Marketing Communications - Product Awareness and Attributes - Essay Example

1. INTRODUCTION…………………………………………..……………………………………………………………………3 1. IPhone Situation analysis………………………………………………………………………………………3 2. Market share………………………………………..……………………………………………………………...4 1.3. Product awareness and attributes………………………………………………………………………..4 1.4. Competitors………………………………………………………………………………………………………….5 1.5. Current marketing communication plan ……………………………………………………………….6 1.6. SWOT analysis………………………………………………………………………………………………………7 1.6.1. Strengths………………………………………………………………………………………………………..7 1.6.2. Weaknesses…………………………………………………………………………………………………….7 1.6.3. Opportunities………………………………………………………………………………………………….8 1.6.4. Threats……………………………………………………………………………………………………………8 2. OBJECTIVES……………………………………………………………………………………………………………………..8 3. STRATEGY………………………………………………………………………………………………………………………..9 3.1. Push strategy………………………………………………………………………………………………………..9 3.2. Pull strategy………………………………………………………………………………………………………….9 3.3. The profile strategy……………………………………………………………………………………………10 4. TACTICS………………………………………………………………………………………………………………………….10 4.1. Advertising …………………………………………………………………………………………………………10 4.2. Sales promotion………………………………………………………………………………………………….11 5. TARGET AUDIENCE…………………………………………………………………………………………………………11 6. MANPOWER ………………………………………………………………………………………………………………….11 7. MONEY…………………………………………………………………………………………………………………………..12 8. MINUTES…..……………………………………………………………………………………………………………………12 8.1. TV……………………………………………………………………………………………………………………….12 8.2. Print media ………………………………………………………………………………………………………..13 8.3. Internet………………………………………………………………………………………………………………13 8.4. Sales promotion………………………………………………………………………………………………….13 9. MEASUREMENT……………………………………………………………………………………………………………..13 10. CONCLUSION………………………………………………………………………………………………………………….15 REFERENCES…………………..………………………………………………………………………………………………….…15 1. INTRODUCTION Integrated marketing communication is not a new concept; it has evolved over the years and has been defined differently by different people. It has been defined by American Association of Advertising Agencies as “a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communications disciplines e.g. general advertising, direct response, sales promotion and public relations – and combine these disciplines to provide clarity, consistency and maximum communications impact” (Fitzgerald, Arnott 2000, p. 4). A marketing communication plan aims at building market awareness of a product or service. It also aims at coming up with the ways and means of reaching the market and impacting it as much as possible The product in this marketing communication plan is the iPhone and this plan has been designed using the SOSTT+4Ms structure (Blythe 2006, p. 53) 1.1. IPhone Situation analysis IPhone is a brand of smartphones created and marketed by the Apple brand. It was introduced for the first time in the market in 2007 and has undergone four transformations. Currently, the most advanced of the iPhones is the iPhone 4, which has greater capability than the first three generations of iPhones that were introduced into the market. The first two models of the iPhones have ceased being produced. IPhones were the first to add a compass and a front facing camera to their features. The first iPhone was made public in 2007 and it immediately received massive approval in the market with millions of sales being made in the months to come. A year later the iPhone 3G was introduced in the market again and in 2009 the iPhone 3GS was introduced. This latest model was much cheaper than the others, as Apple was making an attempt to get a hold of a larger market than with the first two generations of iPhones. With the iPhone 4 being the latest model in the market, the iPhone 3GS is the cheapest model in the market (Apple Inc., 2011). 1.2. Market Share Upon the introduction of the iPhones into the market, sales have shot through the roof. Millions of sales were made in the first few quarters of the existence of the iPhones in the market. By the end of the financial year 2010, there were more than 72 million units of iPhones sold all over the world. It is expected that 2011 will show a tremendous improvement in these figures thanks to the introduction of the iPhone 4 into the market. Currently, the iPhone holds more than 50% of the worlds profit in mobile phone sales and has for a while surpassed the sales of well known brands like blackberry and Nokia. In the first quarter of 2011, iPhone sales have increased compared to the same period in 2010 and the figures stand at 18 million units. It is expected that these numbers will increase in the second quarter of 2011. 