Apple Inc - the Use of Social Media - Research Proposal Example

Social Media Apple Inc has been using social media to reach its s all over the world. This has beeninstrumental in its internationalization strategy. This paper discusses different benefits that are accrued by the use of social media. In addition, it analyzes how these benefits have enabled the company to retain its competitive advantage in the market. Table of Contents Abstract………………………………………………………………………………………2 Executive Summary………………………………………………………………………….4 Introduction…………………………………………………………………………………..5 Discussion…………………………………………………………………………….……...5 Conclusion…………………………………………………………………………………….8 References ……………………………………………………………………………….…...9 Executive Summary Apple Inc is the leading electronic company in the world. It has been able to reach this level through the use of social media. This is because through the social media platform, the company has been able to create a strong customer relationship. Furthermore, the platform has made it possible for the company to conduct research at very low costs, understand aspects that cause changes in tastes and preferences of the customers, and make changes when they are needed in order to prevent customers from shifting towards the substitutes in the market. Introduction With the increasing levels of globalization resulting from liberalization of markets, efficient flow of information, and integration of economies, the level of competition in the local market has increased tremendously. This results from the entry of multinational companies which have a huge financial base to segment the market, position their products strategically in the market, and attract the loyalty of the customers towards their products and services. However, since the inception of Apple Inc, the company has been recording tremendous growth. Initially, the company was using traditional marketing methods, i.e. use of audio, visual, and print media. Nevertheless, after intense competition from Samsung, Huawei, and Sony, the company shifted to social media marketing. Discussion Social media enables the company to reach a global market. Currently, the largest market segment composes of the young generation. This is a segment that has a disposable income which they are willing to use in purchasing high quality products irrespective of their price. Since the entry of the internet in the market, young people have been able to access the social media. This has been facilitated by the lowering of prices of gadgets such as phones, tablets, Ipads, etc. As a result, majority of the young people have turned towards the social media in order to look for their products of choice. This creates a good advertising platform to the company (Hasan 2013). Apple Inc has been able to tap this opportunity through setting up a specific department mandated with advertising its products in the social media. This has played a significant role in increasing its customer base. As a result, the company has been enjoying an increase in the overall sales as indicated on the graph below. Social media enables Apple Inc to conduct research concerning the tastes and preferences of the target market. According to research, the firm used 0.78 billion dollars in research. However, there is a continuous growth and in 2014, the firm used 6.8 billion dollars. However, this can be attributed to increased pressure to introduce new products in the market. However, the research on consumers reduced drastically by 60% (Groucutt 2005). For instance, through the social media platform, the company is able to communicate directly with the customers. This creates an opportunity for the clients to air their grievances directly concerning the products and services being offered in the market. On the other hand, the company is able to understand different aspects that affect the consumption behavior of the customers (Mohr, Sengupta & Slater 2010). Therefore, in case there is any change in the customers’ tastes and preferences, the company can intervene because they shift their attention towards the competitors’ products. With the increasing number of substitute in the market, the need to improve customer relationship has increased. The company has used 0.2 million dollars to establish a social media department (Groucutt 2005). Apple Inc has been using social media to reach the customers. This is through sending them information concerning new products in the market or new development. Furthermore, the company has set up a committee which is mandated with is the role of collecting information concerning the consumption behavior of the customers and their personal details (Groucutt 2005). Therefore, the firm is able to reach all its customers irrespective of their geographical location. This makes the clients to feel appreciated and valued. As a result, they are loyal to the products and services being offered by the company. This has been significant in assuring the company success even during tough economic times (Nykiel 2003). Moreover, it has enabled the business to increases sales through retention policy and referral cases by the loyal customers. Majority of the customers are turning towards social media in order to search for views of other customers concerning a product or service being offered