Integrated Marketing Communication of the iPhone - Case Study Example

Integrated Marketing Communication Name: College: Executive summary Integrated marketing campaign focuses on improving the sales of the company. The first thing to do is to conduct situational analysis that helps to understand the competition in the market as well as the history of the product. According to market findings, competition is high in the consumer industry because of the changing needs of the customers. Therefore, the marketing team must identify the target market as well as their needs. Also, the report found out that rational market appeal is preferred in this situation while quality contributes to customer loyalty. The report finds out that the expected cost of the plan is $20,000. Eventually, the plan is evaluated based on the achievement of goals and objectives and customer satisfaction. Finally, the recommendation the report makes is that the marketing team will improve the plan through partnerships and creating a task force to conduct market research regarding the satisfaction of the customers. Integrated Marketing Communication Integrated marketing communication is an important component that influences the success of an organization. It suggests the marketing strategies an organization employs to meet the needs and expectations of the stakeholders (Kerin, 2012). It considers important elements in the marketing function such as strengths of the company as well as the opportunities identified in the market. The purpose of this paper is to discuss the integrated marketing communication regarding Iphone which is one of the products Apple manufactures. Situational analysis Apple Company is an American multinational corporation that manufactures consumer products according to the changes in the business environment in order to meet the needs and expectations of the stakeholders. It was founded in 1976 and currently it is the largest multinational corporation internationally (Apple Inc, 2016). The company manufactures a variety of products to match with the competition in the consumer industry as well as the changing needs of the customers. Some of the products the company manufactures include mobile phones, computers and its accessories. The company introduced iPhone in 2007 and currently it is enjoying the largest share of the iPhones. It is because of the changing demands of the customers that Apple developed iPhone 6 and later introduced advanced iPhone 7 in the market to improve customer experience (Apple Inc, 2016). The phone has unique features such as advanced cameras and immersive speakers. Therefore, the product has advanced features as compared to other phones. Apple Company has used various marketing strategies to market the product. In the first place, the company partners with other potential firms such as Nike to create a positive ecosystem that delivers customers value. Through the partnership, the products are distributed effectively in the market thus meeting the demand of the customers (Apple Inc, 2016). Another marketing strategy the company uses is online marketing. Apple is known as one of the companies with effective online marketing techniques. It uses social sites such as the company website, Facebook and Twitter to interact with potential customers. In the process, it has managed to create a good working relationship with the customers thus attracting and retaining customers. Developments in technology have influenced the design and development of the mobile phones. Individuals are connecting online implying that the internet is used extensively. For instance, most young people meet online and make friends (Kerin, 2012). As a result, the use of mobile phones with advanced features is developed to meet the needs and expectations of the stakeholders. Therefore, socialization has influenced the development of mobile phones. The success of Apple Company is based on its ability to innovate products. The company conducts market research to determine the changing needs of the consumers and then develop products to meet their needs and expectations. Also the company is effective leadership and Apple is regarded as the leading multinational corporation regarding technology (Hitesh, 2016). On the other hand, the weakness facing the company is incompatibility of its products with third-party software as well as accessories. In this regard, the company has unique products and its spares parts are not readily available. The first opportunity of the company is developments in technology. The company can market its products using various sites such as Facebook, Instagram and Whatsapp. The growing market also creates a market opportunity for the products manufactured. The threat Apple faces is high competition in the market because of easy penetration of other smartphones (Hitesh, 2016). For instance, Android has a market share of 47% whereas iPhone has a market share of 42%. Therefore, the market is shrinking because of high competition. The laptop competition also affects the competition and market share of the company. Relevant marketing data Due to competition in the telecommunication industry, the sales of the company are increasing with the introduction of iPhone 7 but at a decreasing rate. It means that the sales are increasing but low as compared to past sales. For instance, in the first quarter 2016, the company sold a total of 45 million units. The main competitors in the market include Samsung that developed Galaxy Note 7 to compete iPhone 7 in the market (Zach, 2016). Furthermore, the market share for Android is 47% while the iPhones have a market share of 42%. It implies that the company is intensifying