what market research methods do apple use

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

How Apple Is Organized for Innovation

• Joel M. Podolny
• Morten T. Hansen

When Steve Jobs returned to Apple, in 1997, it had a conventional structure for a company of its size and scope. It was divided into business units, each with its own P&L responsibilities. Believing that conventional management had stifled innovation, Jobs laid off the general managers of all the business units (in a single day), put the entire company under one P&L, and combined the disparate functional departments of the business units into one functional organization. Although such a structure is common for small entrepreneurial firms, Apple—remarkably—retains it today, even though the company is nearly 40 times as large in terms of revenue and far more complex than it was in 1997. In this article the authors discuss the innovation benefits and leadership challenges of Apple’s distinctive and ever-evolving organizational model in the belief that it may be useful for other companies competing in rapidly changing environments.

It’s about experts leading experts.

Idea in Brief

The challenge.

Major companies competing in many industries struggle to stay abreast of rapidly changing technologies.

One Major Cause

They are typically organized into business units, each with its own set of functions. Thus the key decision makers—the unit leaders—lack a deep understanding of all the domains that answer to them.

The Apple Model

The company is organized around functions, and expertise aligns with decision rights. Leaders are cross-functionally collaborative and deeply knowledgeable about details.

Apple is well-known for its innovations in hardware, software, and services. Thanks to them, it grew from some 8,000 employees and $7 billion in revenue in 1997, the year Steve Jobs returned, to 137,000 employees and $260 billion in revenue in 2019. Much less well-known are the organizational design and the associated leadership model that have played a crucial role in the company’s innovation success.

• Joel M. Podolny is the dean and vice president of Apple University in Cupertino, California. The former dean of the Yale School of Management, Podolny was a professor at Harvard Business School and the Stanford Graduate School of Business.
• MH Morten T. Hansen is a professor at the University of California, Berkeley, and a faculty member at Apple University, Apple. He is the author of Great at Work and Collaboration and coauthor of Great by Choice . He was named one of the top management thinkers in the world by the Thinkers50 in 2019. MortentHansen

Partner Center

How Market Research and Brand Loyalty Contribute to Apple’s Success

To begin with, the notion that Apple doesn’t conduct research is a false one. Though Jobs had famously stated that “it [wasn’t] the consumer’s job to know what they want,” market research would turn out to be instrumental to developing the iPhones 4 and 5 and the iPad. In fact, Apple’s marketing data is typically gathered by extensively studying consumer behavior insight.

To protect itself from competitors, Apple’s marketing research is a well-guarded secret. If any competition were to gain access to the research, there is a possibility that they would be able to use that data to identify market gaps and use it to get ahead of Apple. Some other research methods used by Apple include SWOT analyses, conducting consumer surveys, prototype testing and anonymous data collection; these methods are always done internally.

Though Apple has its ways of researching, these methods don’t come without restrictions. For example, because it stands as a well-known brand, conducting research on a global scale can be somewhat difficult. Additionally, because of Apple’s image as a fresh, innovative brand that consistently produces cutting edge products and drives the industry, there’s this added pressure to meet high expectations.

Apple’s massive success can also be attributed to brand loyalty. By establishing a strong connection with its consumers, Apple has managed to emerge as one of the top companies in the technology industry. Apple’s limited market research and large cult following, paired with Apple’s overall fantastic product design and commitment to innovation makes it an almost unstoppable force in the technology world.

Latest Posts

The Must-Haves For A Blog In The Construction Products Market

Jul 21, 2020

The Importance Of Business Blogging In The Construction Products Market

Jul 06, 2020

Apple's Marketing Strategy: The Secret Behind its Simple Yet Effective Marketing Strategy

PV Vyshnavi , Akshat Hawelia

Apple Inc. is a world-renowned name for innovation and breakthroughs in the consumer electronics and computer industry. Apple is known to be one of the greatest marketers of all time because they understand that marketing is one of the most crucial aspects of a business venture, which greatly determines its success in the consumer realm. This is why Apple has always taken steps to keep its marketing process free of new market challenges in its attempt to penetrate deeper into the market.

Apple Inc. is one of the world's most valuable brands; this is no surprise to many, as Apple has a brand value of approximately $880.5 billion in 2023. The brand has been voted the winner of the CMO Survey Award for Marketing Excellence for ten consecutive years. This is because Apple has had consistent marketing excellence built into its core principles, which other companies will benefit from learning from and applying.

Apple’s marketing strategy is so effective that it has become a benchmark for other companies who want to achieve the same global popularity, revenue growth, and staying power.

Marketing is not just limited to advertising the products and services to the end customers. It also entails the determination of complete channels through which a product or service is going to be introduced in the niche market, as well as its promotion throughout the potential customer base in order to encourage them to buy the product. This is exactly what Apple is good at doing; it creates an awareness of the product, has an effective marketing strategy, and also focuses on developing a need for the product among other market sectors.

The iPhone, iPad, Apple Watch, Mac, and Apple TV are all products that have revolutionized their respective market space, and their success is a direct result of their marketing strategies.

Apple goes way beyond what other brands do; they focus on creating products for their target audience and loyal customers who truly believe the company's products improve their lives. So why has Apple remained a consistently excellent marketer for over a decade? Let's look at its marketing strategy to find out.

Marketing Mix of Apple Top Reasons Apple’s Marketing Strategy Has Been Successful

• Apple Keeps Its Product Presentation and Marketing Simple
• Apple Knows Its Target Audience and How to Reach Them
• Apple Provides A well-appreciated Customer Experience
• Apple's Pioneering Carbon-Neutral Commitment
• Apple Creates Mystery and Hype Around the Product
• Have a Community of Loyal Users or Customers
• Consider the Value of the Products
• Substantial Product Placement

Marketing Mix of Apple

Product:  Apple is a company that offers a wide variety of products. These include the MacBook, iPad, iPhone, Apple TV, iPod, Apple Watch, digital content, software, accessories, and cloud services . This diversification demonstrates the brand's commitment to innovation and customer satisfaction. Furthermore, with recent developments like VR boxes and Apple glasses, Apple is constantly pushing the boundaries of technology.

Pricing:  Apple uses two main pricing strategies for its products: Premium pricing and Freemium pricing. The premium pricing strategy involves setting prices higher than competitors due to Apple's unique products, which result from their innovative designs. Customers are willing to pay for the brand's premium quality despite being more expensive. On the other hand, the Freemium pricing strategy provides customers free access to basic products or services while charging extra for advanced features.

Place:  Apple employs a multi-channel marketing mix strategy that utilizes online and offline distribution channels. The company offers its products through its own Apple Store locations, official company websites, and online stores. Additionally, Apple has partnered with telecom companies such as Verizon and AT&T to sell iPhones. Authorized resellers also offer Apple products through online stores like Amazon and eBay .

Promotion:  The company uses various promotional techniques to market their products. These include advertising, sales promotions, personal selling, and public relations. Apple products are advertised on prominent websites, and sales promotions are run in stores or by authorized sellers. Personal selling involves informing customers about the product to persuade them to purchase. Finally, public relations helps the company to build its brand image .

Top Reasons Apple’s Marketing Strategy Has Been Successful

List of Courses Curated By Top Marketing Professionals in the Industry

These are the courses curated by Top Marketing Professionals in the Industry who have spent 100+ Hours reviewing the Courses available in the market. These courses will help you to get a job or upgrade your skills.

1. Apple Keeps Its Product Presentation and Marketing Simple

Apple follows the philosophy that simplicity is better in its products. They don’t overwhelm their targeted customers with too many choices, options, or even parameters.

Apple lets its products speak for themselves and keeps its messaging and visuals simple. They know that their products will sell without relying on expensive advertisements.

This strategy is also seen in their logo, a simple apple with a missing corner. Even their retail stores are designed for testing and checking out the products rather than just buying the boxes.

The products have short names that are easy to remember, and along with that, it has well-appreciated sleek and minimal designs with simple colour schemes. The company also reduces confusion by simplifying its web and sales copy by using simple and direct words, and it continually stresses the benefits that consumers absolutely need.

This is part of their brilliance in content marketing , where they produce high-tech products without high-tech terms. Apple’s advertisements and marketing strategies don't just convey specifications and features but rather how the product can change your life and make it better.

2. Apple Knows Its Target Audience and How to Reach Them

Apple has worked hard to find its target audience , it understands its audience’s likes, dislikes, habits, and language they want to use. By simplifying the marketing process in the language that the audience understands, an amazing bond is formed between a prospective customer and the brand, and a lasting connection is formed for an existing customer. Apple does mention all its specifications and technical details, which are usually below the fold rather than in the face.

When a customer visits the websites, they have to scroll past the beautiful and aesthetically designed product images and large font simple copy telling them about the benefits of the product.

Apple advertisements show happy people having a great time with the simplicity of their iPads. This consistent display of positive emotion in Apple's marketing strategy is one of the driving forces behind its sales. They’re not selling more storage or battery life, but way more than that.

For example, the iMac product advertisements portray iMac as not just “a computer” it helps make your computing experience exciting and pleasurable or the iPhone isn’t just “a smartphone” it lets you put the power of an Apple computer in your phone.

Apple at Work From Home - Apple's Advertising Strategy

3. Apple Provides A well-Appreciated Customer Experience

Apple holds the customer's experience in high regard. The experience can include every element, including comparing different product versions to each other, trying out new products in the retail store, buying the item, receiving it, unboxing it, and setting up the device. All the devices are carefully crafted according to the company's specifications to appeal to the consumer's requirements .

For example, when it comes to installation, one of the things Apple fans truly appreciate about Apple computers is that it is very easy to set them up. This is why Apple spends a lot of money and thousands of hours testing and replicating to refine its designs.

The retail store is also carefully designed with warm lighting and monochromatic colour schemes, and the layout of the store features all appeal to the shopper’s requirements.

4. Apple's Pioneering Carbon-Neutral Commitment

Another prominent reason that makes Apple successful in its marketing strategy is its commitment to carbon neutrality. In 2020, Apple achieved carbon neutrality for its corporate emissions worldwide and introduced its "Apple 2030" climate goal, committing to be 100% carbon neutral for its products and supply chain by 2030.

In September 2023, Apple launched its first carbon-neutral product with the Apple Watch Series 9 . These watches meet strict criteria: they use 100% clean electricity for manufacturing and product use, incorporate 30% recycled materials, and cut air transportation for shipping by 50%, resulting in a 75% reduction in product emissions.

Apple's green efforts extend to its packaging, targeting 100% fibre-based packaging for the Apple Watch and over 99% for the iPhone 15. These environmentally conscious initiatives are seamlessly woven into the marketing strategies of Apple company, further enhancing its eco-conscious and forward-looking brand image. Their long-term goal is a 90% emissions cut by 2050, a commitment that not only resonates with consumers but also reinforces Apple's dedication to sustainability and innovation.

5. Apple Creates Mystery and Hype Around the Product

Usually, when a company launches a new product in the market , the marketing team will reveal details and information about the new product. The reason behind this is to tell customers everything about a product to get them excited and build anticipation. However, when it comes to Apple, takes a new and unique approach, creating excitement by withholding information around new products as they tease it out.

This is why the marketing strategy of Apple company involves creating mystery around product launches, which is considered one of their best tactics. It is a clever approach as it turns the target audience into loyal fans, as this will make them curious, encouraging them to search for more information and share everything they find about the product.

6. Have a Community of Loyal Users or Customers

For more than ten years, Apple has worked hard to build a community of loyal users , customers, and fans around the world. Apple's marketing strategies include making customers want to belong to that community as it is deemed to be “cool”. Apple smartly capitalized on the universality of that self-perception, which made its customers believe that the brand understood them and was like them.

Even small brands, taking inspiration from Apple marketing strategies, can build a community of devoted users and customers by fostering a strong and engaged user community. It's crucial to get clear on your company's brand values and personality, as exemplified by the marketing strategies of Apple, to establish a connection with your audience.

Another important step is to make sure that the marketing copies and content express and resemble those values and personalities. The website must be consistent with the words you chose to describe your brand, from graphics to fonts to colour schemes.

7. Consider the Value of the Products

What makes perceived value so important from a company perspective is that customers may be willing to pay a higher price because they deem the brand high quality or a higher status symbol. This is at the heart of Apple's continued success over its competitors. The Apple marketing strategy strategically capitalizes on creating a perception of innovation, design excellence, and exclusivity, which enhances the perceived value of their products, leading consumers to willingly invest in the brand at premium prices.

In the last months of 2017, Apple captured 87% of total smartphone profits despite Samsung selling more phones. This demonstrates Apple's strong market dominance in the smartphone industry.

Want to Work in Top Gobal & Indian Startups or Looking For Remote/Web3 Jobs - Join angel.co

Angel.co is the best Job Searching Platform to find a Job in Your Preferred domain like tech, marketing, HR etc.

8. Substantial Product Placement

This is also an integral part of Apple's marketing strategy. The company has its relationship in Hollywood. In a federal court, Apple revealed that it relies heavily on product placement .

According to Phil Schiller, an Apple Fellow (earlier Apple SVP of global marketing), “Apple’s employees work closely with Hollywood on so-called product placement so its gadgets are used in movies and television shows.”

It's intelligent for the company, as the cost is less than the hardware itself, and offering it up for free can reduce a lot of money that is put into advertising television and film budgets while putting the products, following an effective Apple advertising strategy, in the spotlight in front of millions of people.

Apple is one of the leading trillion-dollar companies in the world. What is the secret behind its success? It's Apple's marketing strategy. It has always placed itself in the premium market and markets its products to high-end customers. Many brands still can't figure out how Apple has such loyal customers, and the reason is its ingenious marketing strategies.

How does apple promote their products?

Apple primarily markets its products through commercials and print ads.

How does apple get their products to their customers?

Apple sells its products through its official store and its official website.

Why is Apple so successful at marketing?

