Marketing Communications on The Smartphone Market - Essay Example

Marketing Communications - The Smartphone Market Table of Contents Table of Contents 1 Introduction 2 Google Android’s Marketing Mix 2 Marketing Smartphones in the UK 5 The Increase of Smartphone Usage in the UK 5 SWOT Analysis for Google’s Android 8 Strengths 8 Weaknesses 9 Opportunities 9 Threats 10 Recommendations for Google’s ‘Android’ 10 The Future of Smartphone Operating Systems such as Google’s Android 12 References 14 Ahmad, M. (2011) Smartphone: Mobile revolution at the crossroads of communications, computing and consumer electronics, CreateSpace Independent Publishing Platform, New York. 14 Statista. (2014) UK Smartphone sales are dominated by android, viewed October 28, 2014 from . 14 Introduction Integrated marketing communications refer to systems used to plan communications in such a way as to benefit a business by disseminating its marketing campaigns more effectively and thereby lessening its marketing expenses. By integrating marketing structures such as social media avenues, advertising, telemarketing, and direct sales, one can bring more consistency and clarity into the message that is aimed at consumers. In the past two decades, the usage and ownership of mobile devices like tablets and Smartphones has impacted the behavioural interactions of consumers of online content. Factors like changing pricing levels for different types of mobile phones have made mobile devices more accessible to users all over the world. Mobile phone companies are constantly seeking an edge in the hyper-competitive mobile phone market by either increasing access speeds, or introducing ever more robust application systems into their products. Naturally, these changes inspire marketing executives of mobile phone companies to come up with tactical and strategic marketing plans that allow them to be able to engage potential consumers through the different mobile platforms that are created. Google Inc. created an operating system, Android, that immediately gave it an edge in the Smartphone market. Its marketing scheme has played a great role in sustaining its competitiveness. Google Android’s Marketing Mix Product- Google Inc. uses different marketing concepts to market the Android iOS in different regions of the world. Since Google launched the first Android system in 2008, the product has remained in high public demand due to the regular addition of aspects such as features and apps (applications) which are frequently updated and enable customers to use them. For instance, customers with a preference for touch screens or ‘qwerty’ screens can use android as it has both applications. In addition, customers who wish for wide screen displays can also use the android system. Price - In regards to price, Google’s customers are able to change their budgets to suit customised android systems with their preferred features. The vast majority of android retailers sell the system for less than 100$ with all its features and benefits included. This is far cheaper than what the systems created by Apple and Nokia retail for. Place - Google Inc. markets its android operating system all over the world. This is enabled by official distributors as well as the internet. Promotion - The android is a well-known and highly esteemed brand. These characteristics differentiate it from other competitors. Furthermore, Google has invested in promotional campaigns that include using the print media, television advertising, and the internet to reach mobile phone users. Partners - Google also works with assorted marketers in ensuring that the iOS is made more available to users in the marketplace. This is accomplished through the provision of discounts during specific periods, and the use of video clips. People - The android operating system’s popularity has allowed Google Inc. to restrict marketing spending. This is because the users who are satisfied with the product spread the news about its efficiency to others through social sites and online forums without even being prompted by the company’s marketing officials. Its efficiency is the main reason why so many users support its existence, and recommend that others do. Physical Evidence - Google’s android system is created and packaged with different advanced applications and features which are user friendly and can be updated regularly. These physical facets promote the system to users. The Open Marketing Strategy While other corporations that are active in the Smartphone market, such as Apple Inc., tightly control their apps and manufacturing systems for iOS devices, Google Inc. has chosen to do just the opposite in order to retain customers and attract new ones. It has employed an open-market approach for Android. According to Verkasalo, Lopez-Nicolas, Molina-Castillo, and Bouwman (2010) Android supports an open source code, thus enabling multiple programmers and developers to craft code and apps upgrades. This open source code has drawn many manufacturers who do not wish to contend with Apple Inc’s tighter policy. This then results in more tablet and phone owners being exposed to different Google features such as its Chrome Browser, ‘Gmail’, and Android’s App Store. With more users actively engaging each other through Google, the company is able to charge the users for