Product Sales Plan for iPhone - Research Paper Example

iPhone Sales Plan I. Background Research A. Industry and Company Research The mobile phone industry is one of the most important and largest industries of the modern era. This can be attributed to the different factors such as the influence of the information technology and the continuously increasing trend for the use of wireless technology. By dominating the mobile industry, the emergent technology can lead the trend for the production and sales of products, specifically mobile phones (Bized Website UK, 1999; Reed Electronics Research, 2002). The product iPhone can be considered as one of the leaders in the mobile technology market due to the fact that the particular technology was able to set not only a trend but it had changed the manner by which the market and the consumers behave on the basis of establishing a choice of purchase. With the said concept as the main weapon, optimization of the features of the product can be considered as the fundamental perspective. Prior to the development of the iPhone, the mobile industry had a rough journey in terms of sales. There is a clear dependence on the network providers. Mobile phones were even viewed then as a tool to achieve services from the said mobile network. In the said view, mobile phones were cheap and features were limited (Vogelstein, 1998). In 2006, there had been a rapid increase in the number of mobile users and subscribers estimated at 2 billion all over the world. Another trend that started in the same period is the sales of mobile phones based on the technology or the features which became the onset for the development of technologies related to mobile cameras, wireless capabilities, memory capacities and other concepts that became weapons of competitive advantage (Reed Electronics Research, 2002). Basically, the development of the iPhone took advantage of the said trends and developments in the mobile industry. The technology presented by the iPhone also considered by authorities as a wave that enabled the mobile phone companies to dictate sales on the basis of the product capabilities rather than the services that the mobile networks are offering (Vogelstein, 1998). B. Flagship products The product iPhone is from the Apple Inc., a company known for product innovation and product exclusiveness which enable the company to set a price different from competitors. Apple Inc. is recognized for products such as the Mac computer, iPod, iTunes and the latest innovation iPad (Apple Inc. Website, 2010). The iPhone product has different types. There are four (4) generations of iPhone. The first generation iPhone is the original type which was released in the market in 2007. The said model introduced the touchscreen interface which completely utilizes the virtual keypad. The iPhone 3G is the second generation iPhone which was introduced in 2008. The main innovation that the said model has over the predecessor is the Assisted GPS and Tri-band capabilities. The third generation mobile phone is iPhone 3GS which has more advanced camera and improved performance. The said model had been introduced in 2009 with additional improvements such as video capability, voice control and 7.2 HSUPA downloading. Finally, the most advanced generation of iPhone had been introduced this year, 2010. The said model which is referred to as the iPhone 4 is enhanced with a higher resolution phone camera, HD video capability and improved performance as compared to the previous models (Apple Inc. Website, 2010). C. Current Selling Strategies The Apple Inc. is a successful company that utilizes different selling strategies specifically for iPhone sale. These includes sale through corporate transactions, service providers, affiliate programs and partnerships. Corporate transactions can be considered as one of the most important income generators since the said type can sell the product in bulks. The sale through service providers can also be classified under the corporate transactions since a particular service provider company is responsible for iPhone sales (Apple Inc. Website, 2010). Affiliate programs and partnerships are included in the current selling strategies of Apple Inc. for iPhone. The said methods are presented in the company’s online interface. Basically, the website selling strategy is an important avenue to optimize due to the influence of the internet and the worldwide web on the marketing and sales of different types of products (Apple Inc. Website, 2010). D. Opportunities for New Selling Strategies Based on the preliminary study undertaken, there are different selling strategies that can be utilized to be able to increase iPhone sales. The online retail is one of the selling opportunities that can be employed. Another is the partnership with different groups and private sellers. The main sales opportunity that will utilized in the iPhone Sale Plan established is the selling of the product through direct retail and retail partnerships. II. Development of Personal Selling Philosophy A. The Marketing Setting The main strategy that will be employed is direct retail to consumers. In addition, the retail partnerships for interested private individuals will be entertained on the basis of certain policies and contracts. The strategies that