because this "baby" boom generation is just now getting into the technological age.

    Price- the price is $500, which is affordable for most people at the age of 55, considering most have jobs

    Place- this might be hard for Apple because not many people 55 and older are at malls where they can see the store or watch tv in which the apple commercials are aired. Apple must research where most 55 and up people are (grocery store, book stores)

    Promotion- Apple needs to start promoting more advertisements about the benefit of Ipad's not just music and cool attractions (which attracts the younger audience) They need to show the age group of 55 years and older that this product can help them in their everyday activities

    Product- the Ipad is a great product, which can be used by all ages. It can do multiple things, just like a lap top

    Overall Apple can ultimately market this Ipad to people 55 years and older with the right research.

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  11. Apple would benefit marketing to ages 55 and older. The Ipad is already at a pretty decent price for $499. It is cheaper than most laptops and it does the same thing!

    With the promotion Apple should change where they are selling them and commercials. Steven Blue had a good comment on how they should market it in places like Target and Wal-Mart. There commercials could perhaps have more elderly people using it and showing how easy it is to use. When reading the article about how the Ipad leads Apple to the elderly a Marti Weston, stated she got a Ipad for her fathers birthday. This will obviously keep its young buyers in if they can promote it to the elderly. When the elderly see how easy it is to use the word will spread. So, overall Apple would benefit.

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  12. Because of the so many things you can do with an IPad it wouldn't be hard to make it more appealing to the 55 and older age group. A lot of the people within that age range are becoming more computer savvy and able to work the new digital technology. Many of my friend’s parents who are in that age range have Ipad’s and Ipod’s. My mother and father a year ago did not know how to text in a fast and efficient way but now they can’t stop texting, how sad that is. My parents know how to go online to download music and burn it onto a disc or sync it into an Ipod with no problem. Apple can reach the 55 and up age group if they build apps that coerce with their lifestyles. Many of the applications Apple have are more suitable for teenagers and you adults. But the people how are 55 and up have more flexibility with their spending because they are not taking care of children and have money saved up from over the years of working. The advantage that I think that will work well for them in marketing to older people is the price. It’s priced around $499 which is not too expensive for a type of technology that is so advanced. While Apple is trying to gain new customers for this product. It doesn't want to alienate its current consumers so that is something they will have to figure out.

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  13. For apple to make the ipad more appealing to and older crowd they could show in their advertisements older people using the ipad and them having fun because it is so easy to use. They could emphasize the zoom feature and that it is so light and easy to carry around and see on the large screen. Ipad could show how easy it is to quickly buy a book and read it on the ipad. So the product is good and I do believe they should try to market to older people by promoting the book aspect of the ipad and advertising in bookstores and places where old people go. The price is affordable and I think they should distribute ipad's in bookstore's, walmart, and online. I think a lot of older people I know are starting to use computers and technology, and with all the things that the ipad could do with the zooming feature, good screen display and the ibookstore there is possibility for it to entice a lot of older customers.

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  14. In order for Apple to target people aged 55 and up they should start by making the size of the buttons on the iPad adjustable. Most seniors cannot see very well and often use reading glasses. If Apple could make the buttons on the iPad bigger seniors may feel like Apple is looking out for their best interests. In addition, Apple should create an easy to read “getting started manual” and include it with the iPad for all consumers who are not technologically savvy. Apple should also create applications with media which would be familiar to seniors, such as old television shows, songs, and pictures. When it comes time to price the new senior friendly addition of the iPad, Apple should consider lowering the price as well. Seniors may be scared away from purchasing an iPad at full price because they are already unsure of how it works and if they will like it or not. It would still be acceptable for Apple to sell the iPads at retail electronic stores, but make sure that seniors are aware of the new senior friendly devices through senior targeted promotions.
    I think if Apple really took the time to restructure the iPad for an older generation, they could successfully market it to a senior segment. In my opinion, targeting an older segment sounds like a good idea because there are no manufacturers that really make products for them. Most electronic manufactures are too busy trying to reach the younger crowd that they forget about the large untouched senior segment. Targeting this senior segment has the potential of yielding huge amounts of capital.

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  15. Apple is one of the most technlogically advanced products in the world, which could most likely turn off people over the age of 55. I believe that making the iPad more appealing to customers over the age of 55 would be quite difficult because it's one of the more advanced apple products. However, if they planned to sell it to older consumers, they could make the product more visible and easier to use. Most adults aren't use to the technology we use today, so making it more simple to use would probably help it sell. As far as promotion, advertising the product using people over the age of 55 may attract them more than advertising with teens. If they see it advertised with seniors it would be more appealing to them and make them want to purchase it. Advertisment plays a huge role in the marketing process. Whoever buys the product mostly depends on how you promote it. But all in all, I think that keeping the easy-to-go, travel size, look would be best for older people... I just think that making it more simple to use & advertising it WITH seniors could actually help sell it to older people more than the younger generation.

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  16. Apple could simplify the iPad down to make it more generalized for that age range. They could make it easier to purchase different applications. Apple could invent certain applications that would be particularly directed at consumers 55 and older. I think Apple should market to this segment. This beginning half of the segment is starting to experience their children leaving home and moving forward with their lives. With its larger screen the iPad is great for those who do have problems seeing the small screens of a cell phone or some laptops. The iPad should need to be sold at more recognizable electronics stores other than just at Apple stores.

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  17. Lory Marsocci

    Well since the ipad is already easy to use and needs no prior knowledge to use it...that would be a good thing to promote to get seniors involved. I believe the value of the product is definitely worth the price...it is pretty cheap for what it does. They already have apps that will appeal to all ages already...such as chess, the weather, news,book and shows. Also the costumer service at apple is really good so the elderly will be at ease when it comes to malfunctions in the product...sometimes they even give you a new one. I think its a great idea that they are promoting to elders...like they say it will give them an edge when the competition arrives with similar technology. But I have a hard time believing that ipad is going to get beat when it comes to the intuitiveness of the product.

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  18. I think Apple can make the Ipad as light weight as possible making it easier to hold and carry around. Also, providing a "Glossary" of applications on the Ipad could be a good way to allow quick and easy access to help. Another thing I think would be helpful, like cell phones how have, would be a 911 or emergency button. This way the Ipad could send out a signal to call for help. If Apple made an Ipad with not as much space on it, they could lower the price. Most elders don't need a whole lot of space; they would use it more for internet and communication. They could sell the Ipad at locations such as Walmart. Also, they could promote different services to cater to the elderly such as at doctor’s offices they could have a help service to refill prescriptions or contact a doctor.

    I think Apple should market to this segment, because they tend to have money since most have been "savers" most of their lives. Also, many elders want to keep in touch with family and friends everywhere and this would just allow an easier way to do that. Unlike a desktop computer, they can sit anywhere and use it; unlike a laptop, they can easily slip it in a purse or small bag to carry around.

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