Apple knows its audience, so instead of bombarding them with specs, it keeps its keynote simple with aesthetically designed product images and a large font.

What is Apple's marketing objective?

The target audience of Apple is high-end product users so it focuses on premium branding and ensures to provide unmatched customer service.

What is apple's marketing strategy?

Apple's marketing strategy centers on creating a premium brand through innovative design and user experience, while also emphasizing sustainability initiatives to enhance its eco-conscious image. The company builds customer loyalty through storytelling and ecosystem integration.

When apple thinks about making a new product, what are some of the customer needs, they consider?

Apple considers customer needs for innovation, usability, and design, prioritizing features that enhance user experience and align with evolving technological trends. The company focuses on creating products that seamlessly integrate into users' lives, offering both functionality and aesthetic appeal.

Must have tools for startups - Recommended by StartupTalky

• Convert Visitors into Leads- SeizeLead
• Payment Gateway- Razorpay
• Spy on your Competitors- Adspyder
• Manage your business smoothly- Google Workspace

24 Ways To Make Money Online in 2024

Online work is counted as one of the easiest and the most efficient ways to make money provided that you are equipped with the required skills and pledge to update yourself with each passing moment. Working online received a new boost with the recent wave of digitization that proved to

List of Top 17 Instant Loan Apps in India [2024]

At many points in our lives, we require loans to meet our needs. As per a CIC report published in June 2021, around half of India's working population has taken loans in some form. Among all types, a personal loan is quite convenient as it can be taken without any

Push Sports: How Is It Revolutionizing Sports Education and Safe Play Across India?

The Indian sports tech market is expected to grow from USD 1.2 billion in 2022 to USD 3.5 billion in 2027. In this industry, a company making a great name for itself is Push Sports. Push Sports is one of the fastest-growing sports-tech companies in India. The company

A Compassionate Approach: Launching a Successful Elderly Care Business

This article has been contributed by MP Deepu, Co-Founder & COO, SeniorWorld. In today's rapidly aging population, the need for innovative elderly care solutions has never been more pressing. As we strive to meet the diverse needs of seniors, it's crucial to approach the development of these services with empathy, compassion,

• Entrepreneurship

Apple Inc. is one of the most popular technology companies in the world. It is famous for its range of innovative and high-quality products, such as the iPhone, iPad, and MacBook. But how does Apple maintain its position as a market leader? The answer lies in its effective use of market research. In this article, we will explore how Apple uses market research to stay ahead of its competitors.

1. Product Development

Apple uses market research to develop new and improved products that meet the needs of its customers. The company conducts surveys and focus groups to learn about the features that customers want in their devices. Apple also closely monitors customer reviews and feedback on its products to identify areas for improvement.

This research helps Apple to create products that are not only visually appealing but also functional and user-friendly. For example, the iPhone’s touchscreen interface was developed based on extensive market research that showed customers preferred touchscreens over traditional keypads.

2. Target Audience Identification

Another way that Apple uses market research is to identify its target audience. Apple has a reputation for creating products that are targeted towards a specific demographic – typically, affluent and tech-savvy customers. To maintain this reputation, Apple conducts market research to understand the preferences and behaviors of its target audience.

This research helps Apple to create targeted marketing campaigns that reach the right audience with the right message. For example, Apple’s “Shot on iPhone” campaign was created to appeal to amateur photographers who wanted to capture high-quality photos and videos.

3. Competitive Analysis

Apple also uses market research to stay ahead of its competitors. The company conducts extensive competitive analysis to understand the strengths and weaknesses of its competitors. This research helps Apple to identify gaps in the market that it can fill with new products or features.

For example, Apple’s introduction of the iPad in 2010 was a direct response to the growing popularity of tablets in the market. Apple’s research found that customers were looking for a device that was larger than a smartphone but more portable than a laptop, and the iPad was developed to fill this gap.

4. Pricing Strategy

Apple uses market research to determine its pricing strategy. The company conducts surveys and focus groups to understand how much customers are willing to pay for its products. Apple also closely monitors the pricing strategies of its competitors to ensure that its prices remain competitive.

This research helps Apple to set prices that are both profitable and appealing to customers. For example, Apple’s pricing strategy for the iPhone is based on the perceived value of the product rather than the cost of production.

5. Brand Perception

Apple also uses market research to understand how its brand is perceived in the market. The company conducts surveys and focus groups to understand how customers view its products and brand. Apple also monitors social media and online forums to identify any negative perceptions or issues that customers may have with its products.

This research helps Apple to maintain a positive brand image and address any issues that may arise. For example, Apple’s response to the “bendgate” controversy in 2014 was based on extensive market research that showed customers were concerned about the durability of the iPhone 6.

6. Innovation

Apple is known for its innovation, and market research plays a crucial role in this. The company conducts extensive research to identify emerging trends and technologies that it can incorporate into its products. Apple also invests heavily in research and development to develop new and innovative products.

This research helps Apple to stay ahead of its competitors and maintain its reputation as an innovative technology company. For example, Apple’s introduction of facial recognition technology in the iPhone X was a result of extensive market research that showed customers were looking for more secure and convenient methods of unlocking their devices.

7. Localization

Apple uses market research to understand the local preferences and cultural differences of its customers. The company conducts research in different regions to understand how its products are being used and to identify any cultural differences that may affect its marketing and product development strategies.

This research helps Apple to create products that are tailored to the needs and preferences of customers in different regions. For example, Apple’s introduction of the dual-SIM feature in the iPhone XS was a result of market research that showed customers in certain regions preferred to use multiple SIM cards.

8. Customer Satisfaction

Apple also uses market research to measure customer satisfaction. The company conducts surveys and collects feedback from customers to understand how satisfied they are with its products and services. Apple also uses this data to identify areas for improvement and to make changes to its products and services.

This research helps Apple to maintain high levels of customer satisfaction and loyalty. For example, Apple’s introduction of the “genius bar” in its retail stores was based on market research that showed customers wanted a more personalized and convenient way to receive technical support.

9. Environmental Responsibility

Apple is committed to environmental responsibility, and market research plays a role in this. The company conducts research to understand how its products and services impact the environment and to identify ways to reduce its carbon footprint.

This research helps Apple to develop products and services that are environmentally friendly and to reduce waste and pollution. For example, Apple’s introduction of the “Renew” program was based on market research that showed customers wanted an easy and convenient way to recycle their old devices.

10. Employee Satisfaction

Finally, Apple uses market research to measure employee satisfaction. The company conducts surveys and collects feedback from employees to understand how satisfied they are with their jobs and work environment. Apple also uses this data to identify areas for improvement and to make changes to its policies and practices.

This research helps Apple to maintain a positive work environment and to attract and retain talented employees. For example, Apple’s decision to offer its employees free shuttle services to its headquarters was based on market research that showed employees were looking for more convenient and sustainable transportation options.

In conclusion, Apple uses market research in a variety of ways to maintain its position as a market leader. The company uses market research to develop new and improved products, identify its target audience, stay ahead of its competitors, determine its pricing strategy, maintain a positive brand image, innovate, localize its products, measure customer and employee satisfaction, and promote environmental responsibility. By effectively using market research, Apple is able to create products and services that meet the needs and preferences of its customers while maintaining its reputation as an innovative and socially responsible technology company.

Frequently Asked Questions

What is market research and why is it important.

Market research is the process of gathering and analyzing information about a specific market, including its customers, competitors, and industry trends. It helps businesses make informed decisions about their marketing strategies and product development by providing insights into consumer preferences and behavior. By conducting market research, companies can identify new opportunities, avoid costly mistakes, and stay ahead of the competition.

In today’s highly competitive business environment, market research has become an essential tool for companies looking to succeed. By understanding their customers’ needs and preferences, businesses can develop products and services that meet those needs more effectively, which can lead to increased sales and customer loyalty.

How does Apple conduct market research?

Apple uses a variety of methods to conduct market research, including surveys, focus groups, and data analysis. The company has a dedicated team of researchers who are responsible for gathering and analyzing information about consumer behavior, industry trends, and competitive activity.

One of the ways Apple conducts market research is by gathering feedback from its customers through surveys and online forums. This allows the company to understand how customers are using its products and what features they would like to see in future releases.

Apple also uses focus groups to gather more in-depth insights from its customers. These focus groups are typically made up of a small group of people who are asked to try out new products and give their feedback. Apple researchers observe these sessions and use the feedback to improve their products.

How does Apple use market research to develop new products?

Apple uses market research to identify new opportunities and gather insights into customer preferences and behavior. This information is then used to develop new products and features that meet the needs of its customers.

For example, Apple’s market research team may identify a new trend in consumer behavior that suggests people are using their smartphones more for gaming. Based on this information, Apple may decide to develop new gaming features or even a new gaming-focused device.

Apple also uses market research to test new products before they are released. This helps the company identify any potential issues or bugs and make necessary improvements before the product is launched.

How does Apple use market research to stay ahead of its competitors?

By conducting market research, Apple is able to stay ahead of its competitors by identifying new trends and opportunities. The company is constantly gathering information about its competitors’ products, pricing strategies, and marketing tactics, which allows it to make informed decisions about its own business.

For example, if Apple’s market research team identifies a new feature or product that its competitors are offering, the company may decide to develop a similar feature or product to stay competitive.

In addition, Apple uses market research to gather insights into consumer preferences and behavior, which helps the company make strategic decisions about its marketing campaigns and product development.

What are the benefits of using market research for businesses?

Market research provides a number of benefits for businesses, including the ability to identify new opportunities, avoid costly mistakes, and stay ahead of the competition. It also helps businesses make informed decisions about their marketing strategies and product development by providing insights into consumer preferences and behavior.

By conducting market research, businesses can:

– Identify new trends and opportunities – Gain insights into customer preferences and behavior – Develop products and services that meet customer needs more effectively – Test new products before they are released – Make informed decisions about marketing strategies and pricing – Stay ahead of the competition.

Market Research | The Purpose of Market Research Explained | Lego, Gymshark & Apple Examples

Furthermore, the company’s focus on market research doesn’t stop at product development. Apple also uses this information to inform its marketing and advertising strategies, ensuring that its messaging resonates with its customers. This approach has contributed greatly to the company’s success, as it has been able to create a strong brand identity and loyal customer base.

Overall, Apple’s use of market research is a key factor in its ongoing success. By staying attuned to consumer needs and preferences, the company is able to create products and marketing strategies that resonate with its target audience. As such, Apple’s commitment to market research is likely to continue to play a significant role in its future growth and success.

RELATED ARTICLES

What is sampling in marketing research, how much does it cost to do market research, how important is marketing for small business, 8 ways to improve investor communications for your business, how to use snapchat for business marketing, horizontal scaling vs vertical scaling: what generator fuel is best in 2023, what does state registered domestic partnership mean, 10 benefits of investing in money market instruments for businesses, 10 common business goals and how to set them, 10 common financial risks faced by businesses and how to manage them, 10 common types of bonds for business financing and investments, 10 customer retention techniques to foster long-term loyalty, how can trust be gained between the business and development, software startup ideas, the dummies guide to starting your own business, how to find new businesses before they open, what must an entrepreneur assume when starting a business, editor’s choice, how do partnerships grow, the art of upselling and cross-selling to increase sales and revenue, what companies are in the public utilities field, how to manage unproductive employees, is my business exempt from sales tax, stay in touch.

To be updated with all the latest news, offers and special announcements.

Copyright © 2023. All rights reserved.

• Privacy Policy
• Terms of Use

Apple Segmentation, Targeting and Positioning

1. Segmenting the market. Segmentation involves dividing population into groups according to certain characteristics. Specifically, customers can be segmented on the basis of their place of living, demographic variables, behavioural traits, psychographic characteristics and other variables. Market segments need to be measurable, accessible, sustainable and actionable in order to be used for marketing purposes.

2. Targeting selected segment(s). This stage involves identifying segments that are most attractive for the business. In other words, targeting implies choosing specific groups identified as a result of segmentation to sell products to. The multinational technology company positions itself as a premium brand offering products and services with advanced functions and capabilities for additional costs.

Accordingly, Apple target customer segment comprise well-off individuals who are willing to pay extra for technology products and services with advanced design, functions and capabilities. A common set of characteristics shared by Apple target customer segment include appreciating design, quality and performance of technology products and services over their prices.

3. Positioning the offering . Positioning refers to the selection of the marketing mix that is the most suitable for the target customer segment. It is the final process, where companies attempt to associate their products and services with needs and wants of selected customer segment. Apple targets its customer segment by tailoring products, services and overall business approach to appeal to the members of segment to a maximum extent.

Under the leadership of late Steve Jobs, Apple mainly used mono-segment type of positioning, appealing to the needs and wants of a single customer segment. However, after Tim Cook became CEO, the multinational technology company has been consistently increasing its product ranges shifting from mono-segment type of positioning to multi-segment positioning.

As the name implies, multi-segment positioning attempts to target multiple customer segments at the same time with different product or service packages. Accordingly, “no longer do the barista and the corporate executive use the same iPhone — today, there are high-end models, consumer models, and a long line of old products the company keeps around to fill every niche and price point.” [1]

Apple segmentation, targeting and positioning is illustrated in table below.

 Apple segmentation, targeting and positioning

Apple Inc. Report contains the above analysis of Apple segmentation, targeting and positioning and Apple marketing strategy in general. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. Moreover, the report contains analyses of Apple leadership, organizational structure and organizational culture. The report also comprises discussions of Apple business strategy, ecosystem and addresses issues of corporate social responsibility.

[1] Marx, P. (2019) “Apple’s Product Line Is a Mess” Medium, Available at: https://medium.com/s/story/apples-product-line-is-a-mess-5a9a5730cafa    

[2] According to Young &Rubican lifestyle classification model

• Technology & Telecommunications ›

Consumer Electronics

Apple - statistics & facts

A pc for every need in mac and ipad, ipod and iphone revolutionized the industry, apple is a major player in a number of other markets, key insights.