its competition by delivering value to the target customers. The competition has increased steadily affecting the sales of Apple Company. On the other hand, customers perceive different brands in the market differently. The leading companies in the manufacture of smartphones are Apple and Samsung. Each company has its own market share because of the products it offers to the customers. However, the unique services Samsung products are managing customer welfare (Alex, 2016). It occasionally gives customers free services such as repairing them. Furthermore, the company provides quality products that satisfied customer needs. The marketing efforts the company puts in place to change the attitude of the customers include pull strategies. These strategies include advertising of the products as well as the informing the customers regarding the benefits they gain from using the company’s products (Alex, 2016). Another strategy is customer relationship management technique including giving offers and regular communication with the clients. The company also conducts sales promotions to create awareness of the products and services. Moreover, the marketing efforts the company to change the perception of the customers is push strategies. The first technique used is creating effective supply chain to ensure the customers access the products conveniently (Alex, 2016). Also, the company conducts showrooms and takes part in trade shows to create awareness of the products to the clients. The customers provide their feedback which is essential in making best decisions for the company. Target audience The target market for iPhone 7 is the middle working class. It means that the company targets the employed since they can afford to buy the products. In this regard, the products targets married people because they are stable financially unlike the unemployed. Moreover, understanding and operating the phone requires educated individual especially the degree holders and beyond. It is because they are well connected globally and can use the iPhone to interact with other professionals (Kotler & Kevin, 2009). Most importantly, the product targets female audience since they can carry the mobile phones in their porches. However, the product does not discriminate clients based on their gender as long as they have the financial capacity to buy the products. On the other hand, the consumer level influences their buying behavior. Considering the cost of the products, it is not possible to engage the consumers in the impulse buying process. Therefore, the consumer buying situation in this context is dissonance. Therefore, the marketing team must provide sufficient information to the customers so that they can right choices. Currently, the consumers have positive attitude towards iPhone 7 because of its quality (Kotler & Kevin, 2009). Also, the company constantly engages the customers in decision making thus creating customer loyalty. Besides, it provides special offers to encouraging consumers to buy the products. In this regard, the customers have positive attitude towards products. The buying situation considered in this context is the complex buying situation. It is the situation whereby the marketing team has to influence the consumers so that they can make decision of buying the iPhone 7. Furthermore, customers do not make routine buying because of the competition in the mobile industry (Tim, 2016). Therefore, the companies develop unique products with the aim of differentiating its goods from the competitors. The benefits of irregular buying is that consumers learn to develop a positive attitude towards the products of the company thus it Apple can attract and retain customers. Brand positioning The aim of the marketing plan is to change the thinking of the consumers and make a decision to buy the products. Therefore, the marketing campaign aims at developing positive attitude of the customers towards the products by developing loyalty. It means that the marketing plan aims at changing the perception of the customers and considers Apple as the most competitive company that puts the needs of target audience at its heart (Tim, 2016). As a result, the customers must have a unique and clear image of the value they get from the company’s products. The unique selling proposition the company will use is competitive pricing strategy. It is the pricing strategy whereby the company prices its products slightly lower than the competitors with the aim of attracting and retaining customers. In this way, the company enjoys economies of scale thus creating competitive advantage (Tim, 2016). The new entrants into the market cannot use this offer because they do not have the financial capacity to apply competitive pricing. It benefits both the customers and the organization as it will generate stable income improving the financial base. The creative strategy Considering the Unique Selling Proposition, the promotional appeal the marketing will use is rational. It is the technique applied by the marketing team taking into account the rational approach to marketing. For instance, stating the benefits of the product influences the ways in which the clients will benefit by using the product (Ken, 2016). The technique is effective because it helps to influence the buying decisions of the consumers. Also, the marketers can use convincing proof by influencing what the consumers see and therefore it based on the form of the products. The first execution technique to use in advertising is factual message. It is the technique whereby the company considers creating information to influence the decisions customers make. It is used alongside rational appeals considering