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Transcript of Marketing
- Source: American Marketing Association
The Nature and Role of Marketing
Target Market and Techniques
Marketing plays a key role in the life of every business and is often crucial to its success. Although the basics of marketing have remained the same for generations, the 21st century has brought new challenges and marketing possibilities to the forefront. Many of these new possibilities have been as a direct result of the large impact that social media and technology now have on our every day life.
With increased consumer awareness of how marketing works advertising agencies and companies must develop new ways to promote products and services to customers.
The Marketing Plan
Marketing campaigns are often expensive. A marketing plan is therefore created and can be the crucial difference between attracting new customers and wasting critical company money. All aspects of marketing strategies should come together in one plan and complement each other, allowing for maximum potential while minimising the overall cost of the advertising.
Marketing plans allow the business to decide the who, how and when the company will market its product. After all, an important purpose of marketing is to promote product and your brand name at the same time. For example a sports firm selling golfing accessories advertising during children's TV would not be a good use of the marketing dollar. However advertising during a golfing tournament would maximise access to informed consumers.
A crucial part to effective and efficient advertising is "knowing the customer". This is often known as having a specific target market and most businesses are aiming to attract a significant proportion of the population in relation to the product of service to be promoted. For example the target market for Brut anti-perspiration is "30 plus" men with a daily grooming regime.
However, other businesses might have a mass target market, for example supermarkets and car companies can advertise to many different types of people. Mass marketing approaches are aiming to target all consumers. For example, Coles supermarkets' advertising focuses on the "down, down, prices are down" jingle as they are able to mass market the product due to the need for everyone to buy groceries.
The following slides show the methodologies used by Apple in their marketing techniques.
SACE #: 796984J
Business and Enterprise Stage 2 SACE
The Four P's of Marketing
Overall the marketing of Apple is unmatched, from their product placement to the look and feel of their products. They use every trick in the book and more to pull of profits not seen before by companies. Apple uses every trick in the book and more to pull off profits that have not been seen by companies in history. It is the second largest public corporation in the world with an estimated value of US $414 Billion (Source: Apple.com). Apple puts the theory of marketing into a new element as shown by this presentation, specifically highlighted through some of the best brand placement in the business through the use of in-shop stalls.
However, in recent times after the death of Steve Jobs, the shine of Apple has been fading. It has been crucial for Apple to keep innovating and producing new and amazing products. With competitors now catching up to Apple with product quality and brand promotion, Apple needs to deploy new marketing techniques to retain their current market share.
Apple is a popular US success story, yet social, ethical and economic issues still abound in its business practices. At the time of this presentation CEO Tim Cook was being grilled by a US Senate inquiry into the use of Irish Subsidiaries to help the company avoid billions in US taxes. In the future Apple will not only need to use it's marketing techniques to promote their products but to also present a positive image to its consumers and investors. This episode demonstrates the implications and consequences of business pressure, as its share price fell US $2.74 in trading that afternoon.
ACCC take Apple to court for iPad 3 4G claims | Crikey. 2013. [ONLINE] Available at: http://www.crikey.com.au/2012/03/28/apple-in-court-accc-ipad-fight-tests-dodgy-4g-claims/. [Accessed 31 May 2013].
Anthony Williams. 2013. Apple: Manufacturer of electronic devices. [ONLINE] Available at: http://awilliams2625.blogspot.com.au/. [Accessed 05 June 2013].
APPLES TARGET MARKET - APPLE INC. CASE STUDY. 2013. CASE STUDY. [ONLINE] Available at:http://appleinccasestudy.weebly.com/apples-target-market.html. [Accessed 31 May 2013].
Chart: Apple Reports First Profit Decline in a Decade | Statista. 2013. • Chart: Apple Reports First Profit Decline in a Decade | Statista. [ONLINE] Available at: http://www.statista.com/topics/847/apple/chart/1063/apple-reports-first-profit-decline-in-a-decade/. [Accessed 31 May 2013].
Marketing Apple. 2013. Secrets of the World's Best Marketing Machine. [ONLINE] Available at: http://www.marketingapple.com/. [Accessed 31 May 2013].
Marketing Examples. 2013. Integrated Marketing Mix (4 P's). [ONLINE] Available at: http://uwmktg301.blogspot.com.au/2010/01/integrated-marketing-mix-4-ps.html. [Accessed 31 May 2013].
Segmentation Utilised By Apple . 2013. Critically Evaluate Marketing Essay. [ONLINE] Available at: http://www.ukessays.com/essays/marketing/critically-evaluate-the-segmentation-utilised-by-apple-i-phone-marketing-essay.php. [Accessed 05 June 2013].
The Genius of Steve Jobs: Understanding Marketing's 4 P's | Villing & Company - Marketing, Public Relations, Web Site Development. 2013. [ONLINE] Available at:http://villing.com/articles/general/steve-jobs/. [Accessed 31 May 2013].
