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8/6/2019 Apple Bak Up
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APPLE INC.
STUDENT NUMBER:
MODULE:
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Introduction
This essay aims to critically evaluate the use of marketing currently employed by Apple.
Apple is a multinational corporation that works in the telecommunication and electronics
industry. Apple designs, manufactures and markets consumer electronics and computer
software with a variety of styles and models to suit the changing needs of consumers; this can
be seen by the more recent release of the iPhone which offers entertainment, the basic and
advance uses of a mobile phone, internet access and thousands of application. Apple has been
established sine 1976. Since, Apple has introduced a number of innovative products that
cover the majority of the electronic media scope. Due to the size and nature of this
organisation, Apples iPhone will be selected to allow a concentrated evaluation of the
marketing practice currently deployed.
Apple
Following the success experienced by Apple through the initial iPod range, Apple introduced
iTunes, a means of purchasing music legitimately with the added benefit of original sound
quality. The iPod range quickly broadened to meet the needs of more consumers; initially the
range made available was the iPod Classic but not long after the iPod Shuffle, a small, pocket
size mp3 player available in a variety of colours, was on the market. Soon after, the iPod
Nano was introduced, a slim, sleek version of the iPod Classic which unlike the iPod Shuffle
displayed a screen to view and skim through the files. The next range to follow was the iPod
Touch range offering the added benefit of minimal buttons with a touch-response facility to
make this a more favourable product in the 21st Century. The success of the iPod Touch
caused Apple to develop the first multi-touch interface Mobile (iPhone 2G); although otherproducts on the market offered a part-touch facility (LG Chocolate), iPhone was the first to
offer complete touch facility. The iPhone and iPod Touch was introduced globally in March
2010 following the success, leading to the release of the iPhone 3G and 3Gs, a smaller
version of the iPhone 3G (BBC News, 2010). The iPhone 4G was released mid-July 2010
which offered added feautres and benefits.
The iPhone that will be discussed is the fourth generation (4G) which was released on the 17 th
July 2010. The largely anticipated iPhone was made available directlty from iPhone which
offered the advantage of purchasing this sim-free. This was advantageous considering public
may have a preference for one service provider over another, so this minimises limiting the
target market. Coincidently, the iPhone was also available on pay monthly plans from service
providers including O2, Three, Orange, Vodafone and so on.
8/6/2019 Apple Bak Up
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Was rumoured to have been leaked by individuals who work for apple, as a means of a
marketing campaign to promote the new prototype and allow the public to be aware of its
appearance, the campaign was called the lost Iphone.http://gizmodo.com/5520438/how-
apple-lost-the-next-iphone
The iPhone 4G, illustrated has many competitors due to the nature and feature of the products
designed and sold. Blackberry is arguably the main competitor in regards to the iPhone 4G
having produced models such as Blackberry Storm. Although the technicality and
functionality of both the iPhone and Blackberry can be seen as complex, the nature of the
products is different despite the common uses of mobile phones (calls and texts) and internet
access. For instance, the Blackberry Storm is a Smartphone making it ideal for the common
business user with Word, Excel and PowerPoint applications, whereas the iPhone has
multimedia features such as gaming applications, and the uses of an iPod due to its mass
memory (available in either 16gb or 32gb).
The iPhone 4G as to its predecessors the 3G and 3Gs, was not restricted to any single
network; it allowed the mobile phone to brand itself independently rather than sharing the
spotlight and being attached to a network provider. This accompanied by the large
anticipation of the iPhone helped as network providers marketed themselves using the iPhone
due to the demand which can be seen by T-Mobile, Vodafone, Orange, Three and O2.
The major advertising method used to promote the iPhone was television; this featured pen
profiles through its new feature Face Time portraying two individuals in different continents
video talking with one another. This promotes the clarity of the camera, the easy to use
functions, and the internet (which on some network pay monthly deals such as Tesco Mobileand Three featured unlimited usage). http://www.apple.com/iphone/features/facetime.html.
The advert featured an American soldier in Iraq, a real situation rather than a futuristic and
unreal situation featured by some advertisements, conversing with his partner in America
through a sonogram enabling the soldier to share the moment using Face Time. Particularly
nowadays when life is busy this feature will be desired by many.
