CH.8 Segmenting and Targeting Markets

Beats Electronics' basis for market segmentation is the use of demographic information. They have a Beats Electronics' basis for market segmentation is the use of demographic information. They have a concentrated targeting strategy by selecting age as their niche market.


They target the age groups of Tweens and Generation Y. Generation Y is all about whats new, trendy and value brand names. Tweens who don't have any income, still spend millions of dollars through allowances , earnings, and gifts. They are technology savvy and want the latest. The main criteria is that they want to be like Generation Y.
Thus Beat by Dr.Dre targets these two age groups the same way, creating a marketing mix that appeals to both, understanding the needs and motives of the segment members.


Recently, they have use geographic segmentation for the selection of the their first retail store. The Beats Store  was strategically placed in NYC, the most populated city in the United States. NYC is prominent for music,arts and fashion, all the characteristics Beats by Dr.Dre represent.