1.3. Product Awareness and Attributes Thanks to the fact that the iPhone is now more versatile and cheaper than the first two generations, more and more people are buying the iPhone for its tens of features that allow for communication versatility. There are iPhone users in every age group with the majority being those in the 30-40 age groups and the least being those in the 60+ age group Among the tens of features of the iPhone includes the following; the iPhone has a 3.5 inch touch screen, which is deactivated when the iPhone is brought close to the face. Each of the four generations of iPhones has different attributes, with each one being an improvement of the former. Each one is accompanied by a headset and the most current one provides volume control, which was not the case with the first generations of the iPhone. The tens of features of the iPhone include the inbuilt Bluetooth and a long lasting battery. The battery has received a lot of criticism in the last few years for its inferior quality, which is not exactly what Apple claims. The original iPhone and the iPhone 3G had a 2.0 megapixel camera while the iPhone 3GS had a 3.2 megapixel camera. The latest version of iPhone, the iPhone 4 boasts of a 5.0 megapixel camera which is accompanied by an LED flash. The iPhone4 has two cameras and is capable of SD video recording as a result. The storage capacities of the iPhones differ depending on the model; the first model had a storage capacity of 4GB and the next generation had a capacity of 8GB. The iPhone 3GS came in two different variants, the 16GB and the 32GB capacity. The iPhone allows for call merging and audio conferencing. The fourth generation iPhone allows video conferencing and video calling. Internet access has been enabled when connected to a local area network. 1.4. Competitors This world famous brand has had to deal with relatively stiff competition from some brands in the same industry, like the Motorola brand; whose introduction of the Motorola droid has had the iPhone brand on its feet. With new features like the Google maps navigation, multiple email accounts and calendars with personal details like messages and contacts from different sources being put into single lists, the Motorola droid has been a breath of fresh air for the company and being a much cheaper option compared to the iPhone, it can provide stiff competition. At the introduction of the first generation of iPhones, this brand had to compete with the likes of blackberry which it has managed to trump over the years. In the mobile phone market iPhone holds the largest share and brands like Nokia and Motorola are bowing down to the pressure although Android is still giving the iPhone brand a run for its money. IPhone has the advantage of consumer loyalty in its market and thanks to the loyalty of many of its users to its brand, the Apple iPhone constituents to hold the largest percentage of its market. 1.5. Current Marketing Communication Plan The apple brand; which the iPhone is part of has been involved in branding for quite a while. Micael et.al (2009, p. 25) emphasizes the importance of branding saying “the purpose of marketing communications is to develop a continuing dialogue with target audiences to build brand equity, brand dominance and brand prospects”. IPhone’s branding strategy is based on the removal of complexity in the lives of the users and offering a simpler versatile tool for communication to its users. Being an all-in-one product with tens of uses it has been able to maintain this personality. Consumer experience is critical to apple and this is the center of its marketing strategy with all its electronic gadgets including the iPhone. The designs of all the iPhones is meant to give the best experience to its customers. 1.6. SWOT analysis A SWOT analysis is the examination of the company’s strengths, weaknesses, opportunities and threats. According to Kenneth EC (2007, p. 31) this analysis “identifies marketing problems and opportunities present in the external environment as well as internal company strengths and weaknesses”. Following is the SWOT of Apple and its product under discussion, iPhone. 1.6.1. Strengths Worldwide reputation for high quality products Its high market share Versatility of the iPhone; many functions in one Attractive designs and interesting applications iTunes Large storage capability Resistance to viruses 1.6.2. Weaknesses Very expensive unaffordable by many people The lack of models that are cheaper; this opens doors for competitors Limiting of customer options to AT&T only 1.6.3. Opportunities There is still an opportunity for expansion into other markets since it is still held in high regard There is still an opportunity for the creation of cheaper models that will enable it to further strengthen its hold in its market 1.6.4. Threats Competition from cheaper and more versatile models 2.0. OBJECTIVES The objective of this marketing plan is to get rid of the weaknesses of this brand as much as possible. We all have to agree that the iPhone is a phenomenal product that is miles ahead in the mobile phone market. Its launching in 2007 has opened doors to even better launches and improvements in the performance of this product and even with the saturation in the mobile phone market, there is no doubt that the iPhone is far ahead. The pricing of the iPhone is its biggest flaw; and the main reason it could have succumbed to competition if it were not for its superior quality. The objective of this marketing plan is to bring the prices lower without betraying the loyalty of its customers who bought the iPhone when it was at its highest price. While there is a genuine fear of the loss of quality with the reduction of the price, this is something that can be taken care of for the sake of opening up new markets for this brand. The other objective of this marketing plan is to stop the limitation if customers to AT&T which is severely reducing their options of communication since AT&T is not exactly known for its assistance to customers. 