The report analyzes the marketing strategies and consumer behavior related to Apple iPhone 8. It discusses the influence of marketing on consumer attitudes and behaviors, and provides strategic recommendations for managing partnerships and enhancing brand image.
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Running head:CONSUMER BEHAVIOUR AND MARKETING PSYCHOLOGY Consumer behaviour and marketing psychology Name of student Name of University Author note
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1 CONSUMER BEHAVIOUR AND MARKETING PSYCHOLOGY Executive Summary The report was presented to analyse the different marketing related aspects and how it helped in influencing the consumers’ buying behaviours. The survey results were analysed and interpreted, which mostly showed the positive responses of the respondents who believed that the positive image and enhanced features present in Apple iPhone 8 contributed to the influence on consumers attitudes and behaviours, which also facilitated the process of decision making process. Few strategic recommendations were made, which demonstrated abut the essentiality of managing partnership with contract manufacturers and enabling partnership with Government and regulatory agencies for presenting a positive brand image, which also influenced the buying behaviours of customers largely.
2 CONSUMER BEHAVIOUR AND MARKETING PSYCHOLOGY Table of Contents Executive Summary...................................................................................................................2 Selected Product or Service Overview.......................................................................................4 Critical Analysis.........................................................................................................................4 Apple’s current marketing strategy........................................................................................4 Marketing communication mix..............................................................................................5 Strategic Recommendations.......................................................................................................6 Reference List............................................................................................................................7
3 CONSUMER BEHAVIOUR AND MARKETING PSYCHOLOGY Selected Product or Service Overview From the assignment already done, it is understood that the two products, i.e., Apple iPhone 8 and iPhone 6. The major product selected here is the Apple iPhone 8, which has a price of $599 for the 64GB variant and $699 for the iPhone 8 Plus. Though it does not have slick edge to edge design features like the latest offerings of Apple, still it has been considered by many as a value for money device with great quality pictures and 4K videos along with A11 Bionic processor. The iPhone 8 is resistant to water and supports LTE Advanced speed of over 450Gb/s, though lack the dual SIM functionality feature. The smart phone was introduced in the year 2017 and it had been a trendsetter as it boosted of a glass body and matching aluminium frame with the Touch ID Home button and thick bezels at the top and bottom portion of the display. The product has been made available in three colours including the Silver, Gold, Space Gray and with the most durable glass present in the reinforced steel and aluminium structure, the product has been water and dust resistant as well. The iPhone 8 boosts of a 4.7 inch display while the iPhone 8 Plus includes a much bigger display, i.e., 5.5 inch display that has been designed to adapt the colour temperature and intensity for adjusting to the ambient light and provide a paper like viewing experience for the individuals who by the product too. The 3-core GPU further has enhanced the functioning of the smartphone and made machine learning tasks much easier and faster to perform. Critical Analysis Fromtheanalysisofthesurveymonkeyresults,ithasbeenfoundthatthe questionnaire is entirely prepared on the basis of comparing the Apple iPhone 8 with the iPhone 6 and how the various factors have influenced the buying behaviours and decision making processes. The critical analysis also demonstrates about the various issues related to
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4 CONSUMER BEHAVIOUR AND MARKETING PSYCHOLOGY marketing and how those have been related to the consumer buying behaviours such as the group influences, attitudes, behaviours, culture, social class and consumer learning processes associated with the consumer buying behaviours and decision making processes (Hoyer, MacInnis and Pieters 2013). Apple’s current marketing strategy From the analysis of the assignments done previously, it has been found that the consumers’ buying behaviours and purchase making decisions are often influenced by the marketing strategies implemented by Apple while promoting the product, i.e., Apple iPhone 8. With the help of the current marketing strategies, the company has managed to attract three market segments including the music lovers who are targeted by Apple Ipod and Itunes, another market segment comprises of Generation Y individuals who have been targeted by introducingnewrangeofsmartphones,especiallytheAppleiPhoneseries,Tablets, Macbooks, etc. while the other segment consists of individuals who use Ibook, Apple Pay, etc (Mullen and Johnson 2013). Apple has reinvented the iPhone 8 to ensure huge transformation of business functions and processes and at the same time, represented the future of mobile base technologies and convenience for customers to facilitate innovation and meet the changing demands and expectations of the clients much more easily (Foxall 2014). Apple has made sure to invest largely on the PPC ads with the Facebook or Google forincreasingthesalesrevenueandensureplacingtheproductsproperlyforeasy accessibility by the customers. According toValos et al. (2016),this has been beneficial for increasing the market share and at the same time, facilitated the marketing efforts required to manage business perfectly. While introducing iPhone 8 in the market, Apple also made sure to manage a free trial program and delivered a free trial of the service or product in replacement of a positive recommendation (Stephen 2016). This ensures gathering necessary information from the clients about the product and allow the business to understand whether
