Analysis of the Integrated Marketing Communications Mix Strategies of Apple - Report Example

Analysis of the Integrated Marketing Communications Mix Strategies of Apple Executive Summary The competitiveness of marketing environment has increased manifold times off late. All the companies are trying to create a brand loyalty which can prove to be a perennial source of competitive advantage. In this regard the efforts of Apple, one of the largest Smartphone players in the market is commendable. This report has focused on the integrated marketing communication mix of Apple for its U.K. segment. Customers in the U.K. belong to the age group of 16-24, 25-34 and 34-55. This requires a wide range of IMC techniques. It has also been observed that social media especially Twitter and LinkedIn are also gaining high popularity in the U.K. This should be supplemented with press releases, peer reviews and trade shows as these methods have also been proved to be equally successful for Apple Inc. Contents Introduction 4 Literature Review 4 Market environment reviews 6 Critical Analysis and Discussion 8 Target Audience 8 Brand Positioning 9 Recommendations 11 Conclusion 12 Reference List 13 Introduction Marketing communication can be considered as a bridge which helps in the communication of the customers and the marketers. It is a method applied by companies to convince customers to buy products of a company. Integrated Marketing Communications (IMC) has been defined as a process by which multiple elements of communications can be coordinated and controlled in an efficient, effective and economic manner (Duncan and Caywood, 1996). In this light, the purpose of this report is to discuss the integrated marketing communications strategy of Apple. Apple Inc. is a multinational company of the U.S.A. which mainly focuses on mobile communications and digital devices (Marcus, 2014). This report particularly focuses on the Smartphone division of the company called i-phones. The report contains four main parts. The section of literature review provides a generalized view of marketing communications to provide a theoretical background for the paper. This is immediately followed by a comprehensive review of the Smartphone market in the U.K. The third section outlines the strategy that should be taken up by Apple Smartphone’s based on the research. The final section makes few recommendations that can be implemented by Apple. Literature Review The birth of IMC can be traced to the works of Caywood et al. (1991 cited in Duncan and Caywood, 1996). Ever since its discovery, the concept has been taken up by many researchers and the growth of the information technology has further fuelled its growth. It is believed that IMC can create a dynamic framework for interactive communication helping a company to convey its product message (Gurau, 2008). In a research that has been conducted by Smith and Taylor (2004) it has been established that IMC combines a number of approaches which are both complimentary and consistent and they help in creating greater awareness about the products. IMC has a very wide scope and it easily qualifies as a marketing philosophy that has transformed the way marketers communicate with customers. Additionally, it is a tool used in strategic management to manage brands. The research conducted by Shimp (2000 cited in Gurau, 2008) had highlighted few of the changes in the environment of marketing communications that has necessitated the use of IMC. His research points out that changes like reduced reliability on mass market mode of communication, reduced loyalties of customers, high focus on target communication, rising popularity of marketing communication suppliers acting as the brand warden and competitive market scenario has completely transformed the style of communication. In such a complex environment marketers are increasingly using IMC to craft a strong brand identity. The research conducted by Eagle, Kitchen and Bulmer (2007) has shown that IMC has become an important part of creating a strong market position, measure of effectiveness of return made on investment and brand equity. The research of Duncan and Mulhern (2004 cited in Keller, 2009) provides an interesting insight into the way IMC has become a strategic management tool in brand positioning. The researchers had described IMC as a dynamic and continuous process that can be termed as interactive at best. It is a cross-functional process of communication of a brand message that embraces all the activities from planning to execution. In doing so, IMC involves all the parties engaged in process of exchange so that optimal satisfaction can be reached. IMC is expected to coordinate all the activities that are involved in the communication mix so that they can accomplish both short and long term objectives of companies. It acts as a balancing factor between the short-term sales maximizing objectives with the long-term objective of improving brand equity. Brand equity includes a number of measures like perception of consumers regarding the quality of the brand, recall of the brand by customers and positioning the brand in the target market. Many researchers have tried to explore the concept of IMC based on two dimensions namely strategic dimensions and tactical dimensions (Duncan and Moriarty,1998). The common consensus reached among researchers is that strategic dimension of IMC deals with the notion of creating a brand positioning approach that is holistic (Holm, 2006). On the other hand, the tactical dimension of IMC is a process that deals with the individual steps of planning and implementation of the idea that create the brand. It is an incremental process which ultimately builds a strong customer base. A theoretical