Promotions and Marketing of Apple iPhone
Dexter Coburn, DeChown Jenkins, Archie Johnson, Drew Rontii
BUSI 520_B19 – Strategic Marketing Management
Professor Christopher Huseman
June 26, 2014
Integrated Marketing Communication (IMC)
There are various Integrated Marketing Communication techniques that can be
used to ensure that consumers targeted were getting the best information that related to
their potential purchase. In the effort to better market our new iPhone, researching
different trends from other successful wireless carriers would be necessary. A
comprehensive IMC mix, that directly related to our product and services is imperative,
so that we maximize profit and exceed projections. “The emergence and the development
of IMC has been determined by a number of evolutionary trends in various areas of
marketing - the increased fragmentation and segmentation of markets, relationship
marketing and direct marketing” (Gurau, 2008, p. 23).
Integrated marketing communications (IMC) is a concept of marketing
communications planning that recognizes the added value of a comprehensive plan
(Kotler & Keller, 2012). Apple’s marketing mix incorporates the 4 Ps product, place,
price and promotion. Apple uses the attraction of the iPhone and its features to support
the smartphone markets. There are a multitude of such features that entice multiple
segments. They their place as in physical locations, stores in retail centers as well as
online stores and service provider outlets, like mobile phone retailers and the like.
Pricing mix includes cost, competition, discounts and geographic areas. Apple’s
promotion strategy includes pre-launch, launch, and post-launch activities including
various sub promotions like media leaks, TV advertising and digital campaigning
(Lamido, n.d.).
The integrated marketing communication mix components associated with the
Apple IPhone consist have been integrated through the marketing plan since conception
of the IPhone and the initial release of the product in 2007. The integrated marketing
communications also incorporates many aspects of marketing communications mix and
are adapted to the IPhone to ensure that customer satisfaction is achieved and that the
consumer is getting his or her needs met. The marketing communication mix
incorporates all aspects such as: advertising, sales promotion, events and experiences,
public relations, interactive marketing, word of mouth marketing and personal selling
(Kotler & Keller, 2012, p.478). When these aspects combined with the integrated
marketing communication mix, the Apple marketing department was able to achieve the
desired outcome of their marketing plan and has achieved the awareness level that was
desired where very few are unaware of the Apple IPhone.
The American Marketing Association defines integrated marketing
communications (IMC) as a planning process designed to assure that all brand contacts
received by a customer or prospect for a product, service, or organization are relevant to
that person and consistent over time” (Kotler & Keller, 2012, 495). Apple Inc. can utilize
IMC components such as general advertising, sales promotions, and public relations.
Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods,
or services by an identified sponsor (Kotler & Keller, 2012, G1). Sales promotion is a
collection of incentive tools, mostly short term, designed to stimulate quicker or greater
purchase of particular products or services by consumers or trade (Kotler & Keller, 2012,
G8). Public relations (PR) is a variety of programs designed to promote or protect a
company’s image or its individual products (Kotler & Keller, 2012, G7). Apple Inc. uses
advertising, sales promotions, and public relations to inform consumers while promoting
the iPhone.
Internet Marketing Possibilities
Internet marketing possibilities are infinite; however, deciphering the best
marketing opportunities has to be set as a priority. We will market our new iPhone
through multiple channels of communications, which will include platforms that will give
our product high visibility and exposure to markets outside of the predicted marketing
practices. To further enhance our marketing possibilities for our services, offering current
customers a discount for upgrades will also be included in our marketing technique to
garner more consumers to buy our new product. According to Schibrowsky, Peltier, &
Nill (2007), content analysis should be performed for internet-related marketing by
searching databases. The study should reveal that a specific percent of the internet
research is published over a period of time. This is particularly why it is so important that
the quality of the content distributed speaks to the desired audience.
One of the key demographics that Apple targets for customer base is the
technologically sophisticated youth. These are the under 30 market with some degree of
experience with their product line, as in iPod, iPad, or previous versions/editions of the
iPhone. These users are already on the internet and are visiting websites like YouTube,
Facebook, dig, twitter, Flickr, and Bebo as well as others (Osman, 2008). These are some
of the targets online communities targeted in Apple’s online marketing strategy.
Possibilities for marketing the iPhone using currently available marketing electronic tools
include not only the internet, but other media as well. From ad banners on recommended
search results to online radio stations pitching the latest release dates, the possibilities are
almost endless.
The internal marketing possibilities for the Apple IPhone consist that they could
potentially draw from within as far as ideas for creativity and utilize the resources that
they currently have from employees that have been around for a majority of the time.
The issue with internal marketing and Apple is that the company uses outside sources and
reports have shown that Apple is losing the edge to some of its competition. By using the
internal resources and ideas, Apple can hopefully recapture the market attention as it had
done with initially release. To market internally, Apple can offer incentives for ideas and
promotions created by its own employees and utilize a rewards program to spark that
drive into the current employees.
