“Android Is Destroying Everyone, Especially RIM — iPhone Dead in Water”

This article provides many marketing insights about the growth of smart phone. In the competition for market share, Android (Google) seems to be ahead of the game. According to the article, market share is especially important in this industry. Once a customer chooses a particular OS, the switching costs are costly. This is because the phone platform is connected to their computer as well as all the information that is in their calendars and emails. Moreover, each OS is linked to a custom program. For example, the Microsoft windows  7 phone’s functions can only be used through Zune and the Apple iPhone, iTunes. Considering the high switching cost and that the industry is still in the growing state, undoubtedly, these smart phone companies will attempt to expand their market share as rapidly as possible.

Also, the article mentioned an interesting point about Apple:

“Are Apple bulls right that Apple has an insurmountable hold on the ‘premium’ segment of the market and that it doesn’t matter who has the other 75%”

If it is true that Apple has this permanent hold on the premium segment, then Apple would be in a dilemma of either choosing to focus on this segment or compete in the battle for market share. Focusing on this segment of 25% of the market would give them an assured loyal customer base. On the other hand, if Apple chooses a market share increasing strategy, then they would risk losing this segment. In my opinion a strategy focusing on  market share would serve better since the smart phone industry emphasizes on the app market. The high number of users there are for an OS, then generally, there will be more apps for that platform.

“Nintendo Distancing Itself from the 3D in 3DS“

Gizmodo, a popular blogging site on new technology trends, wrote a blog about the to-be-released Nintendo 3Ds. The Nintendo 3Ds is the first 3D gaming system. Being the first of its kind in the industry, I would place the product in the Introductory Stage of the product life cycle. To ensure the success of this product, Nintendo would have to carefully consider the 4Ps of marketing.

1. Price: In the introductory stage, Nintendo could set a premium price for those who are eager to try out the new to the world product (skimming).
2. Product: Customer service (repair facilities)
3. Promotion: TV ads, Youtube, Social media (technology blogs)
4. Place: The N3Ds should be available for purchase at major electronic retailers such as a Best Buy and Futureshop, as expected by their customers.

However, the article brings to the company’s attention that there may be a segment which may not be able to make use of the 3D feature of the new gaming system. In my opinion, Nintendo has no need to be concerned about the possible draw back as long as the segment that cannot benefit from the product is not substantial (the population being too small to affect the potential revenue that can be generated from the product). Furthermore, if the manufacturer collaborates well with the retailers in implementing refund-policies, then customers who cannot see the 3D effects would not bad-mouth the Nintendo for defective products.

http://www.brassmonki.com/

Recently, I’ve stumbled across an interesting blog post by Vivian Leung. My attention was immediately captured by the pictures of “geeky nike shoes” that she uploaded. I was quick to agree to the botched target campaign by Nike, until I realized these shoes weren’t actually manufactured by Nike, but by the custom designer brand – Brass Monki. If Nike were to have manufactured these shoes, then I would agree that they were attempting to reposition themselves; however, that would be a enormous risk, as it takes a huge turn from their previous brand image. Looking from a psychographic perspective, Nike’s target market should be consumers who wish to look sporty and athletic (possibly do love being active). This change to incorporating, supposedly the “geeks,” market could turn away their original segment, leading to an utter failure. Fortunately, Nike did not choose this path.

While reading blogs online, I came across Sabrina’s post on the Sony Ericsson Experia (https://blogs.ubc.ca/sabrinatang/) and I found her analysis and the videos she uploaded intriguing.

I agree that Sony Ericsson is trying to position themselves “as a more simplified and easy to use smart phone while still containing all the qualities other smartphone has…” Moreover, their target market seems to be all the gender segments (Toddlers to Seniors). This is logical as the cell phone is a necessity to any person nowadays. With simplicity and user-friendliness as the theme of the Xperia X10, the smart phone appeals to all of their target market.

In regards to the classification of the smartphone industry, I have a different view. I would classify the smartphone industry as an oligopoly because the industry is dominated by a handful of  large brands – Apple, Samsung, Nokia Blackberry etc.  I would place Sony Ericsson in the high price, high quality category on the position map; however, the low price of this phone seems to be out of place. The low price may boost their sales of this phone, but may also damage their brand as well (for those who aim for uniqueness and prestige).