Detailed statistics

Apple: brand value 2006-2023

Apple's revenue worldwide 2004-2023

Apple: expenditure on research and development 2007-2023

Company Insights Top 100 technology & telecommunication companies

• Samsung Electronics
• Hon Hai Precision Ind

Editor’s Picks Current statistics on this topic

Current statistics on this topic.

Online Search

Apple, Google, and Microsoft: revenue comparison 2008-2023

Apple's revenue broken down by geographical region 2012-2024, by quarter

Related topics

Recommended.

• Smartphones
• US smartphone market
• Tablets in the U.S.

Recommended statistics

• Premium Statistic IT devices total spending worldwide 2012-2024
• Premium Statistic Revenue of the smartphones industry worldwide 2018-2028
• Premium Statistic Global smartphone shipments by quarter 2009-2024
• Premium Statistic Global revenue of PCs 2018-2028
• Premium Statistic Global PC unit shipments 2009-2023, by quarter
• Premium Statistic Revenue of the tablets industry worldwide 2018-2028
• Premium Statistic Worldwide tablet shipments 2010-2023, by quarter
• Premium Statistic Total wearable device unit shipments worldwide 2014-2028
• Premium Statistic Revenue of the VR headsets industry worldwide 2018-2028
• Premium Statistic AR/VR headset shipments worldwide 2020-2023

IT devices total spending worldwide 2012-2024

Global spending on devices (PCs, tablets, mobile phones, and printers) from 2012 to 2024 (in billion U.S. dollars)

Revenue of the smartphones industry worldwide 2018-2028

Revenue of the smartphones market worldwide from 2018 to 2028 (in billion U.S. dollars)

Global smartphone shipments by quarter 2009-2024

Smartphone shipments worldwide from 4th quarter 2009 to 1st quarter 2024 (in million units)

Global revenue of PCs 2018-2028

Revenue of the PCs market worldwide from 2018 to 2028, by category (in billion U.S. dollars)

Global PC unit shipments 2009-2023, by quarter

Personal computer (PC) unit shipments worldwide from 2009 to 2023, by quarter (in million units)

Revenue of the tablets industry worldwide 2018-2028

Revenue of the tablets market worldwide from 2018 to 2028 (in billion U.S. dollars)

Worldwide tablet shipments 2010-2023, by quarter

Worldwide tablet shipments from 2nd quarter 2010 to 4th quarter 2023 (in million units)

Total wearable device unit shipments worldwide 2014-2028

Wearables unit shipments worldwide from 2014 to 2028 (in millions)

Revenue of the VR headsets industry worldwide 2018-2028

Revenue of the VR headsets market worldwide from 2018 to 2028 (in billion U.S. dollars)

AR/VR headset shipments worldwide 2020-2023

Augmented reality (AR) and virtual reality (VR) headset shipments worldwide from 2020 to 2023 (in millions)

• Premium Statistic Apple's revenue worldwide 2004-2023
• Premium Statistic Revenue of Apple by fiscal quarter 2005-2024
• Premium Statistic Apple's revenue broken down by operating segments 2012-2024, by quarter
• Premium Statistic Apple's revenue broken down by geographical region 2012-2024, by quarter
• Basic Statistic Apple's net income 2005-2023
• Premium Statistic Number of employees of Apple 2005-2023

Apple's revenue worldwide 2004-2023

Global revenue of Apple from 2004 to 2023 (in billion U.S. dollars)

Revenue of Apple by fiscal quarter 2005-2024

Apple's global revenue from 1st quarter 2005 to 1st quarter 2024 (in billion U.S. dollars)

Apple's revenue broken down by operating segments 2012-2024, by quarter

Revenue of Apple by operating segment from the first quarter of 2012 to 1st quarter 2024 (in billion U.S. dollars)

Apple's revenue broken down by geographical region 2012-2024, by quarter

Revenue of Apple by geographical region from the first quarter of 2012 to 1st quarter 2024 (in billion U.S. dollars)

Apple's net income 2005-2023

Apple's net income in the company's fiscal years from 2005 to 2023 (in billion U.S. dollars)

Number of employees of Apple 2005-2023

Apple's number of employees in the fiscal years 2005 to 2023 (in 1,000s)

• Premium Statistic Apple iPhone sales revenue 2007-2024
• Premium Statistic iPhone revenue as share of Apple's total revenue 2009-2024, by quarter
• Premium Statistic Global smartphone unit shipments of Apple 2010-2024, by quarter
• Premium Statistic Mobile Apple iOS market share worldwide 2018-2024, by version
• Premium Statistic Global iPhone 15 adoption rate 2023-2024, by model
• Premium Statistic Global iPhone 14 adoption rate 2023-2024, by model

Apple iPhone sales revenue 2007-2024

Apple's iPhone revenue from 3rd quarter 2007 to 1st quarter 2024 (in million U.S. dollars)

iPhone revenue as share of Apple's total revenue 2009-2024, by quarter

iPhone sales share of Apple's total revenue worldwide from 4th quarter 2009 to 1st quarter 2024

Global smartphone unit shipments of Apple 2010-2024, by quarter

Apple worldwide shipments of smartphones from 2010 to 2024, by quarter (in million units)

Mobile Apple iOS market share worldwide 2018-2024, by version

Mobile Apple iOS operating system market share worldwide from January 2018 to February 2024, by version

Global iPhone 15 adoption rate 2023-2024, by model

iPhone 15 adoption rate worldwide from September 2023 to January 2024, by model

Global iPhone 14 adoption rate 2023-2024, by model

iPhone 14 adoption rate worldwide from September 2022 to January 2024, by model

Mac and iPad

• Premium Statistic Apple's revenue from Mac computers worldwide 2006-2024
• Premium Statistic Apple Mac shipments worldwide 2006-2023, by quarter
• Premium Statistic macOS version market share worldwide 2018-2024
• Premium Statistic Apple's global revenue from iPad sales 2010-2024
• Premium Statistic iPad revenue as share of Apple's total revenue 2010-2024, by quarter
• Premium Statistic Apple iPad global unit sales by quarter 2012-2023
• Premium Statistic Tablet Apple iOS version market share worldwide 2018-2023

Apple's revenue from Mac computers worldwide 2006-2024

Apple's global revenue from sales of Mac computers from 1st quarter 2006 to 1st quarter 2024 (in million U.S. dollars)

Apple Mac shipments worldwide 2006-2023, by quarter

Apple Mac shipments worldwide from 2006 to 2023, by quarter (in thousands)

macOS version market share worldwide 2018-2024

macOS market share worldwide from January 2018 to February 2024, by version

Apple's global revenue from iPad sales 2010-2024

Revenue of Apple from iPad sales worldwide from 3rd quarter 2010 to 1st quarter 2024 (in million U.S. dollars)

iPad revenue as share of Apple's total revenue 2010-2024, by quarter

iPad revenue as a share of Apple's total global revenue from 3rd quarter 2010 to 1st quarter 2024

Apple iPad global unit sales by quarter 2012-2023

Apple's global tablet unit shipments from 1st quarter 2012 to 4th quarter 2023 (in million units)

Tablet Apple iOS version market share worldwide 2018-2023

Tablet Apple iOS operating system market share by version worldwide from January 2018 to December 2023

Apple Vision Pro

• Premium Statistic Apple Vision Pro shipment forecast worldwide 2024-2028
• Premium Statistic Apple Vision Pro price list in the United States 2024, by storage size
• Premium Statistic Apple Vision Pro accessories price list in the United States 2024

Apple Vision Pro shipment forecast worldwide 2024-2028

Apple Vision Pro shipment forecast worldwide from 2024 to 2028 (in thousands)

Apple Vision Pro price list in the United States 2024, by storage size

Apple Vision Pro price list in the United States as of January 2024, by storage size (in U.S. dollars)

Apple Vision Pro accessories price list in the United States 2024

Apple Vision Pro accessories price list in the United States as of January 2024 (in U.S. dollars)

• Premium Statistic Revenue of Apple from services segment 2013-2024
• Premium Statistic Services revenue as share of Apple's total revenue 2015-2024, by quarter
• Basic Statistic Number of active apps from the Apple App Store 2008-2023

Revenue of Apple from services segment 2013-2024

Apple's revenue from iTunes, software and services from 1st quarter 2013 to 1st quarter 2024 (in billion U.S. dollars)

Services revenue as share of Apple's total revenue 2015-2024, by quarter

Revenue from services as a share of Apple's total global revenue from 3rd quarter 2015 to 1st quarter 2024

Number of active apps from the Apple App Store 2008-2023

Number of available apps in the Apple App Store from 2008 to July 2023

Competitors

• Basic Statistic Apple, Google, and Microsoft: revenue comparison 2008-2023
• Premium Statistic Quarterly smartphone market share worldwide by vendor 2009-2024
• Premium Statistic Market share of mobile operating systems worldwide 2009-2023, by quarter
• Premium Statistic Global PC vendor shipment market share 2014-2023, by quarter
• Premium Statistic Global market share held by tablet vendors 2011-2023
• Premium Statistic Market share of tablet operating systems worldwide 2016-2023, by quarter
• Premium Statistic Wearables shipments worldwide market share 2014-2023, by vendor
• Premium Statistic Comparison of VR headsets worldwide 2024, by price

Revenue comparison of Apple, Google, Alphabet, and Microsoft from 2008 to 2023 (in billion U.S. dollars)

Quarterly smartphone market share worldwide by vendor 2009-2024

Global smartphone market share from 4th quarter 2009 to 1st quarter 2024, by vendor

Market share of mobile operating systems worldwide 2009-2023, by quarter

Market share of mobile operating systems worldwide from 2009 to 2023, by quarter

Global PC vendor shipment market share 2014-2023, by quarter

Personal computer (PC) vendor shipment share worldwide from 2014 to 2023, by quarter

Global market share held by tablet vendors 2011-2023

Tablet shipments market share by vendor worldwide from 2nd quarter 2011 to 4th quarter 2023

Market share of tablet operating systems worldwide 2016-2023, by quarter

Market share of tablet operating systems worldwide from 2016 to 2024, by quarter

Wearables shipments worldwide market share 2014-2023, by vendor

Market share of wearables unit shipments worldwide from 1st quarter 2014 to 3rd quarter 2023, by vendor

Comparison of VR headsets worldwide 2024, by price

Comparison of virtual reality (VR) headsets worldwide in 2024, by price (in U.S. dollars)

Investments and sustainability

• Premium Statistic Apple: expenditure on research and development 2007-2023
• Premium Statistic Apple's cash usage in investing activities 2015-2023
• Premium Statistic Carbon emissions of Apple flagship devices 2024, by product

Apple Inc's expenditure on research and development from fiscal year 2007 to 2023 (in billion U.S. dollars)

Apple's cash usage in investing activities 2015-2023

Apple's cash usage in investing activities from 2015 to 2023 (in billion U.S. dollars)

Carbon emissions of Apple flagship devices 2024, by product

Total greenhouse gas emissions of Apple flagship devices as of 2024, by product (in kilograms CO2e)

Further reports Get the best reports to understand your industry

Get the best reports to understand your industry.

Mon - Fri, 9am - 6pm (EST)

Mon - Fri, 9am - 5pm (SGT)

Mon - Fri, 10:00am - 6:00pm (JST)

Mon - Fri, 9:30am - 5pm (GMT)

5 Things to Learn from Apple's Marketing Strategy

Khalipha Ntloko

Oct 23, 2020

5 min. read

Let's be honest: when it comes to creating a successful brand , Apple is an undoubtable leader. No matter how much criticism the brand sometimes faces for the prices of its tech innovations, Apple still knows how to create worldwide anticipation for its latest product releases, as shown with their recent #AppleEvent and announcement of the much anticipated iPhone 12.

Apple has truly become the gold standard for product marketing but what can you learn from the successful brand? How can you implement their winning formula to your own day-to-day marketing strategies? Read this post for more.

Simplicity is key

Complicated marketing strategies and campaigns with information overload can overwhelm customers and prospects; this is something you want to avoid because Apple certainly has. From early on, the Apple brand has understood that simplicity is key when communicating its products to its audience.

In Apple's marketing strategies, you won't typically find a lot of voice-overs, special effects, long product feature lists or colourful graphics that distract from the actual product being marketed. Rather, Apple choose to use ads and marketing copy that is simple yet straightforward, giving way for their products to do all the talking instead. If you want to incorporate this aspect into your own marketing, keep it simple - leave out the special effects that make it difficult to focus on your product, and use graphics and content that easily translate the message you are trying to bring across.

Focus on your unique value proposition

One thing you hardly see Apple engage with is the pricing of their products. No matter how many people think they are higher than their competitors, Apple doesn't budge because they focus on selling their unique value proposition - creating high quality, innovative products that are an experience from the moment you open the box.

Tip: Use a media intelligence suite to stay ahead of your competition.

With this in mind, Apple has also managed to focus on creating unique customer experiences that other competitors simply cannot replicate. From features to applications and the overall Apple ecosystem that works harmoniously to create a seamless experience across all of its products, Apple knows how to make customers feel like they are getting value for money. For brands wanting to do something similar, simply focus on what makes your brand unique.

Then, sell that.

It's not just a product; it's an experience

To elaborate on the previous point of creating unique customer experiences, this is something that Apple has done really well. From their 1984 Super Bowl ad , to their annual #AppleEvent, it's not just about the products. It's also about creating experiences for the customer that are memorable and give them a reason to keep coming back.

Hi, Speed. Watch the #AppleEvent now on https://t.co/tkb3KTIxTd . — Apple (@Apple) October 8, 2020

An important part of creating a memorable customer experience lies in using the art of storytelling to create these experiences that connect with customers and audiences through the sensors. It's the high-quality images that draw your eye when you see an Apple ad, or the feel of the products you get when you're in an iStore. This all helps immerse customers in an experience that doesn't necessarily feel like you're shopping for just a product but rather for something that excites you and will continue to excite you long after you've made the purchase.