The Secret to Apple's Marketing Genius - Nigel Hollis - The Atlantic. 2013. (Hint: It's Not Marketing) - Nigel Hollis - The Atlantic. [ONLINE] Available at:http://www.theatlantic.com/business/archive/2011/07/the-secret-to-apples-marketing-genius-hint-its-not-marketing/241724/. [Accessed 31 May 2013].
Who’s Winning, iOS or Android? | TIME.com. 2013. All the Numbers, All in One Place | TIME.com. [ONLINE] Available at:http://techland.time.com/2013/04/16/ios-vs-android/. [Accessed 31 May 2013].
Why is marketing important to businesses?. 2013. NBM Communications. [ONLINE] Available at: http://www.nbmcommunications.com/why-is-marketing-important-to-businesses.php. [Accessed 31 May 2013].
http://www.nbmcommunications.com/why-is-marketing-important-to-businesses.php - WEB - Accessed 23/5
The Nature and Role of Marketing
A principle role of marketing is to promote a certain goods or service by adopting a customer orientated promotion approach. This is often done through a marketing campaign. Apple is an excellent example of a company which uses successful marketing techniques. These range from the look and feel of new products to the layout of their retail stores. One of these retail stores recently opened in Rundle Mall, with the initial day of trade attracting several thousand Apple devotees, such is the drawing power of their brand. Last year over 130 million people visited an Apple store.
http://www.statista.com/topics/847/apple/ - WEB - Accessed 23/5
http://appleinccasestudy.weebly.com/index.html - WEB - Accessed 28/5
The Marketing Plan
Key aspects to consider in a marketing plan are:
- What are the costs?
- Where will the business market the product or brand?
- To whom is the business marketing?
- How does the marketing link into other areas of the business?
How can we best meet consumer needs?
In all forms of business, having competition is both beneficial for the companies involved and the consumer. Apple competes against some of the largest brands in the world such as Microsoft and Google. In order for them to compete, their products and marketing must be polished and highly effective.
Over the past few years Apple has seen its dominance of the smartphone market diminish as other companies such as Samsung have continued to innovate. This is shown in the figures below.
Target Market and Techniques
Due to the size and nature of Apple they are able to use mass-marketing techniques to attract all types of people by using carefully researched segments. This is also reflected in their product range.
Teenagers can use any of the Apple products such as iPods and iPhones.
Universities and schools can use devices such as the Mac Books and iPads.
Businesses can use any of the Apple products to increase productivity and communication!
Many child care centers now use iPads for entertainment.
Founded in 1976 by Steve Jobs, Apple is now one of the most successful companies in the world with their logo being universally recognized. In the first quarter of 2013 the company achieved a total profit of 55 Billion USD.
Ethical and Legal Aspects of Marketing
Apple & ACCC
The iphone is one of Apple's most successful products of all time. However recent improvements from other phone makers have put pressure on its market dominance. Currently the main two operating systems are Android (Google) and IOS (Apple).
IOS v Android
http://www.statista.com/topics/847/apple/chart/1063/apple-reports-first-profit-decline-in-a-decade/ - WEB - Accessed 28/5
http://www.marketingapple.com/ - WEB - Accessed 31/5
http://appleinccasestudy.weebly.com/apples-target-market.html - WEB - Accessed 28/5
www,ehaw.com.au - WEB - Accessed 3/6
Business Studies in Action, Jacaranda, 2011, Pg 221
"The Australian Competition and Consumer Commission took Apple to court today, claiming that describing its new iPad as “iPad with WiFi + 4G” is misleading."
- Crikey Magazine, MAR 28, 2012
http://www.crikey.com.au/2012/03/28/apple-in-court-accc-ipad-fight-tests-dodgy-4g-claims/ - WEB - Accessed 28/5
With the launch of the new iPad 3, Apple advertised to Australian customers that the device was 4G compatible. However, this was not the case for Australian consumers as the 4G signal in Australia is on a different wavelength to that of the US. This statement resulted in the Australian Competition and Consumer Commission taking Apple to court over these misleading claims.
Without doubt Apple is one of the marketing kings, using all of the four P's to promote their products and brands. The release of every new Apple product follows the four P's. For example the release of the latest iPad had:
All of the Apple's devices have the same recognizable form, colours and use of materials. Already this is a crucial marketing technique for Apple as consumers can recognize their products instantly even if they are only glimpsed. Apple was also one of the first companies to make "attractive technology" and this is a major difference between them and their competitors.
The iPad created and entirely new market of a device that was between a PC and a mobile phone. At the time many critics were unsure if there was a place for this new device.
Although the prices of the Apple are often expensive, their marketing is enough to over-come this. For many consumers who already have existing Apple devices, the hassle factor of learning how another device works is too much. Therefore the consumer is willing to pay more for a brand and device that they will already to know how to use. This is similar for other platforms such as Windows and Android.
