Apple continues to face an uphill battle in marketing Apple Watch. Wearable consumer tech is a new phenomenon, and it is yet to be adopted by the mainstream market. Apple dominates the market, but players such as Samsung, LG, Garmin, and Fitbit are slowly increasing their market share (Lee, Park & Im, 2016). Apple just released Apple Watch 4, which is an improved version of the previous watches. In comparison to series 3, series 4 is smaller in size with a bigger actual viewable display area. The new model has heat sensors cased in a ceramic with larger speakers. The new design also addresses some of the weaknesses of the previous design. Apple Watch 4 has a modified microphone to reduce echo from the speaker during calls. The new series looks and feels sleeker in comparison to the previous series. The new face comes with additional features, and it can be customized to the customers liking.
Apple needs to position the new series as the best alternative in the market amidst the increasing competition from LG, Samsung, and other competitors. Apple Series 4 is targeting mostly the young demographic, from18 to 45. Apple has to ensure the product is visible to the target audience by marketing through various channels.
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Marketing Communication Objectives
The primary objective for the IMC is to position Apple Watch 4 as a viable wearable for day-to-day activities. Apple consumers already know what an Apple watch is, but they are yet to purchase because they do not see it as a practical technology they can utilize on a daily basis.
The second objective is to increase the Apple Watch market share by 5%. Apple continues to maintain dominance in the wearable tech market, and the modifications made to Series 4 will attract more customers.
The last objective is to generate and sustain customer loyalty. iPhones and Macbooks thrive on loyal Apple customers used to Apple products. Apple has changed the way customers view phones and Ipads, and it wants to revolutionize the wearable tech product to gain loyal customers.
Promotion Mix
The promotion mix advertising, public relations, personal selling, direct marketing, and sales promotions. They are used to communicate to the target market and to achieve the sales goals. Apple will use advertising, both online and traditional advertising to meet the first marketing objective. Many consumers need to see Apple watch as a wearable technology to assist with day-to-day activities, and this can be achieved through creative adverts in the traditional and online media. Another promotional tool for the first objective is public relations. PR entails news stories, features, sponsorships, and programs that reach other to many consumers (Andrews & Shimp, 2017). PR targets consumers who avoid adverts and salespeople. The main advantage of PR is that the company is in charge of the PR message, and when done well it can generate favorable opinion among customers.
The second objective is to increase the market share. Apple relies on both traditional and online advertising to appeal to many customers. In the age of social media, online adverts reach consumers across the globe faster (Keller, 2016). Online adverts are affordable, and they reach a wider audience, thus increasing the market share. Sales promotion is another element of the promotion mix that will increase market share. Customers respond to strong incentives such as discounts, promotions, and free shipping offers. Apple will use sales promotion to attract more customers.
To generate and sustain customer loyalty, Apple will use adverts and direct marketing. Adverts expose consumers to the same message such that they will internalize the message. Good adverts not only grab the attention of the viewers, but they educate them on the features and the importance of the product. Direct marketing is easier in the modern era. It can be done through online catalogs, mail, and mobile marketing. Direct marketing can be customized; therefore Apple will create highly-tailored messages to build strong customer relationships.
Media Strategy
Apple will use the same media strategy used for phones and laptops to advertise Apple watch. Apple will advertise in the Today Show because the show attracts the 25-54 demographic, which is part of the Apple Watch target audience (Kushida, 2015). NBC’s Today Show continues to attract a more significant portion of the 25-54 age group for years. Apple will supplement the TV advert with an online ad that will be shared across Facebook, Twitter, Instagram, YouTube, and Apple’s website. The social media advert targets the global audience, and it will appeal to the young demographics that rely on social media for their news.
