Student
Faran Ayub
(first
name, family name)
Research
Advisor
Sergey Tsoller
_____________________________
(name,
title, position)
Moscow 2020
Ø Introduction of Benefits and Threats of
Digital Communication Strategies vs Mass-Reach Traditional Marketing Approach
in Global Smartphone Industry on Asian Market. (Comparing the cases of Sony and
Huawei)I would like to
start my paper with these words from Meghan Keaney Anderson, VP Marketing,
Hubspot, Inc. “Don’t push people to where
you want to be; meet them where they are.”
This is now an admitted fact that the present era of
communication is a transformation from conventional means to the digitalized;
which has unleashed a tech-savvy culture around the globe. This transition can
be attributed to the contemporary communication needs of the world in general,
and businesses in particular, who aim to present and promote their messages to
the consumers in an organized and highly effective manner. Yet, before we can
jump to any conclusion, there is a need to dive deep into the subject and
explore the specifics which spurred this transition and understand the dynamics,
rationales, efficacy and obstacles of this mode of communication.
In writing this paper, the main goal is to explore
various digital communication strategies/channels employed in global smartphone
industry and weigh them against traditional marketing channels in various
regions of the Asian Market. (By the examples of Sony and Huawei). The object
of the paper would include the scope of digital (and social) communication
strategies in comparison to traditional mass-reach marketing approach; whereas,
the subject would cover the benefits and threats of both the digital means of
communication as well as the mass-marketing approach.
Being a strong believer of digitalization, this
subject has always intrigued my mind; yet, my most recent read of the book “Positioning the Battle of your Mind” by Al Ries and Jack Trout further captivated my interest and motivation into this
subject. The concise rather comprehensive book starts with the notion of
“failure to communicate” and profoundly claims that today we have become an
over communicated society, as there is a plethora of marketing information to
consume, which a person cannot even remember. While combating the irregularity
and ineffectiveness of such kind of marketing tactics, the authors posit and
emphasize “positioning” - a new approach to communication which essentially
means positioning your product in the mind of the consumers. As being creative
is becoming more and more difficult these days, “positioning” does not require
us to create something new or radically different, but to manipulate what’s
already there in the mind of the consumer – the reason how it has transformed
the role of advertising today. Those who practice positioning are aware of the
phrase “less is more” which means that you do not need a junk of information to
penetrate into the consumer’s mind; instead it is crucial to sharpen the
message, make it concise and simple to be able to have a long-lasting impact on
the consumer’s mind which is already busted with information.
Even though positioning has reshaped the world of communication
with its unorthodox yet convincing principles, my goal in this paper is not to
proclaim its benefits but also to investigate the threats and difficulties
involved in this mode of communication. Therefore, later in this paper, I would
look to analyze the functional, technical and other obstacles in order to
determine its pragmatic implementation and feasibility.
Ø Tasks of Benefits and Threats of
Digital Communication Strategies vs Mass-Reach Traditional Marketing Approach
in Global Smartphone Industry on Asian Market. (Comparing the cases of Sony and
Huawei)
A brief
summary of the key tasks that I look to perform are mentioned below:
·
To analyze the
dynamics of global smartphone industry (including demographics, consumer
preferences, factors affecting growth/decline in the industry) and to
investigate its relevance with various regions of the Asian Market.
·
To broaden the
research to the European and the United States Smartphone Industry to in order
to congregate similar and different characteristic behavior of consumers.
·
To highlight the
key benefits of digital communication strategies and investigate into the
obstacles which prevent the effective implementation of such strategies in various
regions of global smartphone industry.
·
To examine the effectiveness
of traditional mass-marketing approach in this era by highlighting both the
primary benefits and risks associated with this marketing strategy.
·
To determine the
contribution of digital communication strategies towards the growth of the industry
in general and brand development in particular.
·
To estimate the
existence of a correlation between digital marketing strategies and brand
development (taking into account various statistical data, market shares and
brand performance highlights) considering the examples of Sony and Huawei.
·
To draw conclusions
based on statistical and empirical evidence, highlight the limitations of the
research and suggest ways to improve the system.
