1MARKETING Executive summary The purpose of this report is to analyse the market of the 5G smart phones. in the first report detailed analysis of the product that is 5G smart phones will be conducted along with analysis of its competitive information, environmental scanning and segmentation targeting and positioning. In the second report, theintegrated marketing channels and distribution system of the mentioned product will be analysed. The band positioning, niche and the market leaders who are offering the consumers with the 5G smartphones in Australian electronics market will be discussed. Along with this the leadership style and the consumer adaptation process and pricing strategy of the product will be analysed. In the third report, the intergraded marketing communication technique along with an marketing communication matrix will be performed.
2MARKETING Table of Contents Report 1...........................................................................................................................................3 Identification of the product........................................................................................................3 Competitive information..............................................................................................................3 Environment scanning.................................................................................................................4 PEST Analysis of Australian electronics Industry......................................................................4 Demand forecast..........................................................................................................................5 Segmentation, targeting and positioning.....................................................................................5 Report 2...........................................................................................................................................7 The brand positioning of 5G Smartphones..................................................................................7 Identification of the Market leaders.............................................................................................8 Identification of the Niche for the product..................................................................................9 Leadership type..........................................................................................................................10 Consumer adaptation process of 5G Smartphone......................................................................10 Pricing strategy decisions..........................................................................................................10 Report 3.........................................................................................................................................12 The integrated marketing communication method....................................................................12 Online communication strategy.................................................................................................13 The integrated marketing communications matrix....................................................................14
3MARKETING Report 1 Identification of the product In this era of technology, internet has become one of the most crucial part of technological advancement. Thus high speed internet is no longer a luxury but has become a necessity for almost each and every individual. When it comes to high speed internet, smartphones that uses the 5G technology is the first thing that comes to mind. Thus the product chosen to be analysed includes the 5G smartphones (Yang, Ge and Zhong 2018). The 5G smartphones offers the consumers with a lot more bandwidth along with lower latency which means it has the potential to support more data with fewer delays. Thus the 5G smartphones are referred to smartphones with which consumers will be able to upload as well as download videos at a much higher speed compared to that of the 4G technology using smartphones. In the following paragraph, detailed analysis of the product that is 5G smart phones has been conducted along with analysis of its competitive information, environmental scanning and segmentation targeting and positioning. Competitive information The major competitor of 5G Smartphone includes the 4G smartphone devices. The leading brands that are offering 5G technology based handsets include One plus pro, Samsung Galaxy S10e, Samsung Galaxy S10 plus and Nokia 9 PureView. The price range of the phone is similar or slightly lower than that of the 5G Smartphones (Zhang et al. 2019). However, when it comes to competitive advantage, the competitive advantage of the 5G mobiles are much higher compared to the rest of the phones. The chief reason behind this is high quality RAM along with high speed internet speed at a similar price range. Luxury brands like Apple are also offering the consumers with 5G technology incorporated smart phones. For instance, in the 5G smartphone
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4MARKETING model iPhone XR, the A12 Bionic battery is highly impressive, even in case of less RAM. However, the product may lack competitive advantage due to its Camera quality compared to its competitors. Environment scanning In order to understand the market of 5G Smartphone it is highly crucial for the management of the product manufacturing organizations to conduct an in depth environmental analysis. In the following paragraph, PEST analysis of the Australian electronics industry has been conducted forunderstandingtheexternalandinternalenvironmentofthisproductrespectively. Environmental scanning, PEST Analysis of Australian electronics Industry Political: Australia possess connection with a good number of global organizations like OECD, World Trade Organization, G20, and Commonwealth of Nations. However, the nation is often criticized by its neighbouring countries that include New Zealand as well as United Nation. The chief reason behind deterioration of relationship between the other nations and Australia includes Australia’sDeportation law, poor treatmentto the refugees, not upholding human rights including the right of the Indigenous people (Fayek et al. 2017). Thus the political factor of Australia is not highly favourable for the mentioned product. Economic: When it comes to the economic environment, the nation holds the 13thplace amongst the largest economy worldwide. In the year 2018, the nation has reported an economic growth of 2 percent. Thus the business investment as well as the household income of the residents of the nation has