advertising which serves as the main source of Google’s profits. For Google, tablets and Smartphones function as implements through which users can view various advertisements. Marketing Smartphones in the UK Britain’s mobile phone market has been said to be near saturation. Smartphone service providers such as Samsung, Apple Inc., and Google Android are currently being faced with intense competition from Chinese rivals such as Lenovo and Xiaomi in the British market. This is because the Chinese Smartphone corporations offer products that provide good service and low prices. According to Verkasalo, Lopez-Nicolas, Molina-Castillo, and Bouwman (2010), it is likely that Smartphones in Britain will be cheaper as market saturation triggers more competitiveness among the main contenders in the phone industry. Moreover, the demand for Smartphones in the U.K. is unlikely to wane. Competitors like Apple and Google will likely have to compete in the aspects of speed, price, amount, and quantity. According to Ting, Lim, Patanmacia, Low and Ker (2011), British Smartphone users who travel frequently tend to be more active than American users. This means that there are still markets that could be tapped into by Smartphone service providers. British travellers also tend to engage in mobile shopping to a greater level than their American counterparts. This could provide Google Android’s marketers with the information and tangible takeaways that are necessary to generate and implement an efficient strategy to win more customers to the platform. The Increase of Smartphone Usage in the UK In the UK, the increased use of Smartphones has been seen in different age group demographics. There are significant yet subtle differences between different age groups in terms of Smartphone usage, though. An understanding of the varying user trends would help marketers in realising how best to market the android iOS through optimised campaigns to potential users of all ages. In the UK, the Smartphone is viewed as being a gadget that could be used to introduce a fun element in the educating procedures used for children aged between the ages of 1 to 10. According to Ting, Lim, Patanmacia, Low and Ker (2011), it is not unheard of for parents to use spelling apps to teach their children while enjoying a meal such as breakfast. This achieves two objectives as it allows children to view the process of learning new words and spelling as a game that is to be enjoyed and not seen as a chore. According to Pearson, Carmon, Tobola, and Fowler (2010), many parents in developed nations such as the UK are increasingly beginning to consider the educational possibilities provided by Smartphones. The ‘Tween’ group, which consists of children between the ages of 11 and 15 has also registered the increased use of Smartphones. This age group is pre-occupied with creating and maintaining social relationships. Users in this age group tend not to be really interested in aspects such as brands of phones they use. However, they are interested in other additions such as vouchers and special offers. Android’s marketers could target this age-group by creating apps that facilitate increased peer to peer communication through social media sites or messaging. The 16 to 24 age demographic, which is made up of young adults with independent incomes has assorted needs that include web-surfing, and functions such as online shopping. Text based communication systems such as e-mail, SMS, or social sites are also of fundamental importance to people in this age group. According to Lu and Su (2009), research has established that young British adults watch online TV by means of catch-up services. Android’s marketers can target this age group with advertisements that is carried through specific programs. Online advertising tends to be more successful than TV advertising because it facilitates direct sales via clickthroughs. According to Kulviwat, Bruner II, and Al-Shuridah (2009), young adults in this age group also use money for aspects such as music, apps, and games; but also value specific brands. A different age demographic that has embraced the Smartphone is the 25-34 age group. This demographic is well acquainted with the internet, and is likely to prefer purchasing products online. Android’s marketers could employ direct sales approaches to attract more interest from citizens in this age group. According to Kerin, Hartley, and Rudelius (2012), this age-group is quite receptive to features such as direct messages from marketing departments. This means that there is a lot of opportunity for this age group to be targeted with direct marketing messages from android marketers. The age-group of digital immigrants, which refers to citizens between the ages of 45 and 55 has been the least receptive to Smartphones. Moreover, research has established that 36% of UK citizens between the ages of 35 and 54 regularly use tablets and Smartphones as second screens while they watch sports, news, or other programs on regular TV (Jung 2014). Android marketers could target this age-group by taking advantage of transactional opportunities while also providing information on other amenities. The age group with the lowest percentage of Smartphone usage in the UK is that of citizens over the age of 65 years. As this demographic will only commit to procuring