Executive summary
The world of technology has given rise to the most sophisticated gadgets in communication that has made life easier. The ipad is one of the many products that are manufactured by Apple Inc. Ipads are one of the fastest selling communication tools in the Australian market due to its various advantages (Trenholm, 2011, p. 67). Apart from being portable due to its small size, the gadget is also sophisticated; this is a quality that most people are looking for in the market. It is said that by 2016, about half of the people in Australia will have access to the ipads. The marketing forces in Australia have been the main determining factors for the successful launching and selling of the products. Technological advancement coupled by strong macro-economic environment such as political stability and favorable social-economic force has been fundamental. Some of the main rivals in the market include the Samsung and Google whose tablets are still a force in the market. However, many clients are finding such tablets as unappealing because of their large sizes making them less portable. Marketing positioning of ipads has been fundamental in the sales realized by the Apple Company. Marketing strategies such as use pricing and advertisement mechanisms have been imperative in increasing the sales of ipads (Clow et al., 2007, p. 78)
Overview of Market
The sales of the Ipad which is a product of the Apple Inc. is said to have taken its toll in the Australian market. Statistics indicate that at its launch in 2011, the Apple Company sold almost 1.5 million of these gadgets (Trenholm, 2011, p. 75). This is the highest sales that have ever been made over such short period of time. Further analysis of the market in Australia, according to Telsyte study, indicates that, due to the high purchasing power and propensity to adapt to new technology, almost half of the population will be using the garget by 2016. The sale of ipad has been made easier due to the presence of favorable micro and macro environmental factors within the Australian market. The country is politically stable which creates a conducive environment for business operations. In addition to that, Apple Inc has succeeded in Australia owing to the fact that people are socio-economically endowed which gives them purchasing power. In terms of technological advancement, the country is way ahead of other countries. This has been fundamental in ensuring proper infrastructures are in place to facilitate communication throughout the market.
However, the ipad has faced competition from the computer tablet. Though the two are almost similar in appearance and functions, the ipad has several competitive advantages over tablets. The most salient features being the portability due to the fact that it is way lighter than the tablet. Secondly, the ipad does not need the use of additional external hardware in order to operate as the case in the tablet which requires pressure-applied stylus. It is imperative to note that consumers are looking for products that do not inconvenience them. They focus on products that not only satisfy customers’ needs, but can also be carried conveniently.
The following diagrams represent the industry definition tree diagram and also the segmentation table.
Industry definition tree diagram
The diagram below represents the growth of the Apple Inc. On the right there is the electronic while on the left there is the tablet. One of the main aims of the Apple Company would be in the production of the Apple television. It is indicated that this is due to the high demand for flat television sets and prompting the Apple Company to venture in this area. The Apple TV will be produced for the purpose of increasing the competition with similar products from either Samsung or Google. In addition to that, the company knows that it has a large customer base that will play a big role in the success of the Apple TV. On the left, the Apple Inc is known for the role it has played in the Phone revolution. The production of the new generation phones has asserted more pressure on other competitors. The company boasts not only of the iPhones but also the ipads as well as the iPod touch. These new generation gadgets are among the most sophisticated gadgets that have attracted the attention of clients throughout the world.
The venture into the production of electronics is an added advantage of the Apple industry. This is because the company will be in a better placed when competing with other companies such as Sony which is renowned for the production of the best electronics. Apple Inc. is in the process of establishing a new market niche in that area for the purpose of expanding its market base. This is imperative because the company will not solely rely on the production of communication gadgets. The high demand for the electronics amongst its clients is the main reason why Apple Inc has decided to venture in this area.
Both the macro and micro environments have been imperative for the growth and development of the Apple Inc. This is the main reason why it has been able to continue producing the gadgets indicated in the tree diagram. The demographic environments for instance has enabled the company succeed in its endeavor and became one of the most successful companies. This is because the company produces products that are appealing to both genders. For instance, the tablet has been imperative in the conduction of business. This is owing to the fact that such gadgets are connected with the 4G internet which has the fastest speed. Therefore, it enables business oriented people to have faster transactions. Tablets are easily portable due to their size and weight. This has increased their demand especially for those people who want to use internet services at their convenient places and time. The diagram also indicates the growth of the company due to production of a number of other products such as the iPhones and ipads. This is to meet the market tastes and preferences of much lighter and smaller phones. This explains the main reason why the Apple Company is always producing new generations of the iPhones just to meet the demand within the market. The company realizes the need for efficiency and that is why it has used one of the most advanced technologies to produce the latest types of phones and electronics.
