Consumer and Buyer Behaviour
Apples Inc.vs. Samsung electronics.
Apple Inc Vs Samsung electronics
Apple may be described as an American multinational firm that devises, build ups and vends consumer based electronic products, PC software, as well as PCs. The corporation was established in 1976 by Steve jobs and his counterpart Steve Wozniak and Ronald Wayne. The cooperation has made vast volumes of sales of their products and this has culminated into a substantial amount of profit in trading since its inception. The entity is best known for its signature name for computers as a Mac. The products & services that the entity include the famed Mac, iPod, iPhone, iPad, Apple Tv, OS X, iLife among many other products while its software services include iTunes Store, iBooks, iCloud, IOS App store among others ( Apple Incorporated, 2010).
Apple is known globally as the third largest company that produces mobile phones and has been featured as a company the has a great market presence in its industry. The entity also boasts of over 60,000 employees globally and a revenue income of about one hundred and eight billion dollars within a fiscal year(O’Grady,2008 ).Its logo is easy to recognize as it is an apple: that looks ‘bitten’ on one side, hence setting itself as a distinct. Apple’s advertising is majorly centred around its targeted demographic of consumers. The corporation has focused on internet advertising, television, billboard and other visual media advertising, print media advertising, targeting popular magazines and periodicals, branding of vehicles and other media. They have also done a lot of horizontal integration, which allows them to have many products through which the company advertises. For instance Apple Ipads and Iphones are frequently advertised on Mac Pcs, I phones and a variety of Apple soft ware. The company enjoys a strong retail presence internationally but more so in America and Europe.teh company has a strong social media presence designed specifically to reach their target audience most of who are technologically savvy and are avid internet and social media users(O’Grady,2008).
Nonetheless, the corporation’s success has not been easy as it has faced stiff competition from other similar industry players, notable among which is Samsung Electronics. Samsung Electronics, an international conglomerate is located in Suwon, South Korea and offers similar competitive products in the same market, as Apple. The business is a flagship ancillary of the Samsung group and boasts of over two hundred and twenty thousand personnel working across sixty plus countries in the world. In addition, to this, the electrical company was founded in 1969 and has grown exponentially consequently offering many employment opportunities to techs, hence its strong market presence ( Slater & Lee,2007 ).
Other facts about Samsung Electronic are that: it is ranked as the globe’s leading and prevalent mobile cellular phone maker as well as chip maker in the world. It has four key areas of operation: the digital media sector, the semi conductor sector, and sophisticated telecommunication set of connections, as well as an LCD digital appliance sector or rather unit ( Slater and Lee,2007 ).The digital media sector deals will computer devices such as laptop workstations, and printers, display& home appliances, customer leisure devices example digital camcorders among other devices. The semiconductor business deals with making chips for these appliances for instance smart cards flash memory devices, apps, CMOS, storage gadgets.
The Telecommunication-set of connection sector deals with the manufacture of cellular devices, PDA phones as well as satellite receivers among many others. The LCD digital appliance sector centers on designing of panels of PC television. Samsung Electronics has a strong advertising presence in the social media, television, branding in various media as well as social outreaches, partnerships and alliances for advertising and creation of brand awareness (O’Grady,2008 ).
Perceptual Mapping
The perceptual map displays the perceptions of customers about Apple Inc and Samsung Electronics ( Dibb& Simkin, 2008). This perception analysis is done in relation to the brand position. The perceptual ampas selects classy- ness and sophistication versus conservativeness and practicality as being key concerns in the industry. These alongside Simplicity and affordability as well as ease of use are the main concerns of customers of these brands products. This sis the main reason for their selection as axes for the perceptual map. Apple inc’s products especially the I phone and ipads rank the highest in a measure of classiness, sophistication and distinctiveness versus ease of use. Samsung products follow closely behind Apple, ranking higher in ease of use versus sophistication. Other industry players such as LG si conservative and simple a well as affordable and practical. Other industry competitors rank differently in the industry.
Classy,sophisticated and Distinctive
Apple Inc.
Nokia
Huawei Samsung electronics
Simple and affordable Ease of Use
Black Berry
LG
Sony ericsson
Conservative and Practical
Demographics, psychographics, life-styles, motivations and values characteristics.
In terms of demographic features Apple targets Generation X and Y. Generation X are working adults with established successful careers. These are individuals are estimated to fall within the 24-45 age category. Therefore, Generation X has consistent and high incomes and are able to purchase expensive and stylish devices. As a result, the high income one would easily purchase high-tech electronic products such as those sold by Apple Inc One the other hand, Generation Y consists of mainly teenagers and young adults who have become trendy and modernistic (Markoff, 2007 ). Their constant advancement to technology has attracted the Generation Y to desire to have the latest technological appliances. Incomes are very important in determining the target markets; they target certain specific income groups. In the case of Apple Inc., products are generally price suited to the more affluent working class who desire high standards of life and want to have the latest technology (Fisher, 2008).
In terms of geographical characteristics, Apple targets consumers in urban areas who have a high purchasing power than those living in rural areas, who often have lower incomes. As concerns psychographic characteristics, Apple Inc targets consumers who desire and need entertainment functions. Most of their products are targeted to provide entertainment.
A psychographic characteristic of Apple’s targeted consumers majors on individuals who place high value on social standing and social status and class issues. Individuals’ buying Apple’s products want to be able to have the finest things in life. They are attracted to the best technology , high efficiency and very high quality. This means that they place a high value on aesthetic appeal and how other people perceive them . They want to be viewed and appreciated as being clearly affluent and able to afford quality (fisher,2008).
