TREND TRUTH
Apple’s iPhone: Technology Trend, or Marketing Monster?
Smart phone technology is on the tip of everyone’s tongue this summer. On June 8, 2009 Apple kicked off their Worldwide Developers’ Conference. The conference, observed by the news media and Apple fans around the world, is a high-level forum for Apple to release new products as well as strategies for the upcoming year. Over the past two months more than 300,000 blog posts have mentioned Apple’s iPhone in anticipation of this conference; and on the first day of the Developers’ conference, blog traffic about the iPhone increased by 250%. FGI did a study to explore the influence of these conferences, and other marketing strategies, on brand awareness. Apple must be doing something right: we found that over 90% of consumers are aware of the brand.
How Marketing Impacts Brand Awareness
Our independent study asked consumers about their awareness of smartphone brands and whether they had purchased, or intended to purchase, such a phone. Over 90% of all respondents said that they were familiar with the iPhone brand. In fact, of all people who had purchased a smartphone in the last six months, 24% bought an iPhone.
Apple’s social-media marketing has been especially effective for reaching their ideal audience. The company has a strong presence on the web, including but not limited to personal networking sites like Facebook and Myspace, blogs, and YouTube, where they post tutorial videos. Young professionals, with a taste for new technology, respond well to this kind of corporate communication. With targeted marketing efforts like this, it’s easy to see why Apple is dominating the SmartPhone market in just over two years after releasing their first phone.
Who’s Buying?
The younger set and people with higher income have higher brand awareness when it comes to the iPhone. For respondents between the ages of 18-24 and ages 25-44, awareness is near 94%, whereas for respondents in the age group 45-65+, awareness drops to 87%. In the past 6 months, respondents ages 23-44 purchased three times as many more iPhones than the 45-65+ age group. Likewise, respondents who earn less than 50k have an 87% awareness of the iPhone brand, as opposed to 93% awareness from those who earn more. Respondents who earn more than 50k have purchased 2.5 times the number of iPhones in the past six months than those who earn less.
Actionable Insights
Apple is a case study for effective social-media marketing. The company has seen enormous success in its use of YouTube, Facebook, blogging and microblogging to reach consumers. Yet their success suggests that some companies may have more of an inherent edge in online marketing than others. If your target demographic is young, tech-savvy professionals, they are likely to be on all of the social media sites to begin with; reaching them through those sites is hence second-nature. But for those whose customers are less into online networking, sites like Facebook might not be as meaningful as marketing outlets.
The way to know where your customers spend time is through rigorous market research. Find out where your customers spend time. Ask! They will tell you. A more innovative method is social-media monitoring, which will not only tell you if your customers are talking about you on social media (thereby revealing if it is an effective place to market), but also what they say. Either or both technique will accomplish the desired goal, but no matter what approach you take, you should start asking these questions. The sooner you know if you should be on social media, the faster you can begin to establish your presence.
Next Steps You Can Take
Survey Methods
Date of Study: 6/18/2009
Total Responders: 345
Sample Source: FGI SmartPanel
August 27th, 2009 at 1:31 pm
Apple is a good product but there are many other products out there doing the same exact thing as an Apple Smartphone. I have a high income but don’t see why I should waste the money to purchase a phone that has a big name just for the sake of having the name. I am 45 and do wish people would think more wisely when it comes to spending money even if you have lots of it.
August 27th, 2009 at 1:34 pm
I want a phone that I can use to make telephone calls, not play games or listen to music.
August 27th, 2009 at 1:34 pm
Our phone is an LG because it was affordable,easy to use and offered be who we use for phone service
August 27th, 2009 at 2:20 pm
Okay — I’m feeling old. I am in that 45-65 age group. Despite that, I am technologically savvy. I have had a Mac on my desk since 1985. I have a cell phone that makes phone calls — it does not even take pictures. I do not have a laptop, I do not have an iPod, my car has a GPS system I seldom use. In a nutshell, I just do not want or need more than I have. But sometimes it’s like falling in love — one might have to take back everything they say. If Apple comes out with a mini notebook I might succumb. :-)
August 27th, 2009 at 5:00 pm
not inerested phones are becoming to compicated for me i need a simple phonethat has no extra features games ,camera, calulator, email, text mess. shopping mall and ect that drain the battery
February 15th, 2010 at 8:30 pm
Before I have a Palm Treo 850, superb, fantastic phone, then in an episode of insanity, I’ve decided to go with the Iphone. Big mistake! No signal strength at all. I’ve been in the area of Sunset Strip-Beverly Hills, inside of the apartment, the phone is dead. The safari tool to access the internet is so slow, that I’ve decided to give up not using that feature anymore.
Next step? Buying a regular Motorola phone, basic, no whistles, but at least it works when I need it. I remember been under the rain, because my Iphone couldn’t make a little call inside of the apartment!