Marketing Strategy

Introduction

This model paper investigates an article “Mobile Phone Applications as Innovative Marketing Tools for Hotels” by Chen, Hsu & Wu that analyses iPhone as a product that has not featured much in the market and among consumers. This is in line with marketing research studied in class and desire to evaluate the practical nature of marketing. According to Chen, Hsu & Wu (2012), iPhone has not found a direct application in the lives of the majority of household consumers. The initiative of this paper is to show that though iPhone has a low involvement perspective, it has survived due to the intense advertising by the producing company. The easy to use interface, unmatched simplicity, high-resolution camera, its massive app selection, and constant updates are a few of the many features of the iPhone that have led it to enjoy global success.

Marketing Culture

Before developing any strategies or making any other business related decisions regarding the introduction of iPhone in America, one must understand the culture of this heavily populated country. America has one of the fastest growing markets for smartphones. Throughout the past few decades, America has been extensively operated as an outsourcing destination where organizations from various countries minimized their cost-base. Based on this approach, America has continued to change rapidly, and is on the road to becoming the largest potential market for goods and services (Johnson, 2013).

 

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Deeper Perspectives from the Article

It is great news that Apple has made something affordable or easily available for Americans. Although the 5c is still costly (only $100 less than the 5s), it is still a cheaper alternative to the iPhone. If the buyer only wants features, then it is better to buy Android mobile phones that offer higher specifications at the same price (Woellner, 2013). However, if a buyer wants the highest standard rather than specifications, then he/she can blindly buy the iPhone. The trends underlying this product brand and the transformations undergone from the initial time to the present form the interest of discussion of this paper. The iPhone, a smartphone created by Apple Inc. and first introduced (1st generation) in 2007, has become one of the most popular and highest grossing cellular devices of all time. People all over the globe are currently using iPhones due their advanced technology (as a competitor to smartphones in the market).

Finance

Apple also made an untimely enhancement of the online Apple Store for both new iPhones. Since the iPhone 5c remains too costly for the low-end market, the iPhone 4 will continue to be the leading seller at the low end as observed by Chen, Hsu & Wu (2012). The article enthuses that the price difference between the two new models of iPhone is not enough for operators to drive users away from the top model. Smartphone sales during the 2013 July-September quarter have increased by 23.2 % as compared to the same quarter last year (Wahlen, Bradshaw, Baginski & Stickney, 2011). As observed, the iPhone 5s has been sold out in most markets while the iPhone 5c has built up in stock. Mobile phone sales are expected to rise by 3.4% and smartphone sales to reach 250.2 m, registering an increase of 45.8 % during the same quarter last year.

Conclusion

At a time other upcoming digital devices producing companies are busy looking to enter the second most populated and one of the fastest growing economies in the world, Apple Inc. is already on the top. They had their first-mover advantages as they entered the market early and have continued to be successful as they changed with both American and global developing culture and economy (Johnson, 2014). They use a pull strategy in marketing, taking full advantage of their well-known American brand name to appeal to the target market that aspires to live a modern life just like Americans. Apple Inc. industry is able to understand the target market of its iPhones products, and can easily adapt to the changing demands whenever there is need for it (Woellner, 2013). Such a highly versatile culture in this industry is a key force that would make Apple Inc. to continue succeeding in its production and selling of iPhones to consumers now and in the near future.