Introduction
Apple Inc., a California-based corporation, develops, manufactures, and sells laptops, mobile phones, and media devices through digital stores, retail outlets, and third-party agents globally. The company also offers related consumer and professional software, apps, digital content (Apple music, TV, and e-books), and diverse accessory services. Among Apple’s top brands are iPhone, Apple Watch, and iOS. Providing a high-quality user experience through innovative products and solutions is core to its value proposition. The iPhone and Apple Watch are unique, differentiated brands shaping consumer trends presently worldwide. Successful products deliver the brand promise and provide novel experiences shaped by customers’ lifestyles, preferences, and demographics. This paper will analyze consumer behavior trends relevant to Apple’s iPhone and Watch, assess the first-mover advantage in these segments, suggest key marketing concepts, and identify potential challenges and threats.
Consumer Behavior Trends
Monitoring consumer behavior can yield insights that guide product development or improvement. Marketers study user trends to influence brand choice, purchase decisions, and consumption (Maison 2019). They can then fill a gap in the market by providing solutions to an identified need. Apple’s iPhone and Watch are innovative products that reflect changing consumer behavior. The trends driving innovations in these two product lines are analyzed separately below.
iPhone
Apple’s smartphone line includes various iPhone devices designed to give a high-quality user experience. Among their unique features are an iOS operating system (an alternative to Android), Siri, and Apple Pay (Apple Inc 2021). The smartphone line, which includes models such as iPhone X and eight series, has faster processors, innovative designs, and camera capabilities. It supports various in-demand apps, including the iTunes Store and App Store, that allow users to stream or download content.
A trend in consumer behavior driving iPhone innovations is safety when driving. Accidents resulting from mobile phone use are a global concern, with countries giving tough penalties for culprits. The iOS 11 release in 2017 had a built-in safety measure – Do Not Disturb While Driving – that blocks incoming calls while one is driving (Apple Inc 2021). Thus, by introducing this feature, Apple is responsive to consumer needs for safety. Another trend is the growing consumer interest in casual connectivity – staying connected through Bluetooth devices. Apple, through a partnership with a hearing aid firm, Cochlear, has developed an iPhone-compatible “implant sound processor” (Foresight Factory 2017, p. 2). The goal is to expand its reach and appeal to customers who increasingly need devices that support convenient, passive connectivity.
Peer-to-peer (P2P) payments are a popular trend among communities seeking contactless transacting modes. Apple Pay is a novel feature in iOS 11 that supports a seamless mobile money transfer to one’s contacts through iMessage (Apple Inc 2021). iPhone users can also send or receive money from credit cards and use TouchID to verify payments to banks. P2P platforms or websites have emerged as alternatives to the banking system, attracting about 40% of customers globally (Foresight Factory 2017). They are driven by the increasing shift to a cashless society. The casual connectivity trend has also pushed Apple to develop Siri, a smart assistant for controlling digital devices and content at home. A growing trend in the gaming industry is augmented reality (AR), which supports greater personalization. The iPhone’s iOS 11 new release contains ARKit, a platform for developers to create integrated AR applications for users.
Apple Watch
This personal device is based on Apple’s watchOS operating system, released in 2018. The software enables consumers to lead a healthy lifestyle and connect with others through various features, such as Activity Sharing contests and Walkie-Talkie (Apple Inc 2021). This personal digital device contains features for navigating the smart Watch, communicating, and monitor one’s fitness through exercise apps. Thus, the Apple Watch has revolutionized how customers use technology on a regular basis. Total sales for the Apple Watch segment, which also includes products such as Apple TV in 2018, stood at 17.4 billion (Apple Inc 2021). It has changed in-store shopping experiences, health and fitness, and communication.
An emerging trend is younger shoppers keeping a shopping list on their smartphones for use when in retail stores. However, the approach is often cumbersome and impractical when using mobile phones. Shoppers are moving to smartwatch apps that support hands-free accessibility when shopping. Big retailers, such as Target, have developed an Apple Watch app with shopping lists and item locations to enhance the in-store experience (Marti 2021). Store employees also wear this device, as it supports multitasking – processing orders and sorting products – and notifications about shoppers needing help. Consistent with trends in consumer health (workouts), the Apple Watch contains fitness-tracking capabilities. Users can monitor their fitness and health via exercise or workout applications.
Apple’s Marketing Message
The Apple brand, with its first-mover advantage, can compete in the smartphone and smartwatch segments. In the early years, its branding strategy focused on consumer needs and lifestyles rather than on the technical obligations of corporations. Beginning with the revival of the Apple brand when the iPod (a new product line) was introduced in 2001, its brand position has been to deliver superior user experience through quality, easy-to-use interfaces (Naiya 2018). This marketing message can help redefine the company as not only a device manufacturer but also a digital content provider to support the iPhone and Apple Watch brands.
