Customer, Communication & Promotion......

“Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart”

The key aspect of marketing is to break down the barrier between consumer needs vs. wants; presenting a product or service which is not technically essential in such a way that manipulates you into believing it is a ‘must have’ (i.e. such as the latest piece of technology or a new cosmetic). The process involved within developing a marketing strategy is as follows:

ü  Consumer Analysis- Developing clear understanding of target markets & coherent customer profiles within this, appreciating the idea that each customer is unique with different wants & needs. Traditionally achieved through primary research such as market surveys.

ü  Market Analysis- Examining wider economics and circumstances that may affect promotional aspects of your business (PESTEL Analysis)

ü  Competition Analysis- Analysing competitive environment and their marketing strategies, making comparisons with the use of SWOT Analysis.

ü  Distribution Channels- Careful selection of how and where to market your business through developing the value proposition of where your business ranks within the market in relation to the key factors of Cost, Innovation, Execution, Relationships, Channels, Brand.

ü  Developing the Marketing Mix- From the information already gathered, create a strategy based around the 4 ‘Ps’ of Product, Price, Place, Promotion, considering what message each of these factors communicates to the customer. (i.e. the location of your store may communicate a sense of quality if it is situated within a high end section of  London)

ü  Evaluating the economies- A marketing strategy cannot ever be fixed due to the constantly markets and consumer trends so it’s imperative to continue to be innovative in your communication with your customer in order to achieve consistent loyalty, and adjusting strategies accordingly.

We then had a closer look at the Competitor Response Profile which attempts to tap into what drives the competitor (their objectives and assumptions) and what the competitor is doing or is capable of doing (their strategy and resources). This enables us to then identify and seize opportunities and deal effectively with threats thus exploiting strengths and remedying weaknesses within our own companies in relation to this.

From this we can then create a more effective marketing mix:

‘Primary 4’

Product:  how the designing and package communicate a level of expectation of value in relation to target market, the benefits that customers can expect, how the company plans to position the product within the market and what differential advantage will the product offer over competitors.

Pricing:  imperative that this is pitched appropriately in relation to the standards of what is being offered in order to set the right expectation for the customer as well as generating healthy profits margins.

Place: how an organisation distributes its products or services to the customer in order for it to be delivered at the appropriate place & time (could be focused on a physical location on the high street, a certain time of year when there is specific need, or types of channels which its delivered through such as e-commerce).

Promotion: means of communication appropriate to budget, type of product/service & target market (could be through social media & e-marketing, TV advertisements, direct mailing, flyers & posters, special offers, endorsements etc).

‘Extended Marketing Mix’

Physical environment: In relation to its physical headquarters/store etc (level of facilities provided, presentation & appearance of surroundings) and the messages that this communicates to the customer.

Process: Particularly relevant to the service industries, relates to how the core experience is ‘served’ and presented to the customer.

People: Company culture, levels of customer support, management structure all have an impact on how messages are communicated to the consumer.

Our task was to then produce a presentation analysing a communication strategy by a company of our choosing, identifying SWOT in relation to key competitors.

With the recent passing of one of key entrepreneurial innovators, Steve Jobs we chose to put his brand, Apple under the microscope.   Their key business strategy is to break away from this idea that technology and computing are only for the elitist experts and savvy business types and instead show how it can be user-friendly and beneficial to the everyday consumer; thus turning something that was once a somewhat niche market into a mass phenomenon. Their strengths lie in their simplistic but distinctive design and accessible functions in their vast range of products as well as their strong overall company culture of a commitment to excellence and continuous innovation instilled by founder Steve Jobs.

Their promotional materials focus on a sense of storytelling; connecting people and communicating on a more emotive and personalised level as opposed to more traditional campaigns from competitors such as Microsoft.  Apple’s famous online ‘Mac Vs. PC’ campaign which consisted of multiple short episodic dialogues between two personified characters of Mac & PC, utilizing comedy to communicate short bursts of information which emphasised the weaknesses of the PC (portrayed as slow & old fashioned) in comparison to the new, fresh alternative of the Mac. According to the Apple QI report as a direct result from this campaign sales of Mac doubled from 2006 to 2010 with a market share growth of 70%, thus proving the vital need for creativity & new thinking within business communication.

 

However, we identified a clear contradictory factor in their communication strategy in terms of their pricing. Despite trying to appeal to the everyday user, they are the most premium brand within the market; a risky strategy considering the technology itself is not actually unique with many competitors producing similar products. For example, Apple’s ipad (currently holds 75% market share of the tablet computer) is priced at £499, whereas its soon to be released rival by Amazon, the Kindle Fire, will retail at £129 with the business strategy of selling each individual unit at a loss which will then be compensated through the large volume sales. For the average buyer, this is a huge saving in price and particularly during this economic climate, consumers with less disposable income may look past the hype and brand reputation of Apple in favour of cheaper alternatives. Also according to 2010 rankings of brand value, Microsoft who specialise only in operating software are ranked 3^rd in the world at $60 billion in comparison to Apple who choose to be a ‘technological biosphere’ in the different types of product they produce are only worth $21 billion, suggesting that attempting to be a ‘master of all trades’, so to speak, may not actually be all it’s cracked up to be and that a more focused, specialist approach to business may be the way forward in terms of generating more revenue.

                This being said though, much more so than its rivals, Apple is very aware of the crucial core experience that is being presented to its customers; that is not so much about selling products, but rather a new way of thinking. Let us hope that they can continue to deliver this ethos despite the loss of their driving figure.