Consumer Market Analysis Report
Executive Summary
Consumer behavior theory has been applied by various organizations to develop appropriate marketing plans and promotion strategy that can help them to gain competitive advantage in the market. Many of the global marketers consider market research and identification of consumer behaviors as an important step towards developing effective marketing strategies for their organizations. Information that provides consumer behaviors can be used to get useful insights about consumer purchasing decisions and patterns. This can be used to develop appropriate products and marketing strategies that conform to certain consumer behaviors. This report provides analysis of consumer market with regards to smart phone industry. The report considers two smart phone companies that include Samsung and Apple. It then provides the consumer behavior theory applied by each company and analyze the effects of the identified theory on the products of the companies. The report then ends by giving recommendation on the appropriate marketing strategies that can be used by the two companies.
Table of Contents
2.1. Application of Internal Influence Theory in Samsung. 4
2.2. Application of External Influence Theory in Apple. 9
- Similarities of the Effects of the Influences on the Marketing of the Products. 13
- Differences on the Effects of the Influences on the Marketing of the Products. 13
- Recommendation. 14
1. Organizations Overview
The two organizations considered for the study are Samsung and Apple. The marketing strategies used for smart phones of the two companies are analyzed in details based on the behaviors of consumers.
1.1. Samsung
Samsung is a South Korean multinational company that is headquartered in Samsung Town, Seoul in South Korea (Samsung.Com, 2014). The company has a number of affiliates and subsidiary businesses with majority of them trading under the Samsung brand. The company is one of the leading manufacturing of smart phones in the global market. Its smart phones are widely recognized by various customers around the world.
1.2. Apple
Apples Inc. is an American multinational company involved in designing, developing and selling of personal computers, computer software and electronics. The company is headquartered in the United States and operates in several countries around the world (Apple.Com, 2013). The company is one of the leading companies that manufacture smart phones for various customers around the world. Its smart phones are among the expensive smart phones in the market.
2. Relevant Consumer Behaviours Theories
2.1. Application of Internal Influence Theory in Samsung
Internal influence theory is the major emphasis of Samsung towards developing appropriate marketing strategies for its Smart phones. Internal influence theory considers various factors that help determines consumer behaviors hence influence their purchasing decisions. The internal influence theory considers a number of factors that influence consumer behaviors such as needs, attitudes, motivation, personality learning and memory (Goldenberg et al, 2000). These internal factors are used by companies to promote their brands hence attract sales. Samsung use of the internal influence theory has helped increase its market share in the smart phone market making it to be one of the largest players in smart phone industry.
2.1.1. Attitudes
Consumer attitude is one of the internal factors that can influence the purchasing decision of consumers in a market. Attitudes can be considered to be pertaining to what consumers thinks or feels about a product. This can be reflected in individual’s actions and buying patterns and trends. Changing of an individual’s attitude about a product is very difficult hence once an organization has been able to develop positive attitudes of customers towards their products; it will become difficult for other rival companies to change the attitudes of such consumers (Gummesson, 2002). This will ensure that the company enjoys significant customers loyalty towards their products hence enhance their competitiveness, sales and profitability. Attitude of consumers can result to either favorable or unfavorable feelings about a product. Consumer’s attitude is important in determining the taste and preference of consumers. Company’s products and advertisement should be able to coincide with the attitudes of consumers at the current time. This implies that organizations should be able to analyze the attitude of consumers within their targeted market and develop appropriate marketing strategies that are in accordance to their prevailing attitudes. This will ensure that the targeted consumers are attracted to the product hence increase the sales of the organization’s products.
Samsung marketing strategies are based on the attitudes of the consumers within its target market. The company advertisements are in accordance to the attitudes of consumers. The advertisement messages provide information that are of interest to consumers. Although it is difficult and expensive for organization to determine the prevailing attitudes of consumers, the company normally conducts surveys on a regular basis to help determine the behaviors of consumers in its targeted market (Baker et al, 1996). Some elements that have been consistently used to depict attitudes of consumers by Samsung include aspects of quality and prices. Most of the consumers of smart phones are interested in the quality of the products. They are therefore interested in purchasing products of high quality that can enable them to get maximum satisfaction from the usage of the products. Samsung therefore develops products of high quality to match the attitudes of their targeted customers regarding quality. Consumers are also interested in products which are affordable and this is considered by Samsung when developing its products. Samsung smart phones are cheap and affordable hence attract majority of customers. This has enabled it to gain significant market share from customers with both high and low incomes.
