Apple iPhone 4
Introduction
When Apple finally came to the market with its latest product, the Apple iPhone in June 07 2010, it was long expected, and even some might say over due. The hype and rumours that preceded its introduction made both current customers and potential customers anxious with great expectations. When the product hit the market, it can be said that it fully satisfied the billings. With a micro sim which is new technology in iphones developed by Intel; versatile USB connectors and high speed up to 10 Gbps; options to connect several protocols; and it comes with the following ports; USB, FireWire, HDMI, DisplayPort, PCI Express and many others.
The IT magazine, ITProPortal says that Apple is targeting 15% increase in sales; and Apple spokesperson says while everyone else was busy trying to keep up with iPhone, we were busy creating amazing new features that make iPhone more powerful, easy to use, and more dispensable than ever (Apple.com). To achieve this objective, qualities included in Apple iPhone include RealTime Video calling; Two cameras two views; Retina Display; multitasking, HD Video recording and editing; 5 megapixel camera with Led Flash. With over 35,000 applications, and i-ads for the applications included in the Apple iPhone 4, it certainly is the newest kid on the block.
Despite the aforementioned qualities, Apple has embarked on an aggressive advertising campaign to ensure that Apple iPhone 4 captures and retains leadership position in the world market for smartphones. The adverts which were released in five different countries viz. US, France, United Kingdom, Germany and Japan was intended to leave no one in doubt as to the desires of the Apple iphone 4 owners. Initially Apple due to the large number of pre-release orders, had problems satisfying customer demands, as demand clearly exceeded supply (iphonetopic.com), but with time all the initial problems where overcame and Apple was clearly on top of the situation.
Definition and Overview of Advertising
Definitions of Advertising
To go through the various definitions of advertising might be akin to counting the stars in the sky or even the sands on the sea shores. Advertising not being a new phenomena, has over the years attracted several definitions from scholars, authorities, experts and even practitioners of the profession. Bendinger (1993) aptly quoting Burnett said advertising was “selling cornflakes to people who eat Cheerios.” Prida (2008) simply puts it as “an imagination that sees in a product possibilities which can be realized only by appealing to the public in new ways to create desire where none existed before.” Another definition sees it as the activity of attracting public attention to a product or business as by paid announcements in the print, broadcast, or electronic media (American Heritage Dictionary, 2000). The father of marketing Kotler sees it as any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor (Armstrong and Kotler, 2000). Arens (1996) defined it as the non-personal communication of information, usually paid for and usually persuasive in nature, about products or ideas by identified sponsors through various media.
In other words, advertising conveys different meaning to different people. However, a look at all the definitions above has several things in common; first, somebody must have paid for it, and second, it intends to get the recipient to act in a specified manner, that is buy the product or service, or attend an event. To promote uniformity, the American Marketing Association (AMA) has argued for a uniformity in definitions, arguing that authors need not waste pages in defining an overly defined term, and that common definitions also help propagate a common language. This argument to date is yet to bear any fruit.
Overview of Advertising
The father of marketing Philip Kotler defines advertising as any form of paid non personal presentation and promotion of ideas goods, and services by an identified sponsor (Mittal, 2010). Advertising serve one basic purpose to provide information. Information maybe about goods, services, occasions, events etc. Viewed from this perspective, advertising include handbills, posters, signposts, and so forth. Advertising has certainly been around for a long time, and as a means of conveying information, the painting found in the ancient caves depicting ancient humans and their daily activity of hunting certainly fit definition of advertising.
Characteristics of Advertising
From the definitions of advertising, certain pertinent characteristics can be delimitated. First, its needs to be seen or heard. It can be seen or hear over and over again. Depending on the form of advertising, the message can be modified to suit changing circumstances. For instance, the Apple iPhone was initially advertised for $599 at its release, but with passage of time, the message was modified; first to $299, and then, $199. Another pertinent characteristic of advertising is it provides awareness about products, services and events. Although, Rust and Oliver (1994) has attempted to distinguish certain forms of promotion as not being advertising, but Godin (1999) argues that consumers are exposed to so many adverts each passing day that it might present problems trying to pigeonhole them in to various categories.