“Japan Phone Makers See Opportunity in Android”

Japanese phones are known for their superior quality and sleek designs. In the aspect of software, Japanese phones have fallen behind  in the growing markets of Android and Apple’s iOS. As the smart phone industry is still in the Growth Stage, there is great opportunity to gain profit. This is especially true for Japanese phones as they can differentiate themselves from other smart phones by having better hardware while adopting the same OS (Android) as the major players in the market. For instance, Japanese phones have long ago been equipped with TV, instant payment, QR scanner and water proof functions (not to mention their gorgeous design)

After watching a video (Link to the video: Motorola Xoom) comparing the iPad and one of the to-be-released tablets has confirmed my belief of tablets in the Introduction stage in the product life cycle. It is hard to imagine that one company can influence the technology market in such magnitudes. Seemingly, Apple can make any new product category the new trend at its will. This is because of the strong brand image that Apple possesses. They’ve promised innovation and quality and they’ve delivered those in their products.

Furthermore, Tablets are expected to be the new trend in the technology markets. Apple, being the first one to invigorate the tablet market has already gained a first-mover;s advantage; now, Apple will be expecting competition from a variety of major brands such as, Motorola, HP, Blackberry and Samsung. If the demand is as great as expected by the industry, then it is obvious that many more competitors will enter the tablet market. Since all the brands will be promoting their new tablets at approximately the same time, consumers will choose the company with the best product mix. For instance, the reviewer of the new Motorola Zoom espeically considered the price of the product and the specifications of the new tablets – he emphasizes the need for differentiation.

To beat Apple, who has a strong brand image, competitors must provide the same quality in their tablets while cutting prices. I would definitely take into account the price of a tablet along with its specifications, disregarding which company it was from, since these companies are all well established.

http://www.nytimes.com/2011/02/07/business/media/07disney.html?_r=1&ref=global

“Disney Looking Into Cradle for Customers”

In the intense competition for market share, Disney has demonstrated its creativity and ability to leverage its powerful brand image. Although Disney has long segmented their market based on demographics and age; it is unprecedented for them to include newborns as a segment.

Moreover, Disney has an intricate plan to allure customers and more importantly, to develop a long-term relationship with customers. This is evident as they have “a representative [who] visits a new mother and offers a free Disney Cuddly Bodysuit.” Through demonstrations, it could positively affect the perceptions and attitudes of the mothers, assuming that Disney is confident in the quality of their new product.

Accompanied by an effective marketing mix: “extra soft! durable! better sizing! — and ask mothers to sign up for e-mail alerts from DisneyBaby.com. More than 200,000 bodysuits will be given away by May, when Amazon.com is set to begin selling 85 styles for a starting price of $9.99 for two; Nordstrom and Target will follow with more Disney Baby items, including hats”

What Disney demonstrates, is a branded, higher quality product at an affordable price. In addition, they utilize social media and in-person demonstrations to market their product. In regards to location, they have an exclusive advantage. Disney has partnered with “Our365 [who] pays hospitals for exclusive access, and companies like Disney pay Our365 to promote their own products.”

In the position graph of quality and price, Disney would be positioned at the top as a high-quality and high-priced brand; however, Disney has chosen to sacrifice a higher profit for market share in selling the products for newborns. Furthermore, leveraging their position, they could exploit the parents’ need for safety for their children. As parents wish to give their children the best and to keep them safe, they would be willing to buy the high quality products developed by a trusted brand.

All-in-all, Walt Disney has a major influence on every person throughout one’s life. They have products directed for each age group and facilitates the transition of each age group into buying products targeted for their them.

“TV Makers Predicting a Bright Future for 3-D Sets”

http://www.nytimes.com/2010/08/23/technology/23three.html?ref=sofawars

3D Televisions are expected to be the new hit in the tv marketing, succeeding the hype generated by HD Televisions. What would assist the 3D TV manufacturers in attracting consumers to buy into the new technology?

1. Need Recognition: Functional
   1. Being able to experience watching a movie as if in the theatre at home would be a incentive to purchase the TVs. Moreover, as indicated in the article, “professed early adopters” have already bought the first generation of 3D TVs despite the high price. Research also “shows that a quarter of consumers plan to buy a 3-D-enabled set in the next 12 months. (Among men 18 to 24, the rate is almost 40 percent, the firm said.)”
2. Factors Influencing the Consumer’s Search for Information
   1. As a TV is considered a big ticket item, people will generally take their time in searching for information; however, retailers generally allow in-store demonstrations and provide expert advice to customers to facilitate their shopping experience.