Apple’s brand messaging should emphasize consumer emotions and experiences. The company can focus on the simplicity and usefulness of its iPhone and Apple Watch in people’s lives. According to Arenas-Gaitán, Sanz-Altamira, and Ramírez-Correa (2019), a brand personality centered on lifestyles and interactive experiences through technology appeal to customers. It depicts a firm as humanistic and responsive to people’s needs. Apple is positioned as supportive to individuals and enterprises as they work to realize their goals, be it personal health, passive connectivity, or shopping. The Apple Watch can be a key part of this brand positioning. A marketing message focusing on the multiple services and functionalities for in-store shopping, communication, and fitness and Activity can boost sales volumes for this product.
The consumer experience is critical to the Apple brand’s designs and innovative features. Marketing efforts that reinforce this brand promise for the new iPhone releases and Watch will give it a competitive advantage. For this product space, an expanded distribution (retail and online stores) network to key destinations globally and a knowledgeable, direct sales force that conveys the value of the iPhone and Apple Watch will attract and retain customers (Maya 2018). Further, the third-party distributors selling Apple-compatible software and accessories that improve user experience can bolster the marketing efforts. Enhanced interactivity through Siri (a smart assistant) and other personalization features is another aspect of customer experience that can boost sales for the iPhone and Apple Watch.
Marketing Concepts Linked to Consumer Behavior and Trends
In today’s highly competitive marketplace, most products are designed with the customer in mind. Marketers focus not only on developing product features appealing to target consumers but also on understanding user behavior, lifestyle, demographics, and trends. The marketing mix is a concept relevant to consumer behavior and trends. It is a set of four or seven strategic actions for marketing a product or service in the marketplace (Morgan et al., 2019). In the contemporary marketplace, firms must not only sell their brands but also provide customer experience. The perceived consumer value is co-created based on the user’s unmet needs, expectations, and lifestyles. For example, the iPhone is a compelling and differentiated smartphone because of the apps and the personalization features it offers.
A key element of the marketing mix is promotion – tactics, and channels used to reach customers. The internet and social media have transformed marketing and consumer engagement. Customers share their experiences online, which marketers can leverage to sell their products and gain consumer insights. Market research has emerged as an important concept for understanding user perceptions of a brand and marketing activities and responding appropriately. Firms have to listen to and act on customer feedback and opinions to remain responsive to the shifting needs and trends (Maison 2019). Therefore, market research (data analytics) is crucial to competing effectively in the 2021 marketplace.
Market segmentation is another strategic marketing concept relevant to consumer behavior. It helps firms design and manufacture products aligned with customer needs, use the most effective communication strategy tailored to each segment, and understand and respond swiftly to any changes. Segmentation can be based on demographics, region, or psychographics (lifestyle) variables, but the VALS model uses consumer motives and innovation (Jamil et al., 2017). The benefits customers derive from Apple products may be simplicity, compatibility, multi-functional gadgets, and enhanced interactivity. Consumer motivation is another marketing concept relevant to market trends. It is the behavior driving people to take specific actions or decisions. Their product-specific desires and goals can be identified using Maslow’s hierarchy of needs and satisfied through stylish and innovative products, such as the iPhone and the Apple Watch.
Conclusion
The concepts suggested in this paper are marketing mix, market research, segmentation, and consumer motivation. Successful marketing efforts for the iPhone and Watch will require Apple to address related challenges and threats. A potential problem with the marketing mix includes product features that do not match customer expectations and premium pricing. Unsatisfied consumers may switch to other smartphone or smartwatch brands. Providing online content services (iTunes, e-books, and third-party apps) accessible on all iPhones and Apple Watch models can create a strong value proposition to overcome this challenge.
Issues of personal information privacy are a potential threat to market research. Apple can provide data encryption and biometric logins in its iPhone and Apple Watch devices to mitigate this risk. Third-party apps carried on its App Store must also be secure to protect customer data. Mass marketing that is not based on demographic or lifestyle factors is prone to a risk of unmet consumer needs, interests, or expectations. A strategy for overcoming this threat is targeting the innovator segment – upper middle class and college students that are trendy and sophisticated. External and internal factors may impact consumer motivation, affecting shopping behavior and trends. Societal pressure, individual traits, and other variables drive purchase decisions. Apple can create a perception of class, style, and latest technology to motivate customers to buy the iPhone and Apple Watch.
References
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