Although there is the argument that adverts does not require feedback, however, true this may be, but the response is the feedback. When you spread a message about an up-coming event, and if on that day the arena is filled with people, obviously, you have got your feedback, however, if no one showed up, means your advert didn’t achieve its expected objective, which in itself is also a feedback.
According to Mittal (2010) each advert campaign should satisfy the 5 m’s of advertising, namely: money, message, media, measurement and mission. Mission is the objective set to be achieved with the advert campaign. Objectives varies from company to company; and even in the same company, might change over time. For instance, objectives might be 5% increase in market share, 2% profit margin, and so forth. Money determines the advert mode of delivery. The cost of a 30 second slot on CNN for instance differs from ABC, and Foxnews. However, other mode of delivery could be radio, print media (paper and magazines). Money determines the budget. But in the case of Apple iPhone, there seems to be ‘unlimited’ funds for the advertising campaign, since its carried on several fronts at the same time, and each channel has different types of adverts. Message includes the selection, execution and response to the advert campaign. The message for a TV campaign for instance will differ from a magazine advert, although both are expected to achieve the same objective, which is to create awareness and demand for the iPhone. Measurement signifies the impact the campaign has. There are several ways of measuring this, such as Gallup polls, and others.
Theories of Advertising
Several theories of advertising are currently making rounds in academic literature and among advertising professional. Although these theories are not without criticisms, however, practitioners tend to follow their tenets when formulating the advertising campaigns. As can be seen, the Apple iPhone 4, has consciously imbibed these theories in the formulating the ads for the iPhone 4. The following theories of advertising will be considered in this write up: colour theories of advertising, strong and weak theories, means-end theories and leverage points theories.
Colour Theories of Advertising
Colour theories of advertising simply states that the colour associated with a product most times determines its appeal and this is very important since appeal drives markets. For instance, red has been generally associated with food such as Coca Cola, McDonalds and others, while blue is often associated with mineral water such as Aqua water. Red is also associated with fire, blood, war, danger and power. Black colour on the other hand is used to represents products as hifi stereo and laptops and phones. Apple iPhone uses black colour for its products. According to Nailon (2010) colour conveys a message and designers understand this and most likely use it in their designs.
According to Brennan (2010) black is commonly associated with authority, prestige, exclusivity, cool sophistication and powerful sense of extreme luxury or expense. The Apple iPhone comes in black colour, from the foregoing, it can be seen that it was not by accident, rather a careful approach orchestrated by the manufacturers following acceptable principles in advertising theory to achieve maximum market control and higher sales figures. Other writers, notably Housley (2010) agree that colour is an important form of non verbal communication, thereby supporting the views of Nailon (2010) and Brennan (2010). Likewise the way the world perceives us is affected by colour.
Strong and Weak Theories of Advertising
Another pertinent theory of advertising is the strong vs. weak theory. According to Leblanc (2011) the reason behind advertising can be classified as strong and weak theories. The strong theory school support adverting and sees it as persuasive, serving to get customers to behave in an expected manner; while the weak theory school sees it as not persuasive but rather serving as a reminder to the customer.
The strong theory school (Belch and Belch, 2005; Fill, 2003; Pickton and Broderick, 2005) argues that advertising involves persuading people to buy, creating and building brand increasing sales and creating and building brands. On the other hand, weak theorists see advertising as less persuasive and consumer patronage is driven more by habit than by exposure to promotional messages. Pickton and Broderick (2005) while supporting this view argued that there are two basic reasons while this should not be encouraged: first to prevent people from buying everything they had seen its advert; and secondly, to prevent people from filling their homes with different brands of the same product.
