Analysis of the Integrated Marketing Communications Mix Strategies of Smartphone Brand: Apple - Case Study Example

Analysis of the integrated marketing communications mix strategies of Smartphone brand: Apple Word Count = 2746 Contents Executive Summary 3 Introduction 4 Literature Review 5 Market environment review 7 Critical Analysis and Discussion 8 Recommendations 11 Conclusion 11 References 13 Appendix 14 Executive Summary The modern smart phone industry has become highly competitive in nature. Under this current situation of cut throat competition, the report is significantly helpful to understand integrated marketing communication mix of Apple smart phone. The report has taken the help of related literature where model and theories have been discussed. The report has clearly indicated growing trends of UK smart phone market. The report has critically discussed and analyzed IMC mix of Apple and its relevance with the AIDA model. To improve the IMC mix the report also has suggested various important recommendations. Introduction Integrated marketing communication is a widely used concept that ensures all marketing related communications are properly integrated with each other. In the modern competitive smart phone industry it is highly important for the players to use their all promotional tools in a harmony. In the case of integrated marketing, usage of various media together is highly important. Apple is the most prominent brand in the global smart phone industry. Due its significant level of focus towards the integrated marketing communication mix, the organization enjoys high degree of customer loyalty and cult brand image across the world. In the modern world of marketing communication every organization tries to communicate their marketing strategies in very concise and specific way. In this aspect also the U S based smart phone company is significantly ahead of other players. The organization gives high degree of emphasis towards the research and development and always tries to be ahead of the technological advancement and marketing communication process. Here in this report a detailed discussion will be done about the integrated marketing communications mix strategies of Apple. The detailed discussion will include literature review, review of market environment and critical analysis. The report will provide suitable recommendations related with integrated marketing communications mix strategies. At the end of the report a suitable conclusion will be drawn. Literature review will allow the report to be focused towards the previous theories, models and framework related with the topic. The report will review the UK smart phone market in detailed fashion. The report will analyze the Apple’s integrated marketing strategies in detailed and critical fashion. The report will follow a structured approach. Literature Review According to Yeshin (2012), integrated marketing communication mix is an advance approach for the purpose of achieving the desired organizational objectives. He stated that integrated marketing communication mix encourages usage of more than one promotional tool to work in a tandem. He has added that integrated marketing communication strategies are significantly important for the purpose of maximum communication impact. Major promotional tools related with the integrated marketing communication strategies are sales promotions, advertising, personal selling, public relation and direct marketing. According to author, organizations across the world have justifiably recognised the importance of integrated marketing communication mix. The author has categorically stated that, integrated marketing communication is all about putting the right message to the right people. He has also added that integrated marketing communication considers the right time and right place (Yeshin, 2012). Lamb, Hair and McDaniel (2011), the authors have stated about a model which is known as AIDA model. They added that integrated marketing communication can be successfully implemented with the help of the model. The model has four components. Those components are attention, desire, interest and action. They have stated that for the purpose of integrated marketing communication mix, it is highly important for the organizations to attract the attention of customers. Once the customers become aware about the brand it is very easy for the organizations to influence the customers with the help of the brand. According to their model creating interests in the minds of the customers is significantly important for the purpose of successful implementation of integrated marketing communication mix. They have also added that integrated marketing communication should be different from the traditional approaches of marketing. In case of traditional approaches of promotions, campaigning was much more feature oriented but integrated marketing communication is much more benefit oriented. Authors have stated that, by demonstrating advantages of the products, interests of the customers should be grabbed and this is significantly important for the purpose of integrated marketing communication mix. To describe this AIDA model, the authors have stated that desire to posses something can influence the buying behaviours of the customers. It means the organizations have to manage their advertisements or promotional tools in such a way that it should create desire in the minds of the customers. According to the model described by the authors, advertisements and promotions should be designed in such a fashion that customers feel their requirements can be fulfilled with the products or services. According to author last component of this model is action. Once the desire is created consumers will be encouraged to take actions means to buy products or services. The authors have categorically stated that, the AIDA model is a widely used model for the purpose of integrated marketing communication mix. They have stated that, if all the four components of the model can be managed together then integrated marketing communications mix strategies can be implement successfully. They have also added that the model can certainly impact the revenue of the organizations in positive ways. Targeting customers in proper way is the ultimate objective of the integrated marketing communication. That objective can be easily achieved with the help of this model. According to authors, this model increase effectiveness of the various promotional tools used for the purpose of integrated marketing communication (Lamb, Hair and McDaniel, 2011). According to Schultz, Patti and