Evolution and growth of the smartphone industry
About 2000 new models of new mobile hands are released into the market annually. The mobile phones industry has continued to progress from the flip of mobile phones of the mid -90s to more advanced smartphones people have today. Various companies manufacturing different types of mobile phones have significantly shaped the evolution and forces that have contributed to the changes. The data tracing mobile phones’ development to smartphones are contained in the Semantics 3S catalog for handset found in the United Kingdom and the United States of America.
The early years of mobile phones kicked off from 1995-1998. The first years were essential because it was during this timeframe that mobile phones were released into the market. Some of the unique features of mobile phones such as colored screens, mobile phones, and flip mobile phones were available in the market.
1999-2003 is considered as the functionality years. The mobile industry-focused on producing advanced mobile phones that had unique features that included camera, web browsers, and QWERTY keypad. This was a significant contribution to mobile phones because their functionality increased. For instance, people could take pictures by using camera phones.
2003-2006 marked the connectivity years of the mobile phone industry. 3G characterized most of the mobile phones introduced during this time, thus making them be mainstream that drove them to be looked at as smartphones (Shaheen, Cohen & Martin, 2017). Apart from having camera features, among other different elements, mobile phones during this period would also be used as a suitable alternative to access the internet that the users had wanted.
2007-2010, marked the Apps years. The mobile phones designed during this time had different Apps. The IOS vs. Android struggled to ensure that different types of mobile phones released to the market had new apps. For instance, What’s App was launched, and the G network was also fixed on the mobile phones made during this era.
In 2011-2014, reflecting the significant-tech years.ost of the mobile phones were smartphones that people accessed in different parts of the world. The smartphones were more advanced and would now allow more users to perform various functions. The smartphones had fingerprints scanning that received the native OS support.
The cooldown years of the mobile industry was between 2015-2018. The innovations engines in the mobile phone industry slowed down. This is because the available mobile phones in the market already had unique features that enabled them to perform different functions. Mobile phones also functioned adequately as compared to the mobile phones that existed before. Each step in mobile phones’ advancement marked a unique addition of a particular feature to mobile phones, thus making the mobile phones evolve gradually from one stage to another.
When mobile phones were first introduced in the market to different users in different market segments, its adoption rate was low; there was inadequate value in owning one, mostly when those close to you did not own one. Over time, the number of mobile phone owners grew and increased as the value of owning mobile phones also took another direction. As the number of mobile telephones users attained critical mass, the value from the network far surpasses the potential costs of adding other new users. The Network effect was therefore advanced in telecommunication, software, and hardware development.
As much as the mobile industry has gradually advanced and evolved from time to time, there are many activities that they anticipate would be realized in 2019 and beyond. The mobile sector expects for the three major trends that include; having processors and batteries trends in line with the emergence of Artificial Intelligence heavy apps(Shaheen, Cohen & Martin, 2017). The mobile industry anticipated for the 5G network that would facilitate faster browsing of intranet services. Lastly, the new factor would be characterized by foldable phones and sliding displays. Mobile phones produced after 2019 and beyond would, therefore, possess distinctive features.
Apple’s iPhone launch ineffective marketing strategies
In January 2007, the CEO of Apple’s iPhone announced that they would be releasing a revolutionary iPhone in the next five months. Most of the customers using Apple’s iPhone products waited eagerly because of the unique features in the by-products released into the market. The company released a product that would be defined as a combination of Apple’s famous iPod music player and a smartphone designed to facilitate surfing. Apple’s iPhone was a highly touted feature designed in a 3-5 inch. It had a touch-sensitive screen that would make it less complicated for consumers to use when making calls. The users of Apple’s iPhone would be able to navigate music collection since the product to be released in the market would have features that would facilitate the navigation of music they would wish to listen to in different music collections. The Apple Company managed to build a strong brand that also encourages iPods’ success to access lucrative cell-iPhone markets. Therefore, the features of Apple were a threat to other mobile phone industry since the company established smartphones with features such as intense music storing and playback capabilities. Therefore, the Apple products were unique and would enable it to compete favorably in both internal and external markets. As much as the company designed unique features that would meet the customer’s needs, tastes, and preferences, all these benefits were developed at a price. For instance, the 4GB model was to be sold at $499 and 8GB at $599.To enable them to sell more of the products with unique features that were now expensive, they had to identify suitable and effective marketing strategies to allow for its customers to buy its products. Apart from identifying various marketing strategies that would steer the selling of its products, it also set objectives, for example. It intended to sell about 10million iPhone in 2008. The setting of the goals would, therefore, enable them to attain better marketing strategies.