Segmentation Table
This is a kind of a psychographic segmentation table. It is one of the segmentation strategies that the Apple Inc’s ipad in Australia has been able to capitalize on. Understanding the psychology of customers is imperative for successful business. It is easier to understand customers’ needs as well as their attitudes towards the products. As observed from the diagram, one of the psychological marketing segmentation strategies is the use of new products. This is the main reason why the ipad has gone through the first to third generations to meet the market’s demands. Secondly, the advertisement mechanisms are also imperative for the purpose of explaining how the products are used. Clients are also very sensitive to prices and there is, therefore, need for companies to ensure the stability.
Psychographic Segmentation
Availing new products
Advertisement strategies
Price stability
New ipad models
Explain what the product is
Price stability
Portable and convenient ipads
Explain the use
Affordable prices to clients
Diagram 2: Segmentation Table
What I have learnt and areas of difficulties
Through the tutorial classes, I have gained knowledge about the relationship that exists between variables in the market definition tree diagram. The pictorial representation is one of the easiest ways through which one can get the gist of what is happening. In such diagrams, it is easier to tell the dependent variables and the independent ones. For instance, in the above industrial diagram, it is easy to know what the market is all about. The product in question is included and also the forces that affect its success or failure. The understanding in this area has enabled me to be in a position to create my own industrial diagrams from imagination. In addition to that I have appreciated the meaning and importance of marketing segmentation.
Areas of insight
The main areas of insights are those related to the logical flow of the diagram. I understand that the diagram should pass relevant information about the market and strategies that are employed to sustain it. For instance, in the above diagram, some features have been made salient.
Ways to improve the diagrams
I have been able to improve my diagram due to the fact that I focused on both the dependent and the independent factors. This is by first taking an initiative to do a market analysis that one aims at constructing an industrial diagram. For instance, all the variables in the ipad industrial diagram were achieved by carrying out a study about the market.
Marketing management process
This is the process by which various techniques of marketing are integrated in business for the purpose of realization of the objectives of the industry. These processes include but are not limited to the advertisement of the business products, pricing and the product description. A proper marketing strategy is essential for the purpose of the realization of the goals and objectives of Apple Inc. This is achieved through carrying out a market research for the purpose of establishing if there is a market niche. In addition to that, it is imperative to note the kind of products that the clients want availed to the market. For instance, Apple Inc has been in the process of modifying the ipads in order to meet the market’s demands. This is after the company realized that the majority of its consumers wanted ipads that were lighter, more sophisticated but simple to operate as well as portable. It is equally vital to keep communication with clients in order to get the recommendations as well as any modifications they would want. In relation to the marketing of the ipad, the following overview explains the current market situation. It also provides the recommendations of what ought to be done so that the ipad can gain more profits from the market.
Overview of current market
In Australia, the sale of the ipad is highest especially within the urban population. The greatest consumers of this product are the business oriented people as well as the majority of students who want to be the first to embrace technology. In 2011, the sale of the ipad in Australia hit about 1.5 million during the inception of the garget (Homburg et al., 2011, p. 98). The main features of the ipad which include portability and its smaller size are a competitive advantage over the rest of the products. This is the main reason that analysts have indicated that in 2016, about a half of the population shall be using the ipad instead of the tablet. There have been aggressive marketing strategies that have been unveiled by Apple Inc aimed at increasing sales. The marketing strategies have been made a success owing to the fact that Apple Inc is one of the most profitable companies in the world. It therefore means that there are enough funds to be used in advertisement and communication with the consumers. The company has however ventured more within urban centers while not being able to exploit the high population within the remote part of the country. The main assumption of marketers is that the urban populace is more receptive to the technology than those in the rural areas. In addition to that, the ipad is still not up to the standard that clients want. This is because some consumers, especially ladies, find the gadget too big. The price of this gadget is relatively high and this explains the main reason why most people have not been in a position to posses one. Analysis in the market shows that most of the people, especially students, would want to purchase ipads. However, the main constraint is their financial position.