However true such arguments may be in theory, in practice, it doesn’t hold water. Apple iPhones are not things anyone no matter how wealthy can afford to fill his or her homes with; besides, other competing products are competing for the consumer dollar income, and we all know that the money in the pocket of the consumer (disposable income) is certainly not limitless. But Apple iPhone has adopted both theories in its advertising campaign for the iPhone 4. Basically, its adverts are designed to achieve the twin objectives of persuading the customer and reminding the customer.
Means End Theory
Advocates of the means-end theory argue that adverts can only be justified if it satisfies the reason or reasons for embarking on it in the first place. It simply states that each advert should ensure that the message given therein gets the recipients act in an expected manner, for instance, buy the advertised products or services. The Apple iPhone 4 certainly can be said to follow this theory, as consumers are really scrambling to get the product.
Leverage Points Theory
The final theory considered is the leverage points theory. This theory links products or adverts messages to benefits recipients can directly link to being useful to their personal values. In the advertising campaign of Apple iPhone 4, it can be seen that this theory of advertising was strictly adhered to. For instance the catchy slogan “there is an app for that” aptly demonstrates that there is an attempt to link the benefits directly with the product.
Types of Adverts and Medias
At times people confuse types of adverts and advert media. Gentry (2010) identified 8 popular types of advertising which are Television, Radio, Print (magazines and newspapers), online, Billboard, In-store advertising, word of mouth and endorsements. Each of these has its characteristics, advantages and disadvantages. However, this write up will concentrate on the first three, which happens to be the most popular, and also most costly in terms of time, resources and benefits derived.
TV ads for Apple iPhone 4
The TV ads campaign for Apple iPhone 4 is certainly making waves at the moment. There are 4 different TV ads for the iPhone, which include the Dockers shakeable iPhone Dance which is an interactive dance theme iPhone as that takes advantage of the popular mobile device built in accelerator. The “Amazing Retina Display” ad of the iPhone 4 highlights its strong display resolution. This technology is the first of its kind, and presents colours in wonderful displays. Another ad now focuses on iPhone longer lasting lithium polymer battery and points out how you can work longer, via email, much more time for games, enjoying longer hours of music, and many more advantages from the iPhone 4 battery. The reason behind this is that Apple has put in a lot in developing the battery technology and decided to show it off!
Apart from the above stated TV ads, AT & T the carrier for Apple iPhone 4 has also instituted its own advert to the detriment of its major competitor, Verizon. According to White (2011) AT & T new ad reminds potential iPhone customers that only AT & T’s network lets your iPhone talk and surf the web at the same time. This is certainly not possible with Verizon CDMA iPhone handset and is a key limitation of the device. Verizon on its own, has an advert that says there is nothing like “call drop” or “no network” on its iphone. Commentators (Watts, 2011; Mossberg, 2011) has said that the slamming of each other in the public purview is not in the best interest of Apple iPhone 4.
To end the conflict, Apple has stepped in with a new ad, “Two is better than one,” Apple shows two iPhones side by side doing exactly the same task. The two iPhones are completely in sync, this ad which seeks to settle the rift between the two carriers may or may not achieve this objectives.
Pros and cons of TV adverts
The pros and cons of TV are many, but only few with regard to Apple iPhone 4 will be considered here. TV reaches a larger audience, since almost all the people spend some amount of time viewing TV daily, it is expected that any ad carried on the Network will be viewed by almost everyone, if not everyone. For the Apple iPhone 4, with 4 different TV adverts, there is no way, a potential customer cannot at least record having seen the ad once. This is very good as the message of the ad is being delivered. TV ads can also be diversified or changed to suit many different audiences. For instance the Apple iPhone 4 battery is for the sole purpose of battery conscious users who worry over the sustainability of their battery life over a long period of time. The TV ads are also being carried on many channels and networks which can allow the viewer a choice of several channels. TV ads also present an efficient and quality spread of information.
The only noticeable downside of TV is its expensive nature. Although, from the customers point of view, there is no direct relationship, as such is not their major concern. However, this might possibly raise the cost of the product. Though, Apple has not complained!