will be employed utilize and optimize the principles of personal selling. B. Role of Personal Selling The personal selling philosophy is important in the accomplishment of the set objective of the sales plan on the basis of the flexibility of the selling pitch, e.g. price that will be set or the sales strategies that will be used. The components of personal selling such as order getting, order taking and support personnel are the core needs of the sales plan (Kerin, Hartley and Rudelius, 2008). C. Salesperson’s Training To ensure the achievement of the objectives in selling products specifically iPhone, salesperson’s training can be considered an imperative area. These types of training will enable salespersons that have consulting and problem-solving capabilities. Basically, there three types of salespersons should be given specific trainings to polish their skills. These three (3) types are the missionary salesperson, the technical specialists and the sales associates. The first two (2) types are generally referred to as the support personnel since they are not directly involved in selling but in other operational tasks (Kerin, Hartley and Rudelius, 2008). The main skills that are needed to be trained for the salespersons should involve the mastery of the tasks needed to be undertaken for the job. The said tasks are outlined in the personal selling process: (1) prospecting and qualifying; (2) preapproach; (3) approaching the customer; (4) sales presentation; (5) closing the deal and (6) following up the client. These are needed by the 3 types of salesperson. The direct salesperson though is needed to be well trained in determining the need of the clients and establishing a relationship. For the support sales persons, specific related skills are important. The missionary salespersons need to master how to prospect and qualify possible clients. The technical specialists, on the other hand, need the mastery of the features and technical services needed in the operation and use of the different models of iPhone (Kerin, Hartley and Rudelius, 2008). III. Developing a Relationship Strategy A. Typical Salesperson and Customer Relationship The ideal and successful salesperson and customer relationship is referred to as relationship marketing wherein the company, such as Apple Inc., establishes and maintains a committed, constant and long-term relationship with the partners in the business specifically the customers. Communication is fundamental and is needed to be undertaken on a regular basis. The salespersons are needed to be easily accessible for the needs of the clients. Also, with the said relationship, the salespersons can discern the needs of the customer which is important in selling new products (Kerin, Hartley and Rudelius, 2008). B. Appropriate Attitude of a Salesperson To e able to achieve successful sales, a salesperson primarily needs to have a positive attitude. This can be attributed to the fact that positive sales attitude can also be considered as a winning factor in sales. In addition, this can be translated as confidence on the company and the product that the salesperson is selling. In this case, having a positive attitude can be related to the confidence on Apple Inc. and iPhone. C. Appropriate Appearance of a Salesperson Appearance of a salesperson is another indication of the importance given by the company on the views and opinions of the consumers. A professional appearance in business attire and attitude can create a good rapport that can gain the trust of the consumers. It is important to consider the fact that formal attitude and atmosphere that can be created in marketing the iPhone product are needed to be buffered by relaxed conversational skills to enable the establishment of a relationship with the consumers. D. Methods to Strengthen Long-term Relationship for Repeats and Referrals Communication on a continuous and regular basis is a fundamental tool to be able to maintain and strengthen long-tern relationship with the customers. When the relationship had already been established and started it is often a challenge to maintain it due to the factors such competition with other sellers and better offers. For that matter, trust of the client is important. In cases of discounts and other promotions, it is important to communicate with the clients prior to the public release to make them feel that they are the priority customers. These are some of the examples, but most importantly it is needed to be noted that respect is another fundamental factor in the relationship with the client. E. Communication Style There are different types of communication with the client. It is important to utilize all the methods of communicating to be able to maintain the marketing relationship. The modern technology enables faster ways of communicating but it is important to consider that personal transactions and business meetings are the primary and most effective ways in selling products such as iPhone.   