5MARKETING increased. Higher disposable income denotes favourable condition for 5G Smartphone to be sold in higher amount . Socio Cultural: The population of Australia is smaller compared to majority of the nations across the world. Along withal this, the population of Australia is aging (Zheng et al., 2016). As a result of this, the workforce in the nation is highly expensive. However, since the nation put emphasis on higher education, majority off the population is educated. Technological Being a developed country, Australia is highly advanced in technology. The 24*7 hours availability of transport and internet will be highly useful for the electronic industry including the 5G manufacturing and selling organizations in order to ensure satisfaction of is consumers. Demand forecast Considering the fact that even luxury brands like Apple has lowered its price range for the 5G Smartphone without compromising with the quality of the product, it is expected the demand for the mentioned product will be high in Australia. The high need of internet in Australia can be considered as a major reason behind forecasting high demand of the mentioned product in the nation (Li et al. 2016). Considering the fact that the 5G Smartphone targets both elite class as well as higher middle class consumers, given it lower price, a shift in the demand from elite class to higher middle and middle class consumers can be evidenced. Segmentation, targeting and positioning Segmentation
6MARKETING Type of segmentationSegmentationiPhone XR’s Target market GeographicRegion Density US and International Urban DemographicAge Gender Life Cycle stage Income Occupation 16-45 years Both Males and Females Bachelor Newly married Full nest I and II High Earner Businessman,managers, executives BehaviouralDegree of Loyalty Benefits sought Personality Hard core loyal, Switchers Senseofbelongingself expression, service speed Ambitious and determined Targeting The target consumers of 5G smartphones include Elite class, higher middle class as well as middle class consumers of the society. The device has been launched by the company to enhance its consumer base. The price range of the product has been kept equivalent to the smart
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7MARKETING phones that target the higher middle class and middle class population. The target consumers of the mentioned product includes school and collage going students, professionals or businessman of age ranging from 16 to 30 years. Positioning The positioning of the 5G smart phones have been done based on the high quality internet along with the enhanced features offer to the consumers by the brands. The chief tagline of the brands offering the product to its consumers includes “It's more than providing you with a really fastsmartphone.”Sincethetargetconsumersareadolescents,youngadultsaswellas professional, the smartphone are getting marketed as a device which is perfect for rapid data transfer and work. Report 2 The brand positioning of 5G Smartphones The brand positioning of above, the chief consumers of the 5thGeneration Smart phones includes middle, higher middle and elite class consumers within the age range of 20-45 years. The 5th generation Smart phone has been designed for providing high speed internet, high quality processor, improved streaming resolutions, holographic displays, enhanced power and next-gen cloud computing. Thus the product has been positioned in the market as the ideal Smart phones for high speed internet and gaming. When it comes to promotion, 5G Smartphone are promoted both through offline as well as online promoting service (Chen et al. 2018). Considering the fact that the target consumers of the mobile includes the youth, social media platforms are used by the organization as one of the major promotional sites. However according to Pugh 2019, the positioning of a same device may differ based on the company that is offers the products to the
8MARKETING consumers. For instance, the Apple 5G 5G Smartphones are more expensive compared to that of Samsung and LG. Apple have positioned its 5G smart phones as 5G Smartphones that possess the speed and opportunities of the 5thGeneration Smartphone along with the quality and brad value of 5G Smartphones. However, 5G phones of brands like Samsung, Sony, One plus and LG are of lower price range. Considering the fact that the target consumers of 5G smart phones are youth, Apple has launched the 5G Smartphone XR which is of lower price range and meant for young professional and businessman of middle to higher middle class population of the society. Identification of the Market leaders The market leaders who offers high quality 5g smartphones to the consumers of Australia includes Samsung, Apple, LG and Oppo, Xiaomi,AlcatelandHuawei.TheSamsung Galaxy S10 5Gwas the first 5G Smartphone of Australia, and is currently available through Telstra. However, the Galaxy S10 5G won't be exclusive to Telstra. Big T customers will just be the first to be able to buy it on a plan (Ding et al.,2018). The time it takes for Optus and Vodafone customers to wait for an opportunity to get their Samsung 5 G flagship on the plan is uncertain at this time, although it is probably linked to progress on their 5 G networks. When it comes to the LG 5G smartphones, it belongs to thefirst 5G smartphones available in Australia, sold exclusively through Telstra. LG has put $1,729 for the telephone retail cost. The LG V50 also possess unique secondary screen accessory, while the 5 G functionality is obviously a distinguishing characteristic.When it comes to the OPPO 5G smart phones, it provides the consumer with 5G services at the lowest price in Australia. Along with this the durability of the smartphones can be considered as a competitive advantage gaining factor for OPPO. The other smartphone types offered by the organization to the consumers are kept in affordablerate.Asperthesurveyconductedintheyear2028,theleadingsmartphone