Position strategy of ipad
This can be defined as the process through which a brand goes through a marketing process with a view of making it known to the target group (Kotler et al., 2002, p87). The target group needs to be familiar with the product and to become loyal for them to have confidence in it. Advertisement is one of the main ways through which clients become familiar with a brand in the market. Marketers may spend millions of dollars for the purpose of increasing sales and subsequently profits. Apart from marketing, it is imperative to note on the product itself. This has to do with the uniqueness of the product and its’ quality. Apart from that, the product ought to be sophisticated and outstanding for it to gain popularity with clients. Finally, pricing strategy is also imperative in positioning the product. Contrary to the perception that low prices will attract clients, it is equally important that the market focus on the quality. The following discussion focuses on the recommended positioning of the ipad with a view of increasing its marketability. The main focus will be on pricing, product and the advertising strategies.
Product positioning
The ipad should be in a position to meet the requirements of its clients. One of the main objectives of ipad should be to focus on the quality of this gadget. This is owing to the fact that most of the clients are not really focusing on the price but how sophisticated and unique a product is. The second reason why quality is imperative is because the ipads is experiencing competition from other renowned companies producing tablets, such as Samsung and Microsoft. In Australia for instance, customers are more concerned with how sophisticated the garget is and how unique it is. The other factor is that the product ought to be easy to operate.
Pricing
In the Australian market, it is indicated that when the ipad was introduced, quite a large number of individuals turned to purchase the product. The number surpassed a million in the 2011. Pricing strategy is imperative in the sense that clients are quite sensitive to it (Homburg et al. 2011, p. 88). However, when the product is a high quality, the issue of price will not prevent the sales. If the society targeted is social-economically stable then there is no need to put the prices so low. What the ipad should focus on achieving is product differentiation. For instance, to attract the rural consumers especially the farmers, the ipads should be designed in a way to assist them in various activities related to their work.
Advertisement strategy
Owing to the fact there is increased competition, it is therefore imperative that Apple Inc. uses a lot of funds in marketing. In so doing, the most important areas of concern is the advertisement media (Laermer et al., 2000, p. 77). In the current generation of technological advancement, the advertisement should go beyond the use of magazines and the televisions. For instance, it is indicated that over 60% of the people in Australia have access to internet (Clow et al., 2007, p. 87).Most of them are in social interaction sites such as twitter and facebook. It is therefore essential to make use of these sites to advertise the ipad gargets since it will reach a huge market. However, it is equally imperative to carry out a marketing research for the purpose of identifying how much the clients know regarding the product. This will be important for the purpose of reducing the cost of advertisement. This is especially where the clients are aware of the market products. The main priority of the ipad should be to minimize the operation costs for the sake of increasing the profits. Carrying out a marketing research will be a better way to know how much will be required to market.
Other related Recommendations to improve the market for ipads
Apple Inc. should, among many things, focus on the reduction of the size of the ipad. This is for the purpose of such a garget being able to fit well in pockets. This will not only increase the security but will attract many consumers who shy away from purchasing the ipads due to their relatively large size (Atkin 2000, p. 98). However, the reduction in size should not affect the quality of the ipad. It should be sophisticated as it has been but more simple to operate.
Secondly, the Ipad product has not penetrated the market as it would be desired. This is because the concentration has been in the major cities especially amongst the students and the business community who find the garget useful. Therefore, there is the need to focus on the larger market that has not yet been exploited. In order to achieve this, marketing strategies need to be implemented within the remote areas. Nonetheless, the product should be tailored in a way that it can be useful in sectors such as agriculture so that the farmers can also purchase them. Apart from the above issues, the sales of ipads will strike the highest points only when the prices become customer friendly. At the moment, only the high and middle income earners are in a position to acquire the garget. However, with high productivity of the products, it is easier to bring the prices down. This is also a competitive advantage that the ipad can have over its rivals.
Conclusion
The ipad is one of the many products that are manufactured by Apple Inc. It is one of the fastest selling communication tools in the Australian market due to its various advantages. Apart from being portable due to its small size, the gadget is also sophisticated; this is a quality that most consumers are looking for in the market. It is said that by 2016, about half of the people in Australia will have access to the ipads and become the first country in the world. The marketing forces in Australia have been the major determining factors for the successful launching and selling of the products. Technological advancement coupled by strong macro-economic environment such as political stability and favorable social-economic force has been fundamental. Some of the main rivals in the market include the Samsung and Google whose tablets are still a force in the market. However, many clients are finding such tablets unappealing because of their large size that makes them less portable. Marketing positioning of ipads has been fundamental in the sales realized by the Apple Company. Marketing strategies such as the use of pricing and advertisement mechanisms have been imperative in increasing the sales of ipads.
References
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