Ø Methodology of Benefits and Threats of
Digital Communication Strategies vs Mass-Reach Traditional Marketing Approach
in Global Smartphone Industry on Asian Market. (Comparing the cases of Sony and
Huawei)
In order to present, support and analyze the
literature in my research paper, I would be using a combination of qualitative and
quantitative research methods. While using qualitative methods, my goal would
be explore and summarize various scientific journals, articles and previous
researches that follow the subject and logic of my topic, via established
electronic resources. Moreover, I would also include
questionnaires/surveys/focus groups as part of my paper in order to strengthen
the validity of the arguments presented. In the second chapter, I aim to
specifically apply quantitative methods with the goal to present numerical statistics
concerning various parameters of global smartphone industry in general and the
chosen international companies in particular.
Finally, based on the literature review and
statistical analysis, I would aim to find conclusive evidence to accept or decline
the idea that the effective implementation of digital communication strategies
acts as a growth factor in the global smartphone industry. Following the
conclusion, I would highlight the key limitations and drawbacks of the research
and would suggest compelling ways to make significant improvements.
Ø Chapter 1: Theoretical Aspects
of Digital Communication Strategies vs Mass-Reach Traditional Marketing
Approach
1.1 Literature
overview of Digital Vs Traditional marketing
According to Benjamin carton, Joannes Mongardini and
Yiqun Li (2018), it observed that global demand for smartphones is increasing
day by day. In recent years, the demand for supply and demand indicates that
smartphones created a new global tech cycle in the worldwide market. In 2016, there
is a change observed in the smartphone market as its sale jumped the bridge of 1.5
billion. It founded that “one every fifth person" on this planet
earth has its smartphone for their personal use. A large number of people are
using smartphones belong to the Asian region in the world due to its
population. It analyzed that these also engendered complex to meet the demand
in the market, and it is becoming difficult for companies to manage the supply
chain in the Asian market. From the market analysis, it founded that new tech
cycle fails to maintain or following the standards in the market. The market of
the smartphone is losing its standard for capturing the seasonality in the
market. It founded that people have great concern for smartphone sales and release
dates. The smartphone releasing date also impacts or influence their purchase
in the market. For capturing the market, standards for the production of the
product and publishing dates have a significant contribution. In the smartphone
market, the decomposing cycle has become a trend in the market as replacing the
older version with newer (Benjamin Carton, 2018).
In 2015, during the last season, it observed that the
Asian market reached its peak for selling and purchasing the smartphone. The
Asian region has a large number of population as it has become important for
global tech manufacturers. Global tech manufacturers have deep observation and
research for using smartphones. Asian region people are tech-loving and found
of using advance technology. The most important is that majority of people can
buy smartphones. It founded that for meeting the demand and supply challenges
in the Asian market, many manufactures are establishing their production units
in Asia. It is difficult to maintain supply chain across Asia. In the Asian
market, people love to change their smartphones after coming to new products or
advance version of smartphones. The process of managing supply and demand is
very complex in the Asian market as customers have diverse nature or background (Benjamin Carton, 2018).
Manufacturers of smartphones have an in-depth
observation of production and exports. Global producers follow the traditional
tech cycle for releasing of the new sale in the market, and smartphone sale
reached up to 1.5 billion. China becomes a leader in manufacturing and
exporting smartphones in the Asian market. China exported $107 billion worth
cellphones in the market and based on new tech products. The global market for
smartphones is on growth and following the trade patterns. The shifting of PC's
into smartphones is a significant development and its assembly connected with
electronic components. The beneficiaries are increasing as the demand in the
market for the supply chain is expanding around the world. The growth rate for the
smartphone in the Asian market is growing, and the correlation between sale and
purchase demonstrates the value of smartphones. Manufacturing and assembly of
smartphones consist of instalment of various instruments like as DRAM, CPUs,
MCPs and other devices. Software and operating system is intellectual property
for smartphones (Dahlén, 2009).
Global Supply Chains of Benefits and Threats of Digital
Communication Strategies vs Mass-Reach Traditional Marketing Approach in Global
Smartphone Industry on Asian Market. (Comparing the cases of Sony and Huawei)
