Marketing Strategy of Apple IPhone
Along with the changing business world, customers change as well, becoming more demanding and knowledgeable than before (Jobber, 1998). In turn, company management had shifted their focus on their clients or customers so as to stay successfully in business. This transition meant that organizations have to completely reformulate their conventional business aims and purposes from being process-focused to customer-centered.
Despite the economic and technological conditions that make it possible now to promote products and services in a larger consumer market, there are other factors that still need to be considered for a business organization reach out easier to their target market. Looking into the characteristics and thought processes of the people still holds as the most significant factor to be looked into by the individuals in the field of sales and marketing (Miller, 2004).
The large scope of market can pose a hindrance to a successful marketing strategy in terms of over generalized definition of the target or niche market. It is always important to know the characteristics and nature of the products and services offered by any advertising campaign because this will guarantee the success of the marketing strategy. But knowing the product alone can be detrimental any marketing plan if the advertisers and the manufacturers themselves have no idea of the target market they are trying to penetrate.
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The people who will be responsible in executing the research project should be sensitive enough to investigate on the local environment (Bhattacharya, 2000). Conceptualizing and planning the data gathering period while keeping in mind the possible constraints that could be encountered in the field as well as the time available to complete the investigation will prepare the researcher in the further execution of the research project. In today’s business world, the value and importance of customers is not something that should be set aside by companies.
Marketing plans and strategies would be incomplete without paying much consideration to the customers. Elinder (1961) emphasized this idea on his concept of cultural values that are maintained and uphold together by different kinds of people sharing similar values and opinions. This is the concept of collective personal opinions of a particular population. Companies who provide products and services to the consumer market are most importantly interested in the behavioral segmentation of the target market or the market subdivisions according to consumer knowledge, attitude, use, or response to a product (Kotler and Armstrong, 2001).
There are studies which have shown that situational factors such as the personal relevance of an issue or the level of external distraction can influence the extent of message processing and thus the route to persuasion. Petty, Cacioppo, and Schumann (1983) found that the attitudes of individuals exposed to an advertisement under relatively high situational motivation were more influenced by the quality of the attribute claims in an advertisement than were individuals exposed to the same ad under low motivation conditions.
On the other hand, subjects in the low motivation conditions were more influenced by the celebrity status of the product endorsers than were subjects in the high motivation conditions. 1. Strategic Marketing Issues a. Customer segmentation In terms of customer types, the company segments its market into stable markets where it was able to maintain its leading position and emerging markets where the company targets to expand its business particularly in Latin America.
In relation to buying behaviors, APPLE IPHONE segments its markets according to usage patterns as well as size of orders. The company brings out different upgraded models every season and it also offers a variety of basic functional phones and luxury phones to meet different lifestyles. APPLE IPHONE develops its value chain to coincide with its market segments. According to Porter (1998b), customers expect to receive value in the product and service purchased from the company.
The value that customers expect from a product or service are lower cost or lower price for an excellent product or service and optimum benefits to customers. Market segmentation of APPLE IPHONE fits the market environment since it is focused on expected demand. APPLE IPHONE makes sure that it develops and produces its mobile phone devices and application according to expected demand from its market segments ensuring that its products are bought relative to its competitors. b. Market Selection/Focus
In a given market, APPLE IPHONE applies differentiated market segmentation. The company distinguishes the market according to different variables. First is selection based on the demands of individuals and business firms that explain its development of mobile devices applications that fits covers individual needs and those that provides business applications and software. Second is selection based on lifestyle such as basic functionality and fashionable mobile devices coinciding with differences in cost.
Although, APPLE IPHONE seeks to conquer different segments of the market, the company relies more on individual demands for its sales when compared to business needs while in the second selection variables the company develop mobile phones that are both functional and fashionable but leaning more towards affordability. This means that the company leans towards developing phones affordable to the general population but competes with the products of its competitors. These methods of market selection work in terms of long-term growth because the company is able to capture a respectable market share in emerging markets.