Speak to your audience in the right way

Knowing how to speak to your audience in a language that they understand is important for creating meaningful connections with your audience, and encouraging more sales for your business. This is where doing your research into who your audience is or having a Consumer Insights tool to help gather this information, will greatly benefit you.

You want to avoid using terms, phrases and explanations that will confuse or overwhelm your customers. Instead, be like Apple and take the time to fully understand your audience, how they talk about your brand online and the features or products they mention in these conversations. Learn to listen to what your audience is most interested in and use the language they use to better communicate with them.

Create visual content with emotions

One of the ways that Apple has managed to create such loyal customers to their brand is thanks to their ability to reach out and connect with their customers through emotions. If you think about the Apple ads and visual marketing material that you see, it shows people happy to use their products, that they are having a good time using the iPhone or Macbook. Apple highlights this in their marketing efforts more often than focusing on the battery life or screen size of their products.

To follow Apple's lead, create visual content that primarily appeals to emotions , such as happiness or enjoyment. You want to incorporate these emotions into your content because the more you do, the more likely that your customers will share it with others to increase brand awareness .

Use strong, visually appealing content that is emotionally charged and speaks to your audience in a language that they understand, and you will be on your way to creating a marketing strategy that is as top-class as Apple's.

Continue Reading

Digital 2024 April Global Statshot Report Analysis

The 19 Best Tech Podcasts You Should Be Listening To In 2024

The 9 Top Marketing Campaign Measurement Tools 2024

How to Kick Start a Digital Transformation Strategy

Our products

Influencer Marketing

Automate and scale social posts and text reviews by collaborating with a large pre-vetted community of micro and nano influencers.

Ratings & Reviews

An end-to-end solution to collect, manage, analyze and display your customers ratings and reviews

Live Shopping

Create, stream and manage live shopping events with experts and super brand lovers, to bring you closer to your community

Consumer Videos

Get your brand ambassadors involved in the creation of quality and inspiring videos on a large scale, to inspire and better inform consumers.

Customer Data Activation

A one-to-one marketing solution that leverages your customer data, to make each interaction of the buyers journey, a lever for incremental growth

Feedback Management

Collect and manage customer feedback at each stage of the buying journey to continually optimize your customer experience and engagement

How to leverage UGC throughout the customer journey

Meet the fashion industry challenges by creating authentic UGC

Create UGC to revolutionize the shopping experience of beauty products

Consumer Electronics

Give shoppers a whole new experience at their fingertips with UGC

Food & Beverage

How UGC can make your culinary content aspirational

Consumer Services

Inspire clients at every touchpoint through authentic UGC

Consumers Goods

Deliver Convenience, Discovery and Goods

Home - Garden - DIY

Embrace the wave of consumer-driven content

Our Customers

Case studies

Video gallery

Read our latest articles

Discover our clients successes

Check our ebooks

Our webinars calendar

Our last events

UGC Trends in 2024

Over the years, Apple has developed a hit-and-miss reputation for customer service. More than a few have faulted the company for its indifference to the customer who, at times, has seemed secondary to product and service. Critics typically cite as evidence Steve Jobs statement that “It’s really hard to design products by focus groups. A...

How Customer Surveys Help Apple Maintains Industry Leadership

Over the years, Apple has developed a hit-and-miss reputation for customer service.

More than a few have faulted the company for its indifference to the customer who, at times, has seemed secondary to product and service.

Critics typically cite as evidence Steve Jobs statement that “ It’s really hard to design products by focus groups. A lot of times, people don’t know what they want until you show it to them. ”

But, just as many Apple supporters have argued that Job’s statement has largely been taken out of context . His dismissal of focus groups was not, by extension, a dismissal of customer voice or the necessity of gathering customer feedback. The reality is that Jobs did listen , and Apple continues to listen , very closely and systematically to its customers.

In 1997, Jobs spoke to attendees of the Apple Worldwide Developers Conference where he clearly stated that customers must be placed at the center of operations: “ One of the things I’ve always found is that you’ve got to start with the customer experience and work backwards to the technology ,” going on to explain how Apple’s vision and strategy begins with a simple question about the customer: “ ’What incredible benefits can we give to the customer? Where can we take the customer?’ Not starting with ‘Let’s sit down with the engineers and figure out what awesome technology we have and then how are we going to market that?’ “

Customer Feedback Surveys

In recent years, Apple has consistently taken a top spot in customer satisfaction rankings . This is due, in part, to the fact that Apple relies on customer knowledge for innovation and improvement. Over the years, the company has adopted a variety of customer feedback strategies including, yes, market research to forge its path as a worldwide tech leader, always reminding customers that “ Apple welcomes your feedback on its products . “

Feedback surveys have proven to be an especially useful way for Apple to gather customer insights. The company emails surveys to customers immediately after they have made a purchase . Customers are asked to rate their satisfaction level and how likely they are to purchase again. Because the customer surveys are sent immediately after a purchase, Apple is able to capture quick, accurate feedback while a transaction is still fresh in the customer’s mind.

NPS to Gauge Satisfaction

An especially important metric for Apple is the Net Promoter Score, which the company has long relied on. Feedback customer surveys include an embedded Net Promoter Score question, along with an open-ended follow up question: “ Anything else on your mind? ” In addition, Apple retail stores ask customers at point-of-transaction to rate their in-store experience .

Most recently, Apple has collected NPS responses to measure customer satisfaction with its new Apple Watch . NPS research has provided the company with valuable insights into its latest product. “ Market research…measured a 97 percent customer satisfaction rate for Apple Watch and we hear from people every day about the impact it’s having on their health, their daily routines and how they communicate ,” said CEO Tim Cook in a recent Apple earnings report. Thanks to NPS research, the company could see that, barely three months after the initial launch, its new product was a hit with the public.

The Value of Customer Feedback

Although it started out as just another start-up, today, Apple is considered one of the most successful and influential companies in the world. And it got that way with no small help from listening to its customers. After all, Steve Jobs did not invent portable music devices or, even, the laptop. But, by listening to customers, giving them exactly what they wanted and expected, Apple was able to make these products simpler and easier to use.

Today, Apple continues to measure feedback and adapt to the results, a major reason for its continuing success. And while it remains one of the world’s biggest companies, Apple’s methods for collecting customer feedback are, fortunately, available to companies of any size.

Customer feedback is the key to getting to know them. If you don’t know them yet, Skeepers’ CX Management solution is what you were looking for.

10 Ideas of Smart Questionnaires to Deploy on Your Website

Surveys to measure the satisfaction and usability of your website, the demographics of your customers, increase the subscription rate to your newsletter and many others!

Apple Segmentation, Targeting, and Positioning

Discover more helpful information.

Market segmentation refers to identifying several elements of a market to cater to the needs of all potential consumers. It allows a company to drive a complete and unified solution that coincides with customer outreach, channel strategies, and messaging to support and sell to target customers. Segmentation calls for a thorough understanding of potential consumers and working to meet their needs (Kamakura and Wedel, 2000).

Customers have varying needs. Thus, a business will not achieve its objective to satisfy its market by treating them alike. Consumers must be treated according to their specific needs. An example of this is the youth and the older generation. These two markets have various needs, and meeting the demands of these groups needs different products and approaches. As with Apple's case, the company can innovatively work through its product developments and market segmentation, satisfying various needs of different age groups.

Besides segmentation, almost all companies today use the STP approach in marketing. It stands for segmentation, targeting, and positioning . This is a three-step process that explores products and services and the ways their benefits can be communicated to its target market. This model allows companies to tailor marketing approaches to meet customers' expectations.

Follow here to know Apple segmentation, targeting, and positioning , and learn principles that help your business.

1. Apple Segmentation, Targeting, and Positioning Mind Map

As you sketch your mind map, you can refer to this example:

If you like this mind map and even want to modify it, click the link below! 

View, edit, and download this template in EdrawMind.

2. Market Segmentation of Apple

With Apple, Market segmentation is grouped into behavioral and psychographic variables. Segmenting is a process of grouping the audience into smaller segments based on specific characteristics like occupation, gender, age, and other customer preferences. These segments or variables must be accessible, measurable, and actionable to benefit the company.

Apple's demographic market segmentation includes developing its products around the target customers' age, lifestyle, and occupation. Apple's products are then distributed to various areas and classified based on family size and age (Bara & Al-Refaie, 2016). An example of this is a PC with the latest features and software for professionals and a PC containing more games for kids. You might also notice that Apple provides several features to its other gadgets. Those with the higher graphic resolution for the younger people and digital watches with the capabilities to monitor one's pulse rate will be highly favored by the later generations.

Since Apple caters to a broader range of global markets, geographic elements must be considered part of its segmentation. As of December 2021, Apple already has more than 500 retail stores across 25 countries worldwide. Besides its physical locations, customers can access its products through online retail stores wherever they may be in the world. This way, Apple can expand its market and reach several customers.

Apple also includes the behavioral variables of its target market in its market segment. It consists of the attitudes, usage, responses, and product knowledge. The psychographic element of Apple's market segmentation tackles developing products based on the target market's lifestyles.

3. Targeting of Apple

Apple targeting strategies involve determining the more attractive segments for the firm. This stage implies choosing particular groups identified from the segmentation process, where Apple can sell their products to. The company positions its brand as a premium provider of products and services with high-quality and advanced functions and capabilities.

Apple's target customers include the well-off individuals willing to spend more on technology products and services with advanced capabilities, functions, and designs. After years of evaluating Apple's customers' characteristics, it has revealed that most of them tend to appreciate quality, performance, and design of tech products and services over the prices.

4. Positioning of Apple

The positioning approach for every marketing plan plays a critical role in promoting a brand image in the customers' minds. A practical and critically selected positioning strategy can hugely influence the firm's success. When deciding on the brand's positioning, companies vary on the aspects they want to highlight and emphasize, based on the industry, company time, size, and products.

The technology industry is rapidly growing and constantly evolving, hence the continuous introduction of new products with technical resolutions and innovative features. Apple is one of the top firms in this sphere, and most of the players in the industry often look up to Apple, its new technologies and products.

This success is partially due to its solid and effective positioning based on various elements. Apple positions itself in the market as a premium brand sought by everyone. Surely, the company's products are not cheap, but you will find people, even those who cannot afford to find ways to get their hands on Apple products.

Apple positioning its brand to create an emotional connection with its customers through exceptional experiences is an excellent approach, especially in this competitive industry. In the same manner, Apple uses its positioning approach based on competition. Since competition is tight in the technology industry, Apple ensures to continuously invest in R&D and introduce innovative products and features all the time. It keeps on making unique technologies for the brand and cannot be copied anywhere else.

5. Table of Apple Segmentation, Targeting, and Positioning

Here's how Apple segmentation, targeting, and positioning look when organized in a chart. This is just an overview of classifying the segments and other elements. Apple has a wide array of products; hence, it can be expected to have more lists for every product and service they offer.

Apple's Targeting

Bonus: Four More Types of Analysis of Apple

Unlock your marketing potential by using the diagrams below. Dive into the world of Apple's segmentation, targeting, and positioning. Explore the tools and insights you need to refine your brand's strategy.

Apple Marketing Mix

The diagram below provides a straightforward overview of Apple's marketing strategy. The main topic branches into four key elements: promotion (including ads), product (current Apple offerings), place (availability), and price (product costs).

The diagram is valuable when conducting market analysis, crafting marketing strategies, or presenting insights to stakeholders. It offers a concise visual representation of Apple's approach. It's an effective tool for dissecting and learning from their successful marketing tactics. You can incorporate the diagram when devising a similar strategy for your own business.

Apple's Mission, Vision, and Core Values

The "Apple's Mission, Vision, and Core Values" diagram illustrates Apple's guiding principles. The mission emphasizes an exceptional user experience, innovation, and quality service. The vision focuses on cutting-edge product design and a commitment to being carbon-neutral. Core values encompass accessibility, ambitious environmental goals, collective commitment, and privacy rights.

This diagram is beneficial when studying Apple's corporate culture. You can follow a similar strategic objective or align your company's values with industry-leading standards. It provides a visual reference for understanding and incorporating these principles into your organizational ethos.

Apple PESTEL Analysis

The Apple PESTEL Analysis diagram dissects the macro-environmental factors influencing Apple. It is segmented into six main branches: Political, Technological, Ecological, Economic, Legal, and Sociological aspects. You can use this diagram when conducting market research, strategic planning, or competitor analysis.

The diagram can help businesses understand the external forces shaping Apple's decisions. It enables you to anticipate and adapt to similar factors impacting your organization. Making a similar analysis is a valuable tool for gaining insights into the broader market dynamics. It ensures informed decision-making in various industry scenarios for you and your company.

Apple SWOT Analysis

The SWOT Analysis of the Apple diagram provides a holistic view of Apple's internal and external factors. It covers strengths (innovation and brand reputation), weaknesses (high prices, incompatibility, infringements, and defects), opportunities (loyal customers and cloud-based demand), and threats (Android OS growth, technological shifts, currency fluctuations, and pandemics).

It's ideal for market strategists, investors, or competitors looking to assess Apple's position. Understanding the diagram lets you make informed decisions in a rapidly evolving tech landscape. The tool helps identify key areas for improvement, leverage strengths, and prepare for potential threats and opportunities.

Key Takeaways

As you explore every element of Apple segmentation, targeting, and positioning , or STP, you surely have found ideas and principles that can be useful for your brand. While you may find it intimidating, it's a given considering the broad scope of Apple's market. However, if you are a startup brand, you can streamline the list above and select only those related to your company's marketing strategy.

Together with outlining and classifying these elements on your marketing approach should be a reliable diagramming tool. EdrawMind is a user-friendly mind mapping software that allows users to navigate its straightforward interface and take complete control of utilizing its features and tools. You can create from scratch or choose from various pre-built templates on Market segmentation and STP analysis to guide you in making the diagram. The pre-built ones provide a simple structure that you only need to input information on every section of the diagram. Forget the hassle of building the skeleton, as EdrawMind will do that for you.