Smartphones if they can get real value for it, android marketers can seek to create apps for over 65 year olds that offer genuine services in the important areas of welfare and health. SWOT Analysis for Google’s Android According to Jin, Yoon, and Ji (2013), at present, it is Android which has the largest percentage of Smartphone users in the United Kingdom, with 60% of the British Smartphone market using the android IOS and 27% using Apple’s iPhone. The android faces a number of internal as well as external challenges in the British market, though. Strengths Android is supported by an alliance of the Open Handset Alliance and Google. The iOS system benefits from Google’s credibility in a competitive market. As a technology leader, Google has the skilled workforce to create mobile applications which can be included in most Google apps that have Gmail access Android has been proven to be compatible with devices such as Samsung, HTC, Sony, Motorola, Micromax, and Sony Ericsson; unlike Apple’s iOS Android functions as an open source system with compatibility and flexibility. This allows developers to be able to generate numerous free Apps for its market Android easily facilitates notifications such as e-mail, updates, SMS messages, and chat application messages on its home screen Android is a relatively cheap system with transparent licensing agreements. This works in the favour of mobile companies which can then set cost effective prices for products so that they can effectively compete against systems such as RIM, Symbian, Windows, and iPhone. Weaknesses The Apple iPhone has received much more support than the android phones. The Apple iPhone’s system also sports iTunes, which is a centralised repository Owing to its free apps, Android tends to have advertisements displayed above the pas or at the bottom. This could considerably reduce user delight as the ads are mostly viewed as annoyances The majority of android apps cannot function without a constant internet connection Owing to the fact that the android operating system is employed by mobile manufacturers, it has to acquire the results of compatibility tests that are approved off by these manufacturers even before upgrading Android can be affected by malwares, among other external threats, due to the fact that its source code can be impacted, and it is developer friendly. Opportunities Many UK mobile networks support the android, and thus contribute to the boosting of its sales The android market share is projected to increase considerably in the next few years Owing to its developer friendly nature, the android operating system can be used in the generation of advanced apps Android has fascinating features such as connectivity, better handset layouts, multiple language support, connectivity, java support, tethering, screen capture, and multi touch which attract customers There are developing markets in places like India, China, South Africa and Brazil whose customers are boosting the sales of the android system-supported Smartphones. Threats Android has to contend with threats such as Apple’s iOS. If its rival’s operating system is made compatible with other mobile phone devices, android is likely to lose a percentage of its market share There are other moderately popular operating systems such as RIM, Symbian, and windows Android can be negatively affected by viruses and malwares Android can be negatively affected by threats when apps are downloaded from un-trusted sites that could damage apps or crash the entire system Android’s cheaper system facilitates the installation of its apps in cheap mobiles which impacts the user status quotient in comparison to RIM, iPhones, and Symbian. Recommendations for Google’s ‘Android’ It is likely that Smartphone companies such as Google and Apple will have to resort to tactics such as supporting the wearing of activity trackers and smart watches as advertisement gimmicks in the near future. It is also likely that growth in the Smartphone market will be reflected in the development of online app stores, as more complex devices with hyper-granular data are generated through the already existing apps (Jin, Yoon, and Ji 2013). One way in which Google’s android can experience increased market share is through the entry into other relatively undeveloped markets. The creation of ‘Android One’, which costs less than the original, is an example of a product that is created to target developing markets. To remain competitive, Google has to invest in either re-designing its products, upgrading them, or creating new ones. The company could also invest in effecting different improvements on the service features of its operating systems. Some of the features that could be improved on include: Inclusive and Integrated Messaging - Android messaging could be upgraded so that there are faster Google hangout and video messaging apps. The system could also be improved by including an inclusive interface that facilitates the function of navigating between different communication sites. Increased Payment Power and Security - The android system could be improved by investing in security innovations such as face recognition apps and even retina scanning Hardware Development - Android could be used to introduce wearable hardware such as Android wear, or bendable screens The Generation