framework of IMC was created in the works of Duncan and Moriarty (1998) based on five individual constructs namely: Organizational infrastructure: dealing with internal marketing and link with external agencies. Interaction: Includes the balance between mass and niche audience, customer complaints and improving accessibility. Mission marketing: Involves creation of superior value for customers and shareholders and making the communications legitimate. Consistency of Strategy: This deals with the notion of creating same image in the mind of consumers irrespective of the channel of communication. Planning and Execution: Involves targeting the primary customers and creating profitable relationships. Research conducted in the field of IMC has revealed that it has multiple links with market positioning namely customer oriented approach, monitoring the moves of the competitors, coordination between the various departments of the markets and finally reaping profits out of this venture. All of these factors have a common goal that is to bring the customer and the brand closer. Equally important is the idea of bringing the brand and the employees of the company closer. This is done with the objective of acknowledging the people who creates the brand. The research of Bridson and Evans (2004 cited in Reid, Luxton and Mavondo, 2005) has shown that IMC can act as a tool to add symbolic value to the brand. By adding value to a brand IMC enhances the competitive advantage of a company. In the competitive marketing environment it has become important for the brand managers to understand the perceptions of the customers and align the vision of the brand created by the organization to the perceived vision that customers have about the brand. It is only by this process that organizations are able to reinforce the brand image. IMC acts as a link between this brand and the delivery of the message held by the brand. Therefore, majority of organizations are now using IMC to create a strong sense of brand identity and use it as a tool to increase effectiveness of market positioning. Market environment reviews The competition in the U.K. Smartphone industry has intensified rapidly in the last five years. Competition mainly emanates from market players like Samsung, Lenovo and Huwawei. The following tables show the share of Smartphones. Figure 1: Global share of Smartphones (Statistica, 2014) It can be clearly seen from the above table that Samsung has the highest share in the global market closely followed by Apple. Though Samsung has the largest market share in the U.K., it has reported losses in the market as profits of the company fell by 60%. Recently the market share of Apple in the U.K. has gone up mainly for the increase in the sales of i phone 6. In the U.K. Apple has a market share of 31.6% (Page, 2014). The U.K. has become a thriving hub for the Smartphone business. It has been found that 51% of the population in the U.K. owns a Smartphone. 74% of the handsets that were sold in the U.K. were smartphones. A survey conducted on the population of the U.K. has revealed that 96% of the consumers in the U.K. who uses internet on their mobiles are owners of Smartphone’s (Ofcom, 2013). The use of smartphones in the U.K. is largely influenced by the demographic factor. It has been found that the population in the age group of 16-24 are avid users of samrtphones and accounts for 77% of the total sales. However, only 11% users have smarphones in the age group of 65-74 (Ofcom, 2013). The table below shows the usage of the device by age groups. Figure 2: Use of smartphones by age (Source: Statistica, 2014) Critical Analysis and Discussion Target Audience Apple Inc. has created a robust base of loyal customers on the basis of the differentiated product it makes. Market segmentation of Apple can be done on the basis of two major variables namely demographic and socio-economic. According to the present market scenario in the U.K. age groups of 18-24, 25-34 and 35-44 are the core customers for Apple. The age group is widely divergent indicating that there will be teenagers, college students and professionals engaged in business or services. i-phones are highly popular among teenagers as they have become unique devices for listening to music, accessing facebook and playing a variety of games. Professionals can use it while commuting and can easily complete their work. College students on the other hand can use i-phones for recording lectures and presentations. Socio-economic standard is also a major determinant for Apple as the company has product category. Apple mainly offers premium products to its customers at a premium price. The high quality of the products allows the company to charge premium price. This implies that individuals earning a high monthly income are the ones who can afford the product. Apart from this primary market group, Apple can also target premium customers using smartphones of other brands like Samsung and Lenovo. According to the research of Bandyopadhyay, Gupta and Dube (2005) it has been found that marketers often target customers who are not satisfied with their existing smartphones and are willing to spend more for better product. Brand Positioning The brand positioning strategy of Apple Inc. smartphones is symbolic rather than functional. Marketing experts have pointed out that brands should position themselves on a functional basis only when they are related to safety and convenience (Shimp and Andrews, 2013). Symbolic positioning is rather a better option for Apple because the current products of Apple can be viewed as an attempt to link the brand ownership with a sense of high self-esteem or self-image. Owning Apple i-phones is frequently associated with high social status