The Potentials of the Next Generation Consumers of iPhone - Essay Example

Marketing Table of Contents Part A 2 A Brief Introduction of the Product 3 Discussion of the Current Marketing Mix 4 Current Product Mix Strategy 4 Current Promotion Mix Strategy 5 Current Distribution or Place Mix Strategy 6 Current Pricing Mix Strategy 8 Part B 10 Next Generation Target Customers 10 Proposal Strategies (4Ps) 11 Conclusion 15 Part A According to various literatures, it has been widely accepted that a well-built marketing framework comprises certain essential strategic measures and approaches that further leverage marketers to make long-term sustainability of their offerings within a particular business industry. In this similar context, a strong segmentation of market or target consumers can be asserted as one of the most effective approaches implemented by the organizations while marketing new brands within a particular business market. Moreover, an integrated marketing mix eventually facilitates implementation of strategies associated with product, place, price and promotion and therefore, ensures the delivery of adequate opportunity to the organizations to build a strong market for their respective products and/or services. Marketing of a product and/or a service is duly considered to be the most effective practices of an organization in building its long-term sustainability in a particular industry or business market segment. To overcome the challenges presented by the current fiercely competitive scenario affecting contemporary organizations belonging to different business industries, an effective and well-built marketing plan plays a pivotal role not only to make the offered products successful, but also to build a strong position of the products/services and gain competitive advantages through augment brand value on the whole. An effective marketing strategy may require the adoption of multiple tools and techniques that can enable marketers to gain significant insights and draw an exceptional brand image of the product in consumers’ mind. The aim of the discussion henceforth is to identify and assess the potentials of the next generation consumers of iPhone product line for Apple and propose marketing mix strategies that would assist the organization in gaining a competitive positioning over its close rivals. A Brief Introduction of the Product iPhone, is commonly characterized as a particular product line of smartphones, which is designed, manufactured and marketed by one of the leading brands in the global Information Technology (IT) industry, Apple Inc. In the year 2007, the company launched the first generation of this product, which attracted a huge volume of tech-savvy customers from all around the globe. A critical observation of the customers’ purchase behavior reveals that the customers were mainly attracted towards this particular product due to its unique quality and innovative features, which were effective enough to differentiate the brand from other IT companies. In this similar context, the features of Apple’s iPhone can be outlined as a revolution in the mobile phone sector, which consisted the never before experienced touch controls and sensational internet communication devices that aided in accessing various applications or services, which were previously thought confined to only sophisticated computing systems. These included web browsing, maps and e-mail facilities among others. Another major attractive feature of Apple’s iPhone product for which the customers have been attracted towards buying this product at large is the advanced sensors. This feature can be apparently recognized as advanced sensors built-in within the product. It is worth mentioning that these sensors incorporated within the product automatically enhanced the experience of the users and most importantly, extended the battery life of the phone, which were often witnessed as lagging in the other models. Discussion of the Current Marketing Mix Marketing mix strategy is generally defined on the basis of four major factors of ‘Product’, ‘Price’, ‘Place’ and ‘Promotion’ that help marketers to meet the needs and desires of the targeted group of consumers in a structured and organized manner. It is essential for the organization to distinctively configure an effective marketing strategy that in turn assists in attracting new segments of target audiences and stimulate their loyalty towards the particular product. Correspondingly, Apple can be observed to emphasize an exceptional mix strategy relating to the product, promotion, price and place in the global markets. The following discussion details the current marketing mix strategy of Apple’s iPhone product, which has certainly enabled the organisation to build its unique customer segments. Current Product Mix Strategy Product is considered as one of the core attributes for an organization, which determines its competitive positioning and ensures future growth acting as the only means to establish relationship with customers. In order to determine the product mix strategy concerning iPhone of Apple, it can be apparently observed that the company tends to develop this particular product line on a continuous basis, in accordance with the requirements of the customers. It is obvious that the requirements of the customers are incessantly changing in this modern day context and they demand such sort of products that possess high quality and standardized features with adequate flexibility. With this concern, Apple aims at delivering its iPhone product to its worldwide customers with innovative features. One of such features can be apparently noted as that the product combines several devices that include an iPod, internet communications and a mobile phone into a single handled product, which has proved quite significant in attracting the customers by a considerable degree. In developing the iPhone product, the company has launched its latest version of iPhone 5 in the year 2012, which attained desired level of success in supporting the company to reap several benefits. These benefits include improved profitability as well as market share, increased level of customer base and accomplishment of superior competitive positioning over its chief business market competitors among others. Apart from continually developing the product line, the company has also taken the initiative of delivering its own operating system based applications along with software for attracting its worldwide customers at large. In this similar context, in order to attract the customers in buying the product and gaining maximum profitability, the company released its own latest operating system based applications along with the software named iOS 6 in the