Apple successfully generated demand through this advertisement medium. In addition, the
internet was used throughout the internet with different advertisements to target the different
segments of customers depending on the site. Blackberry Storm coincidentally used similar
advertisement mediums promoting their product as powerful; this was cleverly done
considering business is associated with power and bearing in mind phone battery is a
common problem amongst some. Simultaneously, the Blackberry challenged Apple by also
mentioning it is a touch-screen.
Apple advertised the iPhone as coming soon to initiate demand and awareness of the iPhone.
The iPhone has been aired since late 2007; this helped as brand loyalty to Apple will have
worked as a means of advertising in itself. In addition to Face Time, the advertisement
displayed the touch facility and easy-to-use features encouraging the sale of this. Despite the
iPhone release in July 2010, the adverts continue to be aired due to the variety of Blackberrymodels available and intense competition in the mobile industry. The television timing ranges
http://gizmodo.com/5520438/how-apple-lost-the-next-iphonehttp://gizmodo.com/5520438/how-apple-lost-the-next-iphonehttp://gizmodo.com/5520438/how-apple-lost-the-next-iphonehttp://gizmodo.com/5520438/how-apple-lost-the-next-iphonehttp://www.apple.com/iphone/features/facetime.htmlhttp://gizmodo.com/5520438/how-apple-lost-the-next-iphonehttp://gizmodo.com/5520438/how-apple-lost-the-next-iphonehttp://www.apple.com/iphone/features/facetime.html8/6/2019 Apple Bak Up
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from thirty seconds to a minute long; despite television being one of the most expensive
mediums to advertise, it reaches maximum potential audiences. Adverts always involve the
catch phrase 'apps for everything', demonstrating consumers the practicality of the phone and
how the iPhone can be used for everyday tasks.
Below, a father is communicating with his disabled daughter using iComm which is an app
designed by himself. (See appendix) http://www.dailymail.co.uk/sciencetech/article-
1276195/Father-creates-iPhone-app-gives-voice-severely-disabled-daughter.html
Apple has used the internet as a method to promote and market their products. The internet is
home to over two billion customers allowing Apple to reach the widest audience possible and
establish itself as one of the leading innovative technological providers.
Apple store online advertises the iPhone by detailing its technical specifications, features and
design. Apples pre-release marketing campaign accumulated 1.7m sales in store, over the
phone and online within three days of the release, outlining the success of the campaign.
Apple have used their current customers as a target by directing mail to alert their valuedcustomers informing them of the release, and product information offering upgrades. In
http://www.dailymail.co.uk/sciencetech/article-1276195/Father-creates-iPhone-app-gives-voice-severely-disabled-daughter.htmlhttp://www.dailymail.co.uk/sciencetech/article-1276195/Father-creates-iPhone-app-gives-voice-severely-disabled-daughter.htmlhttp://www.dailymail.co.uk/sciencetech/article-1276195/Father-creates-iPhone-app-gives-voice-severely-disabled-daughter.htmlhttp://www.dailymail.co.uk/sciencetech/article-1276195/Father-creates-iPhone-app-gives-voice-severely-disabled-daughter.htmlhttp://www.dailymail.co.uk/sciencetech/article-1276195/Father-creates-iPhone-app-gives-voice-severely-disabled-daughter.html8/6/2019 Apple Bak Up
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addition, potential customers and previous customers were contacted through the use of iAds,
software designed to display mini-advertisements within their application and retain 60% of
revenue generated. This positioned iPhone4 into direct competition with Googles adMob
service taking advantage of the popularity of additional applications. Read more:
http://www.financialpost.com/news-sectors/technology/story.html?id=3124255#ixzz1Bdk0pmOe
iPhone4 has been featured in newspapers, both local and national, magazines (such as Heat
targeting women and Mens Health targeting men), posters, banners and Billboards
positioned nationally in busy locations. Also, the situation of the stores has helped as Apple
has a store located in London, capital and the busiest location in UK and also in Birmingham,
the second largest city in the UK.
C
Market Segmentation is the process of dividing a market into specific segments of consumers
on the basis of their needs, behaviours, or characteristics, outlining what groups of consumers
needs and requirements are, identifying target markets to businesses (Business Dictionary
Online: http://www.businessdictionary.com/definition/psychological-segmentation.html).
Customers can be segmented by demographics, incomes, preferences, socio-cultural aspects
and psychographically.
Behaviour segmentation focuses on consumer needs based on the responsiveness and reaction
in response to products such as iPhone4. Other variables come into context that will affect the
response such as previous encounters, current brand loyalty, cost-against-benefits analysis,current condition of mobile phone and competitor offers.