In the Asian market, the global supply chain has a
significant role in marketing the product. Smartphone companies are targeting
potential customers in the market for selling their phones. There is a problem
with the supply chain as the market has a high demand for smartphones due to
advance technology. Manufacturing company's production units are in advance
countries and shipment delays or other problems. The repairing and other issues
with a smartphone have impacts on selling or purchasing. Therefore, smartphones
companies are establishing their manufacturing units in China and other
countries. Manufacturing companies are solving the global supply chain issues
for improving their marketing strategies (Emma
K. Macdonald, 2016).
Global Trade of Benefits and Threats of Digital
Communication Strategies vs Mass-Reach Traditional Marketing Approach in Global
Smartphone Industry on Asian Market. (Comparing the cases of Sony and Huawei)
Digital marketing and traditional marketing have
different impacts on the selling and purchasing of smartphones. Global trade or
cross border trade has some legal or tax issues. In global trade, companies are
following the national laws, and it has lower down the trading. In the Asian
market, companies have opportunities for increasing business. Digital media or
marketing has impacts on customers, as millions of customers are using social
media. The traditional marketing has deeper ground for influencing the people
and motivate customer for completing the sale process (Emma K. Macdonald, 2016).
Tech Cycle of Benefits and Threats of
Digital Communication Strategies vs Mass-Reach Traditional Marketing Approach
in Global Smartphone Industry on Asian Market. (Comparing the cases of Sony and
Huawei)
The standard or demand for products is changing over
time as new technology is coming in the market. The research and development in
the smartphone market have advanced the applications. Tech cycle has importance
for companies for developing the technology. In this advance modern world,
information and communication technology has strong impacts on smartphone
technology. Smartphone has various features for attracting customers. Professionals
have a strong influence in purchasing the latest version due to advance
features. Smartphones applications, software's and hardware capacity or
abilities increased with time to time for increasing sale. Tech cycle is an
important source for digital marketing and traditional marketing team for
motivating people for purchasing advance technological features. Tech cycle
motivates the marketing team and provides them with a solid reason for promoting
the sale in the Asian market (Ha, 2016).
According to Nguyen Khanh Linh and Nguyen Thu Ha
(2016), it observed that the customers have a positive attitude towards
smartphones. The marketing activities shows that people have a great interest
in purchasing smartphones. In marketing, companies marketing experts and
strategies developers are developing the policies for cashing the consumer
sentiments. It founded that the index for consumer sentiments for purchasing
smartphones is increasing and marketing experts are using it for increasing
their selling. The purpose of using these tactics is to cash the consumer sentiments.
It based on marketing mix paradigm (4P's). The marketing mix is a strategy
adopting for attracting consumers. Its purpose is to build a positive
relationship between company products and consumers. Companies management is
using four components for increasing sale in the market. These four components
are as product, price, place and promotion. There is a strong connection
between the four elements of the marketing mix. These components are essential
for the satisfaction of customers. Customer satisfaction is the ultimate goals
of smartphone manufacturing companies. The most important in the marketing mix
is "product" as it is the central component. Product has a strong
impact or influence on customer satisfaction. The study indicates that how to use
these marketing mix techniques for enhancing the satisfaction of customers in
various regional countries.
Advance technologies in smartphones have developed
competition in the market, and people looked for alternative smartphone
companies for purchasing. In the Asian market, people have high, average and
limited buying power for smartphones. It determined that competition among
smartphone companies are increasing in selling their new products. The Asian
market has potential as there are more than 134 million mobile subscriptions.
In Asian countries, there are more than 20 million 3G services using customers.
It determined that more than 80 million are using technology. There is a 59%
increase in sale in smartphones observed due to development in underdeveloped
countries. It is important to note down the consumer’s attitude for designing
products in the market (Ha, 2016).
Product of Benefits and Threats of Digital
Communication Strategies vs Mass-Reach Traditional Marketing Approach in Global
Smartphone Industry on Asian Market. (Comparing the cases of Sony and Huawei)
The smartphone is a product that is designed for
customers, and their applications with various kind of components have impacts
on customers. The consumers have a comparison before purchasing the smartphones
in the market. Therefore, smartphone design, colour and other features have
strong impacts on selling and purchasing. There are various attributes or
characteristic for products like quality and guarantee for targeting customers (Hatch, 2018).
Price of Benefits and Threats of
Digital Communication Strategies vs Mass-Reach Traditional Marketing Approach
in Global Smartphone Industry on Asian Market. (Comparing the cases of Sony and
Huawei)
The value of product or price has psychological impacts
or influence on customer and market. The amount of money charged for a
smartphone has unique consequences on their selling. The price of the product
must include the cost and profit margin.