• Apple Inc.: Segmentation, Targeting, and Positioning
• Apple Segmentation, Targeting and Positioning
• Market Segmentation of Apple
• Market Segmentation of Apple Inc
• Positioning of Apple | Apple Segmentation, Targeting and Positioning
• Segmentation, Targeting, and Positioning Process of Apple Inc

McDonald's Market Segmentation, Targeting, and Positioning

Coca-Cola Segmentation, Targeting, and Positioning

Starbucks Market Segmentation, Targeting, and Positioning

Coca-Cola Marketing Mix (4Ps) Analysis

Starbucks Marketing Mix (4Ps) Analysis

Apple Target Market Analysis – Apple Demographics, Marketing Strategy & Competitors

It’s hard to imagine a world without Apple. 

The iPhone, MacBook, iPad, iTunes and Apple TV+. These are not just things that people use – they are a way of life, and the Apple brand is an iconic part of our culture.

The legend that is Apple, began nearly 50 years ago, when the company was first established in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. In the years since, it has grown to become the most valuable brand in the world , and probably of all time . In 2022, the brand value of Apple is expected to reach a staggering $947 billion .

Source – Statista

In 2021, Apple was the most valuable technology brand by far, beating even Google which ranked second and Microsoft in third place. 

There’s a clear reason why. In the past decade, the total revenue of Apple has quadrupled. In 2021, total net sales amounted to $365.82 billion. 

Apple products cover the gamut of consumer electronics, including the iPhone, iPad, Mac desktop computer, and wearable tech such as the Apple Watch and AirPods. It also includes smart home products and service products, like iTunes, App Store, Apple TV+ and iCloud. There is no part of daily living in which Apple products don’t play a part. 

However, the iPhone is Apple’s most profitable product, year in, year out. Released in 2007, iPhone sales account for around 49% of Apple’s total sales in 2022.

Apple is not just a tech icon but a brand icon too. How did the company succeed in turning the word “apple’ into something else entirely? And what does the Apple target market really look like? Let’s dive in.

Want to learn more?

Who is apple’s target market .

The Apple target market includes mainly younger to middle aged consumers, and the brand is more popular among females than males. Although the Apple customer base is stronger in North America, Apple is popular throughout the world. The typical Apple customer profile is of  middle to high economic status, enjoys the small luxuries in life, and appreciates technology and design .

The Apple target audience varies depending on the particular product; for example, the iPhone target market is different from the MacBook or Apple TV+ audiences. Read on for a deeper Apple customer analysis of the different market segments. 

Apple Target Market Segmentation

A thorough Apple market segmentation takes on four perspectives: Apple demographics, geographic, behavioral and psychographic segmentation. Let’s explore each in turn:

Apple Demographic Segmentation

Apple customer demographics include people aged 18 to 45. They are either single, married with no kids, or married with young children or teens. The Apple target audience skews strongly female, with around 66% female to 34% male customers.

Among Apple primary customers, you’ll find less older or retired individuals. The brand is most popular among millennials, followed by Gen X. 

Source – Flurry

According to a 2018 survey, the average income of Apple iPhone users stood at $53,251, compared to $37,040 for Android users. The Apple audience is more likely to enjoy shopping and spending on higher-end products.

Apple Geographic Segmentation 

Apple market share is largest in the Americas, bringing in just over $37 billion in net sales in Q3 2022. In the US, Apple is by far the strongest player in market share among smartphone brands . Among MacBook users in the US, over half are from rural regions and towns. 

Although not as big as America, Europe and Greater China are also important Apple target markets .

Apple Behavioral Segmentation

The Apple customer base has a strong preference for the iPhone, and are loyal users. This has led to consistent growth of iPhone sales. In Q1 2022, 44.6 million iPhones were shipped worldwide.

An Apple customer analysis also shows strong loyalty to the brand’s App Store. In 2021, consumers spent around $85 billion on app subscriptions and in-app purchases. Even so, most of the apps downloaded by the Apple target audience are free apps. By the end of 2021, over 96% of apps in the App Store were available for free. Of the paid apps, over 58,000 cost less than $1 to purchase.

Gaming is the most popular category for iOS users; 13.5% of apps available in the App Store fall into this category, followed by Business apps with 10.2%. 

Apple Psychographic Segmentation

Apple customers are generally financially stable and are not high risk takers. They enjoy the comfort of the Apple brand and the quality and security it represents. 20% of owners of both an iPhone and iPad say that “switching ecosystems would be harder than switching banks”. They are also loyal: nearly 85% of iPhone owners plan to buy another one . 

An Apple customer profile demonstrates characteristics as an ’aspirer’, ‘succeeder’, or ‘explorer’. Thanks to their higher income status, they can afford and enjoy the luxuries of life. Apple users spend $117 a month on average on clothing and $83 on makeup, compared to $62 and $40 respectively for Android users. 

Subscribers to Apple TV+ are consistent if not obsessive users of the streaming platform. In 2021, around 13% watched Apple TV+ every day, while 25% watched several times a week. This is in contrast to Netflix viewers who spend an average 3.2 hours watching Netflix every day.

Who are Apple competitors?

Apple offers a wide range of consumer tech products and services, so Apple competitors differ somewhat depending on the category. In the smartphone category , the main competition is Apple vs Samsung.

In Q2 of 2022, Samsung had the highest market share of 21.8% compared to iPhone market share of 15.6%. Other iPhone competitors include Xiaomi and OPPO.

In the smartwatch category , Apple is the winner by far. The Apple Watch enjoyed a global market share of 52.5% in Q2 of 2021, compared to just 11% for Samsung.

Research & development is a key differentiator for competing tech brands, enabling the development of better products to attract market share. In 2021, R&D spending at Apple was nearly $22 billion , a record-breaking figure for the company, and around $3 billion more than R&D spend in 2020. In comparison, Samsung spent over $13.7 billion on R&D – also a generous amount, but not nearly as much as its biggest rival.

In recent years, Apple has entered the global content streaming market with Apple TV+ . In March 2022, the number of paid subscribers to Apple TV+ was estimated at 25 million . There are an estimated 50 million more users who have access to the service for free, as a free subscription is provided for one year with purchases of new Apple devices.

Although Apple competes for the Netflix target market , it does not yet come close in terms of market share. Netflix has over 27% share of the TV streaming market, despite losing a record number of subscribers in the past year. Apple TV+ market share reached over 6% for the first time in September 2022, picking up subscribers as other competitors lost ground.

Although Apple outperforms Google in terms of brand value, it can’t compete with Google in the mobile browser category. Apple Safari holds a market share of just over 25% , with Google Chrome in the top spot with a market share of nearly 62%. 

What is Apple Marketing Strategy?

At the heart of the Apple marketing strategy is the product. Apple is an extremely product-focused company, with a unique blend of functionality, innovation and aesthetic minimalist design that has become its signature brand identity.

The company periodically announces product releases and upgrades at its famous events , creating an incredible buzz and anticipation around the brand . This is evident even as far back as 1984, when Apple released its Macintosh PC to the market with this iconic and unforgettable ad:

Apple’s powerful messaging – symbolized in the slogan “ Think different ” – crystallized around the legend of founder Steve Jobs. Apple is not just creating products; it is forging a lifestyle, which breeds a particularly strong sense of brand loyalty among Apple devotees .

It is not known how much is spent on Apple advertising strategy, as the company does not disclose the figures. However, the last time the advertising budget was made known, in 2015, the figure was $1.8 billion, 50% higher than the previous year. 

According to Semrush , Apple spent nearly $65 million on paid search ads in 2020, making it the top 12th company in the world for paid ad spending, after Walmart and Nike in 10th and 11th place.

Video appears to be the favored Apple branding strategy, with desktop video making up the largest share (60%) of total video spending. Mobile video spend comes next at 21% share, and desktop display at 9%.

Part of the Apple marketing strategy involves expanding the target market with new product innovations. With the success of the Apple Watch, the company is now moving into the wearable health tech segment with the release of an ECG monitor that is FDA approved and built into the watch. This new product is clearly targeting an Apple market segmentation that is older than the average Apple customer profile of younger millennials.

Like many big companies with big marketing budgets, Apple relies on celebrity endorsements to flavor its branding activities. For example, the 2020 “Behind the Mac” ad starred numerous global celebrities, including Spike Lee, Billie Eilish, Lady Gaga and Lisa Simpson.

As a global brand, Apple’s extensive marketing activity is localized for different markets, and its  commercials feature highly targeted messaging for the particular Apple audience. Take a look at another “Behind the Mac” ad, this time focusing on the nuances of the Australian market:

True to its brand identity as an innovator and game changer, the Apple iTunes store launched nothing less than a revolution in the music industry and the ways that people enjoy music. For the first time, Apple enabled the public to access any music they want at their fingertips, with personalized playlists and recommendations to enrich the experience. This was more than just the product quality of the iPod; it was a new approach to music consumption.

Customer experience is a very high priority for Apple’s branding strategy. Thanks to the Apple store experiences and high level of customer service, both instore and online, the company succeeds in enhancing loyalty and keeping customers for life.

The focus on quality extends to Apple TV+, Apple’s latest venture. Rather than trying to compete in terms of the quantity of content it provides, Apple is strategizing its resources for the creation of high quality content. In fact, Apple was the first streaming service to receive an Oscar , winning the coveted statue for the movie Coda. According to Variety , the Oscar win helped to boost viewer numbers of Apple TV+ by 25%. With a continued emphasis on quality, Apple TV+ may be able to compete in the long term and succeed as it has with the iPhone and Apple Watch.

Understanding who is Apple’s target market is the best way to uncover the secrets of the brand’s success. Want to access insights like these for your target market? Visit the Consumer Insights and Audiences Hub and discover 500+ customer segments and locations to inform your campaign strategy. With the latest data in the Start.io mobile audience network, you can improve your targeting and get better results from your mobile campaigns.

What country buys the most Apple products?

The US is Apple’s largest market. Around 40% of Apple’s total net sales are from the US. In 2021, the US state with the most Apple stores was by far California, with 54 stores. New York trailed in second place with 23 stores, followed by Florida with 18.

Why do people buy Apple products?

For several decades, Apple has positioned itself as not just a product innovator, but a lifestyle. People buy Apple products because they are high quality and the most technologically advanced, and also because of the brand promise of clean aesthetic design, simplicity, functionality and the superior experience they offer.

New survey: 9 out of 10 advertisers rank mobile games high for brand safety

How Start.io uses neural networks and multistage AI models for expanded age and gender segmentation

Our 5 biggest CTV takeaways from CTV Connect 2024

Privacy Overview

Table of Contents

Apple target audience , marketing strategy of apple, 5 key takeaways from apple marketing strategy, a case study on apple marketing strategy.

Breaking through with several inventions in the world of technology, Apple Inc. has been carving infinite milestones ever since its inception. Even though its innovations speak for themselves, this highly-valued giant corporation has invested heavily in its marketing team to soar high up as a tech maestro. Apple Inc. realized the role of brand marketing in the success of a venture from the start as a crucial way to connect with its target audience. This brand's marketing is so vigorously carried out and well-thought that it is often an inspiration and a place of research for marketing professionals. Here we bring you a well-curated case study on Apple's marketing strategy, the key takeaways to learn from this venture, and how to incorporate the same in your business and marketing strategies. 

Become a Certified Marketing Expert in 8 Months

To understand its key strategies for marketing Apple products, let's first understand what Apple's target audience is like. Apple's target audience consists of middle-class and upper-class users who can pay higher for products that provide them with an incredible user experience. This means that these users have a higher disposable income and are willing to pay more for as high-priced products as Apple's. 

Let's take a look at Apple's target audience with this comprehensive analysis sourced from Business Research Methodology's report on Apple Segmentation :

Besides this primary classification, Apple also explicitly targets professionals working in specialized software like music, video, photography and all kinds of design careers. These working professionals prefer Adobe’s Final Cut, Photoshop and related editing software which work well with Macbooks and IPads than other operating systems. 

Even better, business professionals prefer Apple products such as iPods and Macbooks for their day-to-day work. Products like iPads and Macbooks are lighter and portable, so they are often selected by students (upper-class), educational institutions and teaching. 

Now coming to the marketing strategy of Apple, it is a combination of well-designed products with the right user experience, promotional campaigns, distribution, and pricing. Let’s take a look at all these features of Apple marketing strategy in detail:

Focus on Finer User Experience

Apple’s branding strategy is based on its stylish, more straightforward and lush products that focus on providing a user interface that is very simple to use and learn. They are lighter, easy to carry as well as durable. This minimal look and user experience makes it a perfect sell to its target audience, which comes from the middle to upper class.

Suave Yet Simple Advertising

Storytelling is such an essential part of every Apple ad as well as a marketing campaign. Often these ads focus on minimal design as well as high-quality images. They are either blended with music or a simple story. Apple consciously ensures that its advertising and marketing don’t use too much jargon or filler language in its ads. Instead, it shines a light on the product to let it speak for itself without showing what the price is like or using complicated words for its features.

Targeting the Right Markets

Apple is excellent at tapping into its target audiences like a genuine tech witch who knows their aspirations, preferences and pain points! Its market research is always on-point and crystal clear in its products, curation, and features. 

Here are the major critical takeaways from Apple Marketing Strategy:

• Tapping into your target markets and audience is the key to curating and selling user experiences that value the preferences of its people. 
• With simplicity and finesse in design, the right products with minimal designs and features can create a perfect impact for your brand.
• Incorporating emotion in your advertising and marketing can also help you connect with your audience better. 
• Don’t exaggerate the copy and conceptualizing of your advertising and marketing campaigns and prefer the “less is more” approach. Create shorter yet emotional and empathetic ads to captivate your target audience.
• When you create an international brand value through quality and minimal, sophisticated design, you don’t need to compete in terms of price. Instead, your price will set you apart for your user experience and design features.

