Marketing of iPhone - Essay Example

Marketing of IPhone Contents Introduction 3 2. Review of the literature 4 3. Methodology 9 3 data and sources 10 3.2 Research Approach: 11 3.3 Sampling frame 11 3.4 Sampling Technique 11 3.5 Sample Size: 12 3.6 Ethical Consideration: 12 3.7 Limitations: 12 4. Conclusions 12 5. Strategy for Dissemination 13 References 14 Appendix 16 1. Introduction The present epoch of quick globalization and rising competition, the companies are continuously getting determined towards expanding and capturing the maximum market share with their products. Here the word “Market” implies the consumer base. Today, the whole world has turned into a market and the complete populace of the globe has become the consumers of all the manufacturers, which has become possible with the advent of technology. Just some years back the process of shopping used to be a multifaceted task and the sellers used to feel a great deal of hurdles while selling apparels and jewelleries in a foreign country. Today the progression of technological expertise has made it feasible to fetch the consumers throughout the globe at the virtual store where the individuals are permitted to look through, pick, try out and pay without being actually there at the shop. This hi-tech development has in turn stimulated the quantity of competition among the companies and the procedure of modernization has been incessantly tailored by every company with the aim of drawing the consumers. A nation’s wealth is exceedingly enthused by the manufacturing and utilization phase on one hand. However on the further side the sequence of fabrication and utilization is completely reliant on the demand of the purchasers and the availability of products by the market person as per the demands. Consequently it is the primary aim of every company to persuade and please its consumers and provide them with the claimed goods and services. The aim of this research is to find out the marketing strategies taken by electronics giant Apple to reach its targeted consumer for the product iPhone. Being the most innovative organisation in its sector and having largest market share in the developed market it is challenge for Apple to reach its entire customer with limited time period. This study will help people to understand Apple’s iPhone marketing strategy in this ever changing competitive world. For this research both primary and secondary research approach will be taken. For primary research both qualitative and quantitative questionnaire will be made and distributed among the respondents. For qualitative questionnaire interview method will be used and for quantitative questionnaire survey method will be used. Probability sampling will be used for quantitative data collection method and non probabilistic data collection technique will be used for qualitative data collection technique. 2. Review of the literature When a company fails to make available the vital goods and services to its patrons, its clients shift to the alternate company that provides similar kind of goods and services thus forcing the company to lose its share of market that evidently takes the form of a upsetting conclusion for the company. Consequently every company finds it hard to keep hold of their on hand client base since it is supposed that a happy customer is equivalent to a commercial for the business and preserving the present consumer is more lucrative than swapping them with the fresh bunch of customers (Hawkins, 2010, p.22). It is though a complicated job to appreciate what precisely pleases a purchaser. A number of people might get engrossed towards a lesser charge whilst a few consumers might experience that lower price reflects a reduced quality. Consequently it turns out to be hard for the company to evaluate the consumer’s hope and decide the price in view of that as every client has diverse requirements. Therefore it is essential for the companies to review the sector inside which it markets its commodities and to segment the market as per the needs and inclination of the patrons. According to the merchant research findings of Future source, it has been seen that app with fingerprint sensor has become the most popular among consumers and Apple has integrated the most desirable retina display to its new iPad mini. The old iPad mini had a resolution of 1024*768 but the new mini has upgraded resolution of 2048*1920 with retina display and it is same as the iPad air: 326ppi. When we compare Apple devices with Android devices like Samsung galaxy tab 37.0: 1024* 600 (168ppi), Nexus 7 and the Kindle fire then iPad seems to be the best among all other devices. Apple has combined iOS7 and its own idea to improve the performance of mini iPad and to lead the market of corporate and education. IOS7 further includes updated mobile device management and app licensing options which allows educational institutions to assign necessary apps to its students or teachers while the ownership of the app license stays with the institute. Users can enroll in it by using their Apple IDs and there is no need to provide the information to their workplace or institution which makes it easier for users to use their own iPads to access the contents. In addition, the new mobile device management option automatically enrolls the devices in it during the initial set up and manages the other apps and options. In fact Apple TV also has the