Apple’s iPhone Marketing Strategy
As the team of marketing consultants hired by Apple Corporation, we have been asked to review their current target markets and marketing mix’s to come up with possible suggestions for improving the overall effectiveness of the organizations marketing efforts. Our main focus will be specifically to cover the already successful iPhone, and not the other wide range of products and services that Apple has to offer such as: computers, software bundles, iPods, and the iTunes store. The iTunes store in its self provides everything from music, movies, shows and even applications which are all compatible with the iPhone. First we will have to identify the target market and address the 4P’s (place, price, product, and promotion) to find the strengths and possible weaknesses for areas of improvement. We will also be covering market segmentation, showing specifically how they decided to subdivide the market and what Apple is aiming to achieve for each market segment. When the iPhone was first released out in to the public in June of 2007, it was an instant hit, but Apple is always looking to increase its market share in the smart phone industry. The smart phone industry is such a competitive market that innovation and consistent improvement are a must. As the iPhone’s product life cycle continues to move forward, Apple will need to stay on top of their marketing strategies to remain successful, especially as the product reaches maturity. -------------------------------------------------
Target Market Profile
Apple has a very unique target market consisting of two major targets which include; consumer targets and business targets. With the consumer market category, Apple has two sub targets. Their primary target being middle to upper class income individuals who need to coordinate their busy schedules while still being able to communicate with colleagues, friends and family. While the Secondary consumer target market consists of high school, college and graduate students, who need one portable multifunction device to satisfy their own unique daily needs. Target Segment| Consumer Need| Corresponding Feature/Benefit| Professionals| * Stay in touch while on the go. * Record information while on the go.| * Email, instant messaging, and phone. * Applications from Mac OS X for notes and record keeping.| Students| * Perform many functions without carrying multiple gadgets. * Style and individuality.| * Music, phone, video and TV shows. * Apple branding as fashion statement. |
The chart above shows that Apple uses a demographic strategy, psychographic strategy and benefit sought strategy to segment the consumer market into more specific areas. This helps Apple’s marketing team to better define what the customer needs and wants are so that they can focus on meeting the customer values. Demographic segmentation shows that iPhones are marketed to a specific group of individuals based on age, income, and family life cycle. For example, since the iPhone is a premium product, Apple is able to charge more for their phones than their competitors, but by doing this, Apple is forced to target markets that are capable of purchasing their product at such a high cost. However, in the past year the cost of the iPhone has dropped a significant amount, to a more consumer friendly price. Apple also segments the market based on psychographics segmentation, showing personality, motives, and lifestyles; for example, having over 100,000 apps, to give the consumer the power to personalize their phone to their exact needs and wants. Apple’s intention is to simplify making changes to the iPhone and to adapt to changes in customer expectations according to the benefits they seek such as instant messaging, fast internet access and applications. On the other hand, Apples main business target is to partner...