New Product Launch: The Case of Apple Watch

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New Product Launch: The Case of Apple Watch

Numerous factors have all the power to influence the decision-making process of customers. While millions of people believe that the choices they make regarding different services or goods are rational, the reality is that individuals are driven by emotions determined by environmental factors. The first vital aspect relevant for the customers of the Apple Watch Series 6 is a social class defined by such elements as income, career occupation, and the level of education (Hugtvedt et al., 2018). Social class can play a significant role in consumers thought processes because it connects people with the same values (Haugtvedt et al., 2018). Apple Watch is an indication of status and luxury; thus, the social class factor impacts consumer behavior. In addition, reference groups have a strong potential in creating individual preferences, attitudes, and practices (Haugtvedt et al., 2018). By sharing positive opinions and feedback about the product, these groups can have a significant impact on peoples choices regarding various goods and services (Haugtvedt et al., 2018). Hence, people are not only driven by their thought processes but are also affected by different environmental factors.

Regarding consumer factors relevant to the audience purchasing Apple Watch Series 6, the first important aspect is motivation. It is a psychological feature that encourages people to be interested in the product because of its countless benefits and distinguishing characteristics (Haugtvedt et al., 2018). Thus, if individuals have enough motivation, they are more likely to buy the product. Moreover, the second consumer factor for the buyers of the Apple Watch is an attitude towards the product. This opinion is also a psychological element that profoundly influences the decision-making process of consumers (Haugtvedt et al., 2018). While the Apple Company has always been able to keep a positive brand image, peoples attitudes advanced and made them favor Apple over other businesses. Finally, a personal lifestyle is an essential factor for the customers of the new Apple Watch. Apple is mainly famous for making an emphasis on the products benefits in everyday use: it is suitable for those who do sports and have a busy life schedule. Consequently, the convenience and usefulness of the watch for an individual lifestyle is a crucial consumer factor.

Nowadays, many companies indicate the crucial role customer involvement plays in the decision-making process. Researchers have discovered that consumers can be engaged in the process by being an information source and a co-developer of the product (Cui & Wu, 2017). These two forms of individual involvement are critical for the positive outcome of production and increase sales numbers (Cui & Wu, 2017). Therefore, the level of involvement of people in the stages of development, production, and advertising of the product can have a direct impact on their purchase or no-purchase decision. However, in the case of the Apple Watch Series 6, it does not seem vital to keep the customers highly informed about the new product. Instead, they have to be engaged in habitual buying behavior. This practice is implemented when people are in the process of buying goods that should be used in daily life and are familiar and popular among the customers (Cui & Wu, 2017). The Apple Company has already received the status of a reliable brand, and, as a result, people favor it no matter what.

The first step of the purchase process is problem recognition which creates an opportunity for marketers. By asking questions, sharing testimonials, and facts about the benefits of the product, a business can engage their customers in the buying procedure (Jones, 2014). The Apple Company can make people feel that they need the watch because it will help them solve various problems. During the second step, which is information search, marketers can contribute to the creation of a positive image of the watch in the eyes of consumers by highlighting its elegance, luxury, and distinguishing features (Jones, 2014). The evaluation of alternatives comes as a third stage and allows people to compare different brands and choose the best option (Jones, 2014). The only thing that will be required from Apple is to keep a positive brand image and create more value. The fourth stage is defined by the term purchase decision when individuals should be reminded about their needs and identify those features of Apple which other brands do not possess (Jones, 2014). After that comes the actual purchase, and marketers need to make this procedure as smooth as possible (Jones, 2014). For instance, Apple can use online shopping resources that will allow buying the product with one click. Finally, the post-purchase evaluation is the sixth stage of the purchase process when the customer creates an opinion about the good (Jones, 2014). Marketers should try to ensure that individuals are satisfied by keeping in communication with them and sending follow-up questions concerning the level of service they received and product condition.