Place of Benefits and Threats of
Digital Communication Strategies vs Mass-Reach Traditional Marketing Approach
in Global Smartphone Industry on Asian Market. (Comparing the cases of Sony and
Huawei)
The most important strategy is the place where you are
launching their product. The place has a psychological impact or influence on
customers like the cellphone market. It's an easy point for companies to
deliver and distribute their products. Place selection is a part of marketing
strategy, and it makes it easy to target people.
Promotion of Benefits and Threats of
Digital Communication Strategies vs Mass-Reach Traditional Marketing Approach
in Global Smartphone Industry on Asian Market. (Comparing the cases of Sony and
Huawei)
For increasing sale in the Asian market, smartphone
companies are offering various promotional techniques. Promotion based on
incentives or other benefits for customer on completing the sale. It motivates
people for purchasing and target potential customers. The promotional strategy
motivates consumers by advertising features and values (JAIN, 2017).
Consumer attitudes of Benefits and
Threats of Digital Communication Strategies vs Mass-Reach Traditional Marketing
Approach in Global Smartphone Industry on Asian Market. (Comparing the cases of
Sony and Huawei)
All the above factors have strong impacts on customer
attitude and customer psychology. Their attitude judges the assessment and
evaluation of customer behaviour. Marketing mix has strong impacts on customer
attitude for completing the sale. It founded that customer attitude index
varies with the change in quality, benefits, beliefs, feelings and economic
condition. Customer attitude changes the internal and external environment for
competitive advantages. It has effects on the customer level of satisfaction
for purchasing the alternatives smartphones.
The most important is that products have strong effects or impacts on
the customer attitude for completing the sale. Culture and religious matters
have strong impacts on personal psychology. In Asian countries, each country
has a different culture, and it has impacts on customer liking and disliking.
The strong knowledge about consumer attitude motivates marketing team for correlating
customer’s activities and satisfaction (Ha,
2016).
Attitude of Benefits and Threats of
Digital Communication Strategies vs Mass-Reach Traditional Marketing Approach
in Global Smartphone Industry on Asian Market. (Comparing the cases of Sony and
Huawei)
In selling and purchasing, the attitude of the client
is most famous for the company’s marketing team. Companies leadership and
management develop new strategies for making the customer satisfied. Customer
satisfaction has positive impacts on its attitude. The attitude of the customer
depends on their experience and various other factors. In the Asian market,
customer demand high quality at a reasonable price. Manufacturing companies are
focusing on customers and their attitudes for increasing sale (Jain S, 2015).
Consumer Sentiment towards Marketing
Companies marketing on digital media have effects on
people but not targeted or focused. Consumer sentiments or feeling are
essential for the marketing team. Smartphones have various applications that
keep them busy in daily life. Consumer thoughts, feelings, beliefs and emotions
have strong impacts on marketing strategies. Marketing strategies based on
techniques and tacit for motivating customer to build trust on company
products. Therefore, smartphone manufacturing companies are focusing on
targeting consumer sentiments for marketing (Juneja,
2017).
Customer Satisfaction of Benefits and Threats of Digital
Communication Strategies vs Mass-Reach Traditional Marketing Approach in Global
Smartphone Industry on Asian Market. (Comparing the cases of Sony and Huawei)
For developing a marketing campaign or plan, customer
satisfaction is the most important and valid point. Marketing team with
leadership development plans or strategies for developing trust. Trust building
on company products is a major or bigger challenge for the marketing team.
Smartphone manufacturing companies are using digital marketing for reaching to
mass people. The traditional marketing is focusing on customer needs or
demands. The overall purpose of marketing satisfies customers (The University of Texas at Tyler, 2017).
Smartphone of Benefits and Threats of
Digital Communication Strategies vs Mass-Reach Traditional Marketing Approach
in Global Smartphone Industry on Asian Market. (Comparing the cases of Sony and
Huawei)
The smartphone is a game-changing product in the Asian
market for attracting customers. Smartphone manufacturing companies are
targeting customer needs or demands. The companies marketing team are developing
strategies after assessing or evaluating the market. Customer acquisition and
retention is a challenge for companies and leadership, installing new equipment
for handling advance level issues (Meah, 2018).
