Cellular Phones and Marketing - Essay Example

prepared Cellular Phones and Marketing An acquaintance recently got an I Phone thru AT&T’s postpaid offer, which is a postpaid plan bundled with an I Phone 3rd Generation/ 8G at a with a one-time charge of $ 99. She has always wanted to get this particular handset due to its popularity in terms of feature and value. Strong media hype prompted her to get an I Phone 1st generation when it first came out in 2006, and although there were a few glitches associated with that particular phone model at that time, the I Phone has already evolved into a very reliable handset that is particularly appealing to media-savvy people who give utmost value to gadgets that provide them an opportunity to enjoy music, movies and media in general. This person wanted to enjoy those same privileges, and also have a phone and the kind of service that best suits her communication needs. So when AT&T released the I Phone offer earlier this year, she was more than excited to get one. Smartphones are very popular in the US and is also growing in popularity in other parts of the world. It’s no surprise that both the I Phone and Blackberry are competing very closely in terms of market share. My friend’s other option it to get a Blackberry to replace her old I Phone. These two handsets don’t differ much in terms of pricing. AT&T offers both handsets under their postpaid plans within very close price ranges. BlackBerry has also its share of winning reviews and a steady throng of followers. In fact, another friend owns a BlackBerry curve, one of its latest models, and we are all at awe with its user-friendly features. This phone and this brand in general suits people who are more interested in data than media. Even online reviews say this. But since my friend prefers to store music, videos and games, I Phone is the sure choice for her. The I Phone 3rd Generation is an apple phone in its usual form – sleek, trendy and hip. Its amazing touch screen technology that literally lets you glide through applications is one of its best features. No phone comes close to this technology yet. It is a wonder how Apple does it – the I Phone is hands-down, the best choice for the younger generation of phone addicts. Aside from its looks, the I Phone also has the capacity to carry a wide array of application types that makes the already useful handset into a really genius gadget that goes beyond its telecommunication functions. My friend extremely enjoys the applications, and the many things she could do with her new phone. The purchase took place last September at the AT&T Wilshire branch. Since she was already pretty much decided which product to purchase, it was not difficult to decide on where she should make the purchase. AT&T offers the cheapest handset rates for its subscribers, and since my friend also has great requirements for both calls and texting, it seemed natural for her to go to this branch to make her purchase and apply for a subscription. Before the purchase, my friend already had one of I Phone’s 1st generation phone, which is kind of behind already in terms of technology because of the release of the newer I Phone models. The I Phone’s popularity was the main reason for my friend to be a fan. Before the I Phone 1st generation model came out, she was already looking up for gadget reviews both online and in gadget magazines. Maybe, it was the media hype that sparked her interest, as much as it sparked the interests of many other people in the US and the rest of the world. Of course, she was also particular about the features of the phone. She researched the best features that suited her needs as well. And since she is a media-type of person who loves to store music and videos, loves to access the internet and likes her things to hip and trendy, the I Phone was a natural choice. It was an icing on the cake that AT&T offered great values as well to support her need for connectivity and data processing and handling. My friend constantly logged on to blogs and related forums for gadget reviews and the like. She checks out www.wired.com for the latest commentaries of mobile phones and personal data assistants. A self-confessed gadget-enthusiast, she also frequents other websites such as www.gadget-reviews.com and www.planet-iphones.com. Admittedly, she had to rely on internet data to gather information. Since she is also online most of her time, finding the needed data proved to be easy as well. Doing so saved her much time and effort in scouting for the right phone model in stores. She did not have to go around the city to physically locate her desired model and this saved her a lot of time and money. Internet has proved to be a very useful tool to help her gain knowledge and eventually decide on which phone model she would buy. Basing on the purchase funnel model, I can say that my friend went through each stage or process prior to actual purchase. From the very start, she has been aware of her mobile phone requirements and of the existing models in the market that just might suit her needs. She gathers information to appreciate these products more, and relies on other people’s opinions so she would be guided in her decision making. As a result, she finds interest in a particular type (smart phones), brand (the IPhone) and model (8G), then chooses the right channel from which she could make her purchase. There is also much consideration in finding the service provider, and since AT&T offered the best deals that would suit her needs, she has come to a decision and her desire to acquire this bundled product became even stronger. As a