Marketing Strategies for Initial Public Offerings

The assignment delves into marketing strategies employed for Initial Public Offerings (IPOs), examining relevant research on their effectiveness. It emphasizes the importance of stakeholder engagement and its influence on successful IPOs. The analysis draws upon scholarly articles, industry reports, and real-world case studies to provide a comprehensive understanding of the subject.

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Assignment
Marketing Intelligence
Student Name
Student Number
Submission Date
Professor’ Name

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Table of Contents
Introduction......................................................................................................................................2
1.1 Stages of purchase decision-making process........................................................................3
1.2 Buyer behavior theories or model and explanation about its relation with individuals and
markets:............................................................................................................................................4
1.3 Factors affecting buyer behavior...............................................................................................5
1.4 Define brand loyalty, corporate image, and repeat purchasing and evaluate relationship
between them...................................................................................................................................6
2.1 Market Research Techniques:....................................................................................................7
2.2 Use of secondary data to achieve marketing research objectives..............................................7
2.3 Assess the validity and reliability of market research findings.................................................8
2.4 Propose a Marketing Research Plan for the Apple Inc..............................................................8
3.1 Market size trends within given market...................................................................................10
3.2 Competitor’s Analysis for Apple Inc.......................................................................................10
3.3 SWOT Analysis of Apple’s products......................................................................................12
4.1 Techniques of assessing customer response............................................................................13
4.2 Customer satisfaction survey...................................................................................................14
4.3 Review the success of completed survey.................................................................................16
(A)Brand Awareness..............................................................................................................16
(B)Participant Satisfaction.....................................................................................................16
(C ) Strengthening Business Relationships............................................................................17
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

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Introduction
The assignment is intended to form marketing research for a company. The company whose
marketing needs, size and demand of market are analyzed is Apple Inc. The marketing research
enables to know the steps used by customer before taking purchase decision. It also identifies the
factor affecting the buying behavior of customers and how the terms brand loyalty, corporate
image and repeat purchasing work for Apple Inc. It has also identified the objectives of market
research along with new trends in market, and strengths, opportunities and threats in new market.
In order to propose strong marketing strategies it is important to analyze the strengths of
customers and competitors’ analysis is performed for the same. To accomplish the research
various techniques are used to get customer response and that are questionnaire and survey
methods.
1.1 Stages of purchase decision-making process
Purchase decision-making process consists of five stages:
1) Need recognition is first stage where the process starts and the buyer recognized problem or
need of a product or service (Marlowe, 2016).
2) Information search is the second stage where consumer starts searching for specific and
perfect product. To buy any of the Apple’s product customers searches commercial, public and
experiential sources from where they can get information of the product.
3) Evaluation of alternative is performed. Customer obviously wish to buy most preferred
brand like Apple but the buying decision may be change if product going out of budget or any
unexpected situational factors.
4) Finally, purchase decision is made after searching product’s information and all other
alternatives.

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5) After buying and using the product if customer satisfied with the functions and service then
only they will decide to engage in post purchase behavior (Belz, F.-M. & Schmidt-Riediger,
2010).
1.2 Buyer behavior theories or model and explanation about its relation
with individuals and markets:
Buyer behavior is a systematic approach of customers which is followed while entering into the
buying process and taking purchase decision (Dencic-Mihajlov, 2013, p.140). Numbers of
models are there which explains the buying behavior of customers. Most accepted model to
know customer purchasing behavior for technology products like Apple is Adoption model.
Figure 1: Stages of Adoption model of buying behavior

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To gain progressive outlook Apple’s iphones, ipad, iTundes and similar products need to
generate desired customer base and should undertake the process of Adoption model. The
technology products are main product of Apple and should go for step 1 to step 5 of Adoption
model and that are;
1. Awareness
2. Interest
3. Evaluation
4. Trail
5. Adoption or Rejection
Cognitive Dissonance theory of buying behavior: This is important theory which refers to the
conflicting attitudes behavior of customers. The cognitive dissonance theory occurs when
someone holds two or more opinion or attitude regarding a single product. The particular brand
which is providing higher level of commitment is at highest risk dissonance (Chen, Shen & Chiu,
2007). For eg, Customers have lots of expectation regarding Apple’s recently launched iPhone 7
and this product is also facing greater level of dissonance. Customers are showing dissatisfaction
regarding its operating system and functioning. Customers’ feedback (regarding iPhone 7) shows
that most of the features are same as iPhone 6 and features are not really innovative and new.
1.3 Factors affecting buyer behavior
This section helps to determine the influences of cultural, social, personal, psychological and
economic factor on buyers’ behavior of Apple Inc.
Culture: Company encourages their employees to present new development, technological and
innovative ideas, which help them to come up with extraordinary products. This is possible due
to positive and healthy culture and structure of the company. The musical products such as iPad,
iTunes also gain benefit of social factor because they are marketed as pretending modern
individual’s lifestyle.