Apple have a very strong brand image built up over the last 34years helping the organisation
to obtain a large customer base that have stayed loyal to the brand. The strong business image
encourages repeat sales. The iPhone can be personalised by the user through downloading
applications and also a variety of covers available making the phone unique to the user.
Apple has further distinguished oneself from competitors by using iTunes which is a free
application exclusive to apple consumers, allowing the purchase of movies and songs. This is
a key feature, as it is used on previous apple products such as the iPod, having generated a lotof attention consequently causing the introduction of iTunes gift-card.
http://news.cnet.com/iTunes-outsells-traditional-music-stores/2100-1027_3-5965314.html
Another example of behavioural segmentation is the production of the iPod-Shuffle which is
designed for users on the go, featuring exceptional features such as a voice over which tells
the consumer the name of the song currently playing. Apple have designed this for the
younger generation, exercising customers (such as joggers) and those who fancy something
small hence portable. It features a clip so it can be attached to clothing, displaying its
practicality. http://www.apple.com/uk/ipodshuffle/
Usage rate is another key aspect of segmentation, as the increasing number of applications
http://www.financialpost.com/news-sectors/technology/story.html?id=3124255%20%5C%20ixzz1Bdk0pmOehttp://www.financialpost.com/news-sectors/technology/story.html?id=3124255%20%5C%20ixzz1Bdk0pmOehttp://www.businessdictionary.com/definition/psychological-segmentation.htmlhttp://news.cnet.com/iTunes-outsells-traditional-music-stores/2100-1027_3-5965314.htmlhttp://www.apple.com/uk/ipodshuffle/http://www.financialpost.com/news-sectors/technology/story.html?id=3124255%20%5C%20ixzz1Bdk0pmOehttp://www.financialpost.com/news-sectors/technology/story.html?id=3124255%20%5C%20ixzz1Bdk0pmOehttp://www.businessdictionary.com/definition/psychological-segmentation.htmlhttp://news.cnet.com/iTunes-outsells-traditional-music-stores/2100-1027_3-5965314.htmlhttp://www.apple.com/uk/ipodshuffle/8/6/2019 Apple Bak Up
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are creating more uses for the iPhone, usage rate will increase, allowing Apple to be more
involved with its consumers as they can gather more data such as what apps are most popular
and marketers can think of new apps to launch.
Benefits of this type of segmentation are that marketers gain a better understanding of the
consumers knowledge and their responses to Apple products such as the i-Phone
The iPhone is marketed as a very practical phone, allowing users to apply the phone in
everyday tasks such as travelling, by using the satellite navigation within the phone or
iStudiez Pro which is an app targeted at students, allowing them to schedule their days and
organize work. This helps form a stronger relationship between the consumer and product, as
the consumer becomes a frequent user, as the ever growing market of applications is
expanding, more ways are being created for consumers to use their iPhone.
DEMOGRAPHIC segmentation is when marketers divide into groups based on variablessuch as age, gender, income, occupation, ethnicity etc. This form of segmentation categorises
the requirements of consumers and is the variables are easily obtained and measured in
comparison to other methods such as psychographic segmentation.
Income is a key factor as the iPhone is 499 for the 16gb model and 599 for the 32gb model
when purchased directly from Apple. This is more expensive than its competitor the
Blackberry Torch, which is priced at 454.99. This price difference may signal a competitive
edge and to users that the iPhone is superior to that of the Blackberry, or that the iPhone is
overpriced, and lose customers to competitors.
http://www.guardian.co.uk/money/2010/jun/24/price-check-apple-iphone4-deals
http://reviews.cnet.co.uk/mobile-phones/blackberry-torch-9800-review-50000206/
Age is another factor taken into consideration as the practicality of the i-Phone keeps on
growing, the various applications which target different age groups e.g. Square is an app
which allows the user to accept credit card payments through their phone which is free to use.
BumbleBee Touchbook which allows users to read kids stories, or at a click of a button get
the story narrated. This shows how the iPhone is targeting a diverse age group as the phones
technology is becoming more and more sophisticated, its features are very appealing to the
younger audiences as marketers promote the iPhones countless capabilities.