result, she took her move to finally make the purchase so she could enjoy the benefits of this new gadget. Basically, that was the whole purchasing process. What other important factor to consider was her power to purchase such gadget, with a 24-month contract, by which she has to asses if she could dutifully pay or not. Since she has the purchasing power, she made a go at it. The buying cycle was basically just a short one. When her requirements were identified, it was not so difficult for her to finally find the right product. Having identified her needs, she was able to discern which product is right for her and would perfectly fit her budget. She was well aware of the various factors that she thinks would satisfy her requirements. She knows that she wants a phone that can only make calls and SMS, but provide satisfaction in fulfilling her multi-media needs. She stores music, videos and applications and enjoys doing so. She wants to spend her money, even if it means it would be a bit costly, on something that would make her happy. She also wants something that would represent her sense of style. She wants a phone that would show her creative choices and that would fit her lifestyle. The rest of the factors, which is where and when to buy, just got relatively easy. The intent to buy was there, and when it finally happened, everything just fell into place. Although she already had basically an idea of what she wants to buy, there were a few choices in the market which she also researched on so she could compare features and price. These alternatives were also considered. My friend spent a considerable amount of time looking these items up in the web, until fully convinced that what she wanted to buy in the first place was definitely what she needs. These alternatives have firmed up her decision to buy the I Phone and not its competitors. When asked if my friend considered the product’s value versus its image, she said that it was a really a right mixture of both. Upon identifying her needs and requirements, she immediately located for the possible solutions and allocated a corresponding budget for it basing on research. It was product image that enticed her to look into the I Phone much closely. Various feedbacks on the model prompted her to appreciate it. Definitely, product image played a big factor in catching her attention. Image equates to stature. As an I Phone user, she was definitely ‘in’. And that was also partly the reason why having an I Phone seemed to advantageous for her. As mentioned earlier, the I Phone also represents her personality and this is why this is a perfect choice for her. In terms of her image, it is important that this product of choice matches how she carries herself, and what kind of character traits that she possesses. The I Phone is a chic and handy phone. She did not think twice of having this product as part her daily life. However, in choosing which product to buy, it was product value that mattered. By value, it means the actual price, and more importantly the corresponding features that would make it a best buy. Considering that it is still one of the highest priced smart phone in the market, my friend ensured that she will get the best value for her hard earned money. The I Phone features did not only meet her needs, but exceeded her expectations as well. This proves that the product is well suited for her. Before buying the item, my friend was actually excited. She was not at all apprehensive about the purchase because she has already decided which item to buy and had the mindset to do it. There was only sheer motivation and then afterwards, delight when she already had in hand the new model. The store staff was equally pleased to have made the sale, considering that this handset and subscription type is their highest selling. My friend was not fully aware if the sales staff earned commission for the sale, but it seemed that hitting their targets was enough motivation for them to push that particular handset type. What made it easier was that they did not have to convince my friend on the choice of model as she has already made up her mind. Nevertheless, it was a delightful experience. As this is not the 1st time for her to purchase a phone, it was not really a difficult choice to make. She has the purchasing power, and was pretty aware of her needs. It was more of planned than impulsive, and it was right for her to do since mobile phones are expensive items that one should be able to enjoy and fully utilize for longer periods of time. Although she basically had the money to spend and the decision was quick, considerations were made for her to finally purchase the product and subscribe to AT&T service, On that day that she was about to purchase, my friend went directly to a targeted store to proceed buying the product. All needed information of the subscription application process was obtained through the AT&T website. The store atmosphere was friendly, which maybe contributed also to the decision for her to purchase the item there. In other words, there were no other reasons for her to think that she was making the wrong decision, All sales clerks were very helpful and attentive, and the person who did a demo on the phone always gave out this impression that my friend was making the right decision. This kind of environment solidified my friend’s decision to buy the phone. Although the decision to purchase was final, the store itself proved to be a good affirmation of the decision. At present, my friend now enjoys the product. She now stores music and videos on her I Phone, and her communicatoion needs are