year 2010. By taking into concern the different product features of Apple’s iPhone, it can be affirmed from a broader understanding that this particular product of the company has ultimately provided greater value to its customers in terms of innovativeness and quality assurance. It is worth mentioning in this regard that the company strategized designing its iPhone in accordance with its customers’ requirements and fulfilling their needs by providing them with the quality options like high quality as well as improved camera, GPS functionality and 4G-wireless among others (Fadaei, 2013). Current Promotion Mix Strategy In the context of current promotional strategy, Apple practices a unique set of activities while communicating or attaining the interests of its target consumers. In relation to the current practices adopted by the company, promoting brands or activities associated with branding can be considered as one of the major promotional tools for Apple. The organization has been observed to apply the most suitable forms of promotion in order to encompass its large group of target consumers. Correspondingly, the concepts like sales promotion, sponsorship, public relations and personal selling are apparently observed as the major parts of its promotional strategies that nurture and stimulate individual talents so that they can achieve their desired goals with better competencies. The primary objective of taking into concern the aforesaid concepts is to draw a psychological perception on the consumers’ mind and influence their decision making process while purchasing the product, i.e. iPhone (Fadaei, 2013). Moreover, striving set of advertising and promotional campaigns can also be identified as the major promotional mix tools applied by Apple while communicating with its targeted population. In this context, the sponsorship programs associated with the conduct of numerous social events can be widely observed to facilitate the brand position of Apple, which further helps the company to build its inclusive level of target consumers across the world. Specially mentioning, Apple has been observed to design its promotional mix strategy based on the emotions of its global customers. This can be justified with reference to the fact that the brand personality of Apple’s iPhone product is all about hopes, passion, aspirations as well as dreams, imagination, lifestyle and innovation along with liberty among others. In relation to the design of promotional mix strategy, the company has been observed as focusing on delivering new along with innovative product or service features with the aim of gaining maximum customer loyalty. It is worth mentioning that there are certain fundamental tools based on which, the company promotes its iPhone. These tools include user’s training along with customers’ instructions and smart advertising among others. Apart from the above discussed promotional tools, Apple has also been viewed to adopt and implement product differentiation positioning concept as one of its effective strategies for promoting iPhone in the worldwide market context (Fadaei, 2013). Current Distribution or Place Mix Strategy Distribution location or place of a particular product and/or service is further witnessed to play a pivotal role for the organizations to ensure that the products are efficiently delivered to the targeted consumers as per their needs and conveniences. In relation to the current distributional strategy, Apple tends to include its integrated network to meet the growing demand of iPhone in the global business markets. Therefore, in order to encompass the needs of its wider customer segment, the distribution network of Apple incorporates local, national and overseas channels with due significance to the altering buying patterns of the customers in the global electronic business markets. In this regard, the distribution channel of the company can be observed as extended in different locations involving retail outlets and numerous electronics stores. It can therefore be apparently observed that the company tends to develop its product place of distribution strategies in order to make sure that its broad assortment of products are readily accessible in appropriate quantities at the right time as well as place. Specially mentioning, Apple is found to place its iPhone in the respective business markets through its online stores, third parties, retail outlets and direct sales among others. To determine the current distribution or place mix strategy of Apple concerning its iPhone product line, it can be apparently noted that the marketing managers of the company have been making deliberate efforts in employing multiple distribution channels to reach its targeted customer line. It would be vital to mention in this similar concern that the company has formed diverse production plants in order to comply with the demands of its worldwide customers regarding iPhone in dissimilar regions of the world. The product distribution strategy of the company is also viewed to be controlled by certain channel partners or large-scale retailers, Best Buy and Wal-Mart among others, through which the demands of the customers towards its iPhone are fulfilled by a certain degree (Fadaei, 2013). Current Pricing Mix Strategy Pricing of products or services can further be considered as a major factor, which can enable an organization to attain its desired financial goals in any competitive market. In relation to the pricing strategy of Apple, it has been observed that the company has long been witnessed to practice an effective set of premium pricing strategies for its iPhone. The strategy comprises the approach of competitive pricing, wherein the price of the products are determined in response to the price fixed by its competitors when offering its substitutes. From the above-discussion observation, it can be inferred that the consumers are likely to pay a premium price for Apple’s iPhone product being persuaded by its numerous advantages and quality features over other phones available in the market. Therefore, the premium structure in pricing strategy can be regarded as one of the major factors for this product of Apple to make itself renowned as one of the most selling products in diverse regions throughout the globe (Fadaei, 2013). It is worth mentioning that Apple follows a “temporal price discrimination” strategy through which it charges diverse prices to the customers relying on their capability or desire to pay the same. It can be affirmed from a broader understanding that the company adopts and follows this particular strategy in order to attain two particular objectives. These objectives include attaining wider profit margins and augmenting customer