Internet marketing is marketing efforts done solely over the internet. It uses
various online advertisements to drive traffic to an advertiser’s website. Internet
marketing is a growing business mainly because more and more people use the internet
every day (Business Dictionary.com, 2014). International marketing strategists provide
marketing intelligence into the benefits of the internet’s power. Powerful drivers of
international internet-based marketing in business-to-business firms outweighs barriers to
its adoption and explains how innovation-diffusion theory identifies factors instrumental
in internet marketing (Eid, 2005, p. 266). Internet marketing opens endless possibilities
for advertising and promoting the iPhone. The iPhone can be advertised and promoted on
online news sites, sports sites, shopping sites, or any website that allows general access.
Social Media in Marketing
Within the social media world, marketing our new iPhone will have the presence,
considering this is where most of our potential consumers will come from. We will
launch multiple ad campaigns through Instagram, Facebook, and various social media
websites that have a high volume of traffic. In addition, we will create a series of forums
that will create a buzz and raise the curiosity of our new product with an anticipated
release date. Creating a momentum by getting people to talk about what is expected from
a new iPhone release will itself be a form of advertisement; “word of mouth”. Word of
mouth is the least expensive advertisement, considering that it will cost our organization
anything. Creating a buzz will trigger people to talk about the unknown about what they
think our new device will look like and so on.
As previously mentioned such social media outlets like Facebook, YouTube and
Twitter offer a wealthy source of information for consumers to collect. Apple employs
social media marketing tactics like the ones used by aimClear. Their tactics for social
media marketing include using the websites to draw off-site traffic and increase
conversations around other social media outlets. AimClear’s CEO says “…the biggest
challenge was changing people’s mindset that Facebook can be used for demand
generation, that it can be used to drive traffic outside of Facebook, and that this can be
done in a highly efficient way” (Rodriguez, 2013).
The use of social media in the marketing plan for the IPhone has increased
exponentially over the half decade through media channels like Facebook™ and
Twitter™ that were not available to firms at the turn of the century. How this has played
into marketing is that firms are now able to either advertise for a specific price for
advertisements to scroll across Facebook pages or to essentially provide and
advertisement with limited characters through the firm’s twitter feed allowing all those
who follow the company to be instantly updated on anything that is of relevance to the
company (www.twitter.com). Consumers also have access to blogs where virtually
anyone can provide their personal opinions and evaluations of any item that they wish.
This is part of the word of mouth advertising campaign that the marketing managers
would rely on and that the individuals that read these reviews would see the positives
aspects of the IPhone and would have the information available to them; and this cost the
firm absolutely nothing.
Social media are a means for consumers to share text, images, audio, and video
information with each other and with companies and vice versa (Kotler & Keller, 2012,
546). Social media is an umbrella term that defines online technology used to share
opinion, insights, experience and perspectives. Social media are low costs marketing
tools that help in building networks, instant dissemination of information and encourages
trust and confidence of public (Gupta, 2013, p. 293). The Apple iPhone can be marketed
through social media by several forms such as text, images, audio and video.
Surveying Current Promotional Efforts
In surveying the current promotional efforts for our product and services, our
organization is doing an excellent job in delivering the very best customer satisfaction.
Just recently, JD Power & Associates awarded Apple for delivering excellent customer
service on a global scale.
The 9 in 10 (2010) study found the following:
Researchers found almost nine in 10 Apple customers felt "pleased" about their
computer purchase. The American Customer Satisfaction Index, found there had
been a four per cent improvement in the way people felt about their computers,
reports the Telegraph. Apple led the way with 86 per cent of buyers reporting they
were happy with their purchase.
As it is the case with the purchase of a multi-purpose device, the iPhone delivers
on the promises of initial marketing campaigns by providing a versatile hand-held device
to connect people to information, communication, and entertainment. Value for customers
of the iPhone is less device handling for the same functions, more connectivity to web-
based information, more capability for entertainment options and media, such as movies,
music and applications. Other related values associated with the iPhone are the
convenience factors associated with the compatibility and accessories market. Apple has
carved out a niche market with several branded partners, but maintains a stronghold on
their own brand. As a result of the multitude of copycat partners, the iPhone has stepped
out as a distinguishable mark of quality. This brand recognition is another value for the
consumer; it represents the reputation that Apple has built up as an industry leader in their
marketplace.
The promotional efforts of the Apple IPhone are mainly tied to the phone carrier
that is offering the phone. Apple initially started out as having exclusive rights with
AT&T™ (Mickalowski, Mickelson, and Keltgen, 2008) as the sole carrier that offered the
IPhone on their network. Having the rights shared throughout all providers now allows
for the provider to work with Apple to determine if any promotions would be offered.
Conversely, if Apple wanted to offer a promotion on the phone it would have to
communicate this plan throughout the companies that carried the phone to ensure that
these companies knew what was happening in order to make sure consumers would be
aware of the plan.
At several points in time, consumers are able to go through their provider and
“buy” the IPhone for zero down with a two year commitment with the provider. Other
deals such as buy one, get a second for a reduced price has been offered as well as
consumers being able to buy the phone outright for manufacturer’s price and finding their
own company to provide service.
The value-delivery system is described as all the expectancies the customer will
have on the way to obtaining and using the offering (Kotler & Keller, 2012, G9).