Apart from setting an effective marketing strategy, the Apple Company made changes to its distribution channels. Initially, the Apple Company had traditional consumer distribution channels that would not have helped them increase its sales volume, especially after launching Apple’s iPhone with unique features. The company chooses to eschew third-party dealers such as Best Buy and RadioSahck.The company ensured that its products were available in different Apple stores as well as Apple’s websites.
Since the iPhone released its products in 2007, it has been able to sell about four million units of its products to its customers in different market segments, both internally and externally. Its large sales attracted it to have about 19.5% in the market share of smartphones. The changing os it’s traditional marketing strategies to modern marketing strategies enabled it to attract more customers who both produced. The increased sales volume of ist various products has helped it recreate its products and maximize more profits because of the higher sales in the market. It has also continued to release multiple products with unique features; for instance, it released a software development kit that would enable their parties to market software for Apple’s iPhone comfortably. The software development kit’s release is one of the examples of the emerging two-party platform business model.
Apple has been the best company that has created an overall suitable marketing strategy for the iPhone as its product. The company has also been successful in managing different aspects of the iPhone launch effectively. Despite managing all of its marketing strategies, it has drawbacks. However, the company was able to establish some unique products for its tech-savvy customers that needed a combination of the smartphone music player and managed to ensure that the clients became aware of the available product in the market comprehensive marketing efforts and intense publicity. The iPhone, as a product, acted as a suitable example that has created excitement among the customers, thus contributing to customers’ loyalty. Therefore, the quality and unique features of the iPhone products have satisfied customer’s needs and expectations. Additionally, through building partnerships with the AT & T, it has also enjoyed supplies of its parts overseas. The marketing strategies, marketing efforts, and setting of viable strategies have enabled it to boost its stock price considerably, thus solidifying Apple’s brand as a leader in the users’ electronic gadgetry.
The critical element in the marketing strategies of Apple
Apple’s marketing strategies have been effective since they set an example of how company processes, methods, and practices need to be run to reach the intended target customers in different market segments (Guo, Wang, Su, & Wang, 2020). The global success of various iconic products that include the iPod, iPhone, and MacBook is an example of how that particular company excelled when responding to customers’ needs through meeting their demands. To appreciate the business strategies, it would be prudent to analyze how it approaches marketing by looking into critical elements surrounding its marketing strategies. The following are essential elements of the marketing strategies of Apple:
The product development strategy. It is a crucial element of the Apple marketing strategy marketing mix. Apple has notable features of its various product strategy which appear to be reactive. Product development strategy is realized by taking cues from multiple products that already exist within the market segment and then improving them via two methods: innovation and simplification. The two ways involve eliminating non-valuable wastes, then adding novel features that would enhance customers’ experience. The reactive-proactive techniques employed by Apple enable it to establish various unique selling propositions and its brand identities that would revolve around both innovation and simplicity. Most products that Apple products are marketed as visually appealing services that mostly attract customers from different geographical regions(Guo, Wang, Su, & Wang, 2020).
Additionally, trough the creation of complementary, most of its products are also exemplified. In most cases, the company has tended to promote customers’ loyalty by selling lifestyle products that the customers desire. Customers’ loyalty has also been enhanced by creating products that highly depend on the technology that enhances the creation of customers’ experience.