and is expected to earn respect from peer groups. Apple is well known for creating products that are highly innovative, physically appealing and constantly updates itself to enrich customer experience. Apple has also engaged itself to promote experiential marketing to improve the experience of customers who purchase the products. From user friendly interface to after sales service, Apple has mastered every marketing move (Thompson, 2013). It is extremely important for Apple Inc. to create a successful communication strategy in order to deliver the core value of its brand across the customers. The age group, income group and profession of customers are very unique in case of Apple Inc. This is the reason for which the company should resort to integrated marketing communication and not on traditional mass media. Communication mix of Apple must be structured along six lines namely advertising, personal selling, public relations, direct marketing, sales promotion and internet marketing. Internet marketing Researchers like Dunne, Lawlor and Rowley (2010) have pointed out that social media have become a very strong tool for marketing products as they act as a common platform where customers can share their view about products and their characteristics. Use of platforms like Facebook, Twitter, Google+ and Pinterest can be used by Google to market their products. YouTube can also be used by Apple to create an interactive communication with the customers. The popularity of facebook in the U.K. has fallen over the past few years and between 2012 and 2013, it had lost 1.5 million users (Garside, 2013). The majority of loss has been observed in case of teenagers. Twitter is fast becoming popular in the U.K. and currently 15 million people are active users (Arthur, 2012). Majority of the twitter users belongs to college and universities and this can become an active platform for Apple Inc. LinkedIn can be used to attract the professional group, and the current statistic of LinkedIn users in the U.K. is 10 million. LinkedIn is mainly used by customers to access corporate websites and can be particularly used by Apple Inc. to target niche customers (Eckstein, 2014). Media promotion generates a desire or inquisitiveness for the customers to buy the products and social media serves as a platform for this purpose. Public Relations Apple has used public relations in such a way in other markets that it can easily be seen as one of the best strategies in the market. Known-writers providing review of the products, news and briefings regarding new product launches and structured use of media are strategies used by the company to generate interest in the minds of the consumers (Marcus, 2014). Apple can use a string of strategies in the U.K. regarding improvement of public relations. Previous experience of the company has shown that it first filters the features that are new in a product and promote these features specifically. Media release is a powerful way in which interest of the opinion leaders in the industry can be shaped. Furthermore, allowing journalists to review the products has proved to be successful for Apple Inc. (Marcus, 2014). Product reviews and dedicated product launch programs are important forms of interaction with the public. Advertising Advertising through television, corporate magazines and newspapers can help Apple Inc. to attract the interest of the customers. Traditional medium of advertising can particularly appeal customers in the age group of 35-44 who are not very active on social networks. Advertising on billboards and public modes of communication like buses can be expected to attract the attention of the commuters travelling by cars and taxis. Additionally, advertisement on the newspapers and magazines is likely to capture the interest of the professionals and business men. Newspaper advertisements are likely to influence both business people and older segment of the population. However, as the age group above 50years is not the primary target for Apple so expenditure on newspaper can be limited. Direct Marketing Direct marketing is also a strategy widely used by Apple to interact with existing and prospective customers. It is a strategy that communicates about the strategic products created by Apple including all the additional and updated information regarding its products (Pickton and Broderick, 2001). It is a ploy used by Apple Inc. to make customers visits the Apple website or Apple stores. The websites of Apple are highly interactive and the direct marketing team communicates to the customers via e-mail in order to make them visit the stores. This mode of communication is also used by Apple Inc. to persuade old customers to buy new products. Sales Promotion This is yet another process that can be employed by Apple Inc. in order to attract higher customers. Trade shows has been previously conducted in the U.K. in 2012 at Earl’s Court London to interact with the consumers (Burns, 2011). Trade shows of Apple are a place where Apple can sell all its products and accessories and directly interacts with the consumers. The value proposition of the phones and the new features are promoted through these direct sales promotion techniques. Trade shows become a platform for celebrity endorsement, workshops regarding technological advances and interaction with the technicians. This process allows the people to interact with the gadget technicians and improves their overall experience. This can be particularly targeted for the enthusiastic younger population who are tech savvy. Recommendations Apple Inc. already uses a wide range of communication techniques with the customers in order to comprehend which consumers are loyal to the brand. This is a technique which has