Integrated Marketing Communications
The Big Idea
The Apple Watch features activity tracking capabilities introduced by other wearable technologies such as the Fitbit, Jawbone Up, Nike + Fuel band, and so forth. However, the Apple Watch will be compatible with the iPhone. With this seamless integration, the watch can receive phone calls, iMessage and texts, and also “Handoff,” where an app’s data is shared seamlessly between devices to allow continuation conveniently. The watch can also function as the TV’s remote, act as a walkie-talkie, and also as a viewfinder for the phone’s camera.
There would be three collections, the Apple Watch, Apple Watch Sport, and Apple Watch Edition, featuring two sizes: the 38mm and 42 mm. Each watch, regardless of the model, would have a pressure-sensitive “force touch” screen, and a dial called the “digital crown” to navigate the WatchOS user interface. There is a second physical button as well, which brings up the list of contacts, with charging done inductively.
Market Communication Objectives
The AIDA Framework of marketing communication ensures that Apple can create brand awareness, generate interest in the benefits of the Apple Watch, foster an emotional connection with the product’s personality, elicit need, and move the buyer to purchase the Apple Watch (Mishulin et al., 2016). The particular objectives for marketing communication for the Apple Watch would, therefore, be as follows:
To create awareness regarding the Apple Watch
Considering that the Apple Watch is an entirely new product, in a product category that the company is not yet known for, awareness is vital. Therefore, Apple will be required to furnish the target demographic with sufficient information well before the launch of the Apple Watch, as well as ensure that any disbursed information is easy to access. Any ambiguity around the product details past its reveal should also be promptly addressed.
To generate interest around the product
The benefits of the Apple Watch are its primary selling point as a technology device. Therefore, it is essential to clearly outline the operation parameters and the specifications of the device to the target customers. This would highlight its functionality and create interest among potential customers.
To translate the piqued interest into sales
The final step would be ensuring that the interested parties can efficiently and conveniently make a purchase. This entails making the purchasable product available in sufficient quantities, and accessible to would-be interested buyers.
Promotion Mix
There are three primary promotion channels designed to fulfill the overarching objective of marketing the Apple Watch and accomplish the complementary goals as well (Blut et al., 2018; Išoraitė, 2016). These channels would be as follows:
- Advertising through traditional and digital media. The primary objective of this channel would be to spread awareness about the new product and develop traction before the actual launch.
- Public Relations can be implemented through review videos on shows and the internet, as well as print, and review websites. The primary objective of this approach would be to generate real interest around the Apple Watch by creating a good image of the product in the customer’s minds.
- Cause Marketing. This channel will be used in tandem with sales promotion to increase the usability of the Apple Watch by providing areas of use reference within the target market. This would eventually translate into improved sales.
Media Strategy
The target market for the Apple Watch is a discerning, non-conventional buyer who has no qualms about being an early adopter of technology. Special consideration should also be given to brand consumers, as the Apple Watch complements the already robust iOS ecosystem of devices. It, therefore, follows that the company’s media strategy should implement contemporary digital platforms, and prioritize them over more traditional media.
Apple TV
The Apple Watch is slotted to be unveiled during the Apple Special Fall Event in April. The event, with the launch of the Apple Watch and its operating system, WatchOS, will be live-streamed exclusively via Apple TV, which will be targeted directly at brand consumers. Pre-orders of the device will start from the date of the livestream to the launch date itself.
YouTube
On the other hand, social media influencers and technology reviewers from YouTube will receive exclusive press passes to the launch event, with an opportunity at an early hands-on with the Apple Watch. YouTube is quickly growing as a technology platform, with channels such as iJustine, MKBHD, Unbox Therapy, SuperSaf, Austin Evans, MrMobile, Mrwhosetheboss, and so forth having millions of subscribers, and hence potential customers.
Information Systems and measuring Market Activities
B2B Marketing
The entirety of the Apple Watch development and branding will be three-pronged, as the device is a technology companion, a fitness tracker, and companion, and a fashion accessory. The first categorization, which is as a technology companion, comprises the Apple Watch’s integration with the existing iOS ecosystem of devices. Consequently, this categorization of the Apple Watch will be of in-house benefit solely. However, the other two definitions present a myriad of B2B marketing opportunities.
