IPhone Advertisement Campaigns, Current Sales - Case Study Example

?Applied Buyer Behavior in Global Context Applied buyer behavior in global context iPhone Advertisement Campaigns The iPhone isan internet and multimedia enabled smartphone marketed by the apple brand. The First iPhone was launched on January 9th, 2007 by Apple’s former CEO Steve Jobs. An iPhone include features such as a video camera, web browsers, 3G, multitouch screen, media player besides numerous applications that perform various functions. Some of those functions include navigation, social networking, GPS, and games. IPhone uses iOS as its operating system. Currently there are six main releases of iOS. These include; iPhone, iPhone 3G, iPhone 3GS, iPhone 4G, iPhone 4GS and the latest iPhone 5 (Beavis 2012). The Apple Company launched four TV advertisements. One advertisement focused on the new ear pods while the three showing off the device’s new features. ‘Thumb’ is one of the four ads that explain why despite the phone’s taller display users will still be able to reach the whole touch screen with their thumb. The ‘Cheese’ advertisement shows the iPhone’s camera application capturing a panoramic photo of a group of children in fancy dress. The adverts were narrated by Jeff Daniels the star of “Dumb and dumber and Newsroom”. ‘Physics’ shows off the design, size and weight of the iPhone 5. The advert shows the larger 4 inch display and the thinner profile of the device. The ‘Ear’ explains why apple chose the new design of the headphones. IPhone 5 TV advertisements Cheese Thumb Ear Turkey According to the Apple website (Beavis, 2012; pg. 01), the new iPhone 5 is eighteen percent thinner than iPhone 4S (7.6mm), it is lighter by 20% at 112grams. The bigger screen is 4-inch screen with 16:9 aspect ratios and an 1136 x 640 resolution and a retina display of 336ppi. The new iPhone is sold in two colors, black and white with different storage capacities. In comparison to the previous advert, the iPhone 5 advertisement concentrated on the awesome features of the iPhone. Labeled the ‘Genius ads’ the previous advertisement campaign consisted of three Television advertisements that were broadcasted during the Olympics Opening Ceremony and depicted an Apple worker (Genius) assisting several Mac owners in unlikely situations. The first Advert showed the Apple Genius on a plane helping a Mac owner make an anniversary film for his wife after forgetting the occasion. In second advert, the Apple Genius answers the door in his uniform at four in the morning to an expectant father who wants to make cards to send the family to announce the birth of the baby, during this time the wife is in labor. The last one depicts the Apple Genius that bought a PC that is a Mac (Trenholm, 2012). The main focus of the Genius advertisement was to show potential customers that Apple has a team of experts available to attend to them should they encounter problems while using the unfamiliar operating system. It ended up offending the public who thought that it lacked creativity. IPhone 5 target market Demographically, iPhone targets consumers aged between 18 and 35. These are mainly the youth population composed of students and young professionals. They must be from a working class and mainly urban dwellers. Features of iPhone that are psychologically appealing to the consumers include stylish appearance, countless applications, multimedia, sensitive touch and user friendly technology. However, the main driving force towards the purchase of an iPhone is the brand name. Image conscious individuals attach feelings of privilege when using iPhone. Such people are also fashionable, and in order to stay abreast with the current technological trends, they are likely to purchase every new release of iPhone. IPhone also appeals to tech-savvy individuals, attention seekers and extroverts (Piercy & Nicouloud, 2012). Furthermore, study shows that the majority of iPhone users posses similar character traits. For instance, they are lavish spenders who mainly buy branded products and are socially indulgent. The main influencers towards the purchase of iPhone include peer group, friends and family as these provide the firsthand experience of using an iPhone (Davis 2011, pg. 30). Research by CNET; show that almost half of potential buyers are not current apple products consumers. Females represent 28% while male represent 72% of iPhone buyers. The average, iPhone customer is about 30 years old preferably male graduate who earns an income of 75,600 dollars per year (Plunkett, 2011). Apple Company focuses on users instead of targeting markets this is the main reason behind Apples successful marketing strategies. These products include the iPhone or iPad are made to enhance the user experience. By focusing on individuals, they are able to build exceptional products for them. They then let these individuals decide the best way to use the technology. The beginning of the iPhone 5 advertisement campaign coincided with the launching of the new iPhone 5 which occurred on 21st September, 2012. The advertisement campaign introduced the iPhone 5 to the market beginning with the United States (Beavis, 2012; pg. 01) and then spreading to the other markets In the world. Prior to the release of the iPhone 5 the Apple Company allowed the circulation of rumors among tech bloggers and televisions concerning the state of the iPhone 5. These rumors helped heighten the customer cravings for the new gadget. This market strategy has worked before with the release of the previous iPhones, and this was no different. The iPhone 5 campaigns not only confirmed the availability of the