ability to get enrolled in any MDM system and allows the MDM to share its screen during meetings or lessons. Last but not the least, Apple has added a new option called Airdrop which has been created for institutions and corporate to transfer files easily between devices and it has added an additional flavor to the new iPad mini. In quarter 4 of this year, it can be expected that sales of iPad mini will increase with the festive season and the $30 price drop in it has added an additional advantages to the premium product. Federal Court of United States rejected Apple’s accusation of infringement of the patent law by Samsung in its Galaxy tablet models. According to Apple Inc., Samsung breached intellectual property and patent law two times in Galaxy tablet models which is not acceptable in international marketing. To protect iPad from South Korean competitor Samsung, Apple the electronic giant from United States, run several steps and methods and kept secret it till its launch in the market. Judge finds out that there are several flaws in Apple’s petition of case which were not acceptable for a respectable organisation like Apple. Later in the decision it is been said that Samsung did not copied the outline of the IPad into galaxy tablets but again Apple appealed in front of trial court to review the outline range of iPad and galaxy tablet. By the mean time it became a topic of debate that in front of multicoloured and attractive designed galaxy tablets iPad are featureless. But trial judge understood the simplicity of Apple’s iPad and said for customer simplicity is more attractive than external hi-fis and suggested Apple to take their case into Supreme Court. Now the two giants are putting fingers on each other in several court of the world (outside United States) for patent infringement. In Europe, South Korea, Australia and British property courts these two electronics giants issued infringement charges on each other which was completely unimaginable for its customers. Source: Apple Inc., 2013 In California, Apple won the case and got six hundred and sixty four pounds penalty from Samsung for the charge of its both iPhone and iPad technology copied in android devices (Batra & Kazmi, 2009). In pre Steve Jobs era Apple did not think about producing low cost product for the developing and under developed world. That time Apple had the maximum market share and in innovation they were hundred miles ahead of their competitors. But later in post Steve Jobs era when the difference between Apple and Samsung reduced drastically and they came on the same platform, new CEO of Apple Tim Cook felt the need to capture the emerging market of South America, South Africa, South and East Asia (E marketer, 2013). As purchasing power of the people of developing world is lower than developed world of United States, Europe, Canada, Australia and Japan so Apple had to come with a lower price variant product which was iPad mini with a screen size of 7.85inch. In October 23 (in this date all the innovative product of Apple is launched) of 2012 iPad mini was launched with the price range for only Wi-Fi models are three hundred and twenty nine dollars for sixteen gigabytes, four hundred and twenty nine dollars for thirty two gigabytes variant and five hundred and twenty nine dollars for sixty four gigabytes variants. Price ranges for combined of both cellular and Wi-Fi models are four hundred and fifty nine dollars for sixteen gigabytes variant, five hundred and fifty nine dollars for thirty two gigabytes model and six hundred and fifty nine dollars for sixty four gigabytes model (Sparks, 2012). In second quarter of 2013 android topped in the market share over Apple’s iOS by having sixty seven percent market shares. In second quarter of 2013 51.7millions tablet been shipment worldwide and android got sixty seven percent of that total share but iOS from Apple’s market share gone down by twenty eight percent in that quarter with only 14.6 million shipments in that time period. Only 4.5% market share gone to Microsoft’s windows. To get more market share Microsoft reduced its price by one hundred and fifty dollars in developed countries of North America and Europe and more in developing countries of South America, South Africa and Asia (Breeze, 2013). But still those products are considered as premium products in those developing nations compare to local brands. According to market researcher Peter King in the second quarter of 2013 shipment of branded tablet rose to forty seven percent higher than the previous year and reached to 36.3millions units. Some revolutionary apple products during Steve Jobs era are Apple II (1977), Macintosh (1984), iMac (1998), iPod (2001), iTunes (2001), Apple stores (2001), iPod Nano (2005), iPhone (2007), iOS Store (2008) and iPad (2010). Products of after Steve Jobs era are iPhone 4S, IPhone 5S and 5C, iOS 5, MacBook Air, Siri, IPad 2 and OS X Lion. Reason behind Android’s rapid progress is its international hardware partners like Google, Amazon, Samsung and White-Box. Apple’s another revolutionary product was its retina display iPads which made huge success in the second quarter of 2012. But iPad mini could not able to show the expected result which was only 14.6million units in quarter two of 2013 (Halliday, 2011). 