9MARKETING manufacturing organizations that are offering the consumers with 5G Smartphone includes Apple, Samsung, LG and OPPO. Identification of the Niche for the product As per a good number of researchers, the 5thgeneration mobile network will take time to fully replace the smart phones with 4g/LTE technology. However due to its beneficial characteristics 5GSmartphonehasalreadygainedpositiveresponsefromtheusers.Thefirstniche characteristics that are being offered by the 5G smart phones include increased bandwidth for all the users. Bandwidth can be defined as the space available for individuals to download data files, internet pages as well as watching videos. The smaller the accessible bandwidth, the slower each device will run. One of the benefits of this fresh fifth cellular innovation phase is the fact that the usage of businesses like Verizon, T-Mobile, and Sprint will increase. Many people remember 3 G technology when they witnessed mount their web pages on the progress bar. On 5 G, this is going to be a previous concern. This implies that when they reach populated areas such as athletic stadiums and airlines, individuals will not think that they are competing for information with everybody else (Stanley et al. 2017). More bandwidth is provided, and individuals can also use this bandwidth to improve the versatility of their computers. The second niche factor that is offered by the mentioned product includes faster internet. In this generation where internet has become necessity for each and every individuals be it students or professionals, faster internet is definitely a factor based on which 5G smartfones are getting promoted.This is a problem of the past when you can browse the web, download files, or even stream the video at blistering speeds using a 5 G network. While people on 3 G and 4 G networks can remember struggling for minutes to download or view video buffers, 5 G networks
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10MARKETING will not be problematic. Due to the enhanced bandwidth, more individuals can use without other consumers crowding. Leadership type Considering the fact that the aim of the 5thgeneration Smartphone is to replace the 3rdand 4th generationtechnologyusingSmartphones,thementionedproductcanbeconsideredas challengers, according to researchers, instead of competing in a category, the aim of the challenger is to change the existing products all together. Challengers look to replace the criteria that define an established product or service by rewriting the rules. Consumer adaptation process of 5G Smartphone The consumer adoption process is consist of 5 stages that includesAwarenessStage,Interest and Information Stage, Evaluation Stage, Trial Stage and Adoption Stage. In order to let the consumers develop awareness about the products, the brands should opt for both online and offline promotional techniques (Li et al. 2017). While online techniques can include campaigns and sponsorship, online promotional techniques includes advertisement through social media platforms and television. Other techniques of enhancing awareness may includes flash massage and email notifications to target consumers. Pricing strategy decisions Marketing logistics include scheduling, delivery and management of the movement of the products from the manufacturer to the industry, and marketing equipment and data. The goal is to satisfy customers ' requests whilst still profitably. The logistics marketing plan for the item is discussed in the following paragraphs.
11MARKETING Pricing can be considered as a strategy to find a sustainable product / service cost. The approach is coupled with other pricing strategies that include goods, cost, location and promotion, rivalry, business request and lastly brand characteristics. This approach is a 4P approach. This approach includes one of the most important components in the marketing mix, as it focuses on creating and improving the income for an organisation (Hawthorne 2016). Majority of the leading brands that are offering smart phones with 5G technology are keeping the price affordable sent closer to the currently existing 4G mobile sets. The chief reason behind this is to enhance the competitive advantage of the brands over the existing products. Along with this since the target of the 5G smart phones includes college going students to professional, the range has been kept keeping in mind the target consumers. In fact premium brands like 5G Smartphone have reduced its product price to a considerable amount just to ensure enhancement of consumer base of the product. When it comes to retailing, the 5G smart phones are being retailed by the organizations through bothonlineaswellasofflinemarket.Accordingtoresearcher,Smartphoneretailingis considered to be one of the fastest growing retail sectors across Australia (Li et al. 2017). Thus a huge number of retailers are available for the products. in order to market the products through offline stores, the brands should opt for retailing it through their own stores as well as through retail stores. Whenever it comes to online retailing of the products, the 5G Smartphone can be retailedthroughpopularelectricshoppingapplicationsinAustraliathatincludeseBay, AliExpress, Gumtree and others. Online retailing can also be considered as one of the most effective ways of marketing the product to the end consumers. When it comes to distribution of the product, the first contact point should include distributes.It might be national retailers for the whole nation, just like few larger companies. And regionally oriented retailers that include distributers for southern and northern regions could exist and there
12MARKETING might be city-level retailers. However, never can the major retailers or the domestic retailers sell a shipment alone. They then subscribe to several retailers located in town and region. These suppliers are known as Tier 2. The retailers are the next and final levels. Retailers are received either from local dealers or from domestic dealers. Report 3 The integrated marketing communication method Integrated communication can be defined as the process for planning, executing as well as creating brand massage for creating effective consumer relationship. Considering the fact that the target consumers of the mentioned product include both local and global consumers, the organizations selling the product should opt for both offline as well as online communication strategies. When it comes to offline communication techniques, it can include campaigns, trade shows and sponsorship. Trade shows are known for providing effective opportunities to network both the perspective of the consumers as well as other industry leaders. Additionally, these events offer the organization with effective opportunities to network with both potential leaders as well as consumers. When it comes to sponsorship, the companies selling 5G Smartphone can sponsor shows in order to enhance the awareness of the consumers about their products. Along withthis,anotherpotentialmarketingtechniquethatcanbeadoptedbythementioned organizations includes communicating to the potential consumers through SMS. This will not only enhance the awareness of the product to the consumers but will alsomake them aware of specific offers and discounts. Along with this the product can be promoted through television and radios as well. According to Hawthorne 2016, more than 59 percent of the baby boomers, be it professionals or business personal watches television at least once per day. Thus in order to