5 CONSUMER BEHAVIOUR AND MARKETING PSYCHOLOGY the needs and preferences of clients would be fulfilled easily or not. In case the free trial for the product is not feasible, then positive reviews and feedbacks should be acquired from the customersforensuringthemarketmixcomponentstodevelopandgrowovertime, furthermore enabled Apple to remain competitive and sustainable within the concerned industry (Boush, Friestad and Wright 2015). Apple has tried to prevent price wars by prioritising on the unique value propositions, which has made the company not compete on price by lowering down the cost of iPhone. As stated byDissanayake and Amarasuriya (2015),the content marketing strategy has helped in sending the right messages and information and present those via audio or visual content to the clients. Apple has also maintained a good design and managed smaller packaging to ensure getting the best furthermore through use of social media platforms and raising the chances of gaining competitive advantage in business along with bigger market share (Dissanayake and Amarasuriya 2015). Figure: Marketing method(Apple.com.au 2019) The marketing strategy also includes understanding the audiences well and cope up with the local culture by using local languages. Apple also focused on understanding the audiences well and focused on using their own languages for attracting more visitors to the
6 CONSUMER BEHAVIOUR AND MARKETING PSYCHOLOGY website by addressing the features in the form of “edge to edge glass”, “retina display” and “LED lightning”, which further enhanced the level of trust and loyalty among the customers of Apple iPhone series present in the marketplace (Hannah et al. 2014). To enhance the marketing efficiency, Apple also allowed their potential customers to create videos and post those through various filtering procedures on social media networks and video streaming platforms. As stated byMachado, Cant and Seaborne (2014),this innovative marketing strategy enables unboxing, which has improved the designing ability for a better customer experience and even influenced buying behaviours. The retail stores of Apple are also designed in such a manner that it can address or represent the feelings inside with the help of warm lightning, monochromatic colour schemes and other extended features that replicate the feelingsof people and encouraged the customersto make purchase of the iPhone 8 (Apple.com.au 2019). Marketing communication mix The marketing communication mix by Apple enables undertaking approaches for focusing on the key components of the communication mix and manage various promotional activities to improve the brand image and influence consumer buying behaviours. The various components including the print and media advertising along with sales promotions, events and experiences along with direct marketing, public relations and personal selling activities too. This has helped in communicating the right messages and information about the product, i.e., Apple iPhone 8 t the customers, which has further influenced their buying behaviours and purchasing decisions furthermore (De Mooij 2018). Due to this, the target market has been attracted, which has further allowed Apple to use the various components of the marketing communication mix and ensured maintaining consistency while delivering marketing messages and information to the clients in different market segments (Chernev 2018).
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7 CONSUMER BEHAVIOUR AND MARKETING PSYCHOLOGY Based on the analysis of survey data, it is found that most of the responses are positive as because customers who are avid buyers of Apple products have been not much concerned about the price, rather they have trust on the brand and focus on the quality of products delivered. Most importantly, the hexa core processor and 2GB RAM along with greater picture resolution and great quality camera have further created positive mind sets among the people and influence them to make purchase of the specific product from the brand (Boone and Kurtz 2013). When compared with the Apple iPhone 6, the product has some extended features, which has motivated and encouraged the selection of choices between these two products offered by Apple quite easily. The use of Apple Print and Media advertising has further promoted the brand and its products and the endorsements of the brand with the involvement of popular celebrities have further enhanced the brand identity and awareness among the customers. The “Think different” print media campaign has boosted the brand exposure and it has been well supported by the sales promotions. The Point of sales materials helped in improving the design aspects, which could be seen in the Macbook shaped roof for the Apple store in Thailand. Being one of the largest and wealthiest companies in the whole world, the company did not focus on customer loyalty programs, rather provided them with rewards and benefits while making purchase of the iPhone 8 and ensured retention of customers largely too (Londhe 2014). The seasonal sales promotions such as ”Buying the product at only 1$ and then paying the rest of amount as EMI and other discounts provided have enhanced the effectiveness of marketing communication mix and ensured reaching a wider group of audiences much conveniently (Apple.com.au 2019). Strategic Recommendations Based on these strengths of the company and according to the analysis of these survey results, it has been found that the most the respondents reacted positively and also stated