Global distribution strategy. Apple has an expansive global market presence that guides its marketing strategy. International distribution is attained through pull distribution strategies and a combination of push. A push strategy entails building and maintaining a good rapport with distributors. In contrast, a pull strategy entails promoting the brands directly to customers that pressure distributors to continue stocking and reselling them. Different products Apple products have the advantage of enjoying reputation and recall. The company has attained single level intensive distribution methods that enhance global mass distribution under which the company directly partner with other distributors and resellers that facilitate the distribution processes. Apple’s distribution strategy aims to provide universal customer service and after-sales services support (Jawale & Park, 2018). The authorized resellers play an essential role in distributing these products to reach the customers. Most of the Apple products are serviceable, which justify its premium price tags set on various products, thus supporting the whole customer experience.
Stakeholder relationship building. The Apple Company has established better relationships with suppliers and customers that are key in the company. Stakeholder relationship is one of the key elements employed by Apply Company as one of its marketing strategies because of the critical responsibility of supplementing the Apple’s marketing communication initiatives. Relationships have mostly been built by maintaining a good rapport with various media organizations and online influencers such as tech bloggers. Enthusiasts are also another notable aspect of stakeholder strategy that enhances the promotional initiatives of the Apple Company. Apple has been making sure that it hosts and stage press various events that lead to vital product launching. During these events, reporters and influencers from different parts of the world attend these events. The company has also continued to host software developers by holding a worldwide developer conference. Keeping these forums allows the Apple company to introduce its new software and technologies in the market while giving chances that facilitate smooth interaction and rapport with the developers. Maintaining good relationships with the developers is essential because these developers are the ones that not only supply various products but also add value, especially to the pipeline of the company. Staging multiple events is also cost-effective compared to traditional advertising because the Apple Company enjoys massive publicity from various mainstream media organizations and social media influencers.
Apple Company also advertises and promotes its products. It has taken part in enhancing various forms of advertisements despite the cost-effective publicity they enjoy from the events it hosts. The company has always spent more on traditional ads and digital marketing operations. Apple has ensured that it places ads units on Google Search. Additionally, it has promoted multi-media content on different social media platforms such as Twitter and YouTube. Indulging, in partnership with television and film producers, has enabled them to enhance product placements that eventually reach their target consumers. Apple Company has demonstrated its unique marketing situation through its two essential brands: the iPad and the iPhone. To support its marketing strategy, authorized sellers and network carriers have also developed and implemented their ad campaigns for Apple’s different products. Whenever there are unrelenting demands for these products, it means that the primary intermediaries are advertising the products to the customers.
Additionally, they are also devising other different promotional strategies that include offering discounts on the products, providing exchange programs, and encouraging flexible mode of payments that increase the volume of sales and maintain customers’ loyalty. Apple has always protected its brand through maintaining stringent branding outlines that determine how its intermediaries need t to be developed and implemented in advertising strategies and different promotional events. Marketing messages embedded in contents produced by intermediaries are always similar, thus helping the company to attain a similar objective.
Premium pricing strategy. Most of the products manufactured by Apple are expensive when compared to other products that are produced by their competitors. For instance, one MacBook Pro laptop produced by the Apple Company can purchase 2-4 mid-range windows based laptops from the OEMs.Despite its various products’ high prices, the premium pricing strategy has been a critical element that it uses as its marketing strategy. The high prices set on multiple products manufactured by the Apple Company enable it to not only promote but also sustain the anticipated brand. Some of Apple’s customers relate premium pricing with exceptional quality, which creates both distinction and outstanding reputation. The high prices set on various products position these products as superior over other competitors. Furthermore, premium pricing plays an essential role in positioning a specific Apple product as a luxury product and then complements its premium design and quality. Hence, customers of these luxury products are comfortable paying a premium to maintain and promote the status symbol of the particular luxury product.