Attitudes also can also be used my marketers as a source of information about their products as well as how the customers are established in the market place. Samsung marketers can use the information obtained from the identified attitudes of consumers to determine the consumer’s perception about Samsung smart phones. It is therefore important for Samsung marketers to note that there are various advertisements from different smart phone companies that provide information aimed at attracting consumers. The information provided in these advertisements can either impact negatively or positively to the sales of the smart phones depending on the attitudes of the consumers. This makes it important for Samsung marketers to develop appropriate marketing strategies that are not in conflict with the attitude of the consumers. Attitude of consumer can be determined by various factors that include personal experiences, influence of friends and family members as well as the influence of the promotional activities. It is therefore important for Samsung to use various avenues so as to influence the attitudes of consumers regarding their products.
2.1.2. Needs and Motives
Another area where Samsung has also applied the use of internal influence theory is in needs and motives concept. Personal needs and motives are the most important internal influence factors that determine the purchasing decisions of consumers. Need is occasioned by the absence of something useful to consumers (Ahmed et al, 2003). Due to advancement in the level of technology, many businesses and individuals are using products that are in accordance to the prevailing level of technology. Samsung uses this concept to attract the attention of consumers to purchase its smart phones. The marketing strategy of Samsung creates the desire in individuals to purchase its smart phones so as to help satisfy their needs. This is because the smart phones can be used to satisfy various consumer needs such as communication, surfing internet, playing games and listening to music among other various applications. Consumers will therefore purchase the smart phones so as to help satisfy their needs and this forms the basis of the marketing strategy of Samsung. Motivation can also play a significant role in attracting consumers to purchase a product. Motivation can be achieved through various ways such as making products appear appealing to customers, selling the products at competitive prices and giving various incentives to customers (Sheth & Parvatlyar, 1995). Samsung smart phone are appealing hence help creates a positive impact to the consumers. The company ensures that customers are motivated to purchase the product through providing favorable conditions that prompts action to satisfy a need. This has been achieved by Samsung through communicating benefits of its smart phones to the customers as well as presenting the right image of the products. The needs of consumers can also motivate consumers to purchase a product. For example, consumers might be in need of a smart phone for communication and browsing hence will be motivated to purchase the smart phone so as to help meet their needs and desire.
Through identification of the needs and motives of consumers, Samsung can easily influence the purchasing decisions of consumers. One of the most important models that have been used by Samsung in motivating its consumers to purchase its smart phones is the Maslow Needs Theory. The Maslow Theory model was developed by Abraham Maslow and categorized the needs of consumers based on five levels that include physiological needs, safety needs, social needs, esteem and self actualization (Ballantyne, 2003). According to this needs theory, consumers will satisfy each need at a time starting with the physiological needs to self actualization. The last need to be satisfied by consumers according to this model is the need for self actualization. Understanding these needs is very important towards influencing consumers to purchase various products that will help satisfy their needs. Samsung is able to identify the various needs of consumers that make them consider purchasing its smart phones. Majority of the smart phone users purchase the smart phones so as to satisfy the communication needs. Other individuals may also purchase smart phones so as to satisfy needs such as browsing, to store information and also as an office appliance. Samsung considers all these needs of the consumers and develop appropriate smart phones that can cater for the various consumer needs identified. Since every consumer has different needs that determine the decision to purchase a product such as psychological needs, it is become important for Samsung to identify the needs of all its targeted customers so as to enable it develop products that will help satisfy the needs of the targeted customers. This will help Samsung to segments its market and satisfy their needs of its customers appropriately.
2.2. Application of External Influence Theory in Apple
Apple Inc has in most cases used external influence theory in its marketing strategies. Consumers are faced with a number of external influences when making purchasing decisions of products. These external influences differ and may include reference groups, social statues, household structures and culture (Lord & Ranft, 2000). These factors are associated with external influences since they are determined by forces that are beyond the control of individuals. In most cases, external influences are occasioned by socio cultural factors as a result of association with certain groups of people in the society or compliance with certain technological advancement. Understanding of the external influence factors is important for organizations towards determining the various behaviors of consumers with regards to making purchasing decisions. Apple has used the concept of external influence theory to develop various marketing strategies for its products. Various external influence factors have been determined by the company and used to develop appropriate marketing plans for its smart phone products in the market place. Some of the external cultural influences that the company has considered when developing its marketing strategies for its smart phones include reference group, culture and level of technology.