According to Vinod Kumar Chandola and Huifen Fu
(2017), it founded that integrated market communication (IMC) is most significant
for targeting emerging markets. According to target marketing experts,
different qualities and character are important for selling the products in the
market. The emerging market is consisting of a wide range of diverse cultural
background customers. Therefore, innovation is key to motivate people for completing
the sale of the smartphone. The internationalization has impacts on customer
psychology and new or advances technology in smartphones changed customer
thinking. The young smartphone users create a bigger size of the market in the
Asian region. The various case studies have a part of the strategy for
developing or improving the strategies for targeting the customers. The most
important in the Asian market is targeted marketing for customers. The
marketing strategies developed on the base of interviews from managers and
statistical data support the company strategies. It is most important for
companies before entering into the Asian market for must assess or evaluate the
sale. The qualitative data support the organizational strategies and successful
entering into the market. The literature enfolds and compares the strategies
for companies. The strategies that companies are using for attracting customers
creating challenges for customers. It is complicated for customers to adopt the
new changes and companies to meet customer demands. Therefore, smartphone
features and pricing have impacts on targeting the consumers in the market (Fu, 2017).
Internationalization of Benefits and
Threats of Digital Communication Strategies vs Mass-Reach Traditional Marketing
Approach in Global Smartphone Industry on Asian Market. (Comparing the cases of
Sony and Huawei)
Digital marketing and traditional marketing have a
difference in targeting customers on the national and international level.
Digital marketing has the purpose of making a brand name in the market, and the
traditional market much focused on targeting potential customers. Internationalization
has strong impacts or influence on marketing strategies, product quality and
product standard. In the Asian region, the population has focused on adopting
advance technology to meet global challenges (Li,
2017).
Emerging Market of Benefits and
Threats of Digital Communication Strategies vs Mass-Reach Traditional Marketing
Approach in Global Smartphone Industry on Asian Market. (Comparing the cases of
Sony and Huawei)
The Asian market is emerging for manufacturing
smartphones as under developing countries, and developing countries are the
target of companies. Smartphone companies did not neglect the Asian market due
to its population and need for people. People need technology and communication
sources for connecting the world largest population area. The Asian market is
emerging for companies as the market has a large potential for generating
profitability (Kolowich, 2019).
Product & Pricing Impacts
Marketing is a technique or method for increasing
sale. People have habits for researching new technology and products. People
want to have the latest technology or product in their pocket. Product design
or colour have impacts on selling. Product is the ultimate thing, and its
quality has great support for the marketing team. Marketing team build strong
product designs and applications for supporting the advertisement. The pricing
of the product also has a strong role in implementing marketing strategies in
Asian countries (Katherine N. Lemon & Peter
C. Verhoef, 2016).
Adaptation and IMC (Integrated Market
Communication)
Consumers have a problem in adopting new technology as
new products are costly and required advance knowledge. Customers in Asian
countries hesitate or feel pause for adapting new techniques or technologies.
The inventions in information and communication technology have impacts or
effects on smartphones. Therefore, smartphones manufacturing companies are focusing
on adaptation and integrated market communication. The major purpose of
adaptation and IMC is to train the people for adopting the new technology.
Smartphones companies are focusing on managing the sale and increasing
communication to target the mass population.
Consumer Acceptance of Benefits and
Threats of Digital Communication Strategies vs Mass-Reach Traditional Marketing
Approach in Global Smartphone Industry on Asian Market. (Comparing the cases of
Sony and Huawei)
The Asian market based on developed countries like
China, Japan and on underdeveloped countries like India, Pakistan and
Bangladesh. Smartphones manufacturing companies are focusing on targeting the
largest population in the region. The Asian region has potential and love for
adopting new technology. People are courageous about learning new technology,
especially smartphones. Consumer acceptance is most important for increasing
the scale and quality of products. Consumer acceptance motivates the employees
for developing new strategies for competing in the market. It provides
opportunities for smartphones companies to make or develop unique products for
customers at affordable prices (Juneja, 2017).
According to Quah Li Ling, Santhi Govindan and
Ravindran Radhakrishnan (2018), smartphones manufacturing companies switch a
war or battle in the Asian market. The flagship smartphones of top brands
launched in the Asian market with the help of vendor's. It observed that top
leading brands after some year goes for the decline. After research, it founded
that Asian nations change their mobile phones at regular intervals. Researchers
found that smartphones technology changes more frequently as compared to other
devices. Asian people like Malaysian, Japanese and Chinses have interest in
changing their mobile phones and switching the brands in the market. The
replacement of cell phones with regular intervals has now become a growing
concern in the market. The switching of the brand in the market has impacts or
influences on smartphones companies. Therefore, smartphones companies'
leadership and management researches on the reasons for losing in the sale. The
growing concern of people about smartphones changed the thinking and marketing
strategies for satisfying customers. Smartphone manufacturing companies are
launching their smartphones on the base of seasonality. In each season, the new
smartphone model launched in the market with latest features and application
that have an attraction for people (Quah Li
Ling, 2018).