the information about the products and services. Another execution technique is the comparison method (Kerin, 2012). The marketing team directly compares its products with the competition in the market to make work easier for the customers to understand the benefits associated with the product. The technique is the slice of life where the product marketed based on the provision of a solution. The advertisement tries to explain a real life situation and then developing a solution to the problem. IMC program engagement The first program is advertising the products. The marketing team will market the products and services using online sites such as Facebook and Twitter as well as Instagram. These sites help to create awareness of the products and services to the customers (Zach, 2016). Also, the iPhone 7 is marketed through business magazines and newspapers. It is also important to understand the products are packaged safely in disposable materials as a way of preserving the environment. Moreover, direct marketing strategy is also included in the plan. With this technique, direct mails are sent to loyal customers and retailers to make them aware of newly developed products (Zach, 2016). Furthermore, public relations techniques are also used and this includes responding appropriately to consumer feedback and giving discounts and maintaining effective communication. Personal selling techniques such as roadshows are also used to market and sale the products. The promotion budget The expected budget for the promotional plan is $20,000. In this regard, the marketing team must use the most affordable marketing strategies to ensure they operate within the limited budget. The marketing techniques to use in marketing the products include online marketing because the techniques are cost effective (Kotler & Kevin, 2009). Moreover, the cost of promotions is also inclusive in the pricing of the products therefore, using cost effective marketing techniques reduces the cost of products and it is possible to apply competitive pricing strategy. As a result, marketing techniques influence the cost of the products and subsequently customer demand. Objectives and tasks The following are the objectives of the marketing plan; To improve sales of the company by 4% in the next two years To improve the market share of Apple by 5% in the next three years In this regard, the marketing plan aims at improving the competitive advantage of the company (Kotler & Kevin, 2009). Through the marketing campaign, the company is able to attract and retain more customers thus improving the market share. Evaluation The first technique to evaluate the success of the marketing plan is to measure the sales of the company. The plan aims at improving the sales of the company by creating awareness of the products to the target audience. Failing to increase the sales indicate that the plan was not successful. Also, the marketing manager will evaluate the success of the program by assessing the achievement of the set goals and objectives (Kotler & Kevin, 2009). It is because they are used as milestones to measure the company’s progress. Finally, customer feedback is helpful in assessing the success of the campaign. Customer feedback is essential as it helps to determine their satisfaction. Recommendation For the company to improve the ales of iPhone 7, the management must develop task force teams in the organization (Kotler & Kevin, 2009). The responsibility of the team is to conduct market research and determine the satisfaction of the customers and collect their opinions. This will improve the quality of decisions made. On the other hand, the company should enter into partnership with other companies so that they can help distributing the products conveniently to the target market (Zach, 2016). For instance, the company should have retail outlets as well as its stores where the customers can buy the products. Conclusion Marketing plan is crucial since it helps to create awareness of the products and services to the customers. The significant factors to include the integrated marketing communication include product quality and the product’s backgrounds. To position the products effectively in the market, research and development is required to develop the products to meet the needs and expectations of the customers. The programs to engage in the marketing plan include advertising, packaging and direct marketing as well as public relations. References Alex, W. (2016). Apple Boosted by iPhone 7 Demand, Slowing Pace of Sales Decline, retrieved on 22nd November 2016 from https://www.bloomberg.com/news/articles/2016-10- 25/apple-boosted-by-iphone-7-demand-slowing-pace-of-sales-decline Apple Inc. (2016). About Us, retrieved on 22nd November 2016 from http://www.apple.com/ Hitesh, B. (2016). SWOT analysis of Apple Inc-Apple SWOT analysis. Retrieved on 22nd November 2016 from http://www.marketing91.com/swot-analysis-apple/ Kerin, R. A. (2012). Marketing: The Core. London: McGaw-Hill Ryerson. Ken, O. (2016). Rational Appeals vs. Emotional Appeals in Advertising and Marketing Communication, retrieved on 22nd November 2016 from http://www.orwig.net/articles/rational_emotl/rational_emotl.html Kotler, P & Kevin, L. (2009). "1". A Framework for Marketing Management (4th ed.). New York: Pearson Prentice Hall. Tim, C. (2016). Strategies for Global Markets, Marketing. Retrieved on 22nd November 2016 from https://sites.google.com/a/email.vccs.edu/bus100bsalehi/home/marketing Zach, E. (2016). Apple’s mobile market share sees big drop in May as Android Skyrockets, retrieved on 22nd November 2016 from https://sites.google.com/a/email.vccs.edu/bus100bsalehi/home/marketing Read More