in the market (Overton 2007). Any unsatisfied customer might affect the overall sales of the business through posting negative reviews concerning the products or services. Therefore, in order to avoid such reviews, Apple Inc has been analyzing these reviews and contacting customers with issues in order to deal with them directly. In some cases, the company had to request the clients to return default gadgets and they are given new ones as replacements (Meek & Chartered Institute of Marketing 2003). Such strategies have attracted more clients towards the company’s products. This has been pivotal in improving the overall performance of the company in the market. Social media has been instrumental in enabling Apple Inc to expand its market in different parts of the world. Currently, the cost of traditional marketing methods such as use of audio, visual, and print media continues to rise. With the entry of international firms in the market, the media houses have increased the cost of advertising in order to maximize their returns. This is because these global businesses are willing to pay any price in order to penetrate and maintain its target market. As a result, advertising in this platform costs a lot of money which increases the overall cost of production (Lüsted 2012). The costs are even high when advertising in international media. However, social media has alleviated these costs by providing Apple Inc with a platform to reach the global market. As a result, the company now has the ability to reach all customers who are located in different parts of the world with ease. This has been saving a lot of money which has been used to lower the prices of the commodities in the market (Sadeghi 2012). This has made it possible for the company to retain its competitive advantage in the market. Besides marketing, social media is an important platform of understanding the competitors pricing strategies. Major companies in the electronic sector have been using various strategies in order to win the hearts of the clients. This increases the need for Apple Inc to make changes in its promotion activities in order not to lose loyal customers to the competitors. Initially, the company used to conduct frequent market research in order to identify these changes. However, currently, the company uses social media to monitor the operations of competitors in the market (Lancaster & Reynolds 2002). This enables the businesses to make the necessary changes when needed. This has enabled Apple Company to achieve great success over the years. International businesses require experienced human resources. These are people who are well versed with the culture of the local population. In addition, the workforce is supposed to understand how to understand the changes in the market and the necessary strategies that should be taken in case of any change in the market. Through social media, Apple Inc has been able to advertise the vacancies in various positions. This has attracted the interests of sharp minds which have been significant in enabling the business to be innovative and penetrate new markets across the world (Schneiders 2011). On the other hand, customers located in different parts of the world have varying needs. Therefore, the company must come up with unique strategies in order to satisfy their tastes and preferences. Social media offers a good platform to enable the subordinates of Apple Inc to research on the varying needs of the target market. As a result, the company is able to come up with packages that are well suited for specific markets. Conclusion The success of Apple Inc has been supported by the company’s relentless efforts to reach the target market using social media. This is through using the platform to understand the interests of the customers. Furthermore, setting up a department to deal with the grievances raised by the clients has made it possible for the company to retain its customers and attract new clients towards its products and services. This has been instrumental in increasing the overall sales of the company. References Groucutt, J. 2005. Foundations of marketing. New York: Palgrave Macmillan. Hasan, M. R. 2013. Apple Inc. - An Analysis: PESTLE analysis, Porters 5 Forces analysis, SWOT analysis, Comprehensive analysis of financial ratios, and Comprehensive analysis of share performance of Apple Inc. Munich: GRIN Verlag GmbH. Lancaster, G., & Reynolds, P. 2002. Marketing made simple. Oxford: Made Simple Lüsted, M. A. 2012. Apple: The company and its visionary founder, Steve Jobs. Minneapolis, MN: ABDO Pub. Meek, H., Meek, R., & Chartered Institute of Marketing 2003. Strategic marketing management: Planning and control, 2003-2004. Oxford: Butterworth-Heinemann. Mohr, J. J., Sengupta, S., & Slater, S. F. 2010. Marketing of high-technology products and innovations. The Upper Saddle River, NJ: Prentice Hall. Nykiel, R. A. 2003. Marketing your business: A guide to developing a strategic marketing plan. New York: Best Business Books. Overton, R. 2007. Business Strategy Made Simple. Murwillumbah: Martin Books. Sadeghi, S. 2012. Defensive Strategy - Apples Overlooked Key to Success. Berlin: epubli GmbH. Schneiders, S. 2011. Apples secret of success: Traditional marketing vs. cult marketing. Hamburg: Diplomica Verlag. Read More