base. Notably, the company strongly believes that it might attain superior competitive position in the respective industry as compared to its chief business market participants following the above-discussed strategy. Apart from the strategy of “temporal price discrimination”, Apple has also been viewed to practice price discrimination strategy based on which, the company proposes several versions of its products in accordance with the prices and the requirements of the customers. On further note, the company often adopts skimming and versioning strategy based on which, it tends to lessen product prices and make those popular as well as affordable to the customers. It is worth mentioning that as the demands of the customers are incessantly raising and changing day by day, the company felt the need of pricing its iPhone product line keeping in mind the purchasing power or the spending capability of the customers. It would be vital to mention in this similar concern that the above-discussed pricing strategies have certainly facilitated Apple to control a huge proportion of online music as well as video and digital media player market. This would certainly enable the company in developing its iPhone, resulting in attracting more customers and attaining greater profitability as compared to others operating in the respective industry (Fadaei, 2013). Based on the above conducted analysis and discussion, marketing of any product or service can certainly be regarded as one of those effective practices, which have assisted the modern business organizations to sustain for a longer period of time in this competitive landscape in a sustainable manner. It is worth mentioning in this context that effective marketing practices generally include identification of the current market, adopting effectual as well as appropriate marketing mix strategies and responding towards the changing preferences of the customers. Correspondingly, it has been apparently observed that Apple has been successful in developing its most demanding iPhone product line and differentiating it from its available substitutes, with its sales rising considerably over the previous few years despite facing tough competition. Part B Next Generation Target Customers The target customers of Apple’s iPhone can be determined as ranging from teenagers, college along with university students to business people, younger children as well as kids and adults. Notably, Apple’s iPhone would best suit to the teenagers to quench their thirst and curiosity towards IT uses. As iPhone offers many convenience and entertainment features such as listening music, socializing friends along with relatives and playing games among others, which are most preferred by teenagers, this particular group can be asserted as the most suitable customer group for the product. It is worth mentioning n this regard that Apple can also target the college as well as the university students for its iPhone product line. This can be justified with reference to the fact that individuals belonging to this particular group might use this kind of product for quick recording of notes provided by the school or university authorities to them at their convenience and therefore, helping them with better access to knowledge information. Apart from the teenagers and the college as well as university students, the company can also target the business people. It would be vital to mention in this similar regard that as business people are always in need for facilities offered by Apple’s iPhone for the purpose of finishing their respective works effectively and for communicating with their potential clients easily irrespective of geographic barriers. In precise, it can be affirmed that the business people might regard the product as an effective means of sending valuable documents in an easy and organized manner based on a time and cost convenient communication mechanism. Young children as well as kids are also becoming increasingly fascinated towards using iPhone products for playing games (Akcay 2012). Thus, the company can target the above-discussed individuals or people for its iPhone with the aim of raising its sales revenue and ultimately accomplishing greater profitability. Proposal Strategies (4Ps) Pricing Mix Strategy: Apple might follow a differentiation strategy for its iPhone product line following a sudden rise in its substitute products launched by its rivals with similar communication and entertainment features. Hence, it can be affirmed from a broader understanding that the company can follow the differentiation pricing strategy as its product, i.e. iPhone, is quite renowned and largely accepted by the global customers due to its various advanced features. Conceptually, differentiation-pricing strategy refers to charging altered prices to diverse customer segments for a similar product or service. It is worth mentioning that through the application of differentiation pricing strategy, the company would be able to raise the demand of its product by way of widening its targeted consumer volume, resulting in increased sales revenue. These benefits can be measured in terms of augmented profitability as well as market share and most importantly, accomplishing superior competitive positioning as compared to its chief business market competitors (Wawasan Open University 2008). Apart from the differentiation pricing strategy, Apple can also price its iPhone, based on the notion of premium pricing. Theoretically, the idea of premium pricing signifies setting product prices higher than that of similar products or services (IUST n.d.). Since the company ensures high-quality experience to the users with the quality as well as innovative features built-in its iPhone, the strategy of premium pricing would fit appropriate for the company. It can be apparently observed from the very beginning that the prime visions of the business leaders in Apple is to charge premium pricing for its respective product lines, with the intention of raising sales as well as profit by a considerable level (Apple Inc 2014). Thus, the strategies of differentiation and premium pricing would eventually support Apple towards attaining its predetermined business targets. Promotion Mix Strategy: The factor of promotion plays an imperative role in supporting organizations towards raising their product sales through advertising such products in a manner, so that these are easily reachable to the customers. By taking into concern the product characteristics of iPhone, it can be stated that the company can adopt numerous promotional mix strategies in order to make this particular product largely accessible to the customers. In this similar context, Apple might execute the strategies of