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13MARKETING enhance the awareness and knowledge of the product, this communication technique with the consumers can be considered to be effective ones. When it comes to the communication strategies with retailers and wholesalers, face to face meeting can be considered as one of the most effective communication strategy. However, apart from this, communication through email ads well as digital communication tools like voice and video call can also be considered to be effective communication methods for business to business deal. Online communication strategy When it comes to online communication technique,the most effective consumer-company communicationtechniqueincludescommunicationthroughsocialmediaplatformslike Facebook, Instagram and others. Social media communication can be considered as one of the most inexpensive yet effective mode of communication . This is because creating a page in social media platforms are often free. However, fore effective communication, the organization must compose interesting, attractive and catchy posts that will be able to attract both the millennial as well as the baby boomers (Stanley et al., 2017). Not only this, the social media platforms will offer the organization to directly communicate with the potential consumers. This in turn will help the management to understand their needs and thus design or modify their product keeping in mind the specific needs of the consumers. Not only this, regular communication with the consumers will also enhance the consumer company relationship along with strengthening the relationship between them. All these in turn will impose positive impact on the consumer base as wells the revenue of the product selling organization. Along with communicating with the consumers through popular social media platforms, the organization can also promote its products through Youtube. For this effective promotional videos will be required. Along with uploadingpromotionalvideos,YouTubeadvertisementaswellassponsorshipofmobile
14MARKETING reviewing videos can be considered as effective methods of indirect communication with the consumers. Apart from this, the organization can sent direct emails to the potential consumers in order to enhance their awareness and interest for the product. The integrated marketing communications matrix The following table presents the integrated marketing communication strategies for generation 5 smart phones. In the following table the 1 way communication refers the promotional activities and advertisement where the company does not have any option to know the voice of market. The 2 way communication implies the communication strategy where advertisement can be done simultaneously with collecting voice of market. For any integrated market both business to business and business to consumer marketing communication. Here for business to business communication for 5thGeneration Smartphone the retailers and distributors have been considered (Li et al. 2017). To develop an integrating marketing communication identification of the communication target is essential as well as the identification of the optional medias. In this era of globalisation and digitalisation every industry has 4 media opportunities to utilise namely the telephonic media, satellite media, digital media and physical media. Telephonic Media Satellite MediaDigital MediaOthers Individual Consumer Individual Consumer1 way Delivering promotionaltext forspecific offers to current andpotential customers
15MARKETING Individual Consumer2 way Collecting consumer experience feedback through telephonic call Segmented Market Segmented Market1way communication Sponsoring Realityshows andother Television programs Wordofmouth basedindirect promotions throughcurrent consumers Segmented Market2way communication Discussionand feedback collection throughsocial media forum and officialwebsite basedonline forum Mass MarketMass Market1 way communication Onlinepop-up advertisement, advertisement with hyperlink in Electronic Retailer websites, YouTube advertisement Sponsoring stage programsand concerts, Performing CSR basedindirect promotional campaign
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16MARKETING Mass Market2 way communication Discussionand feedback collection throughsocial media forum and officialwebsite basedonline forum Promotional campaignbased surveyand interview. Businessto Business Businessto Business1way communication Wordofmouth basedindirect promotions through distributorsand market agents Businessto Business2way communication Usingsuppliers andmarket agentsto communicate withretailers; Conducting market research From the above integrated marketing communication matrix it can be said that for marketing communication 6 major strategies has been used. Social media based promotions, YouTube, sponsorship, word of mouth, and text message. Hence, based on the matrix and the chosen
17MARKETING strategies the highly used media would be the physical media that includes the word of mouth, sponsorship and CSR based campaign. The second essential media is the digital media that would be used for social media, pop-up advertisement, e-forum and others. The third essential media would be the telephonic media where both telephone call and text message would be used. However, the least used marketing media would be the satellite media where Sponsoring Reality shows and other Television programs would be used as the core strategies (Hawthorne et al. 2016). Another essential factor that should be remembered while using all this marketing communication tools is proper synchronisation. The company willing to execute marketing through dynamic media strategy should also make proper synchronisation of promotional subject, advertisement approach and highlighting point very seriously across the all types of marketing tools. Among all these strategies the most challenging strategy will be the business to business marketing strategy where word of mouth based indirect promotions through distributors and market agents would be helpful.
