Marketing Management and Analysis Marketing Thesis
- Length: 8 pages
- Sources: 5
- Subject: Education - Computers
- Type: Thesis
- Paper: #5657377
Excerpt from Thesis :
Business users will be charged $45 a month for data. By giving back the revenue to the carriers, which they may use for subsidies, Apple is hoping to dramatically increase its volume, as well as sell more Macintosh computers to iPhone users" (Markoff 2008).
This tradeoff illustrates an important aspect of marketing any new technology -- not only must the product be affordable, but so must the service itself. Apple is striving to convince consumers that using as well as buying the iPhone is financially feasible and also hopes its attractive pricing strategy for the iPhone will convert more consumers to the use of its other product, like Macs, because of the satisfaction they derive from the iPhone. Additionally, while business users are charged more per month because they use more data services, Apple also has tried to still make the iPhones attractive to businesses, by selling them the phone at a subsidized cost (Holson, 2008).
Distribution -- how distributed, what channels, why Apple's effective use of its Apple stores, with highly trained staff members who can help consumers with problems stemming from Macs to MP3 technology is one of its many innovations. This encourages consumers to become full 'Apple' users in every facet of their technological lives. It enables pro-Apple sales staff to talk directly to consumers in a persuasive format. Apple markets its products directly to consumers as well as through retail outlets and targets ordinary consumers, and also business consumers (Holson 2008).
Promotion -- means of communicating to the target or other audience -- rationale, analysis, effectiveness
Apple also uses the web, commercials disseminated on YouTube, and even capitalizes upon the media's fascination with the company, as it delighted in the nightly news broadcast sights of individuals camping outside of Apple stores, to be the first in line to get the new iPhone. Apple uses technology to market technology as well as markets directly to businesses, appealing to business' unique needs and services.
Analysis of the selected product/service/company life cycle -- implications for the company
Apple would seem to be heading into its maturity phase as a company in the United States, but internationally it is still growing. Also if it introduces new, desirable technology, demand will spike and reduce any potential 'saturation effect,' especially if the new technology has global potential. This is why expanding into new nations and capitalizing upon increased demand, especially in areas with booming populations and technological literacy like India, is so essential.
Overall review of each competitor's marketing efforts
Nokia's current domination and financial success may seem testimony to the idea that 'if it isn't broke, don't fix it.' However, Nokia cannot afford to discount all of Apple's future plans for international expansion in the luxury mobile phone market, especially if Apple enables its phones to become more affordable in the future with subsidy agreements with providers. Apple is a larger company, and offers more services and products to consumers. This enables Apple to take an initial loss financially to create a loyal consumer base through offering deep discounts, although Nokia currently has the stronger foothold in the wireless market internationally.
If one could sum up in a word what Nokia lacks in relation to Apple it is this -- 'sexiness.' Apple's name instantly calls to mind a particular style and approach, a youthful, technologically-forward image. Nokia, for all of its ubiquity abroad does not have an image. It has a variety of options, of course for its branding -- it could market itself as the 'anti-Apple' in terms of its affordability, but this might prove problematic, given that Apple's large size as a company and its ability to subsidize carriers could make a price war dangerous. Its main advantage is in terms of the high quality of its cell phone service, in comparison to almost all other providers abroad.
Clearly, Nokia wants to establish itself as a media and entertainment company, as well as a wireless Internet provider: Recently, it purchased a media-sharing website called Twango and has been pursuing new research and development ventures, but it still lags behind Apple as a media source (Balan 2007). Tailoring its services, cost, or other aspects of service to local needs to take advantage of its greater knowledge of international markets in comparison to Apple might be one way to capitalize upon its current strong international consumer base. Nokia dominates India and other major developing world markets, and to provide services that are of particular interest to that region would give it a competitive advantage in the developing world. Of course, it would be ideal if Nokia could offer a similar device as the iPhone, only with better capabilities, speed, and at a lower cost. Then customers would likely question their loyalty to Apple even in America and current Nokia users would continue to champion Nokia abroad -- but until then Nokia's future, although currently strong cannot be described as 'music to one's (iPod-wearing) ears.'
Apple iPhone." (2008). CNET. Retrieved 6 Aug 2008 at http://reviews.cnet.com/smartphones/apple-iPhone-8gb-at/4505-6452_7-32309245.html
Balan, Elena. (30 Jul 2007). Nokia to make iPhone competition with new music download service." So ftpedia.com.Retrieved 6 Aug 2008 at http://news.softpedia.com/news/Nokia-to-Make-iPhone-Competition-with-New-Music-Download-Service-61324.shtml
Holson, Laura M, (2008)."AT&T targets business customers with iPhone." The New York Times. Retrieved 6 Aug 2008 at http://bits.blogs.nytimes.com/2008/06/09/att-targets-business-customers-with-iPhone/index.html?ref=technology
Markoff, John. (10 Jun 2008). "Apple aims for the masses with a cheaper iPhone." The New York
Times. Retrieved 6 Aug 2008 at http://www.nytimes.com/2008/06/10/technology/10apple.html?_r=1&sq=Apple&st=cse&adxnnl=1&oref=slogin&scp=2&adxnnlx=1218049392-5CLn2Z9oIVEtj52vanzSQw
Nokia. (2008). Official Website. http://www.nokia.com/
Phone, iPod, Internet, and More." (2008). Apple Official Website. Retrieved 6 Aug 2008 at http://www.apple.com/iPhone/features