A problem that the iPhone will face is the vast range of Smartphones already on the market
such as the HTC and the Blackberry which are now using android technology creating a new
interactive interface which is owned by Google. http://www.android.com/
http://www.guardian.co.uk/money/2010/jun/24/price-check-apple-iphone4-dealshttp://reviews.cnet.co.uk/mobile-phones/blackberry-torch-9800-review-50000206/http://reviews.cnet.co.uk/mobile-phones/blackberry-torch-9800-review-50000206/http://www.android.com/http://www.guardian.co.uk/money/2010/jun/24/price-check-apple-iphone4-dealshttp://reviews.cnet.co.uk/mobile-phones/blackberry-torch-9800-review-50000206/http://www.android.com/8/6/2019 Apple Bak Up
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REFERENCES:
BBC World News extends iPhone and iPod Touch applications globally; Christopher H.Wright; March 17, 2010
Apple has done this by launching the iPhone in 2007, generating a revenue of $6.22 billion
http://www.slideshare.net/bkiprin/apples-iphone-launch-marketing-strategy-analysis-2858373
http://library.marketlineinfo.com/library/DisplayContent.aspx?R=5B0A0C20-9BB6-4284-
A575-AC0F2261F45C&N=4294839864
BBC World News extends iPhone and iPod Touch applications globally; Christopher H.Wright; March 17, 2010
http://www.filmindustrynetwork.biz/bbc-world-news-extends-iphone-ipod-touch-app-to-
australia-and-new-zealand/2604
http://gizmodo.com/5520438/how-apple-lost-the-next-iphone
http://www.apple.com/iphone/features/facetime.html
http://www.guardian.co.uk/money/2010/jun/24/price-check-apple-iphone4-deals
http://reviews.cnet.co.uk/mobile-phones/blackberry-torch-9800-review-50000206/
http://www.android.com/
http://www.apple.com/uk/ipodshuffle/
http://library.marketlineinfo.com/library/DisplayContent.aspx?R=5B0A0C20-9BB6-4284-A575-AC0F2261F45C&N=4294839864http://library.marketlineinfo.com/library/DisplayContent.aspx?R=5B0A0C20-9BB6-4284-A575-AC0F2261F45C&N=4294839864http://www.filmindustrynetwork.biz/bbc-world-news-extends-iphone-ipod-touch-app-to-australia-and-new-zealand/2604http://www.filmindustrynetwork.biz/bbc-world-news-extends-iphone-ipod-touch-app-to-australia-and-new-zealand/2604http://gizmodo.com/5520438/how-apple-lost-the-next-iphonehttp://www.apple.com/iphone/features/facetime.htmlhttp://www.guardian.co.uk/money/2010/jun/24/price-check-apple-iphone4-dealshttp://reviews.cnet.co.uk/mobile-phones/blackberry-torch-9800-review-50000206/http://reviews.cnet.co.uk/mobile-phones/blackberry-torch-9800-review-50000206/http://www.android.com/http://www.apple.com/uk/ipodshuffle/http://library.marketlineinfo.com/library/DisplayContent.aspx?R=5B0A0C20-9BB6-4284-A575-AC0F2261F45C&N=4294839864http://library.marketlineinfo.com/library/DisplayContent.aspx?R=5B0A0C20-9BB6-4284-A575-AC0F2261F45C&N=4294839864http://www.filmindustrynetwork.biz/bbc-world-news-extends-iphone-ipod-touch-app-to-australia-and-new-zealand/2604http://www.filmindustrynetwork.biz/bbc-world-news-extends-iphone-ipod-touch-app-to-australia-and-new-zealand/2604http://gizmodo.com/5520438/how-apple-lost-the-next-iphonehttp://www.apple.com/iphone/features/facetime.htmlhttp://www.guardian.co.uk/money/2010/jun/24/price-check-apple-iphone4-dealshttp://reviews.cnet.co.uk/mobile-phones/blackberry-torch-9800-review-50000206/http://www.android.com/http://www.apple.com/uk/ipodshuffle/8/6/2019 Apple Bak Up
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http://news.cnet.com/iTunes-outsells-traditional-music-stores/2100-1027_3-5965314.html
http://www.businessdictionary.com/definition/psychological-segmentation.html).
http://www.financialpost.com/news-sectors/technology/story.html?