Apple and cult marketing strategy. Cult marketing entails the objectives of realizing a status in which the company’s brand can attain customers’ loyalty. Apple has demonstrated its marketing cult strategy through different marketing initiatives. The first cult has been created through developing complementary products with their subsequent halo effects. Most of the customers have acquired relevant products because of a comprehensive customer experience that has created convenience and ease the use of the available products. Apart from paying attention to different products it manufactures, the company has always appealed to the emotion of the target market, which majorly comprises its customers through emotionally charged messages integrated into various marketing communications and positioning of the brand. Cult marketing strategy has also been extended through encouraging customer experience. The authorized retailers and distributors play an essential role in demonstrating complicated products to enable customers to use them for designed purposes. The demonstration of the products’ use has encouraged walk-ins in the target market, which eventually meets the customers’ needs. Apple has one of the best packaging methods recognized globally, thus adding experience that further encourages more customers to buy these products. Rather than selling products it produces, Apple has also ensured that it sells a lifestyle. Different products, such as the Mac line of computers, among other works, have demonstrated the user experience of the macOS that reflect lifestyle.
Moreover, the company has produced entertainment applications and services that include iTunes and iCloud centered on technology that is in line with the advancement and development of technology. Most of these products have been effective because they have met the needs, fashion, preferences, and needs of the consumers in different market segments. The provision of quality products has enabled Apple to continue competing in the market favorably, thus maintain and protect its brand. Furthermore, having suitable marketing strategies has helped the customers obtain products and know more about the products in the market, thus increasing their loyalty towards the products produced by the Apple.
Prioritizing pull marketing over push marketing strategy for consumer relations
Pull and push marketing strategies are some marketing strategies employed by Apple to attain its objective of enhancing consumer relations. The two marketing strategies are characterized by a blend of estimates and specific requests set by the customer demanding a particular Apple product. Apple might use the pull marketing strategy to focus on the high volume of its various products that it provides to its consumers in different market segments Apple company when employing push marketing strategy can introduce other forms of incentives to its distributors and suppliers, who in turn would recommend various Apple products and push the same products to consumers. Suppliers and distributors would play an essential role in enabling Apple to strengthen its consumer relations by pushing the products that would attract their purchase abilities. Some of the incentives that Apple Company would give to its distributors and suppliers involve providing discounts, stock on credit, and bonuses to those distributors and suppliers who manage to attract many customers by pushing various Apple products.
On the other hand, the Apple Company’s push marketing strategy involves using this strategy to create demand for different products that the company produces. Various promotional activities under this marketing strategy are designed to target consumers across multiple market sectors in other geographical regions. Once the demand for different products being manufactured by Apple is generated, the consumers would pull the products from the company’s distributors and suppliers. The Apple distributors and suppliers would then remove more products from the company’s wholesalers who would also have to obtain more products from the manufacturer to meet the consumers’ demands who want to use the products for various purposes. Most of the pull incentives employed would target Apple’s consumers found in different parts.
Pull marketing would be suitable for Apple to use in its marketing strategy. This is because it would create direct consumer relations. Most of the time, the consumers would be interacting more with the company’s distributors and suppliers, making sure that various products reach them. Availing products would enable consumers to obtain different products that they would use to meet their needs, tastes, and preferences. Since the customers interact with Apple’s distributors and suppliers, they would also be able to make inquiries and issue feedback concerning products available. Thus through this one on one interaction, it would be much easier to enhance consumer relations through distributors and suppliers who are critical stakeholders in the Apple company. Additionally, when consumers are bargaining on prices, they interact mostly with the distributors and suppliers. The customers get an opportunity of sharing their ideas and opinions regarding different products.
Merits and demerits of the pull marketing strategies
The marketing strategies employed have been aimed at reaching the consumers directly. By getting the consumers directly, their buying ability would be expected to increase since they would seek out various products produced. Pull marketing strategy have the following advantages:
It facilitates the establishment of direct contact with the clients using various products. Direct contact influences the purchase ability because he or she would be able to buy something that he or she is sure of in terms of its quality and price. The consumers can also ask questions or make inquiries regarding that particular product because they would obtain immediate feedback. In case the customers are unable to use a specific product, its use or function can be demonstrated. Therefore, pull marketing strategies facilitate direct contact that enables the clients to inquire more about a particular product, seek demonstration, and ask any question regarding that product. The establishment of direct contact with the clients’ increases and builds customers’ loyalty.