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Social: Customers take Apple’s products as their styles statement and status symbol. Hence,
products of the company are dominating gadgets world. Carrying Apple’s product has become
status symbol any many societies which help company to increase sales.
Economic: Apple is known for luxurious and expensive brand and hence, most of its customers
are upper class and higher income level people. Due to the increase of unemployment and
inflation rate across the world customers are likely to reduce their expenses on luxurious
products like Apple.
Psychological: Customers always wants something new and innovative which shortened product
lifecycle. Apple advantage of this psychology of customers and always focused on introducing
innovative, advanced-technology and new designed products in market (Brownlee, 2010). This
lead customer to buy Apple’s products.
1.4 Define brand loyalty, corporate image, and repeat purchasing and
evaluate relationship between them
Brand loyalty is the dedication and loyalty of a customer with respect to particular company’s
brand (Hanzaee & Farsan, 2012, p. 280). It indicates customers desire to purchase specific brand.
Customers stick to particular brand and its entire product if they really like its quality, price and
other offering and then they would rarely switch to another brand.
Corporate image depicts the psychological picture of the company in its market environment
and entire community (Kim & Lee, 2000, p. 4036). Company tries to build strong image among
customers and in target market which is enhanced and customers get attracted towards the brand.
Repeat purchasing occurred when customers firstly buy certain brand or service, get pleased
with it and further buys and uses same brand and service again and again (Hanzaee & Farsan,
2012, p. 281).
These three notions are interrelated with one another. An organization employs numerous
effective and creative marketing strategies to create good corporate image among customers and
market (Kim & Lee, 2000, p. 4039). Customers get influenced through marketing techniques

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and get attracted towards that brand and purchase it. After purchasing if customers satisfy with
the product then he or she going to purchase it gain and also recommend to others. This employs
repeat purchasing and it automatically establish brand loyalty.
2.1 Market Research Techniques:
Different methods are used to perform market research. It is significant for an organization to
select suitable technique for their research (Kolb, 2008). Following techniques can be used to
perform market research for our selected organization, Apple Inc.
1. Qualitative analysis
2. Quantitative Analysis
Qualitative techniques are used when researcher want to determine feedbacks, reviews, opinions
about products or company etc. Data is collected through interviews (face-to-face or telephoic),
surveys (web survey or mail survey). These techniques used as primary sources for data
collection. Quantitative technique is used when want to search data through observational,
experimental methods like surveying experiences and observation of people about Apple's
products.
2.2 Use of secondary data to achieve marketing research objectives
It is important to construct research objectives in order to decide flow of research and data
collection. The secondary data collection methods have equal important like primary data
(Kendall, 2008). No direct human interaction is needed to collect the secondary data and it
considered as most prominent source to collect the data. The research objectives are:
 To determine the conditions favorable for Apple company in new target market, India.
 To determine target customer base, income level and opportunities and threats in new
market

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The investigation is performed with the secondary research method. Sources of collecting
secondary data are annual report of company, reputable and well-informed web sources, Journal
and books written on Indian marketing conditions. Evaluation of these sources will help to
conduct basic research of market, marketing strategies of competitors in target market and
opportunities and threats may faced by company.
2.3 Assess the validity and reliability of market research findings
In order to search the validity of primary sources of marketing research, it is important researcher
should assess answers to following four questions:
 Does data gathered is supporting important findings of research?
 Is sample size approached representing the target population? Or is sample size enough to
represent target market?
 Does survey follows appropriate and detailed methodology?
 Does survey incorporated clear options to provide response?
These questions plays important role in determining the validity of the research findings.
To determine the reliability of research means ensuring that the methods used for data collection
leads to provide consistent results. The reliability of research is also checked by measuring
different research work with same methods. If both research results show resemblance then the
method of data gathering can be considered as reliable one.
2.4 Propose a Marketing Research Plan for the Apple Inc.
Background: Technology business across the world has experienced many changes in 2013-
2014. Many companies have released competitive, delicate and advanced technology product
with cheaper rates. Many techsavy companies of smartphones ruling the market like Samsung,
Microsoft, Dell and numerous small companies are ready to enter in market (eg. Lava).