Apple already offers consumers limited choice in what comes with the device. The main choice is between 16GB ($499), 32GB ($599) and 64GB ($699) of memory, showing their use of psychological pricing. This makes the choice simple for consumers. The only two other choices that the consumer has is between 3G of 4G connectivity and the colour of either black or white.
Like the similar design of all Apple's products, the product launch is of a similar nature. Steve Jobs has become legendary not only for his innovative nature but also how he would launch the new products. The iconic scenes of him standing on stage, with the new device in his hand has now been used by many hardware companies to launch their new products. The product launch is then followed by a media frenzy, TV adverts and the general buzz of excitement about the release of a new Apple product. Apple is able to use the same marketing strategies to attract different target markets. Apple advertises through all mediums of TV, internet, radio and magazines.
http://uwmktg301.blogspot.com.au/2010/01/integrated-marketing-mix-4-ps.html - WEB - Accessed 29/5
http://villing.com/articles/general/steve-jobs/ - WEB - Accessed 29/5
The placement of Apple products is crucial to their success. Once again Apple relies on consumers recognizing their brand. Often when a consumer walks into a technology store some of the first products that they will see belong to Apple. Apple has invested an incredible amount of money in buying "mini stores" inside commercial technology giants such as Harvey Norman. All of the Apple products will be lined up, with large screens promoting their products next to them. At this stage no other company has product placement like Apple. The bright colours, simplicity and overall classiness make their competitors look second-rate in stores. Apple Stores are now the highest performing stores in retail history.
Apple in-store booths are key to their success as a brand.
An examination of the marketing techniques by Apple.
Steve Jobs - Co-founder of Apple.
http://techland.time.com/2013/04/16/ios-vs-android/ - WEB - Accessed 31/5
"Most phone ads are about specs: "Speed! Memory! Network!" Apple ads are about how a product can change your life."
NIGEL HOLLIS is chief global analyst at Millward Brown, a global market research company.
Marketing plan guides . 2013. Marketing plan guides . [ONLINE] Available at: http://www.business.gov.au/Howtoguides/Thinkingofstartingabusiness/Whatplanningtoolscanhelpme/Pages/Marketingplanguides.aspx. [Accessed 31 May 2013].
Ethical and Legal Aspects of Marketing
http://smallbusiness.chron.com/list-ethical-legal-issues-advertising-11466.html - WEB - Accessed 6/4
The advertising industry must comply with strict federal regulations and scrutinisation. For many brands this simply means not displaying false information during advertising. Companies must be wary when advertising that they do not touch on areas such as sexism, racism and general moral issues of today. Other ethical issues such as advertising to children often appear in the media spotlight. For example fast-food companies are often in the media due their techniques of advertising to young children. Many believe that this is unethical as the bright colours and characters in the adverts attract business through the pester power of children.
The Federal Trade Commission Act outlines the requirements that advertisements must meet. For example all claims must be truthful and have substantiation. Advertisements must not be unfair or portray an unrealistic picture of the product.
This quote by Nigel Hollis is highlighted greatly in Apple's new campaign:
In comparison, HTC's new phone the HTC One is advertised as shown below. Instead of focussing on people, the advert focuses on the features of the phone.
A plan formulated by the business management detailing how the business will progress and how the business will operate on a daily basis.
A comprehensive evaluation of a company's current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans.
Human Resources Plan:
The ongoing process of systematic planning to achieve optimum use of an organization's most valuable asset - its human resources. The objective of human resource (HR) planning is to ensure the best fit between employees and jobs, while avoiding manpower shortages or surpluses. The three key elements of the HR planning process are forecasting labor demand, analyzing present labor supply, and balancing projected labor demand and supply.
- Definition Sources: www.investopedia.com
http://www.investopedia.com/terms/h/human-resource-planning.asp - WEB - Accessed 5/6
Target Market and Techniques
Although Apple uses mass marketing techniques they are still aiming to attract specific types of customers through different types of advertising. Often other important consumer characteristics such as demographics, geographic, lifestyle and behavioral type are taken into account when marketing products.
http://www.tuaw.com/2010/10/02/apples-segmentation-strategy-and-why-it-works/ - WEB - Accessed 5/6
- Family Size
- Social Class
- City Size
- Consumer Opinions
- Socioeconomic groups
- Purchase occasion
- Benefits sought
- Use rate
- Price sensitivity
Target Market and Techniques
Apple also attracts a variety of different target markets through their varied range of products. This is evident as shown in the table below.
http://awilliams2625.blogspot.com.au/ - WEB - Accessed 5/6
The following video shows a variety of the Apple TV adverts that have been created over the years. It is evident from the video that Apple has used many different promotion techniques to attract different customers, from businesses to university students.
One of Apple's most well know advertising campaigns involved the silhouettes of people dancing with iPods. The colours and techniques used to create these adverts creates brand recognition and consumers make the mental link to Apple when they see the graphics. Apple was also able to use the silhouette advertising style on billboards, magazines and the internet to create an immersive advertising campaign.
Business and Enterprise - Marketing