satisfied. She’s one of the head nurses in a local hospital, and she keeps in touch with family and friends every now and then and uses her mobile phone to do so. As a hobby, she also likes to collect music, purchasing them online and buying CDs. She stores these files in her I Phone and listens to it most of the day. She uses a headset when on the go, and plugs the units through a mini speaker when at home. She also enjoys various games and applications in her I Phone, and it is something that no other phone model could offer. The whole product satisfied her every requirement. And she was grateful that she was able to make the right decision after all. My friend also mentioned that her sister was very excited upon learning that she was going to upgrade her I Phone. Her sister uses a Motorola phone, and is very interested in having a chance to hold and experience an I Phone. Also, most of her colleagues now use Blackberry handsets. Although they are very satisfied with their respective products, they also look forward to seeing my friend purchase a new I Phone. They did not exactly influence my friend on this purchase as she was already pretty much decided on the purchase. But it also contributed that they were all enthusiastic and supportive of her decision, as it made the purchasing experience all the more pleasant for my friend. My friend gives a great amount of importance for her personal belongings. The I Phone now has nice pouches, and my friend changes the colors at her every whim. As mentioned, she is very trendy and fashion-conscious. She has various accessories for her phones, the way she maintains a lot of accessories for her personal use. At present, she downloads applications from the Apple Store and adds a few games every now and then. Compared to her first I Phone, there were no problems encountered for this handset. It is still a relatively pleasant experience for her, and she has not seen any need to avail of the product warranty just yet. For her, the mobile phone is a means for her to be connected to the rest of the world. She would not be able to focus on the things she needs to do without her phone, it should always be in her bag, available every time she has a need for it. And as much as it satisfies her penchant for good music, great games and entertainment in general, the I Phone that she recently bought satisfied also her need to communicate with friends, family and colleagues. Of course, it was AT&T that made this experience possible. On top of having been able to purchase a really good handest, my friend was also able to find a good service provider for her telecommunication needs. AT&T is considered to be one of the country’s leading service providers. It is also known in the world as a company that does not only provide services for phone and short message, but also for other IP-based communications services to individual subscribers. They claim to be offering the most phones that work in the most countries and they have the largest Wi-Fi network in the United States (Corporate Profile 2009). They have the most reliable network in the US, and has a wide array of handset offers bundled with the voice and data products. Most of those within my friend’s circle of friends have had experience with this service provider, and its popularity in the US contributed to my friend’s desire to acquire a phone with just the right service provider. AT&T gives emphasis on value for money. It offers postpaid plans that have specific voice and data value-added services, and has a wide variety of choices that consumers could pick from. This variety of choices also prompted my friend to be interested in buying from them this product. As mentioned, my friend has great requirements for voice and SMS. She is constantly in coordination with colleages for hospital related concerns, and needs to always interact with parents who are in a different state, her sister and one younger brother and her friends. She is immensely satisfied with the type of service that AT&T offers. Apple Company has been effective in marketing their I Phone product. Since the product’s introduction in June 2007, it has never failed to capture the interests of the gadget enthusiasts, not only in the US but also the rest of the world. Raves and reviews are often found in online forums, blogs and in magazines and newspapers. It’s just simply popular. I Phone’s touch screen technology has made competitors bite the dust. And the commentaries, reviews and feedback from users create an impact on a consumer’s decisions. In this case, the product speaks for itself, with no need for further prodding for its target market. Word of mouth plays a great role also in the promotions of this product. Satisfied consumers simply had to do testimonials and most of the readers would be converted to being believers. This below the line tactic is the product’s asset, and is fundamental in the product promotions and advertising strategies. AT&T on the other hand, has exclusive rights to provide service for the I Phone. Their partnership also poses such great advantage to both products. Their relationship is symbiotic. Both companies enjoy the benefits of being affiliated with each other. AT&T also enjoys greater advantage of being able to acquire long-term subscribers who provide regular revenues and top up to the company. What amount they spent to subsidize the phones are gained back in magnitude foe every loyal subscriber that stays with the company for two years or even more. References “Corporate Profile”. AT&T. November 19, 2009. http://www.att.com/gen/investor-relations?pid=5711 Read More