Sports and Fitness products and accessories manufacturers
These would comprise sports brands such as Nike, which can lead to limited edition or entire product lines of sports-oriented and co-branded watches.
Fashion and Luxury goods manufacturers
These, on the other hand, would comprise entities dealing in high-fashion and luxury accessories such as Hermès. Partnership with such recognizable brands in the fashion industry can help push the narrative that the Apple Watch transcends functionality, and into fashion.
Segmenting B2B Markets
Based on the Hague et al., (n.d.) behavioral or needs-based B2B market segmentation, the following market segments would be prudent for the development and marketing of the Apple Watch.
- A partnership-focused segment that would comprise firms seeking trust and reliability on their suppliers, and view them as strategic partners. Firms such as Nike, which are in the sports accessories business, would ideally fit in this category. As a huge multinational firm in a market segment that Apple Inc. is yet to delve into, a strategic partnership with Nike would help push the Apple Watch to fitness enthusiasts looking for a reliable activities tracker.
- Quality and Brand-focused Segment with a brand like Hermès would be necessary within the luxury market segment. The company’s target demographic comprises customers looking for high-fashion, which includes exclusive, high-end materials regardless of the cost. Such a partnership would be essential to underline the Apple Watch’s potential as a fashion accessory.
Marketing Information Systems
The marketing information systems (MIS) comprise a technology-based database of crucial information required for Apple to compete in the marketplace. It is the system, rather than the technology, of capturing and processing data into useful information for decision making (Ashmarina & Zotova, 2016).
Market Intelligence
In the contemporary marketplace that is highly influenced and driven by the internet, the collection of market intelligence is easier. Apple has social media handles in all popular social media websites, as well as an actively monitored online marketplace to collect any feedback from the general public. Furthermore, online reviews are consistently checked to understand the overall reception of the product.
Trade Shows and Associations
Apple conducts an annual World Wide Developers Convention (WWDC) as well as a special launch event to interact with its target market, as well as software developers and creators. There is also representation from Apple in major annual conventions such as the Electronics and Entertainment Expo (E3), and the Consumer Electronics Show (CES) (Montgomerie & Roscoe, 2013).
Sales People
The personnel at Apple stores are essential for the collection of marketing information as they interact with consumers, and get their general feedback. Furthermore, the Genius Bar helps troubleshoot issues with consumer products as they arise with the end-user, getting critical information that would be crucial in the preparation of any further communication.
Marketing Metrics
Financial Measures
- Return on Marketing Investment (ROMI)
The return on marketing investment is essential to understand the efficacy of the Apple Watch Marketing Campaign. This would be calculated as follows:
- Break-even Point
The break-even point, on the other hand, would be required before setting the recommended retail price for the Apple Watch. Ideally, Apple would wish to recoup production costs and generate a profit. The break-even point would be as follows:
Website performance metrics
The Apple online store is highly complementary to the physical retail locations and represents a significant portion of total sales made usually (Montgomerie & Roscoe, 2013). Therefore, it would be prudent to assess the performance of the website by reviewing specific metrics as products sold online, the number of website visitors by traffic source, and active referral sources.
Public Relations metrics
Given that the Apple Watch is a new product in the space, reviewing public relation metrics is critical. Overall reviews will be assessed and aggregated to get the prevalent feelings regarding the device offering in the market.
References
Ashmarina, S., & Zotova, A. (2016). The system of marketing information management: development, assessment, improvement. Economic Annals-XXI, 1(160), 51-56. Web.
Blut, M., Teller, C., & Floh, A. (2018). Testing retail marketing-mix effects on patronage: A meta-analysis. Journal of Retailing, 94(2), 113-135. Web.
Hague, P., Hague, N. & Harrison, M. (n.d.). Market segmentation in B2B markets. B2B International Ltd. Path. Web.
Išoraitė, M. (2016). Marketing mix theoretical aspects. International journal of research granthaalayah, 4(6), 25-37. Web.
Mishulin, G. M., Molchan, A. S., Biryukov, A. Y., & Haradzhyan, L. V. (2016). Integrated marketing information and communication system: new quality of the communication interaction. International Review of Management and Marketing, 6(6S), 7-14. Web.
Montgomerie, J., & Roscoe, S. (2013). Owning the consumer—Getting to the core of the Apple business model. Accounting Forum, 37(4), 290-299. Web.