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Rationale: Rationale of this research is to expand operation of Apple Company into new and
developing economy because only having bid development and capital is not enough all the time.
It is important to determine information and customer opinions in new market.
Objective: Gather additional required data and identify appropriate factors help to make
investment decisions in new location.
Research Questions:
1. What is the level of target customer coverage at Bangalore, India?
2. Can Bangalore, India become good place to enhance Apple’s business?
Methodology:
The research methodology used to conduct research is qualitative technique. The data is
supposed to be collected through observation and questionnaire. The web survey through online
company’s web site will perform to conduct research.
Data analysis:
Both approaches like primary and secondary data collection will be used. Apple decided to use
the techniques like observations, web survey, questionnaire to achieve flexibility and accuracy of
information. The collected data through survey can be checked on the Likert-scale technique.
Number of customers participated in web survey and their responses are matched on the Likert-
scale.
Time frame:
In order to decide the time frame in which we want research should be performed is constructed
through the Gantt chart.

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Figure 2: Gantt Chart
3.1 Market size trends within given market
Apple deals in the market of electronic items mainly consisting of smart phones, tablets, music
players, laptops, desktops etc. In the smart phones sector, Apple has got a market share of close
to 13%, globally. This segment of smart phones is dominated by Samsung with 22% of market
share. Global market of smart phones in terms of revenue is $421.8 billion. The smart phones
market grew at a rate of 1.1% in the third quarter of 2016, year on year. When it comes to tablets
market, Apple is the leader with close to 26% market share, followed by Samsung with 16%
market share (Jessica, 2016). The market of smart phones, tablets, music players, desktops and
laptops is on an increasing trend since last few years because there is decrease in prices of these
products and more and more people are able to afford it globally. Also, people are becoming
more and more tech freaks and hence there is growth in sales.
3.2 Competitor’s Analysis for Apple Inc.
Apple’s main competitors are Samsung, Microsoft, Dell, Vivo and others. While Samsung is the
biggest competitor of Apple, other companies are also growing at a good pace. Both Samsung

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and Apple have similar lines of products like smart phones, tablets, music players, laptops,
desktops etc. which make them the biggest competitors (Dibb, 2016). Both the players are
globally renowned. Both the companies have sued each others in the past on account of
copyrights.
In order to do competitor analysis, I would like to use the “Competitive Profile matrix” tool. This
tool lists down critical success factors for the companies, provides them weights and ratings and
then finally comes out with an aggregate weighted score for different companies. CPM matrix
for Apple is given below –
Critical
Success
Factors
Weigh
t
Microsoft
Rating
Score
Samsung
Rating
Score
Dell
Rating
Score
Apple
Rating
Score
Market
Penetration
0.2 3 0.6 4 0.8 2 0.4 1 0.2
Product
Quality
0.4 3 1.2 1 0.4 2 0.8 4 1.6
High Price
factor
0.15 3 0.45 1 0.15 2 0.3 4 0.6
Market
Share
0.1 4 0.4 3 0.3 2 0.2 1 0.1
Store
Locations
0.15 3 0.45 4 0.6 1 0.15 2 0.3
Aggregate
Score
1 3.1 2.25 1.85 2.8
Every factor is provided a rating.
4= Major strength
3= Minor Strength

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2= Minor Weakness
1=Major Weakness
Then score is calculated by multiplying weight with rating of each company.
Aggregate score is calculated by adding up all the individual scores.
Any aggregate score around 2.5 is average score and is pretty decent.
Apple got a score of 2.8 which is above average.
3.3 SWOT Analysis of Apple’s products
SWOT analysis -
Strengths –
1)Brand name- Apple has got an excellent brand name. The name “Apple” is just enough to get
the products sold.
2) Loyal Customers – Apple customers are very loyal to customers. It is often said that once
when you use Apple, you don’t use any other brand. This is one of the biggest strengths of Apple
(Day, Sammons & Gu, 2008).
3) Innovation tag – Apple has got the reputation of being an excellent innovator. Moreover, it is
a disruptive innovator, wherein it innovates a product and displaces the market leader in that
segment (Russolillo, 2008).
4) Big portfolio of products – As mentioned before Apple deals with a lot of products like smart
phones, tablets, music players, laptops, desktops etc. So even if market for one of these products
goes down, it can easily be made up by gaining profits in other segments.
5) Excellent User interface – The Operating system of Apple, IOS is very simple and easy to use.
It is very user friendly. This is one of the reasons Apple users stick to Apple smart phones.
Weaknesses –