2.2.1. Reference Group
Reference group can be defined as a group, category or a class of people through which and individual belong (Adcock, 2000). The presence of reference group creates pressure for the members to have shared values and interest. This makes them to seek similar products that have the same feature and characteristics. Influence of reference group can originate from co workers, hobby clubs, organizations, family or profession among other groups. The influence of reference group is therefore important in determining the purchasing decisions of consumers.
Apple has used a number of references groups in its marketing and promotional strategies. The marketing campaigns that have been developed by the company can be seen to target professionals and business executives. This implies that the company is interested in developing smart phones for specific groups in the society such as professionals and business executives. Most of the pictures and images that appear in Apple’s advertisement portray professionals and business executives. The advertisement of the Apple products is therefore effective in attracting the attention of business executives and professionals. This is ensured by creating a notion in the minds of consumers that the smart phones from Apple is able to provide the various needs of professionals and business executives. The impact of reference group in the apple’s marketing strategies therefore enables it to attract the attention of the people that belongs to the same reference groups depicted in the advertisements of its smart phones (Knight, 2000). All professionals and business executive will therefore feel that they belong to the group hence for them to match with their colleagues in the group, it is necessary that they purchase the above products.
It can also be argued that consumers can be referred to purchase a product by the members of a given reference group. Hence many of major decisions of consumers towards the purchase of Apple smart phones are based on referral from the reference groups such as business executives and professionals. The reference groups for Apple smart phones are mainly composed of majority of individuals with high levels of income. Apple can therefore be seen as targeting groups of individuals that are having high income levels as opposed to low income earners. This has enabled the company to maintain high prices hence ensure high profitability. High income earners therefore define another reference group for Apple Company. This is portrayed by the prices of its products which are in most cases higher than its competitor’s prices in the market.
2.2.2. Culture
Culture can be described as an individual’s beliefs, values and opinions that help shapes his or her behavior towards a particular direction (Weiner, 2000). The beliefs, values and opinions of individuals can influence the decisions of individuals towards the purchase of a product. The emotional needs of consumers are also influenced by culture. This makes consumers to behave in a way that will ensure that their culture is preserved. Products of organizations should be developed in such a way that should ensure that they conform to the prevailing culture. Goods and services that do not conform to a given culture can normally be subjected to rejection by the customers hence negatively affects the sales and performance of the company. Culture therefore plays a pivotal role in developing the needs of consumers as well as enhancing the needs of the consumers (Arnould & Thompson, 2005).
Apple marketing strategies and products considers various cultures of its consumers. Most of the Apple products are however based on the western culture which is characterized with development of new products that are in accordance to the modern technologies. The branding of the company’s products at various regions around the globe is done in accordance to the prevailing culture. This helps the company to enhance the sales of its products in various countries of its operations around the globe. The company contracts various international public relations companies to conduct its various advertisements campaign in foreign markets so as to ensure that it conforms to the given culture within that country. The company also considers the culture of its targeted customers such as business executives and various professionals. This is because most of the business executives and professionals normally prescribe to the same values, beliefs, opinions and attitudes (Peterson & Merino, 2003). In this respect the company manufactures smart phones that are offered at premium and esteemed prices. For example, the prices of the smart phones for the company are often expensive as compared to smart phones from other rival companies such as Nokia, Samsung and Google among other smart phone manufacturing companies around the globe. This suggests that Apple is interested in serving customers from a specific culture that is made up of high income earners, business executives and various professionals.
2.2.3. Technology
Technology is another external influence factor that Apple considers in its marketing strategies and campaign. The products that Apple develops and manufactures are often unique and made using the current level of technology. Apple can be seen as the market leader in the smart phone industry due to the introduction of new innovative smart phones in the market. The company smart phones are developed based on the new level of technology. The features that are included in the smart phones from Apple Company indicate the emphasis that the company places on technological developments. The smart phones of the company are displayed as innovative by the management of the company and various marketing campaigns that they conduct. For example, making smart phones to serve as a computer and at the same time serves the same function as mobile phones is an innovative idea that was invented by Apple. They have also been able to use technological advancement to develop slim phones that contains various feature as well as able to conduct multiple purposes.
The use of technological advance as a marketing platform by the Apple Company has enabled it gain reputation in the market as the leading manufacturers of innovative products in the global market (Koufaris, 2002). The company has also been able to attract the attention of various customers who values the technological developments and improvements. Again the management of the company also prides of having reputable professionals who are having technical skills and capability. This makes them able to provide various products that are in accordance to the new level of technology. The company is also having a research department that helps it to carry out various researches studies on its products so as to remain being the leader in the manufacturing of innovative and creative products in the market.