Become a millennial Digital Marketer in just 6 months. Enroll now for our PGP in Digital Marketing course in collaboration with Purdue University!

Thus, we hope we have helped you understand what Apple’s marketing strategy is about! Want to read more case studies about top brands and their marketing strategies? Join Simplilearn’s specialized PGP Digital Marketing certification in collaboration with Meta Blueprint and Harvard Publishing. This certification can help you level up your career in digital marketing through case studies, industry projects, masterclasses from industry experts, ad marketing tools from Facebook, Google, and related marketing tools. 

Our Digital Marketing Courses Duration And Fees

Digital Marketing Courses typically range from a few weeks to several months, with fees varying based on program and institution.

Recommended Reads

Digital Marketing Career Guide: A Playbook to Becoming a Digital Marketing Specialist

Apple Interview Questions 2024

12 Powerful Instagram Marketing Strategies To Follow in 2021

Introductory Digital Marketing Guide

Walmart Marketing Strategy

What is Digital Marketing and How Does It Work?

Get Affiliated Certifications with Live Class programs

Post graduate program in digital marketing.

• Joint Purdue-Simplilearn Digital Marketer Certificate
• Become eligible to be part of the Purdue University Alumni Association
• PMP, PMI, PMBOK, CAPM, PgMP, PfMP, ACP, PBA, RMP, SP, and OPM3 are registered marks of the Project Management Institute, Inc.

How to Do Market Research: The Complete Guide

Learn how to do market research with this step-by-step guide, complete with templates, tools and real-world examples.

Access best-in-class company data

Get trusted first-party funding data, revenue data and firmographics

What are your customers’ needs? How does your product compare to the competition? What are the emerging trends and opportunities in your industry? If these questions keep you up at night, it’s time to conduct market research.

Market research plays a pivotal role in your ability to stay competitive and relevant, helping you anticipate shifts in consumer behavior and industry dynamics. It involves gathering these insights using a wide range of techniques, from surveys and interviews to data analysis and observational studies.

In this guide, we’ll explore why market research is crucial, the various types of market research, the methods used in data collection, and how to effectively conduct market research to drive informed decision-making and success.

What is market research?

Market research is the systematic process of gathering, analyzing and interpreting information about a specific market or industry. The purpose of market research is to offer valuable insight into the preferences and behaviors of your target audience, and anticipate shifts in market trends and the competitive landscape. This information helps you make data-driven decisions, develop effective strategies for your business, and maximize your chances of long-term growth.

Why is market research important? 

By understanding the significance of market research, you can make sure you’re asking the right questions and using the process to your advantage. Some of the benefits of market research include:

• Informed decision-making: Market research provides you with the data and insights you need to make smart decisions for your business. It helps you identify opportunities, assess risks and tailor your strategies to meet the demands of the market. Without market research, decisions are often based on assumptions or guesswork, leading to costly mistakes.
• Customer-centric approach: A cornerstone of market research involves developing a deep understanding of customer needs and preferences. This gives you valuable insights into your target audience, helping you develop products, services and marketing campaigns that resonate with your customers.
• Competitive advantage: By conducting market research, you’ll gain a competitive edge. You’ll be able to identify gaps in the market, analyze competitor strengths and weaknesses, and position your business strategically. This enables you to create unique value propositions, differentiate yourself from competitors, and seize opportunities that others may overlook.
• Risk mitigation: Market research helps you anticipate market shifts and potential challenges. By identifying threats early, you can proactively adjust their strategies to mitigate risks and respond effectively to changing circumstances. This proactive approach is particularly valuable in volatile industries.
• Resource optimization: Conducting market research allows organizations to allocate their time, money and resources more efficiently. It ensures that investments are made in areas with the highest potential return on investment, reducing wasted resources and improving overall business performance.
• Adaptation to market trends: Markets evolve rapidly, driven by technological advancements, cultural shifts and changing consumer attitudes. Market research ensures that you stay ahead of these trends and adapt your offerings accordingly so you can avoid becoming obsolete. 

As you can see, market research empowers businesses to make data-driven decisions, cater to customer needs, outperform competitors, mitigate risks, optimize resources and stay agile in a dynamic marketplace. These benefits make it a huge industry; the global market research services market is expected to grow from $76.37 billion in 2021 to $108.57 billion in 2026 . Now, let’s dig into the different types of market research that can help you achieve these benefits.

Types of market research 

• Qualitative research
• Quantitative research
• Exploratory research
• Descriptive research
• Causal research
• Cross-sectional research
• Longitudinal research

Despite its advantages, 23% of organizations don’t have a clear market research strategy. Part of developing a strategy involves choosing the right type of market research for your business goals. The most commonly used approaches include:

1. Qualitative research

Qualitative research focuses on understanding the underlying motivations, attitudes and perceptions of individuals or groups. It is typically conducted through techniques like in-depth interviews, focus groups and content analysis — methods we’ll discuss further in the sections below. Qualitative research provides rich, nuanced insights that can inform product development, marketing strategies and brand positioning.

2. Quantitative research

Quantitative research, in contrast to qualitative research, involves the collection and analysis of numerical data, often through surveys, experiments and structured questionnaires. This approach allows for statistical analysis and the measurement of trends, making it suitable for large-scale market studies and hypothesis testing. While it’s worthwhile using a mix of qualitative and quantitative research, most businesses prioritize the latter because it is scientific, measurable and easily replicated across different experiments.

3. Exploratory research

Whether you’re conducting qualitative or quantitative research or a mix of both, exploratory research is often the first step. Its primary goal is to help you understand a market or problem so you can gain insights and identify potential issues or opportunities. This type of market research is less structured and is typically conducted through open-ended interviews, focus groups or secondary data analysis. Exploratory research is valuable when entering new markets or exploring new product ideas.

4. Descriptive research

As its name implies, descriptive research seeks to describe a market, population or phenomenon in detail. It involves collecting and summarizing data to answer questions about audience demographics and behaviors, market size, and current trends. Surveys, observational studies and content analysis are common methods used in descriptive research. 

5. Causal research

Causal research aims to establish cause-and-effect relationships between variables. It investigates whether changes in one variable result in changes in another. Experimental designs, A/B testing and regression analysis are common causal research methods. This sheds light on how specific marketing strategies or product changes impact consumer behavior.

6. Cross-sectional research

Cross-sectional market research involves collecting data from a sample of the population at a single point in time. It is used to analyze differences, relationships or trends among various groups within a population. Cross-sectional studies are helpful for market segmentation, identifying target audiences and assessing market trends at a specific moment.

7. Longitudinal research

Longitudinal research, in contrast to cross-sectional research, collects data from the same subjects over an extended period. This allows for the analysis of trends, changes and developments over time. Longitudinal studies are useful for tracking long-term developments in consumer preferences, brand loyalty and market dynamics.

Each type of market research has its strengths and weaknesses, and the method you choose depends on your specific research goals and the depth of understanding you’re aiming to achieve. In the following sections, we’ll delve into primary and secondary research approaches and specific research methods.

Primary vs. secondary market research

Market research of all types can be broadly categorized into two main approaches: primary research and secondary research. By understanding the differences between these approaches, you can better determine the most appropriate research method for your specific goals.

Primary market research 

Primary research involves the collection of original data straight from the source. Typically, this involves communicating directly with your target audience — through surveys, interviews, focus groups and more — to gather information. Here are some key attributes of primary market research:

• Customized data: Primary research provides data that is tailored to your research needs. You design a custom research study and gather information specific to your goals.
• Up-to-date insights: Because primary research involves communicating with customers, the data you collect reflects the most current market conditions and consumer behaviors.
• Time-consuming and resource-intensive: Despite its advantages, primary research can be labor-intensive and costly, especially when dealing with large sample sizes or complex study designs. Whether you hire a market research consultant, agency or use an in-house team, primary research studies consume a large amount of resources and time.

Secondary market research 

Secondary research, on the other hand, involves analyzing data that has already been compiled by third-party sources, such as online research tools, databases, news sites, industry reports and academic studies.

Here are the main characteristics of secondary market research:

• Cost-effective: Secondary research is generally more cost-effective than primary research since it doesn’t require building a research plan from scratch. You and your team can look at databases, websites and publications on an ongoing basis, without needing to design a custom experiment or hire a consultant. 
• Leverages multiple sources: Data tools and software extract data from multiple places across the web, and then consolidate that information within a single platform. This means you’ll get a greater amount of data and a wider scope from secondary research.
• Quick to access: You can access a wide range of information rapidly — often in seconds — if you’re using online research tools and databases. Because of this, you can act on insights sooner, rather than taking the time to develop an experiment. 

So, when should you use primary vs. secondary research? In practice, many market research projects incorporate both primary and secondary research to take advantage of the strengths of each approach.

One rule of thumb is to focus on secondary research to obtain background information, market trends or industry benchmarks. It is especially valuable for conducting preliminary research, competitor analysis, or when time and budget constraints are tight. Then, if you still have knowledge gaps or need to answer specific questions unique to your business model, use primary research to create a custom experiment. 

Market research methods

• Surveys and questionnaires
• Focus groups
• Observational research
• Online research tools
• Experiments
• Content analysis
• Ethnographic research

How do primary and secondary research approaches translate into specific research methods? Let’s take a look at the different ways you can gather data: 

1. Surveys and questionnaires

Surveys and questionnaires are popular methods for collecting structured data from a large number of respondents. They involve a set of predetermined questions that participants answer. Surveys can be conducted through various channels, including online tools, telephone interviews and in-person or online questionnaires. They are useful for gathering quantitative data and assessing customer demographics, opinions, preferences and needs. On average, customer surveys have a 33% response rate , so keep that in mind as you consider your sample size.

2. Interviews

Interviews are in-depth conversations with individuals or groups to gather qualitative insights. They can be structured (with predefined questions) or unstructured (with open-ended discussions). Interviews are valuable for exploring complex topics, uncovering motivations and obtaining detailed feedback. 

3. Focus groups

The most common primary research methods are in-depth webcam interviews and focus groups. Focus groups are a small gathering of participants who discuss a specific topic or product under the guidance of a moderator. These discussions are valuable for primary market research because they reveal insights into consumer attitudes, perceptions and emotions. Focus groups are especially useful for idea generation, concept testing and understanding group dynamics within your target audience.

4. Observational research

Observational research involves observing and recording participant behavior in a natural setting. This method is particularly valuable when studying consumer behavior in physical spaces, such as retail stores or public places. In some types of observational research, participants are aware you’re watching them; in other cases, you discreetly watch consumers without their knowledge, as they use your product. Either way, observational research provides firsthand insights into how people interact with products or environments.

5. Online research tools

You and your team can do your own secondary market research using online tools. These tools include data prospecting platforms and databases, as well as online surveys, social media listening, web analytics and sentiment analysis platforms. They help you gather data from online sources, monitor industry trends, track competitors, understand consumer preferences and keep tabs on online behavior. We’ll talk more about choosing the right market research tools in the sections that follow.

6. Experiments

Market research experiments are controlled tests of variables to determine causal relationships. While experiments are often associated with scientific research, they are also used in market research to assess the impact of specific marketing strategies, product features, or pricing and packaging changes.

7. Content analysis

Content analysis involves the systematic examination of textual, visual or audio content to identify patterns, themes and trends. It’s commonly applied to customer reviews, social media posts and other forms of online content to analyze consumer opinions and sentiments.

8. Ethnographic research

Ethnographic research immerses researchers into the daily lives of consumers to understand their behavior and culture. This method is particularly valuable when studying niche markets or exploring the cultural context of consumer choices.

How to do market research

• Set clear objectives
• Identify your target audience
• Choose your research methods
• Use the right market research tools
• Collect data
• Analyze data 
• Interpret your findings
• Identify opportunities and challenges
• Make informed business decisions
• Monitor and adapt

Now that you have gained insights into the various market research methods at your disposal, let’s delve into the practical aspects of how to conduct market research effectively. Here’s a quick step-by-step overview, from defining objectives to monitoring market shifts.

1. Set clear objectives

When you set clear and specific goals, you’re essentially creating a compass to guide your research questions and methodology. Start by precisely defining what you want to achieve. Are you launching a new product and want to understand its viability in the market? Are you evaluating customer satisfaction with a product redesign? 

Start by creating SMART goals — objectives that are specific, measurable, achievable, relevant and time-bound. Not only will this clarify your research focus from the outset, but it will also help you track progress and benchmark your success throughout the process. 

You should also consult with key stakeholders and team members to ensure alignment on your research objectives before diving into data collecting. This will help you gain diverse perspectives and insights that will shape your research approach.

2. Identify your target audience

Next, you’ll need to pinpoint your target audience to determine who should be included in your research. Begin by creating detailed buyer personas or stakeholder profiles. Consider demographic factors like age, gender, income and location, but also delve into psychographics, such as interests, values and pain points.

The more specific your target audience, the more accurate and actionable your research will be. Additionally, segment your audience if your research objectives involve studying different groups, such as current customers and potential leads.

If you already have existing customers, you can also hold conversations with them to better understand your target market. From there, you can refine your buyer personas and tailor your research methods accordingly.

3. Choose your research methods

Selecting the right research methods is crucial for gathering high-quality data. Start by considering the nature of your research objectives. If you’re exploring consumer preferences, surveys and interviews can provide valuable insights. For in-depth understanding, focus groups or observational research might be suitable. Consider using a mix of quantitative and qualitative methods to gain a well-rounded perspective. 

You’ll also need to consider your budget. Think about what you can realistically achieve using the time and resources available to you. If you have a fairly generous budget, you may want to try a mix of primary and secondary research approaches. If you’re doing market research for a startup , on the other hand, chances are your budget is somewhat limited. If that’s the case, try addressing your goals with secondary research tools before investing time and effort in a primary research study. 

