Transcript
The text argues that marketing possesses very few rules for choosing the appropriate marketing activities. Can you describe any universal rules of marketing that might be applied to most products, markets, customers and situations?
A universal rule would be that everyone loves a new product.
When a new product is developed there is the initial first thought of “Oh, I must have that” or “I NEED that”. The goal from manufacturers and production companies is that individuals will want to “keep up with the Joneses” and purchase the newest, coolest products that hit the market. IPhones are a great example of this; their initial release causes instant shortages and multiple waitlists to be established. Individuals are looking to purchase the most current, up-to-date technology that hits the market. This will happen regardless of class, status, and location. People all around the world line up for IPhones the day of their release: ranging from Europe, China and of course North America. By branding a product and creating value, a company can develop loyalty with their customers- and continue this growth relationship (Okonkwo, 2007).
Choose a specific product that you use on a daily basis (such as food items, toiletries, or your car) and apply the 5W model in Exhibit 3.4 to yourself:
Product chosen- IPhone 5s
Who are you (demographics, psychographics, etc.)?
I am a 22 year old, white female that has a good paying job (25-30K). I am also currently still in college, finishing my MBA in Accounting. I enjoy being outside, walking my dogs, and spending time with my family. I take a lot of pictures- mostly of my puppy, Muffin. I listen to pop rock like Ben Rector and Train. I enjoy social media, memes and celebrity gossip.
What do you do with the product (consumption, storage, disposal, etc.)?
With my IPhone 5s I can read books, listen to music, watch music videos, T.V., and movies. I can also call, text, and facetime family members. I can connect with others on various social media apps as well as take pictures of my surroundings, friends, and animals.
Where do you purchase the product? Why?
I purchase this product from AT&T because of my cell phone contract. They usually offer me the best deal and plan that meets my usage needs. I could purchase from somewhere else but it is convenient to go to AT&T because they have my phone provider information as well as contract specifications.
When do you purchase the product? Why?
I purchase this product when there is a new upgrade available AND my contract ends.
Why and how do you select the product?
A couple of years ago, I went from an IPhone 3s to and HTC Inspire- this was the worst decision of my life. The platform was hard to adjust to and the graphics were different; not to mention my phone would shut-off randomly.
Once my HTC contract ended, I went back to the IPhone; experiencing the best brand, platform, and device I could ask/pay for.
Although they are expensive they are worth every penny. I have not had a better phone that has taken the quality of pictures that my IPhone has or give me the cell reception I need in various areas of Michigan. I do miss the ability to customize the text and screen color theme settings but other than that I will probably always stick with the IPhone.
Why do you not purchase competing products?
Competitors to the IPhone do not have the specs that they offer like a higher resolution photo pixel or motion photo camera option. The facetime I have on the IPhone is clearer than any other phone I have used in the past.
Assume your responses are similar to millions of other consumers. Given this profile, how would you approach the marketing strategy for this particular product?
I would suggest relationship marketing. With Relationship marketing, IPhone can build a relationship with their customers to gain a better understanding of why they purchase their products and what they can do to improve them (Smith, 2011).
Every year, Apple generally comes out with a new version that is better than before; taking into account customer feedback and individual reported specs additions that need to be added for greater client comfort.
Okonkwo, U. (2007). Luxury fashion branding: Trends, tactics, techniques. Basingstoke: Palgrave Macmillan.
Smith, M. (2011). The new relationship marketing how to build a large, loyal, profitable network using the social web. Hoboken, N.J.: John Wiley & Sons.
Successful Company: Apple
Apple has a competitive advantage within the technology market. From watches to tablets and cell phones to laptops, Apple has mastered the art of creating new, innovative technologies all while enhancing customer loyalty. Their stock price continuously increases with the creation of new products and their company keeps growing; expanding globally, offering sales all over the world. Financially, Apple is doing great. They have no long-term debt and have close to $100 billion in cash (Taulli, 2012). Apple has the ability to acquire other companies, expanding their market and customer reach. Their weakness tends to be their price index for their products. Apple products are not cheap, in fact they are expensive. Apple products can range anywhere from $1,999 (laptop) to $199 (IPod Nano). Of course, people can find deals online or from other people looking to upgrade, but for the price it cost to make one of these products, Apple is clearly setting a higher markup than others in the industry.
Struggling Company: Blackberry
Blackberry used to be at the top of their game in the early 2000’s, releasing the newest phones that incorporated the working man’s tasks into a portable, hand-held cell phone. Blackberry created the first “smart” phone; installing widgets, apps, and tasks that created greater efficiencies for the working individual. Although they remain apparent within the market, it is not as great as it used to be. Some strengths within their company are quality products, efficient operating systems, and tried durability- plus their device’s productivity levels are always increasing to meet the needs of their users. Blackberry’s weaknesses can be seen in their innovation levels. Blackberry used to release annual items to the tech market but that has slowed. Their items are not as current and flashy as others on the market. Their app store “Blackberry App World” has a lack of app availability and user friendliness when navigating its website. Web browsing, provided by Blackberry, can be seen as average and/or slow compared to others like Apple and Android. And lastly, Blackberry’s server is complex and cumbersome, with low RIM and an expensive BES planning (King, 2011). For Blackberry to excel once again, they would need to reposition their brand and redefine their mission, vision and values. Blackberry is so outdated, related to other companies within the market. For Blackberry to regain strength, they would have to successfully redesign their phones, platforms, and app store to meet the needs of their consumers. Brand Loyalty may still be alive; Blackberry needs to expand on this and create new features while still using some of the old. Their innovation process should include the newest formats, displays, and features allowing for business and personal use, instead of just one. Blackberry’s goal should be to reposition themselves within the market, allowing for growth, strength, and diversity within the brand, through their products.
King, C. (2011). Advanced BlackBerry 6 development. Berkeley, Calif.: Apress;.
Taulli, T. (2012, February 14th). Is Apple a Buy? 3 Pros, 3 Cons. Hot Stocks. Investor Place. Retrieved from: http://investorplace.com/2012/02/is-apple-a-buy-3-pros-3-cons/#.Vi_1RPmrShc