3. Similarities of the Effects of the Influences on the Marketing of the Products
There are few similarities between the effects of the external and internal influence on marketing of the Samsung and Apple smart phones. One of the major similarities in effects is that the two influences have enabled the two companies to gain significant market share in the smart phone market. Both Samsung and Apple have been able to increase their market share through the adoption of the influences in their marketing strategies. The influences have also enabled Samsung and Apple to increase their sales, revenues and profitability over the years. This can be attributed to the ability of the companies to develop appropriate strategies based on the behaviors of consumers.
4. Differences on the Effects of the Influences on the Marketing of the Products
The major difference regarding the effects of these two factors is that the internal influence theory applied by Samsung has attracted low sales as compared to the external influence theory applied by Apple. Apple marketing strategies has enabled it to emerge as the leading company in the manufacturing and distribution of smart phones in the global world. The success of Apple can be attributed to the effectiveness of the strategy used by the company to market its products. The other difference on the effects of the influences is that the internal influence used by Samsung attracted customers with different income levels while the effects of the marketing strategy used by Apples only attracted high income earners.
5. Recommendation
Based on the analysis of the two approaches of consumer behaviors in developing appropriate marketing strategies, it should be effective if both Siemens and Apple used the external influence theory to help develop appropriate marketing strategies for their products. This is because according to the research, it was evident that marketing strategies that are used by Apple were more effective and lead to the growth of the company’s sales and revenues over the years. The two companies should therefore base their marketing strategies on the external influences theory. Various external factors such as culture, level of technology and reference groups among others should therefore be considered when making appropriate marketing strategies for the products of the companies.
Reference Lists
Adcock, D. (2000). Marketing strategies for competitive advantage
Ahmed, P. K., Rafiq, M., & Saad, N. M. (2003). Internal marketing and the mediating role of
organisational competencies, European Journal of Marketing, 37(9), 1221-1241
Apple.Com (2014). Apple press information, retrieved from http://www.apple.com/pr/ on
December 5, 2013
Arnould, E. J., & Thompson, C. J. (2005). Consumer culture theory (CCT): Twenty years of
research. Journal of consumer research, 31(4), 868-882.
Baker, M., Walker, O., Mullins, J., Boyd, H., Larreche, J., Cravens, D., … & Simmonds, K.
(1996). Marketing strategy, International Encyclopaedia of Business and Management, 3333-47
Ballantyne, D. (2003). A relationship-mediated theory of internal marketing, European Journal
of marketing, 37(9), 1242-1260
Goldenberg, J., Libai, B., Solomon, S., Jan, N., & Stauffer, D. (2000). Marketing percolation,
Physica A: Statistical Mechanics and its Applications, 284(1), 335-347
Gummesson, E. (2002). Relationship marketing in the new economy, Journal of Relationship
Marketing, 1(1), 37-57
Knight, G. (2000). Entrepreneurship and marketing strategy: the SME under globalization.
Journal of International Marketing, 12-32.
Koufaris, M. (2002). Applying the technology acceptance model and flow theory to online
consumer behavior, Information systems research, 13(2), 205-223
Lord, M. D., & Ranft, A. L. (2000). Organizational learning about new international markets:
exploring the internal transfer of local market knowledge. Journal of international business studies, 573-589.
Peterson, R. A., & Merino, M. C. (2003). Consumer information search behavior and the
Internet. Psychology & Marketing, 20(2), 99-121.
Samsung.Com (2014). Samsung Smart phones retrieved from
http://www.samsung.com/in/consumer/mobile-phone/mobile-phone/smartphone/ on January 20, 2013
Sheth, J. N., & Parvatlyar, A. (1995). Relationship marketing in consumer markets: antecedents
and consequences. Journal of the Academy of marketing Science, 23(4), 255-271.
Weiner, B. (2000). Attributional thoughts about consumer behavior. Journal of Consumer
Research, 27(3), 382-387.
Last Completed Projects
| topic title | academic level | Writer | delivered |
|---|
Are you looking for a similar paper or any other quality academic essay? Then look no further. Our research paper writing service is what you require. Our team of experienced writers is on standby to deliver to you an original paper as per your specified instructions with zero plagiarism guaranteed. This is the perfect way you can prepare your own unique academic paper and score the grades you deserve.
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.
[order_calculator]