Marketing Project Part 2 - Marketing 305 | Instructor: Krist

Marketing Project – PART 2 Marketing 305 | Instructor: Kristin Minetti | 125 points | Due: December 5th

Classify your product using the goods-services continuum and identify its category (convenience, shopping, specialty, or unsought). Describe the product’s innovativeness at introduction, how it was marketed, and any problems faced. Discuss its current position in the product life cycle, modifications or repositioning efforts, brand personality, and how it has built brand equity. Analyze branding and packaging issues.

Explain the pricing strategy compared to competitors, the type of pricing policy used, and points of differentiation affecting the pricing. Describe the distribution channels, whether direct or indirect, including electronic channels and dual strategies, and classify distribution intensity. Detail the supply chain process to final customers.

Describe the current Integrated Marketing Communications (IMC) campaign, specifying if a push, pull, or combined strategy is used. Provide at least five promotional examples across different promotional elements (advertising, PR, sales promotion, personal selling, direct marketing), including rationale and emerging technologies involved. Suggest improvements in promotion strategies.

Paper For Above instruction

For this analytical paper, I selected the Apple iPhone as the product to explore in depth across various marketing dimensions. The analysis aims to demonstrate a comprehensive understanding of the product’s classification, marketing strategies, branding, pricing, distribution, and promotional efforts based on academic research and industry data.

1. Classification of products

The Apple iPhone is best categorized as a product occupying a position between a good and a service, aligning with the goods-services continuum. The iPhone offers tangible hardware (the physical device) combined with intangible elements like customer service, warranty, and software updates, characteristic of a "chat" on the continuum (Kotler & Keller, 2016). This fusion classifies it as a "technological product" that embodies both tangible and intangible aspects. Regarding consumer categorization, the iPhone falls into the "specialty" category because it appeals to consumers seeking premium, innovative, and brand-conscious devices (Schiffman & Kanuk, 2010). Its exclusivity and brand prestige make it less likely to be purchased on impulse or convenience, positioning it instead as a product purchased with deliberate intent.

2. Type of new product

When the iPhone was first introduced in 2007, it was considered a breakthrough innovation, radically altering the smartphone market by combining a touchscreen interface, internet capabilities, and media functionalities in one device (Liu & Kozhikode, 2011). Its innovativeness was categorized as a perceived radical innovation, disrupting existing mobile phone paradigms (Rogers, 2003). This high degree of innovativeness influenced Apple’s initial marketing strategies, emphasizing revolutionary features and ease of use through high-profile product launches and media campaigns. During its initial launch, some challenges emerged, including consumer skepticism about the product's reliability and the high price point, which limited early adoption among price-sensitive consumers (Nair, 2010). Nonetheless, Apple's marketing capitalized on the novelty, positioning the iPhone as a must-have innovation.

3. Managing the product

The iPhone is currently in the maturity stage of the product life cycle, characterized by high sales volume, extensive market penetration, and intense competition from Android counterparts (Kotler & Keller, 2016). As depicted in the product life cycle graph (Lamb et al., 2014), marketing activities in this phase focus on differentiation, brand loyalty, and feature enhancements to sustain interest. Apple continuously updates the iPhone’s features through incremental innovations and marketing campaigns emphasizing improvements in camera, processing power, and software functionality (Khan & Vo, 2017). The company has also employed repositioning strategies, such as targeting premium segments with higher-end models and expanding into emerging markets with more affordable variants (Pantano & Viassone, 2015). The brand personality of the iPhone embodies sophistication, innovation, and status, which underpins its market positioning and fosters brand loyalty.

Apple has successfully built brand equity for the iPhone through consistent branding, superior product quality, and focused marketing efforts that reinforce its premium status (Aaker, 1996). The packaging emphasizes sleek design and environmental consciousness, although some critique exists regarding non-recyclable materials that could hinder sustainability image. Brand extensions, such as the Apple Watch and AirPods, complement the iPhone, further reinforcing brand identity and consumer loyalty.

4. Pricing strategies

The iPhone is positioned at a premium price point compared to most Android smartphones, reflecting its brand equity and superior features (Chen et al., 2019). Apple employs a prestige pricing policy, aiming to maintain an exclusive brand image and high profit margins (Kapferer & Bastien, 2012). Differentiation points such as cutting-edge technology, seamless ecosystem integration, and strong brand recognition justify the higher pricing compared to competitors. The premium pricing strategy also acts as a barrier for competitors and signals quality to consumers. The points of difference, including superior design, operating system, and customer experience, allow for a higher price that aligns with consumer perceptions of value (Tian & Bennett, 2021).

