Marketing Concepts Essay Example | Topics and Well Written Essays - 2000 words

Marketing Concepts - Essay Example In the UK, 28% of consumers own a smartphone and by 2015 iPhones will make up 11% of all total devices used in the UK.† (Mintel, 2010) The trend in sales has proved that customers are now looking at mobile phone as a device beyond a small instrument that helps to make phone calls. In fact, making calls have become just small of the many functions of mobile phones. Mobile phones are now a total communication and mobility solution. This trend in the industry was driven by the smart phone of iPhone, Nokia, Samsung, Blackberry and other players. This report will discuss the macro and micro environmental changes in the industry and its impacts on the marketing activities of smart phone companies. The report will be discussed with particular reference to Apple iPhone and RIM Blackberry. Mobile phone industry is one of the fastest growing and fastest changing industries in the world. The products become outdated very quickly than in any other domain. Innovation in products, services a nd marketing activities are most common in the industry. Smart phones are the power houses of mobile phone market. Globally, â€Å"Feature phones still represent the majority of mobile phone shipments, even though they are under increasing pressure from smartphones.† (Wauters, 2011) IPhone and Blackberry are among the leading smart phone makers of the world though Blackberry’s market share is slowly being taken over by Samsung. This report will deal primarily with the environmental factors affecting the smart phone industry. The report will also deal with the importance of market segmentation, targeting and positioning in the industry. The later part of the report will discuss the importance of adopting a right marketing mix for the smart phone industry. Environmental Factors and their Impact The major macro environmental factors that affect marketing in the mobile phone market are technology, economic factors, education and employment levels and social factors. (Zain Books, 2011) Technology is the primary factor that drives the handset industry. Recent developments in the market have shown that Apple has come up with the software called ‘siri’ which is expected to take the market by storm. Such developments will force Blackberry to introduce similar technology or any other differentiating factor on its further models and marketing. Economic condition is the next major factor that impacts the marketing. A slowing economy will usually dent the demand for handsets in the market. A slow economy is usually followed by low disposable income in the hands of the consumers. Therefore, the companies will mostly reduce their marketing spending in order to reduce cost and improve margin. Education and employment levels determine whether the consumers will have enough knowledge and disposable income to purchase mobile phones. Companies like Apple and Blackberry will have to decide on the pricing and product features based on the educational and employment level of the customers. The next macro environmental factor that has an impact on the marketing decisions of handset companies are social factors. The social set up and reference groups create a huge impact on the purchasing decisions of consumers. (Tutor2u, 2011) Therefore, the marketing activities of a company in one region are entirely different from that of the other region. For instance, the theme of iPhone advertisement in United States will be different from what it is in India. The main reason is the difference between social