Promotion and Product Life Cycle

Running head: Promotion and Product Life Cycle 9

Promotion and Product Life Cycle

MKT/571

Melissa Simmons

September 3, 2018

Roberto Ancis

1. UK as Foreign Market of iPhone 8

UK has the largest segment of iPhone in foreign market so it has been chosen as a foreign segment for this part of writing. Customers of this geographical market are educated and techno savvy so demand for emerging technologies is always high in this market. This social factor of market makes it’s among the most important segments of target geographical markets. Further, growing GDP rate of 0.4% in recent years also shows the affordability of consumers in market (Country Economy, 2018).

2. Product Life Cycle

Gmelin and Seuring, (2014) stated that in this fast passed technological era it has become necessary for companies to develop new products quicker than ever before. This fast product development has shorten the product life cycle of brands. Apple understands this aspect of PLC very well that’s way they always introduce new product as a pro-active approach and add on to the existing brands to extend the PLC of their products. There is a 100% growth shift as blend of growth in both value and growth (Apple Inc., 2018). Introduction, growth and maturity stages of iPhone 8 are described for both domestic and chosen foreign market of UK.

Image No. 1.

Sales

Introduction Growth Maturity

Time

a. PLC for US (Domestic Market)

With this frequently changing market trends Apple always introduced new brands iPhone 8 is among one of the latest brands with two different version as iPhone 8 and iPhone 8 plus. Brand has passed through its introduction phase, where it has been widely accepted and purchased brand in global market as more than 40 million units were sold in country in current year (Statista, 2018). In US iPhone grabbed 40.25% of total smart phone market of 69% in last year (Finder, 2018). Growth of iPhone brand has declined as in previous year its sale was around 80 million units so the brand of iPhone 8 is moving towards its maturity period with the launch of iPhone 9.

b. PLC for UK (Foreign Market)

Introduction of iPhone 8 has been successful in UK as sales of brand have been increased from previous year as 41.79 million iPhone were sold in 3rd quarter of this year (Haslam, 2018). Sale of product is expected to grow in UK with 16 to 17% rate but after this quarter consumer would have another product from Apple as iPhone 9 so the product of iPhone 8 is now at its maturity in UK.

3. Metrics for Measuring Marketing Activities (Positioning, Targeting, and the 4 P’s)

Customer based metrics and business financial performance metrics are suggested by Leeflang, Verhoef, Dahlström, and Freundt, (2014) to measure effectiveness of marketing activities like segmentation targeting and positioning.

a. Domestic Market

For domestic market company needs to measure effectiveness of newly product launched and promotion activities occurred to introduced and position the brand. For this purpose these metrics are suggested;

· Product: Pipeline growth and acceleration

· Promotion/Pricing: Customer lifetime value and Revenue

b. Foreign Market

In foreign or host market company has chosen to capture some new segments so here there is need to measure the effectiveness of targeting, product itself, place of product, promotion and pricing. These all are necessary to measure because this will tell which part is strong and where there is lack to focus more.

· Targeting: Lead Generation and Customer Acquisition

· Product: Pipeline growth and acceleration

· Place: Sales

· Promotion/Pricing: Customer lifetime value

4. Media Methods for the products

a. Domestic Market

        1 – Printed Media

US is a developed country, people of the state are educated and aware of technology so print media has also converted into digital media as almost of magazines are available online. So, printing ads on magazines like Smartphones Times and other magazines of related category are good choice for print media methods for the brand.

2 – Social Media

This is the most effective and widely used media method of this age, one who neglects this cannot survive at this time of business world. Social media campaigns are suggested as there are cloud solutions available to measure effectiveness in terms of lead conversion and customer loyalty development.

b. Foreign Market

1 – Printed Media

UK is a developed country, people of the state are educated and aware of technology so print media has also converted into digital media as almost of magazines are available online. So, printing ads on magazines like Smartphones Times and other magazines of related category are good choice for print media methods for the brand.

2 – Social Media

Social media is widely used in UK as people are techno savvy and this is the most effective and widely used media method of this age, one who neglects this cannot survive at this time of business world. Social media campaigns are suggested as there are cloud solutions available to measure effectiveness in terms of lead conversion and customer loyalty development.

5. Product and Promotion List

5.1. Integrated Marketing Communication

a. Domestic and Foreign Market

In terms of developing communication plan for domestic market there would be almost same plan as both countries have same language and are developed states. Where, there are educated people, techno savvy so the message of product would be same.

5.2. Advertising Strategy/Objective

a. Domestic Market and Foreign Market

For this purpose print and non print ads are suggested for the brand (James & Rose-Ackerman, 2013);

· TV

· Radio

· Magazine

5.3. Positioning 

a. Domestic Market

There is a difference in economic conditions of country so positioning strategy would be different on that basis otherwise social factor are almost same in sense of education and technology awareness. iPhone has 40% of share in total market of Smartphones in USA and Google android has more than 50% share of total market so iPhone needs to stick on their differentiation strategy and as to adopt competitive positioning strategy to capture maximum share of domestic market (Statista, 2018).

b. Foreign Market

iPhone has lost their market share in recent share from 52.8% to 49.85% so their differentiation strategy needs to make a set of positioning strategy along with differentiation (Statista, 2018). For this purpose adopting customization in segment would encourage to gain the maximum share of market.

References Apple Inc. (2018). iPhone 8 Environmental Report. Retrieved Sep 2, 2018, from Apple: https://www.apple.com/environment/pdf/products/iphone/iPhone_8_PER_sept2017.pdf Country Economy. (2018). United Kingdom (UK) GDP – Gross Domestic Product. Retrieved Sep 2, 2018, from Country Economy: https://countryeconomy.com/gdp/uk Finder. (2018). Finder. Retrieved Sep 2, 2018, from Finder: https://www.finder.com/iphone-sales-statistics Gmelin, H., & Seuring, S. (2014). Achieving sustainable new product development by integrating product life-cycle management capabilities. International Journal of Production Economics , 154 (1), 166-177. Haslam, K. (2018). Apple Q3 2018 financial results. Retrieved Sep 2, 2018, from Macworld: https://www.macworld.co.uk/news/apple/apple-financial-results-3581769/ James, E., & Rose-Ackerman, S. (2013). The Non-Profit Enterprise in Market Economics (3rd ed.). Sydney: Taylor & Francis. Leeflang, P. S., Verhoef, P. C., Dahlström, P., & Freundt, T. (2014). Challenges and solutions for marketing in a digital era. European management journal , 32 (1), 1-12. Statista. (2018). Global Apple iPhone sales from 3rd quarter 2007 to 3rd quarter 2018 (in million units). Retrieved Sep 2, 2018, from Statista: https://www.statista.com/statistics/263401/global-apple-iphone-sales-since-3rd-quarter-2007/ Statista. (2018). Market share of Apple iOS in the United Kingdom (UK) from December 2011 to May 2018. Retrieved Sep 2, 2018, from Statista: https://www.statista.com/statistics/271195/apple-ios-market-share-in-the-united-kingdom-uk/ Statista. (2018). Subscriber share held by smartphone operating systems in the United States from 2012 to 2018. Retrieved Sep 2, 2018, from Statista: https://www.statista.com/statistics/266572/market-share-held-by-smartphone-platforms-in-the-united-states/

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