5. Channels of distribution

The iPhone relies heavily on a dual distribution strategy, combining direct channels like Apple stores and the official website with indirect channels through authorized retailers and carriers worldwide (Wang & Zhuang, 2020). The direct channel provides control over branding and customer experience, while indirect channels expand reach and accessibility. Apple also utilizes electronic marketing channels, such as e-commerce platforms, dedicated apps, and social media marketing to enhance online sales and engagement (Kumar & Rahman, 2016). The distribution intensity is selective, with Apple’s deliberate choice of flagship stores and exclusive partnerships creating a perception of premium and exclusivity. The supply chain for the iPhone involves complex logistics, sourcing components globally, assembling primarily in China, and distributing globally through a mix of logistics partners, ensuring timely delivery to retail outlets and consumers (Feng & Chen, 2017).

6. Marketing communications/IMC

The current IMC campaign for the iPhone emphasizes innovation, quality, and lifestyle integration, utilizing multimedia advertising, social media, and experiential marketing (Kotler & Keller, 2016). Apple’s campaigns often focus on storytelling and highlighting features that enhance user experience, creating a strong emotional connection with customers. The brand employs a combination of push and pull strategies; it pushes products through retail channels using advertising, while pull strategies are evident via consumer demand generated through brand loyalty and viral marketing campaigns (Belch & Belch, 2018). The brand’s consistent messaging across platforms reinforces its premium positioning and drives consumer interest.

7. Promotion

Examples of promotional elements include:

  • Advertising: High-profile launch events and TV commercials highlighting new iPhone features.
  • Public Relations: Strategic media partnerships and product placement in entertainment media.
  • Sales Promotions: Limited-time offers and trade-in discounts to stimulate purchases.
  • Personal Selling: Apple’s knowledgeable staff in retail stores provide personalized demonstrations.
  • Direct Marketing: Email campaigns and targeted advertisements based on customer data.

These strategies are tailored to reinforce the brand’s innovative image, enhance customer engagement, and foster loyalty. Apple increasingly uses emerging technologies such as augmented reality (AR) and AI-powered personalized advertising to connect with tech-savvy consumers (Lee & Lee, 2020). To improve its promotion approach, Apple could leverage more user-generated content and interactive online campaigns to foster community and advocacy (“brand ambassadors”).

References

  • Aaker, D. A. (1996). Building strong brands. Free Press.
  • Belch, G. E., & Belch, M. A. (2018). Advertising and Promotion: An Integrated Marketing Communications Perspective (11th ed.). McGraw-Hill Education.
  • Chen, H., Wu, Z., & Liu, J. (2019). Pricing Strategies of Premium Brand Smartphones. Journal of Business Research, 102, 234-243.
  • Feng, Y., & Chen, Z. (2017). Global Supply Chain Management of Apple iPhones. International Journal of Logistics Management, 28(3), 678-695.
  • Kapferer, J.-N., & Bastien, V. (2012). The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands. Kogan Page Publishers.
  • Khan, N., & Vo, Q. (2017). Brand Loyalty and Product Differentiation in Consumer Electronics. Journal of Marketing Analytics, 5(2), 121-132.
  • Kotler, P., & Keller, K. L. (2016). Marketing Management (15th Ed.). Pearson.
  • Kumar, A., & Rahman, Z. (2016). Digital Marketing Strategies of Apple Inc. Journal of Business Strategy, 37(4), 27-36.
  • Lee, S., & Lee, H. (2020). Emerging Technologies in Consumer Electronics Promotion. International Journal of Technology Marketing, 15(1), 78-94.
  • Liu, W., & Kozhikode, R. (2011). Disruptive Innovation and Market Entry Strategies. Strategic Management Journal, 32(7), 741-751.
  • Montgomery, A. L., & Smith, M. D. (2009). Prospect Theory, Loss Aversion, and Advertising Effectiveness. Journal of Marketing Research, 46(3), 283-291.
  • Nair, S. (2010). Challenges of Innovator Marketing Strategies. Harvard Business Review, 88(4), 52-60.
  • Pantano, E., & Viassone, M. (2015). Can Digital Natives be Better Innovators? Analysis of Digital and Non-Digital Natives' Engagement with New Technologies. Journal of Business Research, 68(9), 1868-1878.
  • Rogers, E. M. (2003). Diffusion of Innovations (5th ed.). Free Press.
  • Schiffman, L., & Kanuk, L. (2010). Consumer Behavior (10th ed.). Pearson.
  • Tian, R. G., & Bennett, R. (2021). Consumer Perceptions of Brand Differentiation. Journal of Brand Management, 28(2), 156-169.
  • Wang, Y., & Zhuang, Y. (2020). Distribution Strategies of Major Technology Brands. International Journal of Business and Management, 15(7), 112-125.

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