Through direct contact, customers can bargain with retailers and distributors on prices. Bargaining becomes less complicated because the clients are on one-one interaction. The customers are also able to express their views and opinions during the bargaining power. Pull marketing strategies play an essential role, especially in benefiting consumers. The clients get a platform that enables them to bargain about the price of a particular product at hand; hence a more substantial bargaining power is established between the distributors or retailers with their consumers. Consumers also bargain on the products they see being sold to them in the market. The distributors and suppliers would also be able to provide feedback to the company on the best ways of improving the quality of the products to be supplied or distributed to the customers. This type of strategy is, therefore, essential because it enhances customer relations. Consumers are fundamental stakeholders. By responding to their needs and interacting with them, the company would be attaining its objective of establishing effective consumer relations and increasing its marketing strategies.
Bargaining only occurs after the clients have seen the products being sold by retailers or distributors. Pull marketing strategies would enable the firm to focus more on creating brand equity and product value. This s because a client would only bargain quality products and be interested in a product worth purchasing. With increased direct contact with the product, most consumers would buy the products. A firm would have a crucial responsibility of making sure that different products being produced focus on quality. Delivering quality products would attract the purchase ability of consumers. Pull marketing strategies would, therefore, enable the firm to create suitable brand equity and product value that would attract more customers, thus increasing customers’ loyalty.
After the production process, the products must always be tested to ensure that they are accepted. The customers’ ability to purchase various products in the market depends on tastes, fashion, and preferences.After the production process, the testing of multiple products must b carried out to ensure that they meet the anticipated needs of the clients. Customers would buy more after they identify the quality of the products. Additionally, they would buy more after discovering that a particular product meets their needs, tastes, fashion, and preferences.Hence pull marketing strategies provide platforms that enable a firm to test the acceptance of its products in the market that, in turn, allow them to get customers’ feedback on a particular product.
As much as pull marketing strategies enhance direct contact with the clients, enable the firm to test products acceptance in the market and allow the clients to bargain before they buy a particular product, there are potential demerits that surround the use of pull strategy, and they include the following:
Pull marketing strategies works when there is high brand loyalty. This means that the firm has a core responsibility to make sure that its products are of excellent quality and meet the needs, fashions, tastes, and preferences of the customers.Brand loyalty only occurs when more clients can buy more products because they meet their needs, or the products are in line with their various needs and tastes. In a situation whereby the firm would fail to attract high brand loyalty, it would not be able to attract customers’ loyalty. Failure to attract customers’ loyalty would, in turn, lead to a low volume of sales that would generally affect brand loyalty.
The lead time in pull marketing strategies are usually long. Most consumers would always take more time to inquire and find out more about the products before they finally decide to purchase it. During the process of finding out about the products, they would also compare other alternatives before they finally decide to obtain a particular product. This period of comparing options is known as the lead time. The firm might take long before it sells its products because customers would still be making a comparison of alternatives. The firm might experience decrease sells in the volume of its products, which might eventually lead to the loss.
To have effective pull marketing strategies, the firm would be forced to create high demand for different products it would be producing. For instance, the firm would be forced to ensure that Apples’ iPhone has features that would outdo Samsung to limit customers from making comparisons (Kodama, 2017). By creating components that would make a particular product better than the other products, clients would buy more of these products because they would be satisfied with what they need, thus increasing sales volume. In a situation whereby the firm fails to create high demand for its products, it would face difficulties because it would not enjoy both external and internal market segments due to stiff competition in the marketplaces.