latest iPhone, it endured to stamp the superiority of gadget and the Apple Company in the smart mobile market (Berger 2007, pg. 100). The iPhone 5 advertisement campaign adopts a comparative ad genre because it compares itself to the competition especially Samsung Galaxy III. By capitalizing on its best features such as the panoramic camera light weight and giant screen, it capitalizes on human judgment. In reaction, the main competitor Samsung released a series of adverts comparing Samsung galaxy III with iPhone 5. However, this attack has worked for the Apple Company because many critics still prefer the iPhone 5 over Samsung Galaxy III and sees their attempt as unreasonable (Smith, 2012). The iPhone 5 advertisement campaign informed the world of the introduction of the latest iPhone by explaining, displaying and describing the features of the new phone and distinguishing it from its predecessors. Though the price was not indicated during the campaign, the advert prepared the consumers for the release of the prize tags during the launch date. Promotional strategy Since the inception of iPods, the Apple Company has improved its marketing strategy. They have developed high quality products that in result has attracted a vast customer pull around the world. One of the latest strategies is to create a media buzz just before the new products come out (Trenholm, 2012). They sent out hints to bloggers and writers who circulated the information creating a buzz. Accordingly, consumers were made aware of the upcoming product and so expected it. This strategy works best for the Apple Company because of the high quality products that they have continuously produced cutting a niche in the market. Furthermore, Apple employs the human approach when discussing their products. For instance, they do not emphasize so much on the iOS or Screens, but endeavor to show how the iPhone 5 will benefit the user. They advertise the iPhone by relating it to the customers’ lives and how these lives can be made better with their newest products (Trenholm, 2012; pg. 36). After creating a successful media buzz about the upcoming iPhone 5, Apple threw an event to premier the product (Meyerson, 2010, pg. 56). The momentous event was well planned and given immense importance such that even online stores were closed. This is done to attract the attention of consumer on the importance of the product being launched. Apple is one of the few companies (Beavis, 2012; pg. 01) to successfully employ the marketing strategy that revolves around low supply and high demand. The goal of this strategy is to increase the desirability of the product and hence increase sales. Through this strategy, Apple has regulated the volume of iPhone 5 handsets within the market to be reasonably below demand. Therefore, there have been reports of customers lining up in Apple stores in principal cities (Edson 2012, pg. 15). The company has also employed almost every possible channel to attract the consumer to the point-of- purchase. This included a mix of traditional media (TV, print, radio), outdoor media such as bill boards, they also created a viral campaign on different video social networks like Youtube.com, application of user generated content advertisement and organizing unique workshops to promote iPhone as a corporate smart phone (Keenan, 2012). The intensive use of media advertisement alludes to Apple’s main objective which is to reach out to all consumers and bring them to the point of purchase, in addition to setting standards of, superiority of apple products in the market. The apple marketers have portrayed iPhone as a high-end lifestyle phone. This is a new market because the corporate high-end segment is dominated by BlackBerry. The projection of lifestyle is meant to woo the youths of the upper-class families to consider iPhone and the other complementing Apple products as vital lifestyle accessory (Edson, 2012; pg. 38). It is equally projected as an inspirational product for instance; iPhone 5 is the lightest smart phone. This is supported by the campaign text” The Best thing since iPhone.” In the recent past, Apple has managed to acquire a unique element of cool. Through the exceptional advertising, Apple developed specific images that have resulted into a cult following. The various products represent a unique image of the Apple Company that is extremely well understood by the Apple product s enthusiasts (Hooley, Piercy, and Nicoulaud, 2012). Distribution of iPhone is set to exclusive mobile carriers in every country the iPhone is launched. IPhone 5 was launched first in the US and other countries followed some much later than expected. The current iPhone sales The CNET news reported that Apple company sold two million iPhone 5 handset in the first 24 hours , breaking the record held by immediate predecessor, the iPhone 4S. The production and distribution of iPhone 5 is still ongoing with the handset making its debut in more than 50 countries during December, 2012. The estimated figures of units sold stands at five million and the shipping delays having been reduced from four weeks to 2 weeks (Whitney 2012). The apple buyers embody intense loyalty that that remains unique. Be they own a Mac computer, an IPhone, an iPod or an iPad; apple buyers remain devoted to the brand. What makes Apple buyers so loyal? The answer lies in Apple’s understanding of the buyer behavior and using this knowledge to improve customer purchase and retention (Davis, 2011). When asked, any apple buyer will tell you that apple products are simpler to use, do more and are simpler to use. Apple Inc. is among the few companies that understand the