Samsung electronics’ target is much similar to that of Apple in terms of demographics, psychographics, life-styles, motivations and values characteristics. Demographically, Samsung target both Generation X and Generation Y. Samsung has products suited for working- class adults with established successful careers. These enables them to be targets for their high-end phones like Samsung Galaxy which competes with Apple’s I-Phone in the market. The Generation X have a stable and high income and therefore can easily purchase Samsung high end phones. Generation Y is also targeted by Samsung consumer electronic products. Generation Y consist mainly of teenagers who desire the newest technology in the market. Therefore, Samsung has developed products that have the latest features in technology helping in satisfying the need for Generation Y that is trendy and modernistic.
Unlike Apple that targets majorly affluent individuals, Samsung takes a dual approach, targeting both affluent and low income individuals in the market. Therefore, Samsung has developed products to suit needs for both markets contrary. Geographically, Samsung targets consumers in both urban and rural areas unlike Apples which only targets urban dwellers. Psychographic characteristics of targeted consumers are much more inclusive than those belonging to Apple inc’s target customers. Individuals targeted are no solely focused on class and social status but more on functionality and efficiency.
Similarities, Differences and Recommendations
Similarities
The growth of consumer electronic market and the increasing competition has meant that gadgets and devices have become more similar not only in the functionality of their operating systems, but also in their look and feel. Samsung and Apple are presently the world’s most successful and leading technology companies whose products are largely similar. As leading mobile phone makers, both companies consistently pursued smaller, pocket- or purse-compatible devices. There are striking similarities between the smartphones and tablets of either manufacturer. Their products have gravitated towards slimmer, slimmer devices, having rectangular bodies with no sharp edges, larger screens, and offer touch screen usability. This means that the generic features of the two brands are largely similar in terms of functionality and reflection of consumer demand. Basic icons such as phone, contacts, music, photos, notes, and settings are very similar.
Samsung’s Experience retail store is almost a Siamese twin of Apple’s. The retail store has a characteristic minimalist design, with tables displaying the latest devices and gadgets, as well as the blue-shirted staff. The layout of the store is meant to afford customers more room to interact, learn, and check out their devices. Generally, new Samsung’s store has the same light and airy look that Apple’s stores have. In addition, the companies apply the same packaging and promotional techniques for their similar consumer electronic products. With the technological difference between the companies becoming even smaller, products have become the major representatives of Samsung and Apple brands. It is the growing significance of product appearance and the reliance on it that has made the products of the two manufacturers to look alike .
Another area of similarity between the two brands is in the design process of new products. Both Samsung and Apple constantly keep vigil of one another’s new releases so as to decide on what they need to do curb competition. Each routinely explores what features of the other are most successful so as to improve that has been produced before. When designing new products, the companies are uncertain of how potential consumers will perceive them. This uncertainty necessitates either Samsung or Apple to review the appearance of their potential products by making comparisons with previous models, existing products produced by the other competing brand. The companies are afraid to push boundaries with a new product’s appearance to be different because of the risk of lack of recognition, poor reviews, and resulting damage to brand image. In both cases the marketing managers should be commended asboth companies maintain large market share.
Differences
Among the differences between the two brands is their targeted clientele, while Apple tends to be more focussed on affluent clientele who can afford their high end products as well as young technologically savvy and financially able customers, Samsung is more inclusive. Their focus includes a wider scope of clientele, including older and less technologically savvy customers compared to Apple’s customers. Samsung targets a wider clientele mainly focusing on economies of scale to make their profits. In that light their products are a little cheaper than those sold by Apple.
Apple is also more focused on innovation of new products and software for its clientele, constantly improving their technology and services as well as design. On the other hand Samsung, is more focused on the upgrading of their current products and not so much on designing new products from scratch. They are more keen to establish themselves as reliable rather than as innovators.
Recommendations
Both Samsung and Apple need to focus more on market research into product appearance, and especially the aspects consumers associate with their brands. This will enable either company to have distinguishable features key to a brand’s identity. In the same light, market research knowledge will enable both Samsung and Apple to freely modify the remaining elements of their design so as to achieve novelty and variety without risking being radically different and produce consumer electronics too unfamiliar to customers.
On the other hand, Apple should work on its reputation. The company has been accused of buying off people with great ideas, and then claims them as their original ideas by claiming patent. Apple has also earned bad reputation for withholding features so as to increase sales of their hardware. Furthermore, Apple should work to reduce its current high reliance on Samsung to supply their products.
There is need for Samsung to review its corporate culture so as to be able to produce new and unique design and functionality gadgets and devices. This will help the company avoid the many patent litigation that it is recently attracting. As it is, Samsung is vertically structured, too hierarchical. The decision of chief designers at Samsung is often overruled by top management, something that greatly undermines the capability of the former. It would help for Samsung to adopt a horizontal culture that would empower designers.
Bibliography
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Microsoft Encarta Student [DVD]. (2007) “Eminent Domain”. Redmond, WA: Microsoft
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Markoff, J., 2007. “New Mobile Phone Signals Apple’s Ambition”. The New York Times.
http://www.nytimes.com/2007/01/09/technology/09cnd-iphone.html. Retrieved January 9, 2007.
Fisher,A., 2008. “America’s Most Admired Companies”. Fortune , Vol157 (5): 65–67.
Dibb, S. and Simkin, L., 2008.Market Planning :aworkbook for Marketing Managers.Newyork :Sage Publicatios