allowed Apple to successfully target products. However, there is no denying that Samsung is still the dominant leader in the smartphones market. Therefore, few recommendations can be suggested in which Apple Inc. can improve the share of smartphones in the U.K. Firstly, Apple Inc. can use Search Engine Optimization techniques to understand the duration of stay of customers on social media platforms. This is a good technique which will allow Apple to understand the popularity of the social media platforms. It has been found that the social media usage pattern in the U.K. is changing fast and finding the correct audience will be essential in delivering the messages appropriately. Secondly, Apple Inc. can conduct market surveys regarding the products that are expected by customers. Though Apple Inc. has been quite successful without the use of primary market research till now, conducting primary research will help it to understand the expectations of the customers in a better manner. Thirdly, Apple Inc. can also use communication strategies containing messages regarding the reason for which people should pay higher price for their products. The U.K. has been hit badly during the recession and the economy is recovering slowly. Therefore, consumers have reduced their spending on luxury products. Apple products are already highly priced. So, the messages should clearly contain the reasons for which consumers should pay the higher price. Fourthly, it is very crucial for Apple Inc. to constantly dedicate itself to create constant innovation in its products. The company has a dedicated R&D team which is responsible for improving product quality. Whenever improvements are made then social media can be employed aggressively to generate the interest of the customers and persuade them to purchase products. Finally, Apple Inc. occasionally provides price discounts. Discounts or other sales promotion techniques must be advertised proactively to persuade consumers to make the purchase. Conclusion Smartphones have become highly popular in the U.K. as has been observed from their increasing sales. Apple Inc., one of the strongest players in the smartphones market should utilize this rising popularity to gain greater market share. Current demographic statistics in the U.K. shows that teenagers and the college crowds are the highest users of the smartphones. Apple Inc. can effectively use a mix of integrated communication strategy technique to deliver the messages of the brand to the customers. This can range from the use of traditional media and direct marketing like e-mails to the use of sophisticated social media. Use of social media will be integral for Apple Inc. as it has been found that the U.K. consumers are highly influenced by the social media in making their purchase. Therefore, it is imperative for Apple Inc. to use consistent strategies so that messages of brand loyalty are conveyed effectively to the consumers. Reference List Arthur, C., 2012. Twitter now has 10m users in UK. [online] Available at: [Accessed 25 November 2014]. Burns, M., 2011. Apple trade show returns to UK in 2012. [online] Available at: [Accessed 25 November 2014]. Duncan, T. and Caywood, C., 1996. The concept, process, and evolution of integrated marketing communication. Integrated communication: Synergy of persuasive voices, pp.13-34. Duncan, T. and Moriarty, S.E., 1998. A communication-based marketing model for managing relationships. The Journal of Marketing, pp.1-13. Dunne, Á., Lawlor, M.A. and Rowley, J., 2010. Young peoples use of online social networking sites–a uses and gratifications perspective. Journal of Research in Interactive Marketing, 4(1), pp.46-58. Eagle, L., Kitchen, P. J. and Bulmer, S., 2007. Insights into interpreting integrated marketing communications: A two-nation qualitative comparison. European Journal of Marketing, 41(7/8), pp.956-970. Eckstein, A., 2014. Thank You to Our 15 Million Members in the UK. [online] Available at: [Accessed 25 November 2014]. Garside, J., 2013. Facebook loses millions of users as biggest markets peak. [online] Available at: [Accessed 25 November 2014]. Gurau, C., 2008. Integrated online marketing communication: implementation and management. Journal of Communication Management, 12(2), pp.169-184. Holm, O., 2006. Integrated marketing communication: from tactics to strategy. Corporate Communications: An International Journal, 11(1), pp.23-33. Keller, K.L., 2009. Building strong brands in a modern marketing communications environment. Journal of Marketing Communications, 15(2-3), pp.139-155. Marcus, P., 2014. Four things Apple’s PR strategy can teach us. [online] Available at: [Accessed 25 November 2014]. Ofcom, 2013. Marketing communications report. [pdf] Ofcom. Available at: [Accessed 25 November 2014]. Page, C., 2014. Apples UK market share grows to 31 percent on bumper iPhone 6 sales. [online] Available at: [Accessed 25 November 2014]. Pickton, D. and Broderick, A., 2001. Integrated marketing communications. New Jersey: Prentice Hall. Reid, M. Luxton, S. and Mavondo, F., 2005. The relationship between integrated marketing communication, market orientation, and brand orientation. Journal of Advertising, 34(4), pp.11-23. Shimp, T. and Andrews, J.C., 2013. Advertising promotion and other aspects of integrated marketing communications. Connecticut: Cengage Learning. Smith, P. R. and Taylor, J., 2004. Marketing communications: An integrated approach. London: Kogan Page Publishers. Statistica, 2014. martphone ownership penetration in the United Kingdom (UK) in 2013-2014, by age. [online] Available at: [Accessed 25 November 2014]. Thompson, C., 2013. Why Apple is still the king of design and innovation. [online] Available at: [Accessed 25 November 2014]. Read More