of an Inclusive Mapping Experience - Android could be used to support the generation of more user-friendly Google maps A Devoted Personal Assistant - According to Lieberman (2014), there is a change that is happening in the Smartphone industry where the devices are increasingly being viewed as voice-controlled and multifunctional devices that assist people in their professional as well as personal lives. The operating systems that are used to support these multiple functions are likely to win more customers and surge ahead of business rivals in the hyper-competitive Smartphone industry. Health Management - Android could also be marketed as a system that supports the operation of valuable apps such as those supporting health aspects such as heart rates, or burned calories (Ahmad 2011). This could include the creation of integrated apps of health management that retain the owner’s medical history, and can even receive information from sensors located next to the body, as in the case of watches. Augmented Reality - The android system could also be used to support apps such as those which enable augmented reality. Augmented reality technology makes it possible for users to point their Smartphones in specific situations in the real world, and have the screen image overlaid with different sources of data from databases. This app would actually operate as a teacher or personal tour guide for the user. The Future of Smartphone Operating Systems such as Google’s Android The Smartphone’s uses are likely to increase in future. To ensure that their operating system’s remain competitive in the changing market, it is necessary for Smartphone companies to support the constant upgrading of their iOS systems. Marketers, for instance, cannot ignore the importance of coming up with parallel campaigns for mobile and web facilities. In future, it is likely that Smartphone companies will have to optimise their online presence in a way that suits mobile devices. For instance, in today’s market, a mobile marketing issue can be detailed in Facebook. However, the social media site has not had much success in availing similar experiences through apps that are formed for mobile phone use. This could be the result of limited mobile screen provides. It is likely that, in future, the ability to create advertisements within the social media site’s mobile platforms will play a huge role in determining its long-term success in the market place. In effecting mobile market improvements, organisations such as Google may have the chance to integrate current marketing campaigns with activities created uniquely for a mobile platform. Aspects and elements, such as messaging, have to be fine-tuned. This will facilitate the delivery of data in a confined space. Visual and graphic elements should also be created especially for the purpose of operating within mobile environments which leave good impressions, but do not use up large quantities of data bandwidth. In addition, marketers should create consumer collection forms that are formed to fit the environment and device. Furthermore, the use of QR codes or bar code scanning could be used to take advantage of mobile device functionality. Marketers could also invest in tactics such as ‘sidewalk marketing’ where tactics are used to deliver location-relevant specials and information inside a store. Location apps could be combined with unique in-store offers to attract a ‘check-in’. References Ahmad, M. (2011) Smartphone: Mobile revolution at the crossroads of communications, computing and consumer electronics, CreateSpace Independent Publishing Platform, New York. Blodget, H. (2012) ‘The U.S Smartphone revolution’, Business Insider, viewed October 28, 2014 from . Jin, B.S., Yoon, S.H. & Ji, Y.G. (2013) ‘Development of a continuous usage model for the adoption and continuous usage of a Smartphone’, International Journal of Human- Computer Interaction, vol. 29, pp. 563- 581. Jung, Y. (2014) ‘What a Smartphone is to me: understanding user values in using Smartphones’, Information Systems Journal, vol. 24, no. 4, pp. 299-321. Kerin, R., Hartley, S. & Rudelius, W. (2012) Marketing, McGraw-Hill/Irwin, New York City. Kulviwat, S., Bruner II, G.C. & Al-Shuridah, O. (2009) ‘The role of social influence on adoption of high tech innovations: The moderating effect of public/private consumption’, Journal of Business Research, vol. 62. Lieberman, G. (2014) Mobile Phones-US, viewed October 28, 2014 from . Lu, H. & Su, P.Y. (2009) ‘Factors affecting purchase intention on mobile shopping web sites’, Internet Research, vol. 19, no. 4, pp. 442-458.  Pearson, J.C., Carmon, A., Tobola, C. & Fowler, M. (2010) ‘Motives for communication: why the millennial generation uses electronic devices’, Journal of the Communication, Speech and Theatre Association of North Dakota, vol. 22, pp. 45-55. Statista. (2014) UK Smartphone sales are dominated by android, viewed October 28, 2014 from . Ting, D.H., Lim, S.F., Patanmacia, T.S., Low, C.G. & Ker, G.C. (2011) ‘Dependency on Smartphone and the impact on purchase behavior’, Young Consumers, vol. 12, no.3, pp. 193-203.  Verkasalo, H., Lopez-Nicolas, C., Molina-Castillo, F.J. & Bouwman, H. (2010) ‘Analysis of users and non-users of Smartphone applications’, Telematics and Informatics, vol. 27, pp. 242-255. Appendix (Statista 2014) Read More