Apple iPhone – The world’s most powerful device turns 7

This is 7

This is 7

Apple Inc has for the longest time earned the reputation for being innovative, with its brands and especially the iPhone. The product has evolved specifications on an almost yearly basis, since it was first released in June 2007.  Watch timeline of iPhone key features – iPhone turns 7.

Betty from Hello ad

iPhone image timeline

 

 

 

 

Sales and Profitability

The sales of approximately 590 million units indicate that fans and followers of the innovative smartphone, not only expect but almost demand the next iPhone model release, which occurs every 12-18 months.

Apple iPhone Brand Positioning

The effectiveness of the Apple iPhone marketing campaign was due to two factors –  it introduced a new “smartphone” and targeted customers who were early adopters and influencers. The identified segment was seeking a revolutionary product which combined both internet, phone and email.  Apple Inc, was advanced in understanding its target customer and how they would be intrigued by the Apples’ new brand, the iPhone.   Apple’s  iPhone when first released was superior to its competitors eg Samsung and Nokia, with innovative features such as a touchscreen and virtual keyboard, and resulted in increased category growth in the smartphone market.

Advertising, in the form of television commercials, print ads, and online digital usually form part of the typical marketing budget.

The objective of advertising is to show the customer intended positioning of its brand and to aid consumer awareness. (Iacobucci 2013).  Apple advertising for the iPhone began primarily online through digital advertising on its website http://www.apple.com/, and in print media for example, computer technical magazines and also featured in its own, Apple Magazine.

Publicly launched  in 2007,  through television commercials, the ultimate focus was to generate sales and profitability.  It achieved this by driving growth for the smartphone market, and reached sales in its first year of 1.4 million iPhones.

In February, 2007 the first teaser advertisement for iPhone Apple “Hello” iPhone Commercial aired at the US at the Academy Awards and was then followed with four advertisements. Click below to view the first TVC for Apples iPhone. Apple TVC 2007 iPhone 3

Goals of Advertising

Marketers need to think about the objectives of an advertising campaign and how it engages particular behaviours. A well known theory is known as AIDA – attention, interest, desire and attention.  Customers knew about Apple, but identified the brand with computers and tablets. With the introduction of the iPhone brand product, Apple expanded to other markets. It helped to raise consumer interest in a product with features and benefits, first to market. The scarcity of the product created desire, in customers needing to pre-order, and create excitement whilst they waited in line for their early purchase.

Customers queue for Apple iPhone release

Customers queue for Apple iPhone release

In this way Apple Inc knew it captured action, with customer ‘intent to buy’.

The goal of each advertising campaign is to affect customer decision making. Iacobucci in Marketing Management (MM4) states that advertising goals should take into account cognition, affect, and behavior.

Iacobucci Marketing Management Chapter 11

Iacobucci Model

Next Generation – 2016:  The new iPhone 7 and 7 Plus

The iPhone brand has gone through the growth stage and could be perceived as reaching maturity as customers are loyal, and conduct repeat purchases. The user experience is positive, brand image is favourable, and the iPhone is now into its 6th generation, with iPhone 7 due for release on September 16, 2016.  Sales have risen to almost 170 million units and a total of 590 million iPhones sold between 2007 to 2014,

View the new iPhone 7 digital campaign

New iPhone 7 features

New iPhone 7 features

Overall iPhone Integrated Marketing Campaign 

Promotion Product Place Price
The touch points of each Apple advertising campaign, can be seen through consumers shopping in Apple stores and online.  The customer is able to touch and experience the products, and compare between different models.  The Apple store has a hub of specialists “Geniuses” with technical support and product knowledge, unlike any other retailer. Promotion: Advertising (Commercials, Magazine, Billboard), Internet and Press Releases

The use of the Apple logo is identified in by almost all consumers, and all Apple products have this logo prominently featured

The channels by which Apple iPhone is purchased online via App Store, iTunes, or apple.com. Alternatively, Apple retail stores located in malls and high end shopping centers..

High priced products give image of quality and durability

Kathy Tourgelis ID: 212243981

References:

http://www.adweek.com/news-gallery/advertising-branding/apples-iphone-tv-ads-complete-campaign-143628#hello-

https://en.wikipedia.org/wiki/IPhone

http://www.statista.com/statistics/263401/global-apple-iphone-sales-since-3rd-quarter-2007/

Iacobucci 2013, Marketing Management

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Apple iPhone – The world’s most powerful device

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