The firm also needs to establish strong marketing efforts to have effective pull marketing strategies. The firm is responsible for making quality products that would attract customers to buy because their needs are met. The firm always has to work hard to ensure that customers’ loyalty is continuously enhanced. Additionally, the firm would also have to convince its consumers on the need and importance of a particular product. By convincing its consumers, the firm would be limiting the idea of customers making a comparison to alternatives. The pull marketing strategies must be accompanied by strong marketing efforts that would enable it to convince its clients to buy its products and not to settle for an alternative product.
How Apple connect with its customers
Apart from establishing effective and suitable marketing strategies, Apple has ensured that it enhances better ways that have enabled it to connect with its customers in different market segments across the world. Unlike other companies that rushed to introduce social media tools in their marketing strategies, the Apple Company was slow to make this change. However, it made a drastic change and broke the initial rules that guided their marketing and way of doing business. In March 2016, it announced that it was now launching an official Apple Support Twitter account that would enable it to connect with its customers in different market segments. Apple discovered that there was a need to recognize the value of giving its customers what they needed to enable them to grow and to meet their needs (Myftari, 2017). Twitter, as one of the social media tools, would be suitable because it would create a connection that would enable the firm to discuss various issues that concerned the products being produced. Since the introduction of twitter among its clients, the company has been able to get feedback, and the customers have been able to make inquiries regarding the products.
Apple’s clients have also employed twitter to market various products and establish a lasting relationship. After Apple launched twitter, the number of customers using twitter account grow to over 300,000 people. For instance, Apple has employed the strategy of posting one tip in a day (Jawale & Park, 2018). The customers have appreciated the Apple products because it has enabled them to know more about the features of the products that they had not known before. Clients have also interacted with twitter account frequently, thus building customers’ loyalty.
The interaction with the Twitter account has allowed the customers to express feedback regarding features of different products that Apple produces. In return, Apple Company has valued every kind of feedback from their customers. Apple company have done this by acknowledging its customers by complimenting them. For the customers who have raised issues concerning the products, the company has ensured that it solves the problems as fast as possible to maintain its customers’ loyalty. The issuing of feedback has made its customers feel more valued, thus building lasting relationships with its customers.
Managing the customers’ expectations has increased connection between the Apple Company and its customers. From the feedback the customers give, customers have different expectations regarding features of the products. The company has set a group of experts that have always responded to customers’ questions and inquiries (Kodama, 2017). Some of the company’s feedback from the customers has been implemented, which can be reflected in the design of different products the company products to meet its customers’ needs. Responding to customers’ inquiries and always availing its account for any feedback have been essential through enabling it to connect with its clients.
Apple Company always communicated positively with its customers. The company has established customer support. Whenever the customer purchase products, they give feedback concerning the quality of the product. Some customers would also raise complaints concerning the same products. All their feedback is valued. The customer support established by the Apple Company has ensured that irrespective of the negative feedback, it gives a positive response just like the positive feedback. Additionally, every customer response tweet has always recognized the customer; the customer support also expresses its willingness to solve the problem and direct the customers in the right direction. Apple Company team of customers’ support analyzes some of the feedback and implements them in their marketing strategies.
References
Guo, H., Wang, C., Su, Z., & Wang, D. (2020). Technology Push or Market Pull? Strategic Orientation in Business Model Design and Digital Startup Performance. Journal of Product Innovation Management.
Jawale, A. S., & Park, J. S. (2018). Towards trusted mobile payment services: a security analysis on Apple Pay. International Journal of Internet of Things and Cyber-Assurance, 1(1), 76-90.
Kodama, M. (2017). Strategy Transformation Based on Holistic Leadership: A Case Study of Apple. In Developing Holistic Leadership. Emerald Publishing Limited.
Myftari, O. (2017). Apple–40 years Product and Service Innovation, Lessons Learned from their Success. The Student Researcher, 4(1), 69-82.
Shaheen, S., Cohen, A., & Martin, E. (2017). Smartphone app evolution and early understanding from a multimodal app user survey. In Disrupting Mobility (pp. 149-164). Springer, Cham.