18MARKETING Reference list Chen, S., Liu, Y. and Gong, S., 2018, May. Eight-Port Dual-Polarized Antenna Array Using Central Symmetric Structure for 5G Smartphone Applications. In2018 International Conference on Microwave and Millimeter Wave Technology (ICMMT)(pp. 1-3). IEEE. Chitimira, H., 2016. A Comparative Synopsis of the Enforcement of Market Abuse Prohibition in Australia and South Africa.African Journal of Legal Studies,9(1), pp.46-77. Ding, Z., Yao, T., Liu, X., Wang, X. and Liu, Z., 2018, July. An Eight-Port Dual-Band Antenna Array for 5G Smartphone Applications. In2018 Cross Strait Quad-Regional Radio Science and Wireless Technology Conference (CSQRWC)pp. 1-2. Fayek, J., Aoude, M., Raad, M. and Raad, R., 2017, October. Quantitative study of thresholding for device-to-device communication in 5G networks. In2017 11th International Conference on Telecommunication Systems Services and Applications (TSSA)(pp. 1-5). IEEE. Hawthorne, L., 2016. Labour market outcomes for migrant professionals: Canada and Australia compared.Available at SSRN 2808943. Li, M.Y., Ban, Y.L., Xu, Z.Q., Guo, J. and Yu, Z.F., 2017. Tri-polarized 12-antenna MIMO array for future 5G smartphone applications.IEEE Access,6, pp.6160-6170. Li, M.Y., Li, C., Ban, Y.L. and Kang, K., 2016, July. Multiple antennas for future 4G/5G smartphone applications. In2016 IEEE MTT-S International Microwave Workshop Series on Advanced Materials and Processes for RF and THz Applications (IMWS-AMP)(pp. 1-3). IEEE. Pugh,N.,2019.NewZealandConsumerInterestGrowingfor5GMobile.Journalof Telecommunications and the Digital Economy,7(2), pp.92-101.
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19MARKETING Stanley, M., Huang, Y., Loh, T., Xu, Q., Wang, H. and Zhou, H., 2017, March. A high gain steerable millimeter-wave antenna array for 5G smartphone applications. In2017 11th European Conference on Antennas and Propagation (EUCAP)(pp. 1311-1314). IEEE. U-Din, S., Tripe, D.W. and Kabir, M., 2017. Market Competition and Bank Efficiency: A Post GFC Assessment of Australia and New Zealand.Available at SSRN 3021357. Yang, J., Ge, X. and Zhong, Y., 2018. How Much of Wireless Rates Can Smartphones Support in 5G Networks?.IEEE Network,33(3), pp.122-129. Zhang, X., Li, Y., Wang, W. and Shen, W., 2019. Ultra-Wideband 8-Port MIMO Antenna Array for 5G Metal-Frame Smartphones.IEEE Access. Zheng, K., Yang, Z., Zhang, K., Chatzimisios, P., Yang, K. and Xiang, W., 2016. Big data- driven optimization for mobile networks toward 5G.IEEE network,30(1), pp.44-51. Zou, H., Li, Y., Xu, B., Luo, Y., Wang, M. and Yang, G., 2019. A dual‐band eight‐antenna multi‐input multi‐output array for 5G metal‐framed smartphones.International Journal of RF and Microwave Computer ‐Aided Engineering, pp.e21745.