Market segmentation is an essential step that divides customers into small groups based on their age, sex, income, personality characteristics, and behavior. As mentioned by Venter et al. (2015), market segmentation is central to marketing strategy and a key decision area for organizations in all sectors (p. 64). Therefore, businesses spend a considerable amount of time dividing their audience using various segmentation criteria. There are two effective ways to segment the buyers of the Apple Watch according to their behavior and psychographics. When paying attention to behavior, the business can determine what benefits the consumers expect to achieve from the products and understand the level of loyalty (Venter et al., 2015). At the same time, psychographics will separate the audience into groups according to their lifestyles and activities (Venter et al., 2015). Considering these factors, the two possible market segments for the Apple Watch product are:

Adult individuals that have a high income (demographics) are considered to be loyal customers of Apple (behavior) and use Apple Watch because they value privacy, innovation, and convenience (psychographics).
Young population (20-25 years old) from a medium social class and with an average income (demographics) that focuses on the benefits and usage situation (behavior) and is engaged in a busy lifestyle (psychographics).

After looking at the two identified segments, it can be concluded that the first one has more potential. While both are interested in the product and are encouraged to purchase it because of the distinguishing features, the focus should be on the first group that can be called rich loyal customers. This decision is primarily based on the claim that the Apple Watch targets consumers from a high-income layer of society who appreciate new possibilities and innovations and look for something convenient and elegant (Dudovskiy, 2019). Considering the six criteria for selecting target markets, rich loyal customers fit in because their population is big enough to be profitable. Besides, it is accessible enough because these individuals have already proved that they are loyal to the brand, and they are a perfect fit for Apples values and goals.

Even though the company should mostly focus on the mentioned target market because it will bring the most profits, it should not forget about other audiences motivated by the features of the Apple Watch Series 6. Such an approach can be described by the term multi-segmented market. As mentioned by Dibb and Simkin (2016), multi-segmentation allows businesses to select several most attractive groups of consumers who are highly interested in the products features and benefits. In addition, it allows companies to be ready for any unexpected circumstances that may change the characteristics of the leading target group (Dibb & Simkin, 2016). Therefore, while being prepared for a challenge, Apple will be able to make necessary corrections without harming the outcomes of its operations on the market.

According to the created perceptual map, it can be seen that Apple is not the only brand on the market of smartwatches that is high-quality and luxurious. Some other businesses, such as Samsung, Fossil, and Lenovo, fall into that category. Therefore, it can be stated that rich loyal customers have a variety of brands to consider when purchasing a smartwatch. Since they have the financial possibility to purchase a high-quality watch, they will not be paying attention to budget products. Furthermore, Apple has all the power to win the competition because it focuses on forming a group of individuals that are loyal and will choose it over other companies.

Apple should not try to be engaged in an uncontested space which refers to an unexplored area. The company has the potential to fight for its position on the market and compete with other brands. Moreover, changing product positioning would mean either lowering the price or quality. This transformation will not be beneficial for the product and the Apple brand; thus, it should not be implemented.

References

Cui, A. S., & Wu, F. (2017). The impact of customer involvement on new product development: Contingent and substitutive effects. Journal of Product Innovation Management, 34(1), 60-80. Web.

Dibb, S., & Simkin, L. (2016). Market segmentation and segment strategy. In M. J. Baker & M. Saren (Eds.), Marketing theory (pp. 251-279). SAGE.

Dudovskiy, J. (2019). Apple marketing strategy: A brief overview. Research Methodology. Web.

Haugtvedt, C. P., Herr, P. M., & Kardes, F. R. (Eds.). (2018). Handbook of consumer psychology. Routledge.

Jones, S. (2014). The six stages of the consumer buying process and how to market them. Business 2 Community. Web.

Venter, P., Wright, A., & Dibb, S. (2015). Performing market segmentation: A performative perspective. Journal of Marketing Management, 31(1-2), 62-83. Web.

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