Evaluating Apple’s marketing performance

What is marketing metrics?

The set of measures that are used by marketers to quantify, compare, and interpret marketing performance is known as marketing metrics. The evaluation of performance against organizational goal analyzed from numeric data is known as marketing metrics. The efficiency of marketing exercise of an organization are estimated using statistical data.

metrics

Why do organizations need metrics?

Organizations spend a lot of their financial plans on marketing endeavors since they comprehend that a business must be compelling if individuals know about the items and services offered by them. Since so much time and cash is spent on these advertising effort, wastefulness in these endeavors can injure to an organization’s fortunes. Subsequently, organizations by and large need to make principles to judge the viability of marketing. The effectiveness of the marketing strategy could be measured by marketing metrics.

 

How to evaluate marketing performance?

The marketing performance could be assessed by the following marketing metrics types. Memory metrics, Behavioral metrics, Financial metrics, Customer profile metrics and physical availability metrics.

Apple’s Marketing Metrics 

apple_logo_2015_03Financial metrics: In any business campaign, there is a definitive point to produce beneficial deals. Shareholders, advertisers anticipate that organization will amplify benefits to have most elevated profit for their speculations. For this organization use financial metrics to quantify deals incomes, minimize overhead costs, expanding gross edges and overseeing ventures to suitable hazard and expected returns (Lenskold, 2003).

ROI: The amount of profit generated by an organization for each dollar invested in the organization is known as Return on invested capital (ROIC).It links the corporate’s performance to valuation. The organization’s return on capital could be truly measured by ROIC. The Market bothers over the   values assigned to the organization that produce the most return over capital invested.

t1

It is obvious that Apple tops the market for return of investment share for capital according to the third quarter for the year 2016. Apple has exceptionally produced high profit for every dollar invested compared to other companies.

 

Behavioral metrics consist of sale, market share, market penetration, purchase frequency, share of category requirements, solely loyal customers, defection rate, and customer complaints and recommendations. In the other word, it have to consider how many unit did company sell? How much market share does company hold? How often do clients purchase? (Sharp, 2013).

t3t2

From financial results of apple inc. for the business year 2016 it can be seen that the company is doing good in terms of sales and market share. The quarterly net income is $7.8 billion and the revenue is $42.4 billion. The diluted earnings per share is $1.42. The gross margin is 38 % and international sales accounted for 63 % of quarter’s revenue. However, all of the figures when compared to the previous year has reduced slightly. Despite the slight decrease it can be inferred that the demand for the company’s products remain strong. The investors were returned $13 billion as dividends and share purchases.

Memory metrics: Memory metrics portray data that buyers have in their recollections in connection to a product or a brand. In addition, this measurement include brand awareness, brand image associations, mental availability, attitude, customer satisfaction and service quality, and Intention to buy a brand in the future (Sharp, 2013).

One doesn’t purchase smartphone, one buys ipod. One doesn’t purchase pc, one buys MacBook. Apple just doesn’t want to dominate the sales, but they want to inherit their own market. Hence customers have a strong mental connection with apple products which would make them compare other products to iPad, iPhone. Among the top selling smartphone brands in the US, iPhone has been rated 85 on a 0-100 scale according to the American Customer Satisfaction Index by US consumers. Apple has proved to be exceptional in building a reputation among the people that they innovative in designing and making unique products and gaining loyal customers.  With Apple’s service business growth 19 percent every year it ranks second highest in customer service satisfaction which is an all-time record.

 

215232279 / Gayathri Subramanian  

References

Investor.apple.com. (2016). Apple – Annual Report. [online] Available at: http://investor.apple.com/secfiling.cfm

Apple Newsroom. (2016). Apple Reports Third Quarter Results. [online] Available at: http://www.apple.com/newsroom/2016/07/apple-reports-third-quarter-results.html

Anon, (2016). [online] Available at: http://images.apple.com/newsroom/pdfs/q3fy16datasum.pdf

Theacsi.org. (2016). The American Customer Satisfaction Index Smartphone Brand Satisfaction Benchmarks. [online] Available at: https://www.theacsi.org/customer-satisfaction-benchmarks/benchmarks-by-brand/benchmarks-for-smartphones

Sharp, B. (2013), Marketing: Theory, Evidence, and Practice. Oxford University Press, Melbourne, Australia.

