Marketing and Entrepreneurship I Phone Marketing

Question: Describe about the Marketing and Entrepreneurship for I Phone Marketing. Answer: Product and Company Background IPhones are the best-selling smartphones. They are products of the Apple Company. They have been trending in the market since 27th June 2007. Steve Jobs and Wozniak are the founders of the Apple Company. Tough it has not been proven; researchers believe that Wozniak came up with the companys name because of his love for fruits. Before forming this company, he was working in an orchard. It is a public company that develops computer hardware, soft wares, and consumer electronics, least but not last it ensures that there is energy production. It was founded 40 years ago, in April 1976 having its headquarters at Apple Campus Carolina in the United States of America. As at March 2016, the company has managed to build 478 stores in 17 different countries (Hamburg, 2008). It is a global company. It is evident as the IPhone smartphone is being used in all continents in the world. Other than producing IPhones, the company provides other products and services such as Mac book, IPod, Apple Tele vision, I-Pac, iTunes, Apple Store among many others (Hamburg, 2008). The company is approximately worth $72 billion dollars. IPhone is an outstanding smartphone; it has acquired a large market due to its unique perfect features. It has the usual phone features, but the company has elevated these features to a better level. For this reason, the company was able to sell 7 million cell phones in 2008 (Hamburg, 2008). These standard features include music players, internet, Calendars, Maps and YouTube among much more. The device uses an operating system similar to Mac book. It is an exclusive operating system that limits other organizations from using the system. It also restricts the occurrence of hacking and other cyber malpractices. The company has been upgrading the IPhone so as to ensure customer satisfaction. It is evident through the many inventions of the electronic. Today, Apple has invented IPhone 7 which has unique features, and we can see that the market is responding quite well to the product. Having a high market share has not been enough for the IPhone product; it is facing a lot of competition from other numerous companies. These products include Samsung, LG, and Neo (Al Swelmiyeen, Al-Nuemat and Kok, 2013). These products have come up with proper marketing strategies, for this reason, they have been able to convince some apple customers to consider their products. IPhone has therefore come up with better marketing strategies so as to maintain their good position. Nothing is entirely right; we can agree that completely satisfying customers are quite a difficult task. According to recent journals, some of the complaints the product has been receiving are as follows; Its hard to use the smartphone to text due to the complexity of the touchpad. The phone is too expensive. They recommend the company to come up with an easily affordable type phone to all people. It is locked to ATT. Some find this as an advantage while others as a disadvantage (Al Swelmiyeen, Al-Nuemat and Kok, 2013). Its hard to use. The phone is limited to the elite society. Limited distribution; IPhones have limited distribution, for instance, they are quite a few in Africa (Al Swelmiyeen, Al-Nuemat and Kok, 2013). From Economics class, we are made aware that scarcity leads to increase in price. IPhones in these countries are expensive therefore unaffordable. Only 1 in 100 in these continents owns an IPhone. Advantages are as follows; The phone is improving daily; therefore, one is assured of good quality and continuous improvement thus customer satisfaction. IPhones are pretty hence they can easily attract customers. Most companies are focused on making complex applications and forget about the beauty aspect of the project (Al Swelmiyeen, Al-Nuemat and Kok, 2013). They touch feel is quite friendly hence ease in use especially while texting. The gadget has a warranty. It is unusual for small electronics to have warranties. For the above reason, customers are gaining trust in the brand (Al Swelmiyeen, Al-Nuemat and Kok, 2013). The phone has good graphics hence enjoyable while using it. The features are of high quality. For instance, an IPhone camera differs primarily with other phones. Target Market The apple company has established itself well in the electronic industry. The company targets each and every customer. The organization has a diverse target market. It focuses on businesses, adults, children, and institutions. Research shows the following trends on Apple market as a whole; Men outnumber women in the purchasing of Apple products. The ratio is at 2:1. I believe it is the case in IPhones where we find more men purchasing IPhones compared to women (Walker et al., 2009). The average age of Apple customers is has an age cluster ranging from 35-44 (Walker et al., 2009). I believe this is the case because at this age most people usually settled and have a good career or good source of income. It is evident that most Apple product is quite pricey. Most teenagers are interested in these commodities. Statistics show that 1 in every four young adults is usually interested in these products and at least six months the teenager or young adult will purchase it. Research shows that most people buy a product because someone else refers it to them. It has been proven that in 72% of American residents are using IPhones. 94% have been referring potential customers to purchase the gadget. In return, the investments have risen by a high percentage making Apple one of the most top selling brands worldwide (Pogue, n.d.). However, IPhone has established itself to a particular type of market through market segmentation. For instance, it has been trying to target the generation Y (Pogue, n.d.). The generation is quickly incorporating technology in their daily lives. To this generation, technology has become not only a necessity but also a paramount requirement for their curriculum. For this reason, they require more advanced technology hence IPhone is trying to hit this market niche by producing various versions of the IPhone. There has been a critic on IPhone advertisements which have only been using gents to advertise the gadget. IPhone targets both female and male. So as to maintain a balanced market, IPhone has been using ladies and gents to promote their products. It has been evident that this strategy has been of great impact to the sales; both genders are purchasing the products. For this reason, Apple is making sure that it does not divide its market based on gender (Walker et al., 2009). We all know what someone earns greatly influences the products and the services one consumes (Walker et al., 2009). It is not possible for someone making peanuts go to the most expensive schools without a scholarship and keep up with the standards. Money is dividing factor. An IPhone 6 ranges between $735 - $964. It is quite pricey compared to other products. For IPhones we do not only purchase the gadget, but we buy quality goods. The price usually aims at compensating the quality of service IPhone offers. It is therefore, right to conclude that IPhone mainly targets high-income earners not because it is a classy commodity but because it aims at compensating for quality. We are aware of the common saying that cheaply is expensive. Psychographics. Some people are keen in appearance and technology. IPhone aims at satisfying these customers. In most cases, many people will buy IPhones because of the brand itself (Hockenberry, 2010). Many people feel obliged when using IPhones such type of individuals are usually imaged conscious. Therefore it is right to conclude that IPhones were designed for the technology lovers. Marketing Strategy Apple has been to maintain its market share due to excellent marketing strategies. Marketing strategies are quite crucial for a products success. A company might have the best products in the market but it fails to introduce and market it correctly the product will be of no essence. Some companies can maintain high sales not because they have the best products but because they have the best strategies to maintain a positive image in the market hence creating customer loyalty and psychological satisfaction (Warner, LaFontaine and Andron, 2011). One of the major marketing strategies for the IPhone company is premium pricing. Usually, people will go for what is expensive because they believe it is the best (Palepu and Healy, 2013). IPhones are quite pricey hence customers who can afford it will purchase it due to its price and the belief that cheaply is expensive. IPhones cost twice or thrice as much compared to Android phones (Warner, LaFontaine and Andron, 2011). For this reason, IPhones have been able to position themselves as the best amongst their competitors due to their pricing strategy (Lee, 2011). It is evident that when you buy an IPhone, you buy quality. IPhones stand out by using glass and aluminum compared to other phones that are using plastic. The gadget has good graphics and excellent applications (Lee, 2011). Advertising is also a marketing strategy for the product. Unlike many companies, Apple does not advertise their products through broadcast and print media (Hughes, 2010). It mainly focuses on social media and online distribution. When IPhone releases a new product, network carriers usually take the responsibility of advertising the product to the target customers. IPhones save up on advertisement costs and in return, network carriers can market themselves luring customers to use their network (Hughes, 2010). The company does this so as to maintain uniformity in their marketing. Most network carriers that advertise IPhones are usually very familiar with the market hence Apple is usually sure that the product information will reach all its consumers (Welch, 2012). Apple customers are never aware of the new version of IPhone being introduced to the market. In return, it makes customers eager on any new product from this company. Surprises at times are a good way of marketing. They resul t to crazy sales and clients get these new products with less anticipation. We all know many disappointments in life are a result of too much expectation. The secrecy strategy leads to quick customer satisfaction (Feiler, 2014). The company has also used brand management as a way of marketing itself (Welch, 2012). Apple has made sure that it has the best products and it stands out due to its excellent quality. By having good products, it has been unnecessary for the company to waste resources and energy on advertisements and marketing (Welch, 2012). We all know that good products quickly attract customers. IPhone conforms to quality. It, therefore, leads to customer satisfaction. The product has promoted professionalism and hip at the same time. It is quite difficult to incorporate the two. IPhone beats this by making their gadget professional enough therefore it is comfortable to use by IT lovers and geeks. At the same time, the organization produces a fun gadget. In conclusion, IPhone has established a way of beating other giants in the market. The product has been on sale for ten years, but it has come up with a strong marketing base. It has used it weaknesses to establish its strength and opportunities. In return, IPhones have gained a competitive advantage over other brands resulting in brand loyalty which is the key goal of all organizations (Lee, 2012). The only threat the organization has today is a change of leadership, unlike many agencies whose greatest danger is usually competition (Brown, 2014). IPhones are targeting all age groups but mainly ages between 35-44. IPhone prices have limited every Tom, Dick, and Harry from purchasing the gadget. The price of an IPhone is twice or thrice as much in comparison to other Android phone (Lee, 2012). For this reason, it is right to conclude that Apple did not just want to establish a regular phone but a good phone that stands out from other phones in the market. Their target market has a bro ad range of age, gender, income and psychographics. It tries to meet all these target markets by producing a product that conforms to what their target market needs. Apple Company also uses great marketing strategies that have been a significant contribution to their high market share. Their primary marketing strategy is pricing. Premium Pricing has contributed to high quality. The company stands out due to its good brand and price. Apple has been able to gain a competitive advantage due to customer satisfaction and excellent marketing strategies. References Hamburg, L. (2008). JurPC, pp.7-7. Al Swelmiyeen, I., Al-Nuemat, A. and Kok, A. (2013). Online arbitration in the social network world; mobile justice on iPhones. Information Communications Technology Law, 22(2), pp.146-164. Walker, G., Stanton, N., Jenkins, D. and Salmon, P. (2009). From telephones to iPhones: Applying systems thinking to networked, interoperable products. Applied Ergonomics, 40(2), pp.206-215. Pogue, D. (n.d.). IPhone. Walker, G., Stanton, N., Jenkins, D. and Salmon, P. (2009). From telephones to iPhones: Applying systems thinking to networked, interoperable products. 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