8 CONSUMER BEHAVIOUR AND MARKETING PSYCHOLOGY about the marketing communication mix. This induced the promotional activities and at the same time, enhanced the brand image and awareness among the customers, which also assisted Apple to raise the level of expectations among them and deliver products and services accordingly. From the analysis, it has been found that, in some cases, the brand may face difficulty due to the higher priced products and targeting the premium segment of markets consisting of customers (Todorova 2015). In spite of this also, most of the potential clients who are loyal to the brand have remained inclined to the brand, which has helped in influencing their buying behaviours and even the brand and its products have been promoted through word of mouth promotions, thereby resulted in positive brand image and reputation (Fill and Turnbull 2016). The major strategic recommendations for Apple are as follows: It is recommended for Apple to use the major strengths of the company for addressing the scopes and exploit those opportunities to expand the network for distribution of Apple iPhone 8. The rapid process of innovation and strong brand image have further helped in introducing new products and services, which has also helped in facing the threats of competitors and challenges in the global market with much ease and efficiency. Apple is also recommended to improve the process of automation with the help of establishing relationships with the contract manufacturers and furthermore address the rising costs of labour associated with the manufacturing and production processes. Recommendations are also made for developing partnerships with the distributors of the product, which could not only improved the market share, but would also enhance the network of distribution for making it easy for the customers to gain access to the product. Theimplementationofcostleadershipanddifferentiationstrategyisalso recommended for managing the economies of scale and promote “Think different”
9 CONSUMER BEHAVIOUR AND MARKETING PSYCHOLOGY philosophy to facilitate innovation, marketing activities and create great scopes and opportunities for managing the differentiation strategy implementation. It is also recommended to manage the ‘Switchers’ campaign and create a customer focused strategy for making customers inclined towards the brand and prevent them from switching on to some other brand, furthermore influence their buying behaviours and purchase making decisions as well. TheformationofcloserelationshipswiththeGovernmentandeducational organisations is recommended as well for the purpose of creating more sources of income and ensure targeting each and every group of audiences present in the different market segments Lastly,Appleisrecommendedtoadoptsustainableandenvironmentfriendly practices for contributing to the positive environmental impact. The company must also focus on the corporate social responsibility measures to focus on providing benefits to the community, furthermore, should ensure contributing to the community as well as the environment largely too.
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10 CONSUMER BEHAVIOUR AND MARKETING PSYCHOLOGY Reference List Apple.com.au (2019).Apple (Australia). [online] Available at: https://www.apple.com/au/ [Accessed 4 Jun. 2019]. Boone, L.E. and Kurtz, D.L., 2013.Contemporary marketing. Cengage learning. Boush, D.M., Friestad, M. and Wright, P., 2015. Deceptionin the marketplace:The psychology of deceptive persuasion and consumer self-protection. Routledge. Chernev, A., 2018.Strategic marketing management. Cerebellum Press. De Mooij, M., 2018.Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited. Dissanayake, D.M.R. and Amarasuriya, T., 2015. Role of brand identity in developing global brands: A literature based review on case comparison between Apple iPhone vs Samsung smartphone brands. Fill, C. and Turnbull, S.L., 2016.Marketing communications: brands, experiences and participation. Pearson. Foxall, G., 2014. Consumer Behaviour (RLE Consumer Behaviour): A Practical Guide. Routledge. Hannah, D., Parent, M., Pitt, L. and Berthon, P., 2014. It's a secret: Marketing value and the denial of availability.Business Horizons,57(1), pp.49-59. Hoyer, W.D., MacInnis, D.J. and Pieters, R., 2013. Consumer behavior.
11 CONSUMER BEHAVIOUR AND MARKETING PSYCHOLOGY Londhe, B.R., 2014. Marketing mix for next generation marketing.Procedia Economics and Finance,11, pp.335-340. Machado, R., Cant, M.C. and Seaborne, H., 2014. Experiential marketing on brand advocacy: a mixed-method approach on global apple product users.The International Business & Economics Research Journal (Online),13(5), p.955. Mullen, B. and Johnson, C., 2013. The psychology of consumer behavior. Psychology Press. Stephen, A.T., 2016. The role of digital and social media marketing in consumer behavior. Current Opinion in Psychology, 10, pp.17-21. Todorova, G., 2015. Marketing communication mix.Trakia Journal of Sciences,13(1), pp.368-374. Valos, M.J., Haji Habibi, F., Casidy, R., Driesener, C.B. and Maplestone, V.L., 2016. Exploringtheintegrationofsocialmediawithinintegratedmarketingcommunication frameworks: Perspectives of services marketers.Marketing Intelligence & Planning,34(1), pp.19-40.