3. Methodology In order to write a good research an authentic and successful research method is needed to be followed. Market research gives us very highly relevant data, these data’s can be processed analyzed and use in various techniques. Hidden knowledge of market research enlighten researcher during and after the research is completed. By the market research responses from very wide range of population can be collected they can be stake holders, channel members, employees, competitor and customer or consumers (McDaniel & Gates, 1998, p. 5). Two types of market research are very popular- primary and secondary. For primary research, researcher make questionnaire that can be two types close and open ended. Close ended questionnaire will be distributed to the general people for their responses and experts will be interviewed with open ended questionnaire (Kolb, 2008, p. 12). In secondary research information will be collected from scholarly journals, magazines, news articles and organisation’s annual reports, books written by recognised authors and governments or universities websites. For this dissertation both type of research approach will be accepted. Quantitative questions are for survey purpose and for face to face and focus group interviews qualitative questions will be used (Lapan and et.al, 2011, p. 2). For close ended questions researcher provide probable answers as options which seemed to be accurate to the researcher. For this topic both type of questionnaire will be used. The quantitative data will be collected through the distribution of close ended questionnaires while the qualitative data will be collected through the means of open ended questionnaires (Goddard & Melville, 2004, p.8). Interview and observation can also be considered as significant tools for data collection. For quantitative questionnaire sample will be selected randomly who have knowledge about iPhone that is probability sampling but for qualitative questionnaire sample will be non probability type and researcher have to choose them from the total mass the experts of marketing who can describe the marketing of iPhone (Panneerselvam, 2004, p.6). 3.1 data and sources For primary market research designing the questionnaire is the most important factor. Questionnaire can cover a greater number of respondents in minimum time limit. In the time of making of questionnaire researcher always have to conscious that research should not get away of the previously selected path of research (McBurney and White, 2009, p. 246). Here researcher wants to find out the significance of marketing approach taken by Apple Inc. To do that the researcher will make two set of questionnaires for two groups’ respondents. Open ended questionnaires will be qualitative type for expert respondents and close ended questionnaire will be quantitative type for survey method (Malhotra & Dash, 2009, p. 81). Responses for close ended questions will be in pre determined format provided by the researcher. Those responses take lesser time to analysis as those answers are predetermined by the researcher and according to the research topic. But in open ended questions respondents have the liberty to express their own views and ideas (Thomas, 2003, p.2). Before doing the survey method questionnaire need to be tested among the selected group of members like a mock survey (Beri, 2010, p. 18). This will increase the accuracy of the questionnaire and any clerical errors or conceptual errors will be eliminated. 3.2 Research Approach: Both type of sampling technique will be used probability and non probability. For probability sampling, quantitative questionnaire will be used and data collection method will be survey. For non probability sampling, qualitative questionnaire will be used and data collection method will be interview. 3.3 Sampling frame Sample for primary research will be in diverse nature to keep the diversity among the data and make the findings more accurate. Random sampling method can do that. But to keep the research approach clear and according to the goal experts from the industry will be kept with the general respondents so the responses will not be biased or one sided (Silverman, 2011, pp. 3-5). 3.4 Sampling Technique Simple random sampling technique will put diverseness in the findings. If both the experts and general people’s responses are analysed simultaneously then research will present a very relevant conclusion. In United Kingdom most of the people uses iPhone so it will not be a problem for the researcher to search for the user and recent launch of iPhone 5S and 5C puts marketing strategy of iPhone’s again in top of the list (fns.usda.gov, n.d.). 3.5 Sample Size: As both type of data collection methods will be used so two different set of questionnaire will be made. First set of questionnaire will be quantitative type which will consist of eight questions and given to fifty different respondents who have used iPhone. Second set of questionnaire will be given to marketing experts and advertisers from industries. Which will be five questions and sample size will be three industry experts (Ad age data works, 2013). 3.6 Ethical Consideration: During the research process no pressure or any kind of force will not put on any respondents or organisations. All the responses will be properly taken from the respondents according their will and intention. Respondents have the liberty to skip the questions which they feel uncomfortable to response. No persons or organisations name will be disclosed except their willing in this research. 