Kitchen (2013), marketing communication mix encourages consistent persuasion towards the targeted audience. According to the theory stated by the authors, integrated marketing communication mix is highly important for the purpose of customer information. With the help of this communication mix organizational objectives are being communicated with the help of various promotional tools. They have also added that, integrated marketing communication mix reinforces various communications in the minds of the customers. Integrated marketing communication mix encourages repeat purchases from the side of the customers. Integrated marketing communication can increase the revenue of the organizations (Schultz, Patti and Kitchen, 2013). Market environment review Over the years smart phone market in UK has developed significantly. It has been observed that, UK market is the most focused market in the European continent as far as the smart phone is concerned. According to a survey, smart phone market in UK will going to increase consistently in the upcoming five years. According to a survey report, at the end of 2012 in UK there were 36 million active users of smart phones. The report also has indicated that in UK market there are almost 47 million active mobile phone users are present who are not using smart phones. It means there is a huge opportunity in the UK market to increase the number of active smart phone users. According to a survey, in UK market smart phone installation base will increase up to 18 % compound annual growth rate in between 2013 to 2016. If the current trends of growth are continued then by the end of 2016 the numbers of active smart phone users will be almost 63 million. The current increasing trend of smart phone growth has reduced the popularity of non smart phones in the country. In 2012 UK market had 11.7 % of the total regional smart phone base. The trend is still on the growth path. It means in the European region UK market is the most potential market as far as the smart phone is concerned. It has been observed that other European markets are also growing but still UK market is leading as far as the smart phone is concerned and it will hold the leading position in future also. According to a survey, UK market will hold 9.4 percent of the regional installed base of the smart phones. In 2013 UK market has crossed 50% market penetration as far as the usage of smart phone is concerned and it is being anticipated that by 2016 the market will record 75% penetration. Figure one given in the appendix is significantly showcasing the increasing trends of smart phone users in the UK market. The graphical representation is clearly indicating that, in UK market growths of smart phones have increased consistently from 2011 to 2014 and the trend will remain same in future as well. It means UK market is a highly attractive market for the smart phone organizations. The market has high degree of business profitability. In the modern world, life styles of UK people have become significantly busy. In this environment of highly busy life style people of UK are going for more multitasking mobile phones to ease down their various pressures. Smart phones with their several multitasking features are appropriately compatible with the busy life styles of UK people. That is why people of UK have chosen this option significantly. All the above facts and figures are indicating that in UK smart phone has high potential market. Over the year UK smart phone market has witnessed a slow but steady growth. It has been observed that almost half of the mobile phone users are using smart phones. The UK smart phone market is significantly dominated by Apple. The California based organization has almost 30% of the total market share (Yueh, 2014). In UK market percentage of feature phone users are still high than the smart phone users. It has been observed that almost 53% of the UK users are related with the feature phones. It means in UK still there is high opportunity to convert feature phone users towards smart phones. It is being observed that due to the costly nature of the smart phones 53 % users in UK market are still stuck with the feature phones only. All the above factors are reinforcing the fact that UK market is a highly potential market for the smart phone manufacturing organizations. The market has high degree of profitability at current situation and it will stay like this only in upcoming future as well. Critical Analysis and Discussion Over the years, Apple smart phone has managed its integrated marketing communication mix strategies in different ways than any other organizations have done in the industry (Boone and Kurtz, 2011). Continuous innovation is an USP of the organization and the organization has used that USP in various promotional techniques. Since 1980’s the organization has come up with various kinds of contemporary advertisements to promote their products. In 1990, the organization had come up with an advertising camping popularly identified as the “Think Different”. In that advertisement concept the company tried to linked their products with famous social figures like Mahatma Gandhi and John Lenon. With the help of this kind of integrated marketing communication mix, the company has tried to communicate their innovative nature across the global users (Ma, 2014). Over the years the organization has used both television advertisements and print advertisement as the main tool of integrated marketing communication strategy. In 1997 the organization came up with an advertising called “crazy ones”. Apple has given significant importance towards the print advertisement as well. The company has showcased their advertisements in various mainstream magazines. The company has circulated their advertisements in the magazine like Times and Newsweek. It has been observed that over the years Apple has used advertisement as an attractive promotional technique to communicate their smart phone marketing strategies. Their advertisements have created a unique image in the minds of the global customers. Apple enjoys high degree of customer loyalty than any other smart phone manufacturing organizations does. This high degree of customer loyalty comes from the appropriate usage of the integrated marketing communication mix. Being the global smart phone leader the organization has followed AIDA model significantly. With its advertisements the company has successfully attracted global customers towards the Apple smart phones. The company has successfully garbed the attention of global customers. In their various promotional tools the