Apple's iPad advertising campaign strategy and market positioning

iPad: Advertising and marketing Apple's 'next new thing' iPad: The advertising campaign strategy

What exactly is an iPad? One of the initial challenges of marketing this new device from Apple was explaining to consumers precisely what the iPad offered in terms of value and functionality. It was neither a laptop or a mobile phone, or strictly an e-reader. Apple called the device an iPod Touch on steroids: a touch-screen e-reader and Web tablet that was smaller than a laptop yet larger than a mobile phone. With a price tag of $499-$829, the product seemed clearly targeted at a high-end market, given that most of the features of the iPad were already offered by other, existing devices such as phones and computers. The uses for the product were not new and cutting edge, rather it was the integrated nature of the design that was unique, much like the iPhone. It was designed for the person who already has everything Apple -- but wants more.

The challenge of the iPad marketing campaign can be summed up as follows: "Will they [the target consumers] be willing to type on a full-size virtual keyboard? And will they be satisfied buying their books (and magazines and newspapers) in electronic form? Or, more importantly, spend money on something that essentially combines the capability of devices they probably already possess?" (Ogg 2010). It was assumed by many industry analysts that Apple would focus upon likely users who wanted new technology for technology's sake, and would use Apple's newest device as an accessory to promote their trendiness. "Apple marketing tends to focus on the low-hanging fruit, people who already believe in the Apple religion. They get those people to buy products first, and then market by word of mouth" observed one marketing analyst (Ogg 2010).

It seemed that Apple was going to initially market the iPad as a 'revolutionary' device in a manner that was likely to attract such 'low-hanging' marketing fruit, Apple's actual advertising campaign for the iPad cast a wider net than young hipsters. When marketing the iPad, Apple stressed its utility in business and educational settings, for young and old. The Apple website notes how an iPad allows students to purchase books, to make presentations, as well as to surf the Internet with ease and access mail. The iPad's size makes it portable yet easy enough to read for the dense prose required for school. The iPad's applications in the workplace, Apple states, show that it is not a mere fad. The iPad can be used in business presentations and to share documents and information between workers (Apple: Business iPad, 2011, Apple Official Website). More versatile than a mobile phone and less cumbersome than a laptop, Apple believes the iPad can become a lasting and practical part of modern commerce.

One of the great advantages of using the Internet to market its products is that Apple can more carefully segment its marketing strategy. For consumers who fit the more typical Apple profile, it can create a webpage and promotional campaign that stresses the beauty and sleekness of the device. However, for educational and business use, it can list (in equally stylish fashion) the unique benefits an iPad can provide.

Domestic and international marketing iPad's domestic advertising strategy has been extremely successful thus far. Because the demand for the iPad has been so strong in the U.S., Apple elected to delay the iPad2's international launch. This caused demand to spike even higher in Asia's grey market for technology, as many people are buying iPads in the U.S. And selling them at nearly double the cost elsewhere. "High demand and limited roll-out for Apple's iPad 2 have pushed prices as high as $1,500 on the grey market in Asia" (Foreman 2011). While on one hand few companies approve of such 'grey marketing' this frenzied selling and stories of people paying stratospheric prices abroad also creates good market 'buzz' for Apple, and makes the trendiness of its product even more alluring to its core audience.

Evaluates factors considered selecting advertising campaign strategy

One reason that Apple clearly wishes to diversify its market is because it needs to be a first mover overall in the electronic tablet market, and establish brand loyalty amongst a wide swath of consumers beyond that of the first core Apple audience: "since Apple is arguably first to this new touch-screen Web tablet market, they have to create loyalty to their version of this new device type before the others, inevitably, come along" (Ogg 2010). Additionally, consumers who do not have the most advanced mobile and computing devices might be potential markets for an iPad, if they are convinced it can be of value to their child's education or in their workplace. In fact, the Apple website's new focus upon marketing to groups beyond that of the core twentysomething audience might reflect the fact the device offers advantages to someone who is currently in the market for an e-reader. Unlike a Kindle, it "has a color screen, access to iTunes and the App Store, access to the Web, and 3G Internet connection if you want. All of those are major bonuses for someone in the market for a nice e-reader" (Ogg 2010).

Technology trends in communicating product message

Apple's user-friendly design has been one of its main selling points for all of its devices to further encourage atypical Apple users to buy the product. "Newer technology is making these devices more consumer-oriented. With employees using these devices in their day-to-day lives, it's inevitable they will expect enterprise support to eventually bridge these two worlds, which will put pressure on the internal technology organization to step up" (Hamblen 2011).One IT executive from another company said he "deplored" Apple's "tyranny of consumerism" because tries to make its products as user-friendly as possible, to the point of 'dumbing them down'(Hamblen 2011). But this is why Apple, despite its expense, has been able to generate a relatively broad user base, commercially and personally, even though it does not have as extensive an enterprise support network for businesses like some other technology corporations (Dell, IBM). For Apple, the user-friendly aspect of the product is found in the design, and the consumer is urged to use it him or herself and customize it to his or her own uses. The sleekness, personal nature, and portability of the iPad and its apparently non-intimidating design are the key selling points of the iPad, to both homes and offices. The iPad, despite the skepticism of many, is an attractive product, visually, and bolstered by Apple's impressive online and PR media machine it has gained a strong market niche in a more expansive array of demographics than initially predicted.