3.7 Limitations: As time and fund both are limited so this research needs to be completed in very short time and sample size also will be less. Getting appointments of marketing experts from different industries is very tough as they are very persons with their work. Collecting their interviews is also a tough job. Mailing the questionnaire to fifty different iPhone users is also a time consuming matter internet and server problem can hamper that. 4. Conclusions This is the concluding part of the study which will restate the entire study in a brief manner. Moreover this part will discuss how Apple is tackling the changes of customer behaviour as a challenge and implementing it in their products. Difference of consumer behaviour pre Steve Jobs and post Steve Jobs era. The recommendation part will suggest the marketing department of Apple Inc., some means for improvement so that they can acquire a larger consumer base in the future. As first in the market what are the marketing strategy been used by Apple to attract customers and make them more interested towards a new product at the first launch of iPhone. Then recent launch of iPhone 5S and 5C what change come to Apple’s marketing strategy in last seven years will be discussed. In this year Apple been slipped to the second in the list from the first position in number of shipments in global market and also iOS lost the market leader spot to its rival from another United States tech giant Google’s android. So what the changes Apple required to change its marketing to again get back to the number one spot will be discussed here and suggestions and recommendations will be stated here. 5. Strategy for Dissemination Quantitative data will be putted on the excel sheet and then it will be drawn by the pie chart. Different colour will represent different group respondent’s responses. As many people chooses a single response that will be treated as the current trend of the market. Analysis of quantitative data will be done just after the presentation of it. For qualitative data presentation and analysis of it will be done in the same points. These data need to be representing properly as they are descriptive type and views from market experts is stated there. Advertisers and experts of marketing from different industries who have significant amount of knowledge in marketing and who knows the marketing of iPhone can have their own views and ideas. So they should not be including in the close ended survey method data collection. For them open ended questions in interview method will be appropriate enough. References 1. Hawkins, 2010. Consumer Behavior. India: Tata McGraw-Hill Education 2. Batra & Kazmi, 2009. Consumer Behaviour. India: Excel Books India. 3. E marketer, 2013. One-Third of UK Population Now Use Tablets. Available at < http://www.emarketer.com/Article/One-Third-of-UK-Population-Now-Use-Tablets/1010264>[Accessed on 4th January 2014] 4. Breeze, H. 2013. Samsung tablet growth threatens Apples market lead. Available at < http://www.channelweb.co.uk/crn-uk/news/2286972/samsung-tablet-growth-threatens-apples-market-lead>[Accessed on 4th January 2014] 5. McDaniel, C.D and Gates, R.H., 1998. Marketing Research Essentials. USA: South – Western College Publishing. Online 6. Lapan, S. D., and et.al, 2011. Qualitative Research: An Introduction to Methods and Designs. San Francisco: John Wiley & Sons. 7. fns.usda.gov, n.d. An Overview of Sampling. Available at http://www.fns.usda.gov [Accessed on 4th January 2014] 8. Ad age data works, 2013. Whats Quantitative Data? Available at http://adage.com [Accessed on 4th January 2014] 9. Silverman, D. 2011. Interpreting Qualitative Data. Great Britain: SAGE. 10. Halliday, J. 2011. The Guardian. Apple’s top 10 products. Available at [Accessed on 4th January 2014] 11. Sparkes, M. The Telegraph, 2012, Apple loses Samsung tablet patent appeal. Available at [Accessed on 4th January 2014] 12. Kolb, B., 2008. Marketing Research: A Practical Approach. California: Sage Publications Inc. 13. McDaniel, C.D and Gates, R.H., 1998. Marketing Research Essentials. USA: South – Western College Publishing. Online 14. Goddard, W. & Melville, S. 2004. Research Methodology: An Introduction. Juta and Company Ltd. 15. Panneerselvam, R. 2004. Research Methodology. PHI Learning Pvt. Ltd. 16. Malhotra, N. K. and Dash, S. 2009. Marketing Research: An Applied Orientation. 5th ed. India: Dorling Kindersley India Pvt. Ltd. 17. Lapan, S. D., and et.al, 2011. Qualitative Research: An Introduction to Methods and Designs. San Francisco: John Wiley & Sons. 18. Thomas, R.M., and Brubaker, D.L., 2000. Theses and Dissertations: A Guide to Planning, Research, and Writing. USA: Greenwood Publishing Group. 19. McBurney, D.H. and White, T.L., 2009. Research Methods. Eighth Edition. USA: Cengage Learning. 20. Beri, G.C., 2010. Business Statistics. Third Edition. New Delhi: Tata McGraw Hill. Appendix   Time Line (Weeks) 1 2 3 4 5 6 7 8 9 10 Activities 1. Draft Proposal                       2. Preparing Questionnaire                       3. Literature Review                       4. Prepare Budget                       5. Primary Research                       6. Data Collection                       7. Data Analysis                       8. Findings of Research                       9. Prepare First Draft                       10. Final Dissertation                     Read More