aggressive sales promotion, personal selling, direct marketing and presentations among others. From the perspective of the promotional strategy of making presentations, the company can advertise its iPhone presenting the same in magazines, televisions, newspapers and brochures among others. Correspondingly, the company can promote the aforesaid product by providing an attractive incentive package in terms of free gifts, coupons and discounts. Apart from these, the company can also opt for public relations, as the other promotional mix strategy, wherein it would be able to develop a greater association with the stakeholders representing customers, shareholders, governmental institutions, suppliers and public. Personal selling can also be beneficial for the company, following which it can advertise its iPhone through face-to-face communication mediums. This would further help it to promote direct association with the customers. Moreover, the company can also adopt the promotional mix strategy of direct marketing. This particular promotion strategy can be performed by using telephone along with internet medium, postal mail advertising and e-mail among others (Wawasan Open University 2008). The above discussed promotional mix strategies have been selected owing to the reason that these would certainly aid the company to encourage short-term sales of the iPhone product, resulting in attaining greater profitability. Place/Distribution Mix Strategy: Distribution channels play a decisive role in offering the products to the customers within a specified time and access the same conveniently. Thus, it is quite essential for Apple to adopt and implement effective distribution strategies so that its iPhone can be easily accessible for the customers. In this similar context, one of the distribution strategies, which Apple can adopt is retailing. Conceptually, retailing denotes to such activities that are engaged in distributing as well as selling products or services to the end customers for their non-business or personal use. In this similar context, the company might conduct this activity, i.e. retailing, making its iPhone available in its various retail outlets located in diverse nations, supermarkets, convenience stores, departmental stores and specialty stores. It is worth mentioning that the company might employ several intermediaries to distribute its iPhone product to the ultimate consumers concentrating on delivering the product within a certain time period. This policy of distribution is usually termed as intensive distribution, wherein utmost focus is laid on making the availability of the desired customers’ products at the right place and at the right time (Wawasan Open University 2008). It would be vital to mention in this similar context that the above discussed distribution mix strategies would certainly enable Apple to attain superior competitive position in terms of appropriately distributing the iPhone product and making the availability of this product to the customers at large. It is thus required for the company to develop its supply chain procedure for strengthening its distribution process, resulting in attaining product sales and maximum profitability. Product Mix Strategy: It is worth mentioning that the companies belonging to this modern day context must offer quality and developed products to the customers in order to sustain and prosper in this competitive landscape. Observably, the tastes along with the preferences of the customers are identified to be incessantly changing due to increased level of internationalization. Thus, in order to derive maximum customer satisfaction, Apple needs to develop its product line i.e. iPhone by a considerable level. In this similar context, one of the product mix strategies of the company would be using more technological resources in this particular product line by taking into concern the changing preferences of its customers. Moreover, the company can substantially invest specifically in the arena of research and development (R&D) for upgrading its iPhone product. It would be vital to mention in this similar regard that Apple is still being viewed to acquire a greater market share in the respective industry. Thus, in order to maintain this position, the company needs to come up with certain significant ideas relating to the development of its iPhone product line. The ideas can be making the product more accessible to the customers with cheaper rates, highest coverage, innovative as well as attractive both in terms of design and quality. It is suggested that the company requires conducting appropriate research regarding market conditions and consumers’ anticipations as well as preferences prior to developing its existing iPhone. This would certainly enable Apple to create greater value to the customers (Wawasan Open University 2008). The above discussed product mix strategies would fit appropriate for Apple as these initiatives would not only support the company to fulfill the demands of the global customers but would also restrict the potential occurrences of disastrous events such as declined product sales and failure to derive maximum customer satisfaction among others. Conclusion Apple has been viewed to prioritize effective marketing activities with the aim of attaining superior competitive position in the IT industry. With this similar concern, Apple decided to position and market its iPhone product line in such a way, so that the company is capable of gaining the desired level of competitive advantages. However, considering the fact that competitive challenge in the IT industry is increasing rapidly, certain noteworthy suggestions have been proposed to Apple. For instance, in relation to the identification of the target market, it has been proposed that Apple can target the next generation customers such as the teenagers, college along with university students, business people, younger children as well as kids and adults for its iPhone. Relating to one of the marketing mix aspects, i.e. price, the company might adopt the strategy of differentiation as well as premium pricing for gaining superior customer satisfaction. These strategies would eventually bring greater benefits to the company in raising profitability by raising the sales of iPhone in the short run. Moreover, it is expected that the above suggested marketing mix related strategies would certainly assist Apple to attain superior competitive position in the respective industry as compared its chief business market competitors. References 1) Armstrong, Gary & Kotler, Philip. 2007. Marketing: An Introduction Seventh Edition. New York: Pearson Education Inc. 2) Apple Inc. 2014. 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