IV. Developing a Product Strategy A. Description of company The company that produced and manufactured iPhone is the Apple Inc. which is known for the production of high quality products such as the Mac computer, iPod, iTunes and the latest innovation iPad. Every single technology that comes with the logo of the company serves as a mark of innovativeness and exclusivity (Apple Inc. Website, 2010). Even the niche of the Apple Inc. products can be considered exclusive on the basis of prices, services and features offered. The company is commonly recognized as the leader of different technological trends in mobile and wireless systems. B. Product Description Apple’s iPhone is a type of smartphone that has the capability for internet and multimedia functions. The features of the said products include text messaging capability, visual voicemail, with camera, portable media player, Internet client and Wi-Fi connectivity. The multi-touch screen and virtual keyboard is one of the important and unique characteristics of iPhone (Apple Inc. Website, 2010). C. Technical Expertise Needed by the Salesperson The operation of a highly technical product such as iPhone is one of the requirements of the salesperson. This is important to be able to confidently communicate to the customers regarding the main capabilities of the product. In addition, simple troubleshooting methods are also important to efficiently answer possible questions of the clients. D. Feature Benefits Worksheet ________________________________________________________________________ Table 1. Selling Product Benefits with a Feature-Benefit Worksheet for iPhone ________________________________________________________________________ Feature Benefit FaceTime The new iPhone 4 has two cameras for Communication between family video calling. members, friends, even business partners can be very efficient Wi-Fi connection between 2 iPhone 4 units Ease in communication can be is possible. multiplied. Retina Display iPhone 4 resolution had been improved 4 times as “Makes text amazingly crisp and compared to the first 3 generations of iPhone the images stunningly sharp.” Multitasking Capability Multiple apps/applications in the iPhone can The hassle of shifting from one be used at the same time. Application to another is the thing of the past for the new iPhone HD Video Recording and Editing Own movies can be made at high definition Eliminates the need for other multimedia gadgets. iMovie app is available The capability to edit and create video mini-masterpieces is at the clients’ fingertips. 5-Megapixel Camera with LED Flash Highest specification of camera for the iPhone 4 “Clearer pictures can be taken even as compared to the first 3 generations of iPhone in low light.” (Source: Apple Inc. Website, 2010). E. iPhone as a Mature and Well-established Product The iPhone can be considered as a mature and well-established product in the market on the basis of two points. One is the amazing reputation of the Apple Inc. as a producer of important technologies. Another is the success of the different generations of iPhone in the market. F. Strategy to be Used The value-added product strategy will be employed in the sale of iPhones. In the said method, there different techniques that can be utilized such as the packaging itself, the promotion of the features, the package deals, payment options and possible discounts, troubleshooting services, free features, services or products, bonus offers and product licenses and permits. V. Stakeholder Interviews A. Salesperson Are you familiar with the iPhone? Do you think you are capable of selling the product? Are you familiar with the features and capabilities of iPhone? Do you know the roles needed to be undertaken by a salesperson to ensure a successful marketing relationship with the client and sale of the product? B. Manager Are you familiar with the iPhone? Are you familiar with the features and capabilities of iPhone? Do you think you can motivate salespersons to successfully create and maintain marketing relationship with the client and sell the product? C. Customer Are you familiar with the iPhone? Are you familiar with the features and capabilities of iPhone? Are you interested in having and purchasing an iPhone? Why or why not? VI. Prospects and Approaches A. Top 5 Prospects Source/Area Contact Information 1. Stockbroker Company 2. Medical Representative Company 3. Young Professionals 4. Businessmen 5. Students in the Middle Class B. Stage in the Buying Process of the Prospects 1. Medical Representative Company – The prospect is still in the preliminary research. Initial information had been sent out. Product presentation is the next phase to be undertaken. 2. Stockbroker Company - The prospect had been given information on the introduction of the new generation of iPhone. The CEO of the company had already showed interest on the product since he himself owns an iPhone and other Apple products. 3. Young Professionals – The exploration of the young professional clientele is important since the said group still belongs to the hip and trendy generation while at the same time they already have the capability to spend for a gadget such s iPhone. Presentations of the product in gatherings for young professional are included in the important strategies of the plan. 4. Businessmen – The said prospects are in need of smartphones to use for checking business-related updates. The advance capability of the iPhone for multitasking will also cater to the needs of this group. Presentations of the product in business conferences are underway. 