4. Use the right market research tools

Whether you’re conducting primary or secondary research, you’ll need to choose the right tools. These can help you do anything from sending surveys to customers to monitoring trends and analyzing data. Here are some examples of popular market research tools:

• Market research software: Crunchbase is a platform that provides best-in-class company data, making it valuable for market research on growing companies and industries. You can use Crunchbase to access trusted, first-party funding data, revenue data, news and firmographics, enabling you to monitor industry trends and understand customer needs.

• Survey and questionnaire tools: SurveyMonkey is a widely used online survey platform that allows you to create, distribute and analyze surveys. Google Forms is a free tool that lets you create surveys and collect responses through Google Drive.
• Data analysis software: Microsoft Excel and Google Sheets are useful for conducting statistical analyses. SPSS is a powerful statistical analysis software used for data processing, analysis and reporting.
• Social listening tools: Brandwatch is a social listening and analytics platform that helps you monitor social media conversations, track sentiment and analyze trends. Mention is a media monitoring tool that allows you to track mentions of your brand, competitors and keywords across various online sources.
• Data visualization platforms: Tableau is a data visualization tool that helps you create interactive and shareable dashboards and reports. Power BI by Microsoft is a business analytics tool for creating interactive visualizations and reports.

5. Collect data

There’s an infinite amount of data you could be collecting using these tools, so you’ll need to be intentional about going after the data that aligns with your research goals. Implement your chosen research methods, whether it’s distributing surveys, conducting interviews or pulling from secondary research platforms. Pay close attention to data quality and accuracy, and stick to a standardized process to streamline data capture and reduce errors. 

6. Analyze data

Once data is collected, you’ll need to analyze it systematically. Use statistical software or analysis tools to identify patterns, trends and correlations. For qualitative data, employ thematic analysis to extract common themes and insights. Visualize your findings with charts, graphs and tables to make complex data more understandable.

If you’re not proficient in data analysis, consider outsourcing or collaborating with a data analyst who can assist in processing and interpreting your data accurately.

7. Interpret your findings

Interpreting your market research findings involves understanding what the data means in the context of your objectives. Are there significant trends that uncover the answers to your initial research questions? Consider the implications of your findings on your business strategy. It’s essential to move beyond raw data and extract actionable insights that inform decision-making.

Hold a cross-functional meeting or workshop with relevant team members to collectively interpret the findings. Different perspectives can lead to more comprehensive insights and innovative solutions.

8. Identify opportunities and challenges

Use your research findings to identify potential growth opportunities and challenges within your market. What segments of your audience are underserved or overlooked? Are there emerging trends you can capitalize on? Conversely, what obstacles or competitors could hinder your progress?

Lay out this information in a clear and organized way by conducting a SWOT analysis, which stands for strengths, weaknesses, opportunities and threats. Jot down notes for each of these areas to provide a structured overview of gaps and hurdles in the market.

9. Make informed business decisions

Market research is only valuable if it leads to informed decisions for your company. Based on your insights, devise actionable strategies and initiatives that align with your research objectives. Whether it’s refining your product, targeting new customer segments or adjusting pricing, ensure your decisions are rooted in the data.

At this point, it’s also crucial to keep your team aligned and accountable. Create an action plan that outlines specific steps, responsibilities and timelines for implementing the recommendations derived from your research. 

10. Monitor and adapt

Market research isn’t a one-time activity; it’s an ongoing process. Continuously monitor market conditions, customer behaviors and industry trends. Set up mechanisms to collect real-time data and feedback. As you gather new information, be prepared to adapt your strategies and tactics accordingly. Regularly revisiting your research ensures your business remains agile and reflects changing market dynamics and consumer preferences.

Online market research sources

As you go through the steps above, you’ll want to turn to trusted, reputable sources to gather your data. Here’s a list to get you started:

• Crunchbase: As mentioned above, Crunchbase is an online platform with an extensive dataset, allowing you to access in-depth insights on market trends, consumer behavior and competitive analysis. You can also customize your search options to tailor your research to specific industries, geographic regions or customer personas.

• Academic databases: Academic databases, such as ProQuest and JSTOR , are treasure troves of scholarly research papers, studies and academic journals. They offer in-depth analyses of various subjects, including market trends, consumer preferences and industry-specific insights. Researchers can access a wealth of peer-reviewed publications to gain a deeper understanding of their research topics.
• Government and NGO databases: Government agencies, nongovernmental organizations and other institutions frequently maintain databases containing valuable economic, demographic and industry-related data. These sources offer credible statistics and reports on a wide range of topics, making them essential for market researchers. Examples include the U.S. Census Bureau , the Bureau of Labor Statistics and the Pew Research Center .
• Industry reports: Industry reports and market studies are comprehensive documents prepared by research firms, industry associations and consulting companies. They provide in-depth insights into specific markets, including market size, trends, competitive analysis and consumer behavior. You can find this information by looking at relevant industry association databases; examples include the American Marketing Association and the National Retail Federation .
• Social media and online communities: Social media platforms like LinkedIn or Twitter (X) , forums such as Reddit and Quora , and review platforms such as G2 can provide real-time insights into consumer sentiment, opinions and trends. 

Market research examples

At this point, you have market research tools and data sources — but how do you act on the data you gather? Let’s go over some real-world examples that illustrate the practical application of market research across various industries. These examples showcase how market research can lead to smart decision-making and successful business decisions.

Example 1: Apple’s iPhone launch

Apple ’s iconic iPhone launch in 2007 serves as a prime example of market research driving product innovation in tech. Before the iPhone’s release, Apple conducted extensive market research to understand consumer preferences, pain points and unmet needs in the mobile phone industry. This research led to the development of a touchscreen smartphone with a user-friendly interface, addressing consumer demands for a more intuitive and versatile device. The result was a revolutionary product that disrupted the market and redefined the smartphone industry.

Example 2: McDonald’s global expansion

McDonald’s successful global expansion strategy demonstrates the importance of market research when expanding into new territories. Before entering a new market, McDonald’s conducts thorough research to understand local tastes, preferences and cultural nuances. This research informs menu customization, marketing strategies and store design. For instance, in India, McDonald’s offers a menu tailored to local preferences, including vegetarian options. This market-specific approach has enabled McDonald’s to adapt and thrive in diverse global markets.

Example 3: Organic and sustainable farming

The shift toward organic and sustainable farming practices in the food industry is driven by market research that indicates increased consumer demand for healthier and environmentally friendly food options. As a result, food producers and retailers invest in sustainable sourcing and organic product lines — such as with these sustainable seafood startups — to align with this shift in consumer values. 

The bottom line? Market research has multiple use cases and is a critical practice for any industry. Whether it’s launching groundbreaking products, entering new markets or responding to changing consumer preferences, you can use market research to shape successful strategies and outcomes.

Market research templates

You finally have a strong understanding of how to do market research and apply it in the real world. Before we wrap up, here are some market research templates that you can use as a starting point for your projects:

• Smartsheet competitive analysis templates : These spreadsheets can serve as a framework for gathering information about the competitive landscape and obtaining valuable lessons to apply to your business strategy.
• SurveyMonkey product survey template : Customize the questions on this survey based on what you want to learn from your target customers.
• HubSpot templates : HubSpot offers a wide range of free templates you can use for market research, business planning and more.
• SCORE templates : SCORE is a nonprofit organization that provides templates for business plans, market analysis and financial projections.
• SBA.gov : The U.S. Small Business Administration offers templates for every aspect of your business, including market research, and is particularly valuable for new startups. 

Strengthen your business with market research

When conducted effectively, market research is like a guiding star. Equipped with the right tools and techniques, you can uncover valuable insights, stay competitive, foster innovation and navigate the complexities of your industry.

Throughout this guide, we’ve discussed the definition of market research, different research methods, and how to conduct it effectively. We’ve also explored various types of market research and shared practical insights and templates for getting started. 

Now, it’s time to start the research process. Trust in data, listen to the market and make informed decisions that guide your company toward lasting success.

Related Articles

• Entrepreneurs
• 15 min read

What Is Competitive Analysis and How to Do It Effectively

Rebecca Strehlow, Copywriter at Crunchbase

17 Best Sales Intelligence Tools for 2024

• Market research
• 10 min read

How to Do Market Research for a Startup: Tips for Success

Jaclyn Robinson, Senior Manager of Content Marketing at Crunchbase

Search less. Close more.

Grow your revenue with Crunchbase, the all-in-one prospecting solution. Start your free trial.

All MRS websites use cookies to help us improve our services. Any data collected is anonymised. If you continue using this site without accepting cookies you may experience some performance issues. Read about our cookies here .

Sort by: Newest Oldest Relevance

• You do not need to register again if you already have an MRS web account, just sign in.
• About Research Live
• Contributor guidelines
• A to Z Contributors
• Publications Index
• Terms & Conditions
• Research Buyers Guide
• Geodemographics
• MRS Website

• Forgot Password?
• Research Live
• Apple does do market research. It always has 30 July 2012
• Leisure & Arts
• Public Sector

Bethan Blakeley: Learning on the job

Bethan Blakeley

• 2024 elections
• Annual Conference 2024
• Behavioural science
• Cost of Living
• Data analytics
• Innovations
• Social media
• Sustainability
• Advertisement Features
• IMPACT Reports
• New business
• Research Heroes 2021
• Research Heroes 2023
• Asia Pacific
• Latin America
• Middle East and Africa
• North America
• Beam Suntory
• British Gas
• British Museum
• Chapel Down
• Compare the Market
• Jaguar Land Rover
• Marks & Spencer
• Rugby League
• Warner Leisure Hotels

Impact magazine is a quarterly publication for MRS members. You can access Impact content on this website.

• Terms & Conditions
• Research Live Live
• Toggle navigation Toggle navigation -->
• Sign In Forgot Password? Sign In

OPINION 30 July 2012

Apple does do market research. It always has

The mistaken belief that Apple doesn’t do market research can at last be put to bed, thanks to the Wall Street Journal.

Reporters for the paper have been trawling through the mound of evidence filed as part of Apple’s and Samsung’s continuing patent dispute, and among the pages of documents is one titled “iPhone Owner Study, Apple Market Research & Analysis, May 2011”.

There’s more detail on that here .

The ‘Apple doesn’t do MR’ idea seems to stem from an interview with Steve Jobs in which he was asked what sort of research went in to the development of the iPad.

“None,” he said. “It isn’t the consumer’s job to know what they want.”

Admittedly, the iPad is unlikely to have come out of research. Tablets have been tried before, and have failed, so the success of the iPad is probably a testament to Jobs’ vision for the product rather than it simply ticking all the boxes on a list of features consumers say they need.

But the idea that a company as successful as Apple doesn’t do any research to support its products has always been ridiculous.

Brian Tarran

Sign up for the latest news and opinion. You will be asked to create an account which also gives you free access to premium Impact content.

  Daily   Weekly   Both

@RESEARCH LIVE

Media evaluation firm Comscore has increased its revenue in the second quarter but has made a net loss of $44.9m, a… https://t.co/rAHZYxiapz

RT @ImpactMRS : Marginalised groups are asserting themselves in Latin America, with diverse creative energy and an embrace of indigenous cul…

There is no evidence that Facebook’s worldwide popularity is linked to widespread psychological harm, according to… https://t.co/wS1Um3JRS5

Keri Vermaak

12 years ago

They claim to not 'do it' (and yet have amazing market success)... glad you pulled out the title of one consumer study done in May 2011. It figures that all the work done to support the Samsung case would yield some thing like this. Read my reaction to hearing that Apple didn't do MR: http://web.infotools.com/blog/bid/216008/No-customer-surveys-for-Apple-Really

Like Reply Report

9 years ago

Funny how anxious this topic makes a certain type of person. All this show is that Apple did some research after its products were on the market long enough to be knocked off, not that it used it to develop its initial product. It's really amazing what lengths people will go to bash the idea that some people actually care about something enough to do it right themselves, without all the marketing B.S. that makes most products clones of their competitors, rather than innovative.

Mayra Mejia

Considering that "Eight out of ten new consumer products fail, even when they are test marketed” prove that Steve Jobs was right!

The world's leading job site for research and insight

Resources Group Research Manager – Consumer – Neuro / Behavioural Science £35,000–£40,000 + Benefits

Spalding Goobey Associates Commercial Research Director Director level base plus outstanding bonus

Resources Group Research Manager – Research with a Social Purpose! £38 – 48,000 + great benefits

Next Article

Merger for SpotRight and Spot Influence

James Verrinder

The Research Buyers Guide

Find your next agency.

Powered by the Research Buyers Guide

Advanced Search

Brought to you by:

©2024 The Market Research Society, 15 Northburgh Street, London EC1V 0JR Tel: +44 (0)20 7490 4911 [email protected]

• Advertisers
• Accessibility statement
• Publication index
• Research Buyer's Guide
• MRS WEBSITE

The post-demographic consumerism trend means segments such age are often outdated, from @trendwatching #TrendSemLON

Are you human?

• Skip to main content
• Keyboard shortcuts for audio player

• Your Health
• Treatments & Tests
• Health Inc.
• Public Health

How to Thrive as You Age

A cheap drug may slow down aging. a study will determine if it works.

Allison Aubrey

A drug taken by millions of people to control diabetes may do more than lower blood sugar.

Research suggests metformin has anti-inflammatory effects that could help protect against common age-related diseases including heart disease, cancer, and cognitive decline.

Scientists who study the biology of aging have designed a clinical study, known as The TAME Trial, to test whether metformin can help prevent these diseases and promote a longer healthspan in healthy, older adults.

Michael Cantor, an attorney, and his wife Shari Cantor , the mayor of West Hartford, Connecticut both take metformin. "I tell all my friends about it," Michael Cantor says. "We all want to live a little longer, high-quality life if we can," he says.

Michael Cantor started on metformin about a decade ago when his weight and blood sugar were creeping up. Shari Cantor began taking metformin during the pandemic after she read that it may help protect against serious infections.