id=3124255#ixzz1Bdk0pmOe
http://news.cnet.com/iTunes-outsells-traditional-music-stores/2100-1027_3-5965314.htmlhttp://www.businessdictionary.com/definition/psychological-segmentation.htmlhttp://www.financialpost.com/news-sectors/technology/story.html?id=3124255%20%5C%20ixzz1Bdk0pmOehttp://www.financialpost.com/news-sectors/technology/story.html?id=3124255%20%5C%20ixzz1Bdk0pmOehttp://news.cnet.com/iTunes-outsells-traditional-music-stores/2100-1027_3-5965314.htmlhttp://www.businessdictionary.com/definition/psychological-segmentation.htmlhttp://www.financialpost.com/news-sectors/technology/story.html?id=3124255%20%5C%20ixzz1Bdk0pmOehttp://www.financialpost.com/news-sectors/technology/story.html?id=3124255%20%5C%20ixzz1Bdk0pmOe8/6/2019 Apple Bak Up
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Appendix
www.youtube.com/watch?v=liX55mNLDiA&feature=related
http://www.iphonematters.com/C43/P30/Above Apple have marketed their iPhone using a giant glass cube, and using graphics to
promote the product by displaying it New York, for a very short period, before removing it,gaining itself more publicity and creating curiosity in its consumers as what to expect.
http://www.youtube.com/watch?v=liX55mNLDiA&feature=relatedhttp://www.iphonematters.com/C43/P30/http://www.iphonematters.com/C43/P30/http://www.youtube.com/watch?v=liX55mNLDiA&feature=relatedhttp://www.iphonematters.com/C43/P30/8/6/2019 Apple Bak Up
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http://www.bbc.co.uk/blogs/technology/2008/04/iphone_price_cut_weakness_or_s.html Above the iPhone has been advertised using billboards showing the product at various angles,making use of the large face of the phone, they are able to focus consumers on the iPhonealone which is displaying its features on each screen e.g. the iconic itunes music player andsatellite navigation. Using these signs help Apple to use word-of-mouth to spread news aboutthe iPhone as it is seen by many people and the message delivered is done visually via imagesof the phone.
http://news.cnet.com/8301-30686_3-20009116-266.html
Pictured above is the long que of people who have eagerly anticipated the launch of the
http://www.bbc.co.uk/blogs/technology/2008/04/iphone_price_cut_weakness_or_s.htmlhttp://news.cnet.com/8301-30686_3-20009116-266.htmlhttp://www.bbc.co.uk/blogs/technology/2008/04/iphone_price_cut_weakness_or_s.htmlhttp://news.cnet.com/8301-30686_3-20009116-266.html8/6/2019 Apple Bak Up
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iPhone showing the immense demand for this product and related accessories, whichgenerated $10.47 billion in revenue.
http://www.youtube.com/watch?v=J-Q6NBp8bCA&feature=player_embeddedAbove Blackberry have targeted apple in one of their advertisements, which show a
blackberry travelling in the air as a bullet, and pierces straight through an apple, symbolisingApple inc.In response to this, Apple immediately retaliated using the same features of the film, exceptthis time, the blackberry falls apart once it comes into contact with the apple, delivering amessage that Apple is stronger.
http://www.youtube.com/watch?v=J-Q6NBp8bCA&feature=player_embeddedhttp://www.youtube.com/watch?v=J-Q6NBp8bCA&feature=player_embedded8/6/2019 Apple Bak Up
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http://www.youtube.com/watch?v=ow7SBaQTjlo&feature=relatedUnlike Apple, Blackberry who are in direct competition with them, aim most of their range at
business men and women. In the above advert Blackberry are attempting to rival the iPhoneby promoting their phone as fun and not just for business. This was done by making funchanges to the work atmosphere by installing rides to get around the business, e.g. lifts whichare made into rides, which shows an attempt to expand theirtarget market, and become a stronger competitor.
http://www.youtube.com/watch?v=ow7SBaQTjlo&feature=relatedhttp://www.youtube.com/watch?v=ow7SBaQTjlo&feature=related8/6/2019 Apple Bak Up
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http://www.youtube.com/watch?v=xMn5iC9gHI4&feature=related
Blackberry have attempted to rival Apple, in the advert above, showing many features of thephone, combining together making the Blackberry, this will go against the apps of the iPhone,as consumers are shown a visual display of all the characteristics of the phone.
http://www.youtube.com/watch?v=xMn5iC9gHI4&feature=relatedhttp://www.youtube.com/watch?v=xMn5iC9gHI4&feature=related