3.0. STRATEGY According to Pickton & Broderick (2005), a marketing communication strategy “provides the direction for all those involved in the campaign to follow.” In other words, this is the means through which the objectives of the marketing plan are achieved. The pull, push and profile strategies are used in this marketing plan. 3.1. Push strategy The push strategy involves the improvement of the communication between all the players in the distribution channel. Interaction between the buyer and the seller depends on the medium that is used for communication. Currently the internet is the fastest medium of communication that will enable instantaneous interaction between the buyers and the sellers. When the push strategy is used the buyer is able to know the demands of the client and he will be able to fulfill them in the best possible way. 3.2. Pull strategy This will be perfect for those markets that iPhone has not explored yet. In this strategy, the seller will manufacture his products according to the market demand. For example, there are those markets that have not been explored because of the pricing of the iPhone. What needs to be done in this case is the encouragement of online selling of the cheaper iPhones which will only be delivered upon the demand by clients from wherever in the world. The pull strategy is best used when the demand for the product is high and when there is brand loyalty. IPhone can be confident that its product is in demand and it has many loyal clients from all over the world. When awareness and demand is there, targeting the product with right message to the right audiences will definitely lessen risk, promote involvement and eventually provoke a motivation within the target group (Fill 2002). 3.3. The profile strategy This is best used when the seller wants to reach different markets; each with different demands for the same products. In this case the seller will create profiles. In this case, iPhone will adopt different strategies for different markets to achieve an end. 4. TACTICS This company will use several tactics in the promotion if its brand. 4.1. Advertising The proverbial lack of advertising being akin to “winking to a lady in the dark” will hold true in this case if such a company does not advertise. IPhone has used TV, Print media and the internet for the advertising of its brand and it is not about to stop. At least every home in the world has a TV set and you can bet that even more people have access to the internet now that internet-enabled phones are selling like hotcakes. Print media is also popular since it is able to reach a large percentage of readers all over the world as well. 4.2. Sales promotion This is one way of getting people to see what the company has on offer. Any sales promotion that will be carried out by this company will no doubt attract many more buyers, who will in turn improve the lot of iPhone. By using the internet to carry out sales promotion, iPhone will be able to explore the markets it has not been able to. Thanks to the presence of social networking sites like facebook and twitter, this will be achievable even faster 5. TARGET AUDIENCE (Varey 2002) describes target audiences as those who are interested in the content of what is being communicated. Purpose of communication, according to Varey (2002, p. 152) should be to communicate value in the brand. The target audience in this case is adult users between the ages of 18-40 who are the majority users of the iPhone. 6. MANPOWER The company will need the expertise of a professional marketing communication company to achieve this end. “Outsourcing is taken to mean buying a service which forms part of the value chain of the business from an outside supplier where previously that service was provided through an in-house operation” (Tittle 2000, p. 205). It makes a lot more sense to outsource the services of marketing and Communication Company rather than using the human resource in the company since the company will be assured of the quality of the results. Outsourcing will also ensure that the human resource of the company is allowed to continue in its daily activities of running the affairs of the company. Among the professionals whose service will be indispensable include the creative team and the overall manager. The accounts manager’s main work is to ensure the plan is well funded. The creative team ensures that the marketing plan suits the target market. The overall manager will ensure that the project goes according to plan. 7. MONEY These are the budgetary estimates for the plan Tool Budget (inclusive of administrative costs) TV $750,000 Print media (Newspapers and magazines etc, pamphlets $150,000 Internet $50,000 Sales promotion $250,000 Outsourcing fees $350,000 Total $1,550,000 8. MINUTES The proposed Marketing Communications tools mix is given below. 