Shari and Michael Cantor both take metformin. They are both in their mid-60s and say they feel healthy and full of energy. Theresa Oberst/Michael Cantor hide caption

Shari and Michael Cantor both take metformin. They are both in their mid-60s and say they feel healthy and full of energy.

The Cantors are in their mid-60s and both say they feel healthy and have lots of energy. Both noticed improvements in their digestive systems – feeling more "regular" after they started on the drug,

Metformin costs less than a dollar a day, and depending on insurance, many people pay no out-of-pocket costs for the drug.

"I don't know if metformin increases lifespan in people, but the evidence that exists suggests that it very well might," says Steven Austad , a senior scientific advisor at the American Federation for Aging Research who studies the biology of aging.

An old drug with surprising benefits

Metformin was first used to treat diabetes in the 1950s in France. The drug is a derivative of guanidine , a compound found in Goat's Rue, an herbal medicine long used in Europe.

The FDA approved metformin for the treatment of type 2 diabetes in the U.S. in the 1990s. Since then, researchers have documented several surprises, including a reduced risk of cancer. "That was a bit of a shock," Austad says. A meta-analysis that included data from dozens of studies, found people who took metformin had a lower risk of several types of cancers , including gastrointestinal, urologic and blood cancers.

Austad also points to a British study that found a lower risk of dementia and mild cognitive decline among people with type 2 diabetes taking metformin. In addition, there's research pointing to improved cardiovascular outcomes in people who take metformin including a reduced risk of cardiovascular death .

As promising as this sounds, Austad says most of the evidence is observational, pointing only to an association between metformin and the reduced risk. The evidence stops short of proving cause and effect. Also, it's unknown if the benefits documented in people with diabetes will also reduce the risk of age-related diseases in healthy, older adults.

"That's what we need to figure out," says Steve Kritchevsky , a professor of gerontology at Wake Forest School of Medicine, who is a lead investigator for the Tame Trial.

The goal is to better understand the mechanisms and pathways by which metformin works in the body. For instance, researchers are looking at how the drug may help improve energy in the cells by stimulating autophagy, which is the process of clearing out or recycling damaged bits inside cells.

Shots - Health News

Scientists can tell how fast you're aging. now, the trick is to slow it down.

You can order a test to find out your biological age. Is it worth it?

Researchers also want to know more about how metformin can help reduce inflammation and oxidative stress, which may slow biological aging.

"When there's an excess of oxidative stress, it will damage the cell. And that accumulation of damage is essentially what aging is," Kritchevsky explains.

When the forces that are damaging cells are running faster than the forces that are repairing or replacing cells, that's aging, Kritchevsky says. And it's possible that drugs like metformin could slow this process down.

By targeting the biology of aging, the hope is to prevent or delay multiple diseases, says Dr. Nir Barzilai of Albert Einstein College of Medicine, who leads the effort to get the trial started.

The ultimate in preventative medicine

Back in 2015, Austad and a bunch of aging researchers began pushing for a clinical trial.

"A bunch of us went to the FDA to ask them to approve a trial for metformin,' Austad recalls, and the agency was receptive. "If you could help prevent multiple problems at the same time, like we think metformin may do, then that's almost the ultimate in preventative medicine," Austad says.

The aim is to enroll 3,000 people between the ages of 65 and 79 for a six-year trial. But Dr. Barzilai says it's been slow going to get it funded. "The main obstacle with funding this study is that metformin is a generic drug, so no pharmaceutical company is standing to make money," he says.

Barzilai has turned to philanthropists and foundations, and has some pledges. The National Institute on Aging, part of the National Institutes of Health, set aside about $5 million for the research, but that's not enough to pay for the study which is estimated to cost between $45 and $70 million.

The frustration over the lack of funding is that if the trial points to protective effects, millions of people could benefit. "It's something that everybody will be able to afford," Barzilai says.

Currently the FDA doesn't recognize aging as a disease to treat, but the researchers hope this would usher in a paradigm shift — from treating each age-related medical condition separately, to treating these conditions together, by targeting aging itself.

For now, metformin is only approved to treat type 2 diabetes in the U.S., but doctors can prescribe it off-label for conditions other than its approved use .

Michael and Shari Cantor's doctors were comfortable prescribing it to them, given the drug's long history of safety and the possible benefits in delaying age-related disease.

"I walk a lot, I hike, and at 65 I have a lot of energy," Michael Cantor says. I feel like the metformin helps," he says. He and Shari say they have not experienced any negative side effects.

Research shows a small percentage of people who take metformin experience GI distress that makes the drug intolerable. And, some people develop a b12 vitamin deficiency. One study found people over the age of 65 who take metformin may have a harder time building new muscle.

Millions of women are 'under-muscled.' These foods help build strength

"There's some evidence that people who exercise who are on metformin have less gain in muscle mass, says Dr. Eric Verdin , President of the Buck Institute for Research on Aging. That could be a concern for people who are under-muscled .

But Verdin says it may be possible to repurpose metformin in other ways "There are a number of companies that are exploring metformin in combination with other drugs," he says. He points to research underway to combine metformin with a drug called galantamine for the treatment of sarcopenia , which is the medical term for age-related muscle loss. Sarcopenia affects millions of older people, especially women .

The science of testing drugs to target aging is rapidly advancing, and metformin isn't the only medicine that may treat the underlying biology.

"Nobody thinks this is the be all and end all of drugs that target aging," Austad says. He says data from the clinical trial could stimulate investment by the big pharmaceutical companies in this area. "They may come up with much better drugs," he says.

Michael Cantor knows there's no guarantee with metformin. "Maybe it doesn't do what we think it does in terms of longevity, but it's certainly not going to do me any harm," he says.

Cantor's father had his first heart attack at 51. He says he wants to do all he can to prevent disease and live a healthy life, and he thinks Metformin is one tool that may help.

For now, Dr. Barzilai says the metformin clinical trial can get underway when the money comes in.

7 habits to live a healthier life, inspired by the world's longest-lived communities

This story was edited by Jane Greenhalgh

An official website of the United States government

Here’s how you know

The .gov means it’s official. Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

The site is secure. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

• Report Fraud
• Get Consumer Alerts
• Search the Legal Library
• Submit Public Comments

Take action

• Report an antitrust violation
• File adjudicative documents
• Find banned debt collectors
• View competition guidance
• Competition Matters Blog

New HSR thresholds and filing fees for 2024

View all Competition Matters Blog posts

We work to advance government policies that protect consumers and promote competition.

View Policy

Search or browse the Legal Library

Find legal resources and guidance to understand your business responsibilities and comply with the law.

Browse legal resources

• Find policy statements
• Submit a public comment

Vision and Priorities

Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC.

Technology Blog

Consumer facing applications: a quote book from the tech summit on ai.

View all Technology Blog posts

Advice and Guidance

Learn more about your rights as a consumer and how to spot and avoid scams. Find the resources you need to understand how consumer protection law impacts your business.

• Report fraud
• Report identity theft
• Register for Do Not Call
• Sign up for consumer alerts
• Get Business Blog updates
• Get your free credit report
• Find refund cases
• Order bulk publications
• Consumer Advice
• Shopping and Donating
• Credit, Loans, and Debt
• Jobs and Making Money
• Unwanted Calls, Emails, and Texts
• Identity Theft and Online Security
• Business Guidance
• Advertising and Marketing
• Credit and Finance
• Privacy and Security
• By Industry
• For Small Businesses
• Browse Business Guidance Resources
• Business Blog

Servicemembers: Your tool for financial readiness

Visit militaryconsumer.gov

Get consumer protection basics, plain and simple

Visit consumer.gov

Learn how the FTC protects free enterprise and consumers

Visit Competition Counts

Looking for competition guidance?

• Competition Guidance

News and Events

Latest news, williams-sonoma will pay record $3.17 million civil penalty for violating ftc made in usa order.

View News and Events

Upcoming Event

Older adults and fraud: what you need to know.

View more Events

Sign up for the latest news

Follow us on social media

-->   -->   -->   -->   -->  

Playing it Safe: Explore the FTC's Top Video Game Cases

Learn about the FTC's notable video game cases and what our agency is doing to keep the public safe.

Latest Data Visualization

FTC Refunds to Consumers

Explore refund statistics including where refunds were sent and the dollar amounts refunded with this visualization.

About the FTC

Our mission is protecting the public from deceptive or unfair business practices and from unfair methods of competition through law enforcement, advocacy, research, and education.

Learn more about the FTC

Meet the Chair

Lina M. Khan was sworn in as Chair of the Federal Trade Commission on June 15, 2021.

Chair Lina M. Khan

Looking for legal documents or records? Search the Legal Library instead.

• Cases and Proceedings
• Premerger Notification Program
• Merger Review
• Anticompetitive Practices
• Competition and Consumer Protection Guidance Documents
• Warning Letters
• Consumer Sentinel Network
• Criminal Liaison Unit
• FTC Refund Programs
• Notices of Penalty Offenses
• Advocacy and Research
• Advisory Opinions
• Cooperation Agreements
• Federal Register Notices
• Public Comments
• Policy Statements
• International
• Office of Technology Blog
• Military Consumer
• Consumer.gov
• Bulk Publications
• Data and Visualizations
• Stay Connected
• Commissioners and Staff
• Bureaus and Offices
• Budget and Strategy
• Office of Inspector General
• Careers at the FTC

FTC Announces Rule Banning Noncompetes

• Competition
• Office of Policy Planning
• Bureau of Competition

Today, the Federal Trade Commission issued a final rule to promote competition by banning noncompetes nationwide, protecting the fundamental freedom of workers to change jobs, increasing innovation, and fostering new business formation.

“Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism, including from the more than 8,500 new startups that would be created a year once noncompetes are banned,” said FTC Chair Lina M. Khan. “The FTC’s final rule to ban noncompetes will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market.”

The FTC estimates that the final rule banning noncompetes will lead to new business formation growing by 2.7% per year, resulting in more than 8,500 additional new businesses created each year. The final rule is expected to result in higher earnings for workers, with estimated earnings increasing for the average worker by an additional $524 per year, and it is expected to lower health care costs by up to $194 billion over the next decade. In addition, the final rule is expected to help drive innovation, leading to an estimated average increase of 17,000 to 29,000 more patents each year for the next 10 years under the final rule.

Noncompetes are a widespread and often exploitative practice imposing contractual conditions that prevent workers from taking a new job or starting a new business. Noncompetes often force workers to either stay in a job they want to leave or bear other significant harms and costs, such as being forced to switch to a lower-paying field, being forced to relocate, being forced to leave the workforce altogether, or being forced to defend against expensive litigation. An estimated 30 million workers—nearly one in five Americans—are subject to a noncompete.

Under the FTC’s new rule, existing noncompetes for the vast majority of workers will no longer be enforceable after the rule’s effective date. Existing noncompetes for senior executives - who represent less than 0.75% of workers - can remain in force under the FTC’s final rule, but employers are banned from entering into or attempting to enforce any new noncompetes, even if they involve senior executives. Employers will be required to provide notice to workers other than senior executives who are bound by an existing noncompete that they will not be enforcing any noncompetes against them.

In January 2023, the FTC issued a  proposed rule which was subject to a 90-day public comment period. The FTC received more than 26,000 comments on the proposed rule, with over 25,000 comments in support of the FTC’s proposed ban on noncompetes. The comments informed the FTC’s final rulemaking process, with the FTC carefully reviewing each comment and making changes to the proposed rule in response to the public’s feedback.

In the final rule, the Commission has determined that it is an unfair method of competition, and therefore a violation of Section 5 of the FTC Act, for employers to enter into noncompetes with workers and to enforce certain noncompetes.

The Commission found that noncompetes tend to negatively affect competitive conditions in labor markets by inhibiting efficient matching between workers and employers. The Commission also found that noncompetes tend to negatively affect competitive conditions in product and service markets, inhibiting new business formation and innovation. There is also evidence that noncompetes lead to increased market concentration and higher prices for consumers.

Alternatives to Noncompetes

The Commission found that employers have several alternatives to noncompetes that still enable firms to protect their investments without having to enforce a noncompete.

Trade secret laws and non-disclosure agreements (NDAs) both provide employers with well-established means to protect proprietary and other sensitive information. Researchers estimate that over 95% of workers with a noncompete already have an NDA.

The Commission also finds that instead of using noncompetes to lock in workers, employers that wish to retain employees can compete on the merits for the worker’s labor services by improving wages and working conditions.

Changes from the NPRM

Under the final rule, existing noncompetes for senior executives can remain in force. Employers, however, are prohibited from entering into or enforcing new noncompetes with senior executives. The final rule defines senior executives as workers earning more than $151,164 annually and who are in policy-making positions.

Additionally, the Commission has eliminated a provision in the proposed rule that would have required employers to legally modify existing noncompetes by formally rescinding them. That change will help to streamline compliance.

Instead, under the final rule, employers will simply have to provide notice to workers bound to an existing noncompete that the noncompete agreement will not be enforced against them in the future. To aid employers’ compliance with this requirement, the Commission has included model language in the final rule that employers can use to communicate to workers. 

The Commission vote to approve the issuance of the final rule was 3-2 with Commissioners Melissa Holyoak and Andrew N. Ferguson voting no. Commissioners Rebecca Kelly Slaughter , Alvaro Bedoya , Melissa Holyoak and Andrew N. Ferguson each issued separate statements. Chair Lina M. Khan will issue a separate statement.

The final rule will become effective 120 days after publication in the Federal Register.

Once the rule is effective, market participants can report information about a suspected violation of the rule to the Bureau of Competition by emailing  [email protected] . 

The Federal Trade Commission develops policy initiatives on issues that affect competition, consumers, and the U.S. economy. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. Follow the  FTC on social media , read  consumer alerts  and the  business blog , and  sign up to get the latest FTC news and alerts .

Press Release Reference

Contact information, media contact.

Victoria Graham Office of Public Affairs 415-848-5121