Radio Advertising
Radio adverts involve placing jingles or slots with a Radio station or programme. A recent survey found out that 74% of Americans listen to radio daily (Sennitt, 2006). Another studies also indicate that 40% listen at home; 33% in their car (journalism.org). Although the importance of a radio audience are increasingly being overlooked in favour of other channels like TV and print medias. However, Radio still serves some purpose, as it works mainly on the subconscious and links its jingles to our daily activities. Since million of Americans spend at least 2 hours on the average daily listening to Radio, either at home or in a vehicle. Radio adverts should not only target this group but also complement other forms of adverts.
Advantages of Radio ads include its affordability. When compared to TV, you will understand and appreciate what is at stake here. Also, Radio ads has psychological undertones and effects. Studies has shown this to be true. Also Radio ads can reach a wider audience through their wide areas of coverage. Which is wider than TV. For instance, US Radio stations can be received in Africa, but US TV stations need special equipment to achieve the same feat, both at the transmitting and receiving stations.
The iPhone Radio ads presents the voices of a male and female. The male was getting ready to travel, but only in his under wears. When asked by his female partner about all the things he needed for the travel, he answered that he got everything with him, meaning the Apple iPhone 4. The advert then closes with the music, “He got the whole world in His hands”. This simple ads is telling us that all can be achieved with the iPhone 4. Booking of restaurants, flights, paying bills, watching movies, “there is an app for that.”
While Radio presence is important, but it should rather serve to complement the other channels, not replace them. This is because of the obvious drawbacks of radio adverts over TV and magazines.
IPhone Magazine Ad
Magazine and papers adverts are together known as print media. This write up for two reasons will concentrate on magazines; first, since most dailies are local in readership, magazines are more national in outlook, and secondly, the Apple iPhone print advert is concentrated on magazines.
The magazine ad of iPhone 4 features a lit up iPhone on a black background with a finger obviously pressing on some function on the phone. It comes with the tagline, “Touching is believing.” It further describes the iPhone as the revolutionary new iPhone now available at Apple and AT & T retail stores. IPhone has an established presence in print media, magazines such Newsweek, Economist and Time have at one time or the other shown ads for iPhone 4.
With so many magazines in the world, it is difficult to choose the right one to future the iPhone 4, but a guiding principle should be the target audience. First, the iPhone is certainly not a phone for the low income bracket and not for those using food stamps. So advertising in Somali Times which does not circulate even in the entire Somali will be a waste of resources. However, the Economist is certainly the magazine for up and coming young executives and people who can afford to buy the iPhone. So it is a well conceived idea.
The Apple iPhone ads on magazine has the following advantages. The first being the audience can accurately be targeted. For instance, the Economist readership is well known, and their follower ship guaranteed so any dollar spent to pass information will be worthwhile. Magazines also have loyal readership. Magazines provide the advantage of strategically placing the advert in a position it will have the most impact. For instance, centre fold, back page, back cover and so forth.
The credibility garnered over the years by the magazines such as Time, Newsweek, Economist etc. can be exploited to pass on messages to potential customers. As it is generally assumed that if it’s on the Time, it must be true. Magazines also provide glossy ads; this quality has been exploited by the iPhone 4 ad. The glossy papers makes it doubly attractive.
Legal and Social considerations
In the US, the Federal Trade Commission (FTC) is the government body saddled with the responsibility of regulating advert practices. Its areas of control are many and span various aspects of advertising such as deception, unfair practices, consumer credit and many more.
Apple iPhone to date has not broken any federal laws at least; it has not been convicted in a Court of competent jurisdiction. However, according to Rosenblatt (2011) there is a class action suit against Apple claiming that iPhone 4 are encoded with identifying devices that allow advertising networks to track what applications users download and how frequently they are used and how long. Other information such as users’ location, age, gender, income, ethnicity, sexual orientation, political views, are also collected. It added although Apple has defended itself against such allegations by saying that it does not allow applications on iPhone 4 to perform such, but the suit is yet to see the light of the day.