The in-store demonstrations will influence the consumer’s decision process psychologically, through learning. It affects both the consumers’ attitudes and perception. Cognitive – the consumers know that the 3D televisions are high-end technology and are of superior quality; affective – through watching the 3D tvs at the stores, the consumers would experience the thrill and excitement that they feel at theaters; behavioral – hopefully, the consumers will purchase the 3D tvs immediately after watching a movie with surround sound and real-life images.

Social Factors may also take part in spurring the 3D tv movement. Since “quarter of consumers plan to buy a 3-D-enabled set in the next 12 months,” the remaining consumers would follow suit and buy a set, depending on the reviews of their associates.

By 2014, we will know if Sony can once again regain its position as a leader in the TV market by being the foremost company to invest and promote this technology.

http://mediadecoder.blogs.nytimes.com/2011/01/24/google-and-mozilla-announce-new-privacy-features/?ref=global

“Google and Mozilla Announce New Privacy Features”

Google and Mozilla are now giving internet users the power to surf the web anonymously. This is an example of marketers taking in consideration of the Macroenviornmental factors affecting their businesses. These companies have identified a social trend of privacy concerns and have taken the steps to satisfy this need for privacy. More specifically, they target the Safety needs of consumers on the Maslow’s Hierarchy of Needs. The new privacy features enables internet users to protect their identities from being unknowingly or inappropriately used by third parties.

Indeed, this fear of unknown third party groups would be able to allure internet users to switch to using their browsers, which would not cost the internet users anything at all, other than several minutes to install the program. Furthermore, as both companies are well-known reputable brands, each would be part of a consumer’s evoked set of alternatives, making the chances of switching more likely.

However, the effectiveness of this feature in attracting customers would depend on the Consumer Decision Rules. How would consumers weigh the various characteristics of a browser?  Assuming that Mozilla and Google has previously engaged researches to find that the majority of customers find privacy as a priority, then their privacy feature would be a major feature. In my opinion, the speed of the browser would weigh heavily in my Compensatory Purchasing Model for choosing a browser. It would result in a heavy toll if their weight models were distorted. If Mozilla and Firefox sacrificed speed for privacy, and in fact consumers weigh speed as a priority, then they will lose their customers’ loyalty as well as encourage undesirable consumer behavior. When negative information is spread on forums, the information generally spreads like wild fire, surpassing the celerity of word of mouth.

Therefore, Mozilla and Google must take into account a variety of factors such as the needs of consumers and their compensatory purchasing model before marketing their privacy feature.

Apple’s marketing strategy is undeniably superior compared to other technology based companies.

Target Market: People of all ages. Apple developed a variety of products such as, iPods, iPhones, iPads, which are made user-friendly and liked by most consumers regardless of age. For instance, we have the iPad, which is enjoyed by consumers ranging from toddlers to seniors (even pets!). For instance, by simply entering the keywords ‘pets ipad’ one can find numerous cases of household pets using the iPad.

Marketing Mix:

• Product – Apple’s unbelievably strong brand image gives all of its product a perceived extra value added. Every Apple good is seen to be the most intelligent, innovative and slickest device.
• Price – Due to its brand image, Apple products may be high-priced, as consumers view any Apple product, new or old, as the state-of-the art product. Also, the innovative and inventive nature of Apple consistently gives Apple a head start in the market – may it be tablets, ultra-portable mp3s.
• Place – Apple products are sold at “Apple Stores” which enables Apple to set the mood of their stores and customize their customers’ shopping experiences. Although their goods, such as the iPhone4 are constantly out-of-stock it, though oddly, does not appear to affect its customer satisfaction level.
• Promotion – Apple frequently employs a sense of mystery when promoting new products. As a matter of fact, they have done that for every product. Usually, Apple leaks a minimal amount of information about a new product, months before the release date to create an aura of surprise. This strategy allows Apple to exploit the media and discussion forums to help them advertise at no cost.

All in all, Apple gives an emphasis on Product excellence to deliver value and to develop a sustainable competitive advantage; however, because of the volatility of the technology market, Apple must constantly develop new and unprecedented products to maintain its advantage and its title as a leader.