5. Students in the Middle Class – The prospects belong to the trendy generation who are interested in getting a hold of advance gadgets for their lifestyle. C. Best Contact Approach The best contact approach is in conferences and gatherings for the specific prospects. One method is by sponsoring events and activities targeting different groups such as companies, businesses, young professionals and the students. VII. Presentation Plan The top prospect for selling iPhone is a Medical Representative Company. The sales presentation that will be used is a selling formula approach. In the said type of presentation approach, the salespersons initiate the discussion of the product. In the process the important features are highlighted to be able to serve as the selling point. After the presentation, the questions of the clients are entertained and answered. A two-discussion then is undertaken to optimize communication and establish relationship. A.    Preparation 1. Presentation Objectives a. To present a clear picture of the company’s background and the product itself. b. To establish and present the iPhone product story with clear points on its features and benefits. c. To build rapport and create trust. d. To ultimately sell the product. e. To create opportunities for future offers for the prospect 2. Sales Cycle The typical sales cycle is composed of different phases that describes the decision making process of the costumer towards buying a product. This is needed to be optimized by the seller. The first phase is related to the client’s understanding, opinion and perception of the product. For the medical representatives, iPhone can be considered as an efficient tool for presentation to clients and for organizing schedules and information related to work. Although this is the case, the sales cycle proceeds to the succeeding phase which is the analysis of the benefits of having iPhone. In this case, the salesperson needs to stress the needs of the client and present the advantages of having the product. The last phase of a successful transaction then leads to the purchase of the product by the customer. 3. Presentation Strategies: Group versus Individual Presentation There are different benefits of group presentation and individual presentation. Group presentation can target more customers at one time, thus, it is more cost- and time-efficient. Individual presentation on the other hand can focus on the establishment of rapport through direct one-on-one conversation with the client and targeting the needs of the client. 4. Achievement of Good Social Contact A good social contact can be achieved through the development of social skills. Observation and exploration of possible prospect clients is the initial method. Creating interest and opening up a conversation regarding a product is the succeeding process and is in need of mastery since is can be a crucial factor in the decision of the client. Building of rapport and trust, explanation of the product, and encouragement of the need of the client are ways that ultimately lead to the purchase of the product. 5. Methods for Good Business Contact ________________________________________________________________________ Table 2. Business Contact Worksheet for iPhone ________________________________________________________________________ Method of Approach What Will You Say? 1. Agenda 1. “Thank you for the time you spared for me. In the succeeding hour, I want to know you, share with you the new Apple Inc. technology and be certain that you get the same benefit as all the users of the product all other the world.” 2. Product 2. “The introduction of the iPhone in the market had created a new trend but today I would like to focus on the newest product in the line, the iPhone 4. 3. Customer benefit 3. “By having iPhone at hand, the need for other gadgets can be minimized aside from the fact that it has advanced features and improved performance.” 4. Referral 4. “The managing director expressed interest on the product and encouraged purchase.” 5. Question 5. “Sir what mobile phone do you use currently?” 6. Survey 6. “Sir/Madam, what are your common activities? How do you go about doing them?” 7. Premium 7. “By accepting our present offer, an extended service for the iPhone unit will be awarded.” ________________________________________________________________________ B. Creating Sales Presentation 1. Determination of the Prospect’s Needs ________________________________________________________________________ Table 3. Need Discovery Worksheet for iPhone ________________________________________________________________________ Preplanned Questions Consumer Response 1. What mobile phone are you currently using? 2. Are you interested in buying a new one? 3. Are you familiar with the product iPhone From Apple Inc.? 4. Would you be interested to know the features of of iPhone and the benefits of owning one? ___________________________________________________________________________ 2. Typical Customer Buying Motives and Features and Benefits of iPhone, Apple Inc. and the salesperson. There are different buying motives for every customer. Some clients such as the professionals and businessmen target the business capabilities of iPhone in terms of organizing, multitasking and video conference feature. Other clients solely trust Apple Inc. products thus they continuously prefer the products produced by the company. Lastly and can be considered on the personal selling market is the capability of the salesperson to encourage buyers who are initially uninterested or even not aware of the iPhone technology. 