The FTC has also threatened to investigate Apple over claims that it is using unfair trade practices to stop Google from advertising on applications running on iPhone. According to Keizer (2010) Apple modified the language terms of iPhone, iPod, and iPad application developers must agree to thereby effectively banning Googles Admob advertising network. However, Keizer (2010) went on to conclude that time is on Apple’s side as the case before its ever gets to a hearing, Apple would have built a stronger position in smartphones mobile advertising.
The other important legal issued that might be faced by iPhone adverts is false advertising. But this is actually a no-issue as no one has ever come forward to complain. Another issue is unfair advertising practices and promotion of one firm against the other as has been noticed among Apple, AT & T and Verizon. However, still no lawsuit has been instituted to this end, so this also is a no issue. It is expected that a giant corporation such as Apple will have a team of lawyers and attorneys going over very pronouncement or adverts before it hits the stands. Also, since all iPhone 4 ads feature songs or faces of important dignitaries, it is well known that these people gave their permission for such. If not, its usage cannot be possible.
Apple iPhone 4 Segmentation Strategy
Market segmentation is the division of the potential customers of a product into several identifiable groups each with similar characteristics and targeting sales and adverts promotions to this unique group. The success enjoyed by Apple iPhone 4 can be attributed to this segmentation strategy. The segmentation strategy used by Apple iPhone include segmentation by age, sex and income level. Age-wise, the ads concentrate on the ages of between 25 – 35 age bracket. This age is the age of the up coming young executives who is expected can afford to buy the iPhone. By sex, can be seen that all the ads concentrate on males rather than females. This approach is working since over 90% of the users of the Apple iPhone are young men, actually it is not designed with females in mind. And Finally, income level, the iphone market is segmented on the middle income level group.
Customer Considerations
Steve Job the CEO of Apple promised all iPhone customers that everyone who purchased an iPhone at the higher price and did not receive a rebate or any other consideration would be inline for $100 credit, redeemable on the purchase of any Apple product. This singular act goes a long way to demonstrate that Apple puts its customers first, before profit or sales figures. This has the advantage of attracting new customers and also maintaining the loyalty of existing ones. Though this approach can not be directly called advertising, however, what it can achieve for the company, will certainly be huge and can be comparable to results from any advertising campaign.
Application of Theory to chosen Campaign
There is no doubt that Apple iPhone today is the phone to beat all other phones. It is a must have for lovers of good things. Today, apple is boasting over 90 million subscribers in the US alone, with 28% market share. How did it achieve such an astronomical growth in such a short period of time?
Gone are the days of build a better mouse trap and the customers would beat a path to your door step. Today, not only do you need a better mouse trap, but most importantly, you have to let the customers know about it.
Apple iPhone has achieved this tremendously. A blogger wrote, “Apple does not need to advertise since millions are already waiting for the release of the iPhone. But how did the millions get wind of it? Adverts. Apple has pushed the iPhone in various advertising channels, TV, Print media (Newspapers and Magazines) i-ads, and Radio. The TV ad for instance has 4 different versions, each with its unique message. The latest among these highlight the world class qualities of the battery alone. This is completely unheard of in Phone advertising. The magazine advert adheres to the colour theory of advertising, it uses black colour which emphasizes the exclusivity of the iPhone.
Another marketing strategy is the use of catchy jingles, slogans in its adverts, one of this is the new “There is an App for that” this catchy phrase is just to intimate users that no matter what you want to do, there is an application included in the iPhone that would help you do it better. The inclusion of over 35,000 applications that handle various activities humans can dream of or imagine is a boost to their sales figure. As a strategy, its purpose is to steadily increase the demand for the iPhone. The apps are in areas of games, education, environment, business, finance, religion, and so many more. As a strategy, the availability of apps ensures that potential customers are not limited in any way, but rather, it cuts across several strata of the society, age, gender, ethnicity, educational level, income level, and so forth.