Promotional efforts can come in the forms of coupons, samples, cash refunds, prizes, free
trials, and other forms (Kotler & Keller, 2012, 521). Consumers need to exert effort to
use the incentives provided in a promotion campaign. This effort is critical in the
consumers' decision process and for the success of the campaign (Dogan, 2010, p. 755).
When Apple iPhone consumers learn that they can trade-in an older version of the iPhone
for a newer model of the iPhone, consumers learn the true value is delivered in their
product.
Socially Responsible Marketing (SRM)
There are many firms that have set a great example of how socially responsible
they have been by ensuring that are sensitive to people’s culture, beliefs and
environments. Linkedin has set a good example of protecting their users information and
creating a positive environment that respects other people’s culture and environments.
“The Company's ability to deliver broad-based solutions provides its customers a "one
stop shop" to fulfill their staffing needs from professional services and consulting to
clerical and light industrial positions. Depending on the size and complexity of an
assignment” (Corporate, 2014, p. 23). This speak volumes regarding enhancing the
customer experience in successfully engaging within the social media world responsibly.
Some companies build their social responsibility by sharing their firms core
values, building brand awareness, and promoting products (Suttle, 2014). Firms that
identify with a particular set of values like holistic pet food manufactures such as Blue
Buffalo, embrace a commonality with consumers that share a passion for all natural foods
and no processed ingredients in their pet food. Other firms and non-profits associate
themselves with a cause that garners national attention. Zuffa LLC is the parent company
of the Ultimate Fighting Championship (UFC), while unappealing to a large market.
They have associated themselves with the Wounded Warrior Project and this association
while mutually (financially) beneficially the UFC realizes a greater return due to the draw
that the WWP’s supporters have on the UFC’s products. Additionally companies like
Tide join forces with non-profits to give their products away. In a typical market, giving
products away will net a loss, but if the act was in conjunction with a natural disaster and
they were working with the Red Cross, consumers may associate a strong emotional
response to the brand recognition and it will pay dividends later.
Socially responsible marketing of the firms within the cell phone industry offer
advertisements through all sorts of media channels from radio to television, and the
information that is provided is generally about new features, how the new product stacks
against the competition, and price. With the new development of social media avenues
such as Facebook™ and Twitter™, firms are able to provide this information to
customers in limited amount of information at a time but must understand the
responsibility of providing the facts to the consumer.
Presently, firms such as Apple and Samsung market their products based on how
they compare to the competition and how the other phones compare to their product. The
potential problem that exists is that if the companies are not marketing responsibly, they
will mislead consumers into believing that the product that is provided is the market
leader. The impact of a marketing campaign that is misleading will undoubtedly have a
negative impact on firms and their ability to maintain customer loyalty and have return
customers.
Effective internal marketing must be matched by a strong sense of ethics, values,
and social responsibility. Many forces such as rising customer expectations and, evolving
employee goals and ambitions, drive companies to practice a higher level of corporate
social responsibility (Kotler & Keller, 2012, 629). Starbucks set standards for itself in the
area of social responsibility concerning the battle between Global Exchange and
Starbucks over Fair Trade (Argenti, 2004, p. 91). Starbucks helped improve its public
image by setting social responsibility standards for itself, as opposed to standards being
established after a negative incident or occurrence.
Socially Responsibility Suggestions
In order for Apple Inc. to maintain their corporate social responsibility they must
continue to embrace internal and external CSR policies in the form of codes of ethics
(internal), supply chain accountability, human and labor rights and environmental policies
and transparency in action and reporting (van Dijk & Schipper, 2007). Using these key
strategies, Apple Inc. can ensure that consumers are getting a product that does not
violate rights, standards or behaviors that could call into question their corporate integrity
nor their commitment to respect and dignity of their workers and environmental
awareness.
Suggestions that would be offered to Apple in regards to be more socially
responsible is to ensure that consumers understand the risks associated with owning a
device that allows you to download any application regardless of dollar value and the
implications this could have if these bills are not being paid. Additionally, the firm could
conduct research on the effects that using the device for long periods of time could have
on the body and display this data for the public to have access too.
Several companies and educational institutions have conducted the research on
the phone and this information is rarely made available to the public on a grand scale
which the firm could incorporate into the user’s manual or other informational
brochures. The social media platform will continue to expand and will more than likely
be more accessible to all genders and ages before a matter of time, so the firms in the
marketplace will need to keep this in mind so as to not intentionally mislead consumers
with a malicious intent.
Corporate Social Responsibility has attracted global attention in an integrated
world economy. Proponents believe that the corporation is obligated to promote social
progress due to its dependence on society. Opponents argue that corporations’ obligation
is to maximize shareholder wealth (Morrison & Bridwell, 2011, p. 144). Apple Inc. could
greatly improve its image and consumer loyalty base by committing to research
concerning cell phone use being linked to brain cancer, or other perceived adverse
reactions to cell phone use. The perception of most consumers would be that Apple Inc. is
a socially responsible corporation and cares about its customers’ health and welfare.
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