8.1. TV TV advertising is very costly in this day and age and this plan will target those markets that are yet to be explored. The TV advertisements will run for as long as the sales promotion will be running since the market needs to be informed of the presence of cheaper iPhones in the market. It is expected that the advertisements will run for six months across the most viewed television channels. This six months duration is divided into two phases. One is for two months before sales promotion to make the target market aware of the introduction of the iPhone in their area (since iPhone was not already there) and the second phase will be for remaining four months in which the ad will run along with sales promotion message in it. 8.2. Print Media Like TV advertisements, print advertisements will run for six months on most of the daily and monthly magazines. This duration will also be divided into two phases of two and four months for same reasons as mentioned before. 8.3. Internet This is the cheapest and the most versatile of the methods of advertising and it is expected to run for close to a year since this will also be the channels of sales promotions in the new markets. Viral advertisements will be introduced once every quarter for the promotion of the cheaper iPhones. 8.4. Sales Promotion Sales promotions will run every four months to improve the sales of the iPhone. A schedule of the proposed Marketing Communications tools mix with timescales is presented below. Note that no optimum and pessimistic times are given since these are paid forms of advertisements which will run for the duration of the paid period. Another thing to be noted is the predecessor which, in this case, can be defined as the activities which needs to get started before the initiation of next activity however both can run simultaneously depending upon the nature of the activity. For example, activity C can start as soon as activity A and B get started however since it is important to introduce the product first thus activity A and B will run alone and in the third month activity C will get started. Activity C can’t get started before A and B completes means predecessor is important for the commencement of next activity for this particular case. Whereas once the sales promotions has been introduced activity D and E can be started which can then run simultaneously with activity C. And activity F can run simultaneously with activities C, D and E. Also, months for this plan can be different since the plan is subject to the approval of management and negotiation with ad runners etc. Activity Code Activity Predecessor Time Estimates (Expected Time) A TV Advertisement - 2 months B Print Media - 2 months C Sales Promotion A and B 4 months D TV Advertisement C 4 months E Print Media C 4 months F Internet / Viral Ads C, D and E One year Communication mix plan can be presented month wise as follows: Jan Feb Mar April May Jun July Aug Sept Oct Nov Dec TV Advertisement (A) Print Media (B) Sales Promtion (C) TV Advertisement (D) Print Media (E) Internet / Viral Ads (F) 9. MEASUREMENT The control methods will be a combination of the efforts of the iPhone company and the marketing company. The aim of these controls is to ensure that the project is kept within the budget. The marketing company will be expected to provide reports constantly on the impact of the various promotional tools on the market. It is important for the marketing company to be versatile and change its tactics depending on the statistics of the market. Overall the marketing campaign has to be successful. 10. CONCLUSION With the combination of new technologies and the successes it has had in its market, there is no doubt the future is bright for the iPhone. However, this company needs to be wary of its competitors who are fast catching up with it. Many of its competitors are taking advantage of the segment of the market that iPhone has not explored; those users who cannot afford the Smartphone. It is crucial that iPhone acts fast, otherwise it will have underestimated its competition. REFERENCES Apple Inc., 2011, viewed on 17.07.2011 < http://www.apple.com> Blythe, J 2006, Essentials of Marketing Communications, 3rd edn, Harlow, Pearson Education Ltd. Fill, C 2002, Marketing Communications: Context, Strategies and Applications, 3rd edn, FT Prentice Hall. Fitzgerald, M & Arnott, D 2000, Marketing communications classics: an international collection of classic and contemporary papers, Business Press Thomson Learning. Kenneth, E. C 2007, Integrated, Advertising, Promotion, and Marketing communication, India: Pearson Education India. Micael et.al, 2009, Marketing Communications: A Brand Narrative Approach, John Wiley and Sons. Pickton, D & Broderick, A, 2005, Integrated Marketing Communications, 2nd edn, Prentice Hall. Tittle, P, 2000, Ethical issues in business: inquiries, cases, and readings, UK: Broadview Press. Varey, RJ, 2002, Marketing Communication. Principles and practice. London and New York: Routledge. Read More