 

 

Samsung: Brand positioning of the master brand

Untitled1

A name, symbol, color or design or all of these put together makes a brand. Brand has always been considered to have higher value than benefits of a product by marketers. Samsung  is not just a well-known name, it’s that when it is being said it immediately invokes certain images such as galaxy phones, electronics, television, blue and white color, South Korea, tablets, refrigerator which are brand association networks. It is a South Korean multinational conglomerate company headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses, most of them united under the Samsung brand. According to revenue it is an industry leading technology company.

 

Samsung has provided its customers with tangible as well as intangible products. Its wide range of product has strengthened Samsung electronics. Galaxy series, note series, smartphones, mobile phones, tablets, smartwatch, television, home theatre, refrigerators, laundry appliances, monitor, cameras, memory and storage devices are some of them. It is also famous for its customer service, it has one of the fastest product services. It is one of the biggest electronics manufacturer in the world.

Samsung’s marketing strategy is one of the most effective strategies because it has helped a cost-driven company to change its structure and become an authority manufacturer. All of the products come under the name ‘Samsung electronics’ which is an umbrella approach in its branding, Such that the subsequent products could be easily understood and accepted by the consumers. Brands name meaning is built over time through firm’s communication to consumers. Its slogan “The next big thing is here” has taken the company to top of the smartphone market. Samsung’s smartphones have become their brand image driver. Customers trust has a positive relationship with the brand reputation. However, Samsung doesn’t have any particular tagline/slogan for the company as a whole; they prefer to use unique taglines for each and every product.

They have been constantly redesigning and introducing new series of products, e.g. – Galaxy Series. Through constant innovation and introduction of new technologies, Samsung has been trying to establish their point of parity. The features of their mobile phone are the crucial part of their parity, for e.g. – introduction of galaxy phone. Talking about the point of differentiation, recently we have seen Samsung’s Galaxy S6 with a curved screen, which is a very new concept in this mobile sector and none of the other companies have so far been able to introduce such a new concept. Samsung seems to be the pioneer in this criterion and have done something off the hook.

Recently at Rio Olympics 2016, Samsung was a major sponsor. They specifically pushed Samsung’s Galaxy S7 and S7 Edge smartphones.
There are five spots in total for the campaign, which extends across media, retail, digital and social. The films are directed by Gabe Turner, and produced by Rattling Stick. Samsung will also be filming live virtual reality interviews with Team GB athletes in Rio. The brand’s chief marketing officer, Russell Taylor, said it wanted to bring fans closer to the games in a “credible” way. “A central brand belief for Samsung is that meaningful progress comes from daring to defy barriers and this is evident in the initiatives that are running across the globe to support Samsung’s official partnership with the Olympic and Paralympic Games – we are shining a light on athletes around the world who push the limits of what is possible,” he said. “We are delighted to have some of the world’s best athletes helping Jack during the campaign.” Samsung is both an Olympics and Team GB sponsor. The brand also last week launched its global campaign, “The anthem”, starring six athletes of different nationalities, including Team GB diver Tom Daley.

 
Samsung uses multiple forms of promotions. Samsung as a company believes in pulling the customer to themselves through advertising but at the same time uses strong tactics to push the product to the customer through sales promotions. Brand Image can be considered as one of the major criteria for customers when choosing products or services. Samsung has reached great heights with its smartphones, which helped the brand to become a symbol of quality and reliability for its consumers. Samsung’s marketing mix has shown that multiple products could contribute to a business’s growth and they could also become revenue drivers for the company.

 

Gayathri Subramanian

Student ID: 215232279

Reference:

Dawn Facobucci, D. (1996). Networks in marketing. London: Sage Publications.

Wikipedia. (2016). Samsung Electronics. [online] Available at: https://en.wikipedia.org/wiki/Samsung_Electronics.com

Samsung. (2016). SAMSUNG. [online] Available at: http://www.samsung.com/us/aboutsamsung/samsung_group/values_and_philosophy.pdf

International Olympic Committee. (2016). SAMSUNG. [online] Available at: https://www.olympic.org/sponsors/samsung.com

The Official Samsung Galaxy Site. (2016). The Worldwide Olympic Sponsor of 2016 Rio Olympics. [online] Available at: http://www.samsung.com/global/galaxy/olympics/.com

YouTube. (2016). Unpacking Samsung. [online] Available at: https://www.youtube.com/watch?v=z2q7y50zxNU.com