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1) High price – All the products of Apple are priced very high. While other brand’s products are
initially high and then prices reduce drastically, the same is not the case with Apple. Prices
usually remain high even after a long time since the product has been launched (Ayub et al,
2013, p. 95).
2) No Steve Jobs – This is an intangible weakness of Apple. Steve Jobs was the heart of Apple
and with his death, the brand value has come down a little(not too much though).
3) Restrictions on many products – For example, some apps run only on Android and not on
Apple phones. Similar are the cases with other products as well.
Opportunities –
1) Untapped Markets – There are many big and untapped markets including countries like India
where Apple’s products are not used significantly. These countries can be exploited by
increasing sales there.
2) Digital world – The world is becoming more and more digitalized off late and people are
ready to buy more and more electronic items. Apple can innovate newer products and increase
their revenues.
Threats -
1) Chinese products – Apple has a lot of threats from Chinese markets especially in the smart
phones category. A lot of Chinese brands are growing popular round the globe and are eating
away the market share of Apple.
2) Android – This is the biggest threat to Apple. IOS and Android go head on collision with each
other. One mistake from any of these would make the other one a clear winner. IOS has to
constantly compete with Android to keep up the market share of Apple’s products.
4.1 Techniques of assessing customer response

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As an organization called Apple we are concern about customer feedback & their honest opinion.
We as an organization feel that customer satisfaction is more concern for company’s growth. We
would like to have feedback from our customers for our products whether good or bad, so that
we can improve more on our products & provide good quality of apple products (Fontana &
Frey, 2000).
Every customer’s requirements for satisfaction level is different & unique & it will be difficult as
an organization on a personal level (Hanzaee & Farsan, 2015).
If we as an Apple brand organization set a good standard for employee where we can contact
customers both from sale as well as customer service then we can achieve a good level of
customer satisfaction (Jaakkola, 2016). We can implement these processes to ensure our
customer satisfaction & measure their success. Genius Bar can be given as an example for apple
as a point of differentiation through customer satisfaction.
Survey Customers
We as a Apple would like to get customer feedback, but most of the people do not go to service
center unless they are satisfied. We try to conduct survey through mail or through happy calling,
so that we will get the final information. We try to take the survey on regular basis in order to
check the changes in customer’s choice.
Need to know Expectations of Customers
It is easy as an organization for us if we know the expectation of a customer to offer them an
enjoyable experience (Gonzalez-Padron, Tomas and Ferrell, 2016). In order to meet customer
needs we have to make an effort for providing good service & products.
4.2 Customer satisfaction survey
We have launched a new product in market for apple & conducted a questioner for survey for
customer experience and overall satisfaction. The main aim of a customer satisfaction survey is
to have consumer remark that we can use to improve the customer by asking him his experience.

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This multiple choice questioner will help us to conclude on many points for new launch of
product. Below are few questions
1) The process involved for getting your concerns resolved for product is:-
i) Unsatisfactory
ii) Average
iii) Satisfactory
2) With Apple how can the quality of customer care is received at your end
i) Superior
ii)Average
iii)Very Poor
3) The process for getting your concern resolved was :-
i) About average
ii) Satisfactory
iii)Unsatisfactory
4) About new products features & benefits of the product how satisfied you are :-
i) Very unsatisfactory
ii) Satisfactory
iii) Poor
5) How do you find the look & feel of the new product
i) Good
ii) Poor
iii) Average
6) How often you will use this product

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i) Once in a year
ii) Daily
iii) Do not use
7) Have you ever contacted customer care for Apple?
i) Yes
ii) No
8) If you approached customer care are your all queries answered to the fullest?
i)Yes
ii) No
9) Is the new product launched better or worse as compare to other product in the market?
i) Much better
ii) Worst
iii) Better
10) As per your experience with this new Product, would you recommend this product to
your friend & family?
i)Yes
ii) No
4.3 Review the success of completed survey
We can say that if success cannot be measured then it cannot be fixed, hence we can elaborate
the success as below:-

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(A)Brand Awareness
Communicating to each other & using social media will always help in making awareness in
market. If we succeed in creating the Brand for our new product then success will be key for it.
(B)Participant Satisfaction
Once we end up with the event it is the first phase to conduct post event survey so that we will
come to know the feedback of the customers easily, which will lead to achieve success (Gordon,
Carrigan & Hastings, 2011). If the quality product is given to customer then it will give immense
satisfaction to customer.
(C ) Strengthening Business Relationships
While increasing markets through new product it will always be good to have our relationship
with existing customers, partners (Groucutt & Hopkins, 2015). Business relationship can be
maintained by providing quality service in the market.
Conclusion
There are various factors that can influence the behavior of customer and can influence the
buying decision of customer. Companies should understand the relationship between brand
loyalty, corporate image and repeat purchase while aligning marketing strategies. To conclude
marketing research technique we can say that if we conduct a survey & understand the
expectations of our customer it will help us in improving the quality of the product. We have
survey and questionnaire methods in order to check the satisfaction level of customer for the new
product of Apple in the market as compare to other brands. Competitors analysis is performed
for the same.We can conclude that customer satisfaction is essential to maintain business
relationship with old customers as well as for upcoming customers in the market.

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