3. Need-Satisfaction Presentation Strategy Through the use of the innovative technology that is iPhone, different multimedia, telecommunication and wireless systems are packed in a technology that one can hold in his/her hand. C.     Conducting the Sales Demonstration ________________________________________________________________________ Table 4. Demonstration Worksheet ________________________________________________________________________ Feature to be Demonstrated Proof Device What to Say What I/Customer Will Do Video Call 2 iPhone units “This is the Have one client to conduct the call improved video hold 1 unit and calling capability call him/her of the iPhone with with the other clear voice and video iPhone. quality.” Multitasking Capability iPhone with multiple “Check the number Have one open apps of applications client operate that I have opened. the iPhone. You can go to another by just tapping the icon in the task bar below.” D. Negotiating Sales Resistance Sales resistance is inevitable in selling every product. Possible sales resistance to iPhone can be related to the comparatively high retail price and the required purchase of every application needed. ________________________________________________________________________ Table 5. Negotiations Worksheet ________________________________________________________________________ Customer’s Concern Type of Concern Possible Response “The retain price of iPhone Price “This is because the Apple Inc. is is considerably higher than known for high quality products the nearest competition.” and exclusivity of applications.” “Every applications and Need “This is related to the exclusivity additional features are needed of applications which is important to be purchased.” in insuring that the iPhone is safe from harmful programs.” __________________________________________________________________________ E.      Closing the Sale ________________________________________________________________________ Table 6. Closing Worksheet ________________________________________________________________________ Closing Clue Closing Method Closing Statement “That is very appealing” Direct appeal close “Good, this is the order form. You can sign it and you can already take the iPhone with you.” “What are the plans for Multiple options close “One is though cash. Another purchasing an iPhone?” is through the network plans offered by AT&T on a monthly payment basis.” “I don’t have the amount Assumptive close “Based on the information at hand right now.” you presented you are well suited for the post paid monthly plan.” After reading the Combination Summary “The features and benefits of written proposal the of benefits the iPhone encompasses the client nodded approval critical points that can be noted. In fact, the price is very reasonable for all the advantages it can bring about.” ___________________________________________________________________________ F. Servicing the Sale ________________________________________________________________________ Table 6. Closing Worksheet ________________________________________________________________________ Method of Adding Value What You Will Say or Do Follow-Through Prepare the needed applications Ensure that the client is relaxed in using and ensure that the client had basic the product. Tell the client to contact you knowledge in using the iPhone for additional inquiries. Follow-Up Send thank you card and message Acquire contact details of the people who to the company and the contact persons made the purchase whether a company who made the transactions and the selling or private individuals possible. Check on the performance of the products on a regular basis Expansion Selling Create opportunities for selling Promotion of new products new products in the future can be undertaken while following-up on last purchase made by the customer. _________________________________________________________________________ Conclusion Based on the preliminary study conducted in relation to the Sales Plan for the product iPhone, achievement of set goal is based on the synergy of the different factors needed to promote and sell the product. References Apple Inc. Website (2010). iPhone. Retrieved June 25, 2010, from http://www.apple.com/iphone/ Banks, K. and Burge, R. (2004). Mobile Phones: An Appropriate Tool For Conservation and Development?. Cambridge, UK: Flora & Fauna International. Bized Website UK. (1999). Profit, Loss and Value Added: The Mobile Phone Industry Activity. Retrieved June 28, 2010, from http://www.bized.co.uk/educators/16-19/business/marketing/activity/profitloss.htm Kerin, R. A., Hartley, S. W., and Rudelius, W. (2008). Marketing: The Core. NY: McGraw-Hill/Irwin. Reed Electronics Research. (2002). The Mobile Phone Industry – A Strategic Overview. UK: Reed Electronics Group. Vogelstein, F. (1998). The Untold Story: How the iPhone Blew Up the Wireless Industry. Wired Magazine, Issue 16.02. Retrieved June 28, 2010, from http://www.wired.com/gadgets/wireless/magazine/16-02/ff_iphone Read More