organization has always tried to showcase the advantages and benefits of their products. It has supported the company to grow interests in the minds of the global customers. In July 2014 the organization has come up with a sales promotion known as “Back to School”. This promotional technique is specially designed for the purpose of students and faculties. In this promotional technique, $50 worth gift card will be distributed with each iPad and iPhones sales. With the help of this promotional technique the organization has tried to target two special groups of audiences (Shimp and Andrews, 2013). It is also significantly aligned with the basic of the integrated marketing communication mix principle. With this promotional technique the US based organization has tried to pursuit their smart phone brands to the students and faculties. Innovative integrated marketing communication mix from the side of the Apple has made their smart phones as one of the most desired brands in the world. The organization has used their integrated marketing communication in such a way that customers across the world are willing to pay extra money for buying Apple smart phones (Ang, 2014). Desires of the customers are so high that smart phones of Apple are being considered as a social status symbol. Over the years the organization has used public relation extensively for the purpose integrated marketing communication. The organization has one of the best PR teams in the world. Over the years the organization has managed public relationship in unique fashion. The organization has always chosen selective media for the purpose of their promotion. The company has picked favourite people for orchestrating their smart phone brand superiority. The company has given significant focus towards the presentation as far as the public relationship is concerned. Over the years the organization has managed their public relationship with the help of media events as well. Integrated marketing communication mix of the company is highly appropriate and certainly forces purchase actions from the side of the customers (Barker, Valos and Shimp, 2012). The logo of the Apple is also an important factor as far as the IMC of Apple is concerned. All the above factors are indicating that integrated marketing communication mix strategies of the organization are highly effective in nature and have significant compatibilities with AIDA model and other theories related with it (Ferrell and Hartline, 2012). Recommendations It has been observed that public relationship of Apple has high dependency on favourable media. The organization should come out of this comfort zone. They should engage favourable and as well as unfavourable media for the purpose of public relation. It will certainly reduce the criticism of media biasness for Apple products. After the death of Steve Jobs the organization has gone through a massive transition. Previously advertisements of the company have reflected organizational confidence. At this point of time advertisements of the company are not showcasing high degree of organizational confidence. Marketing team of the company should give significant focus towards their advertisements to reflect organizational confidence. TBWAMedia Arts Lab is a long term media agency for the organization. Over the years the agency has shifted their focus little bit from the Apple. Sometimes it has been observed that the media is not showcasing Apple products in extensive fashion which it was previously to do. Due to this, the organization can reduce it’s over dependency form the media and can go for other media agencies. Recently the organization is losing their emotional appeal in their marketing communication mix. It can be a serious threat for the company. The organization should incorporate more emotional appeal into their various promotional tools. It will allow the California based smart phone brand to maintain and increase their high level of global loyal customer base. The organization should use social media in more extensive fashion without any complacency. Conclusion The above report has critically analyzed the integrated marketing communication mix strategy of Apple smart phones. During the course of this report one thing has been found that the organization gives significant importance towards the integrated marketing communication. That is why the company enjoys high degree of customer loyalty. In the course of this essay it has been noticed that integrated marketing communication strategies of Apple are significantly falling in line with the AIDA model. The report has categorically indicated that, over the years with its suitable integrated marketing communication mix, the company has targeted appropriate audiences across the world. The report has categorically indicated that as far as the smart phone is concerned UK market has high growth. The same trend will continue in future also. From the above study it is very easy to conclude that UK market has high potential for smart phone growth and Apple smart phones have managed integrated marketing communication in proper ways. There are certain weaknesses which can be mitigated with the help of suggested recommendations in the report. During the course of this study various examples of Apple advertisements have been provided, all those examples are clearly indicating the uniqueness of this chosen smart phone brand. References Ang, L., 2014. Integrated marketing communications: a focus on new technologies and advanced theories. New York: Cambridge University Press. Barker, N., Valos, M. and Shimp, A. T., 2012. Integrated marketing communications. London: Cengage Learning. Boone, L. and Kurtz, D., 2011. Contemporary marketing. London: Cengage Learning. Ferrell, O. C. and Hartline, M., 2012. Marketing strategy. London: Cengage Learning. Lamb, C., Hair, J. and McDaniel, C., 2011. Essentials of marketing. London: Cengage Learning. Ma, T., 2014. Professional marketing and advertising essays and assignments. New York: Tony Ma. Schultz, D., Patti, C. H. and Kitchen, P. J., 2013. The evolution of integrated marketing communications: the customer-driven marketplace. New York: Routledge. Shimp, T. and Andrews, C. J., 2013. Advertising promotion and other aspects of integrated marketing communications. London: Cengage Learning. Yeshin, T., 2012. Integrated marketing communications. Berlin: Routledge. Yueh, L., 2014. Is the smartphone market approaching maturity?. [Online]. Available at: < http://www.bbc.com/news/business-29339251>. [Accessed 25 November 2014]. Appendix Figure 1: Smart phone users in UK market Read More