fact that every product bought by a consumer does not only serve functional characteristics, but also emotional and social characteristics in addition (Plunket 2011, p 250). Phones are not only functional but decidedly social and emotional products. They have become permanent symbols of our personal identities. Apple has successfully augmented the emotive and social aspect into the consumer experience. Since the introduction of iPhone, Apple opted from the feature war. The market is flooded with so many mobile handset each competing to show off their advanced features. Most consumers do not understand the majority of these features and do not attach any meaning to them. Therefore, regardless of the exorbitant price tags of the iPhone 5 and the long queues as people wait to purchase their handset, the sales of iPhone 5 will soar more than its predecessors (Berger, 2007). This is because this product is more than its physical features. It is a product that has the personality and identity of the buyer infused in the system. It will add meaning, self identity, socials class to the buyer and connects the individual to the values that make up the Apple family. The iPhone 5 applied the psychological concept of Maslow’s Hierarchy especially the top pyramid, self realization. Despite the recent economic meltdown, Apple Company has continued to witness soaring profits. According to Keenan (2012; pg. 64) the introduction of these programs have made Consumers to spend less than their normal pattern of consumption particularly in the United States. About 48% of consumers became more sensitive to price twenty three percent exhibited brand loyalty while 70% changed their products. As a result, majority of consumer electronics are considered a luxury. Critique of the Iphone 5 Advertisement Campaign The release of the iPhone 5 advertisement campaigns started a campaign war with Apple’s main competitor Samsung. Samsung developed a serious campaign marked “It doesn’t take a genius” attacking the new iPhone 5. While the iPhone has prevailed, still the Samsung Galaxy III advert undertook an effective campaign. For instance, critiques allude that the comparative advertising highlighted the substantial differences that people care about such as screen size. The attack on the iPhone 5 also employed humor instead of negative political attacks. The aim was not to tear down the new iPhone handset, but to present its shortcomings in a somewhat comical manner (Lincoln, 2011; pg. 40). The ad did not mention Apple in any of the advertisements. The Apple logos were not shown making the ad extremely effective. The marketing success of iPhone 5 is not based entirely on the successful advertisement campaign. It is the culmination of a marketing strategy that begun when Steve Jobs became CEO in 1997. When he embarked on a mission to restructure the company he laid down strategies that would ensure the success being witnessed today. After rebranding Apple Computer to Apple Inc, the company’s differentiation strategy included; creation of a new online web store to manage sales, creative advertizing, and launched Apple retail stores. The approach used to advertise iPhone 5 is remarkably comprehensive. The first four Television advertisements set the stage for the release of the new gadget followed by the market buzz through bloggers, consumer opinions, prints, radio (Whitney, 2012; pg. 32). Apple advertizing strategy utilizes almost all the available channels to direct their consumers to the point of purchase (Beavis, 2012). All over the world Apple has ensured that consumers are well informed of the new product, the date of release in their own country and the prize tags. Even though, the advertisement campaign for iPhone 5 has just begun, the result of this campaign is already bearing fruits with record braking sales being reported in various markets such as the United States, Europe and Asia. Bibliography Beavis, G (2012). The new iPhone is here – but is Apple in danger of delivering too little with its latest upgrade? Available at < http://www.techradar.com/reviews/phones/mobile-phones/iphone-5-1096004/review> Berger, A. A. (2007). Ads, fads, and consumer culture: advertising's impact on American character and society. Lanham, Rowman & Littlefield Publishers. Davis, K. (2011). Slow down, sell faster! understand your customer's buying process and maximize your sales. New York, American Management Association. Edson, J. (2012). Design like Apple: seven principles for creating insanely great products, services, and experiences Wiley Hoboken, N... Hooley, G., Piercy, N. F., & Nicoulaud, B. (2012). Marketing strategy & competitive positioning. Harlow, Prentice Hall Financial Times. Keenan, E (2012). Taking Down the iPhone 5 in 3 Strategic Marketing Steps. Available at Lincoln, N. P. (2011). The relationship between internet marketing, search volume, and product sales. Honors thesis (B.A.)--Ohio State University, 2011. McdanieL, C. D., & Gates, R. H. (2005). Marketing research. Wiley Hoboken, NJ, Meyerson, M. (2010). Success secrets of the social media marketing superstars. [Irvine, Calif.], Entrepreneur Press. Plunkett, J. W. (2011). Plunkett's Wireless, Wi-Fi, RFID & Cellular Industry Almanac 2012 Wireless, Wi-Fi, RFID & Cellular Industry Market Research, Statistics, Trends & Leading Companies. Plunkett Research. http://www.myilibrary.com?id=321511. Trenholm, R (23 August 2012). Apple ditches patronizing Genius adverts. Available at < http://crave.cnet.co.uk/mobiles/apple-ditches-patronising-genius-adverts-50008969/> Whitney, L (2012). iPhone sales may be better than expected, says analyst available at Read More