B2B Marketing
Apple will implement B2B marketing to supplement B2C marketing. B2B marketing targets businesses rather than the final consumer. B2B markets entail producers, resellers, governments, and institutions. Apple targets resellers and institutions for the Series 4. Resellers are firms that sell goods produced by others firms. In the past, Apple relied on its apple stores, but the company should work with other resellers to meet the needs of the global market. Apple can partner with other electronic stores to sell their products, either physical or online stores. Another target B2B customer is institutions. Apple Watch is a digital watch with improved functionalities. Institutions such as hospitals, profitable businesses, universities among others will benefit from the product. Apple will make a deal with the institutions to sell them Apple watches at discounted prices when they buy in bulk.
Segmenting B2B Markets
Market segmentation in the B2B market is entirely different in B2C markets. In B2B markets, customers are given special deals because they order in bulk in contrast to a B2C market. According to Hague & Harrison (2011), there fewer behavioral and needs segments in B2B markets. B2B consumers are concerned with buying a product and reselling it at a profit. The segments in a B2B market are price-focused segments, quality and brand-focused segments, service-focused segments and partnership-focused segment. Apple has established itself as a premium brand known for quality products; thus it will focus on quality and brand-focused segment and the service-focused segment. A brand-focused segment is made up of firms that want the best products are prepared to pay higher prices for the best. Alternatively, a service-focused segment entails firms that want high-quality products and efficient delivery and service requirements. Apple will not have a problem in delivering the product to the B2B customers on time. Apple can still use the partnership-focused segment by seeking strategic partnerships with trusted and reliable suppliers.
Marketing Information Systems
Marketing information systems (MIS) bring together data from various sources. An MIS is used for decision-making purposes. The three types of information that that company will use to make marketing decisions are internal reports, marketing research, and marketing intelligence information. The internal reports contain information from the sales department about the territories, customers, industries, and other market-related factors. Apple can analyze its sales records for the previous series to understand the market and come up with better marketing approaches. The marketing research information is collected through studies aimed at monitoring the marketing environment. Firms engage in continuous marketing research to identify what customers want, competition, what suppliers want, how to improve products among other market research issues. Lastly, market intelligence system is generated from scanning of the economic and business environment. The three types of information complement each other, for example, the market intelligence systems can explain why the sales are high or low as recorded in the internal reports.
Marketing Metrics
The average total revenue for Apple watch will be used to monitor the success of the strategic marketing plan. One of the objectives of the marketing plan is to increase market share and sales by 5%; thus the sales revenue will be used to determine whether the aim is achieved or not.
The three performance metrics are lead generation, conversion rates, and website traffics. Apple will use both traditional and online adverts. Lead generation is the process of attracting the target market and turning them into potential customers. Conversation rates are related to lead generation, and it attempts to identify the number of leads who will acquire the product. Lead generation is significant, but the business will benefit more from a higher conversion rate. Lastly, website traffic and social media page visits and likes will be used to measure the success of the marketing plans. Well executed campaigns will attract many viewers and generate online buzz which will translate into more sales.
References
Andrews, J. C., & Shimp, T. A. (2017). Advertising, promotion, and other aspects of integrated marketing communications . Nelson Education.
Davis, J. A. (2017). Measuring Marketing: The 100+ Essential Metrics Every Marketer Needs 3rd Edition . Walter de Gruyter GmbH & Co KG.
Hague, P., & Harrison, M. (2011). Segmentation in B2B Markets. B2B International: Market Research with Intelligence , 3-9.
Keller, K. L. (2016). Unlocking the power of integrated marketing communications: How integrated is your IMC program? Journal of Advertising , 45 (3), 286-301.
Kushida, K. E. (2015). The politics of commoditization in global ICT industries: a political economy explanation of the rise of Apple, Google, and industry disruptors. Journal of Industry, Competition and Trade , 15 (1), 49-67.
Lee, Y., Park, M., & Im, S. (2016, July). Measuring wearable technology adoption behavior: the mediating effect of fashion opinion leadership. In 2016 Global Marketing Conference at Hong Kong (pp. 1102-1103).