Today, the price of the iPhone, is $199. Initially it was priced at $599, at its release, as sales keep dropping, the price keeps going down to accommodate more buyers. As a strategy it follows the first law of demand and supply. The lower the price, the larger the quantity demanded. Though Analyst have put forward several reasons for the drop in price but Dalrymple (2007) claims that it was done to reap the benefit of holiday sales, and also meet its goal of selling 1 million phones by the end of September.
Another strategy employed in the selling of the iPhone is the $100 rebate promised by Steve Jobs, Apple CEO. This has the potential of increasing sales and also customer loyalty as it portrays Apple as corporation that cares about its customers. The sales of applications on the iPhone and its download has also continued to be a source of income for Apple.
All this strategies together has ensured that Apple has 28% market share in the US smartphones market alone. This is no mean achievement.
Conclusions and Recommendations
The above write up has concentrated on analyzing the advert strategies of a named product iPhone 4. Though there are several products marketed by giant corporations such as Apple, but the Apple iPhone 4 was chosen because of its attractiveness to customers, its customer base, (millions in numbers) the number of follower ship it has, which has over the years generated several criticisms and support for the phone but most importantly, a product such as iPhone 4 presents a veritable challenge to marketers for its operates in a highly volatile environment, with competitors, government agencies, and various groups all trying to undermine its achievement and growth.
The fully understand the approach employed in the advertising of Apple iPhone 4, an introduction was made, which traced the origin of iPhone, various definitions and overview of advertising, theories of adverting were looked at; all under a comprehensive review of literature.
Finally, the recommendations that follow which if fully implemented will certainly not only ensure that Apple iPhone 4 maintains its leadership position, but is guaranteed to take it to the next level in the smartphone market.
It is quite difficult to recommend to someone who doing something right, what next to do. In Soccer, coaches always use the axiom “you don’t change a winning team”. Having said, there is no doubt, that Apple iPhone is on a winning train, and there is no need to change, but still, few recommendations are included to help secure that first position.
First, the market for iPhone should be vigorously broadened. Concentrating the sales of iPhone in very few countries is quite regrettable. Apart from the obvious loss of revenue, it gives room for imitation, which will not augur well for the corporate image of Apple. According to Mitchell (2009), quoting an Orange spokesperson, says that iPhone 4 is only available in 28 countries. Though 28 countries can be regarded as being internationally available, but still, it is in no way global. The Apple iPhone should be global, though Apple might argue that some countries cannot afford to buy the iPhone, however true this argument may be, there is the underlying approach of manufacturing cheaper versions for poorer countries. Other phone manufacturers notably Nokia uses this approach to ensure that its product are completely global, and also to avoid having imitations flooding the market in third world countries.
Secondly, Apple has completely ignored a veritable i-ad market, obviously due to the problem with Google Admob as explained earlier. This billion dollar market if harnessed will ensure that the Apple iPhone certainly has a global approach. The internet market is being powered by Google, ignoring Google is certainly not a good business advertising strategy.
Thirdly, according to Gruber (2007) The iPhone adverts focus more on user interface rather than on its features. For a product such as iPhone 4 with so many new features and innovations, the ads should highlight its value adding features more than the user interface; the reason for this being that the user interface is well known and always taken for granted that it should be present, but the features are what makes it the iPhone 4, and adverts should concentrate on it. Since advertising strategy achieve two broad objectives, demand creation and demand fulfillment. Highlighting iPhone features will certainly achieve the first objective.
Finally, the adverts for the Apple iPhone should be unified. Despite the availability of unlimited customers AT & T and Verizon slamming each other over who is the best is not favourable to Apple iPhone 4 and Watts (2011) calls this the ‘nanny-nanny-boo-boo’ strategy. The basic consensus is Verizon iPhone 4 is better for voice, worse for data (Mossberg, 2011). To bring a lasting solution to this Apple iPhone embarked on two is better than one ads. Though the harm has already be done, but with their image makers, the harm can be reversed, especially in the global markets, to project the image of a unified family pursuing one objective, which is to provide customer with quality product and service.
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