The purpose of the study is to examine the impacts on
smartphones on customers and brand switching. Brand switching has become now a
growing trend in the market among smartphone users. It founded that some
factors affect customer or consumers brand switching. These factors that have
effects on consumer brand switching are like price, brand image, product,
features and promotion. In this study, the sampling technique or method used
for collecting the response of people. A survey questionnaire distributed for
knowing the views of people. After the collection of the survey questionnaire
and obtained data were analyzed. The frequency method is used for data
analysis. In this study, multiple linear regression method used for the
analysis of reliability and frequency. From research, it founded that brand
image is most important as people belief on quality and linked it with brand
value in the market.
The product features are also a common reason for
brand switching, and it has a significant role or relationship with the brand.
Customers or consumers have a strong relationship with company products and
with their features. The strongest relationship of the brand is with consumer
behaviour or attitude as it has a strong role in completing the sale process.
The consumer psychology is most important for targeting the people. Smartphone
manufacturing companies' leadership and management are focusing on consumer
behaviour or attitude toward their new products. The marketing plan or
strategies developed on the base of nature, culture, religion and the base of
various factors. However, the most important is price and sale promotion. The
significant role in brand switching is the price and mobile applications. This
study helps researchers and smartphone manufacturing companies for knowing
about consumer behaviour. The consumer behaviour for brand switching influenced
by various kinds of factors and most of the factors have strong impacts or
effects on customer relationship. The overall purpose of the study is to help
smartphone manufacturers in developing strategies for becoming successful in
the Asian market (Kolowich, 2019).
Brand Switching of Benefits and
Threats of Digital Communication Strategies vs Mass-Reach Traditional Marketing
Approach in Global Smartphone Industry on Asian Market. (Comparing the cases of
Sony and Huawei)
It observed that smartphones manufacturing companies
are launching their products in the Asian market after testing. The brand is a
name of quality, and people expect more than just a smartphone. Companies also
want to have loyal customers and satisfied customers. The brand switching of
special kind of mobile phone or specific model is due to its applications,
software, price and due to other features. It founded companies with the same
products and featured offering products to clients at low prices. Therefore,
people are going towards brand switching. The most important behaviour or
attitude of the consumer is that they do not want to use a smartphone for more
than six months or maximum for one year. Smartphone loses their attraction or
customer fed up or bored with the product. Therefore, after six months, '
consumers in Asian market goes for changing their smartphone. The replacement
or brand switching is linked to consumer attitude.
Price
The most important in brand switching or weaken
marketing is its price. The price has a strong role in marketing. In digital
marketing, price is used for targeting the maximum number of people. On digital
media, it cannot control the targeted marketing as people of diverse nature
using social media. The nature of people has a strong role in making a product
successful in the market. Therefore, pricing of the product must be affordable
as it has impacts on selling or marketing. Traditional marketing is a deep
level marketing, focused marketing and targeting marketing. In traditional
marketing strategies, team members convince the people, whole sellers and other
professionals to buy products. In the customer winning strategy, the price of
the product plays a very important role (Ha,
2016).
Brand Image
Digital marketing is a new tool or technique for
advertising their products to consumers in various regions of the world through
social media. Branding is the success of a company as customer trust in their
products and their equipment for smartphones. Traditional marketing is most
important for convincing people. Branding has importance as it makes marketing
easy, and it's easy to handle people. The trust-building of people on branding is
the success of the company, and its mean people give worth to company products.
Branding image shapes the consumer desires and wants for handling the problems.
Product Features
The most significant is product feature as customers
have interest in various features installed in smartphones. Smartphones have
limited features and have limited memory. Smartphones features are developing
day by day with the advancement in technology. The success of smartphones
companies linked with new innovative features. The change in features according
to customer needs is a key to change products size, weight and features. It has
long-lasting impacts on the marketing of the product. Digital marketing and
traditional marketing have different perspectives, but in both products,
features are most important for marketing. The marketing strategies have
positive impacts or effects as much features installed in smartphones. People
like to have more variety in features as it is very important for handling the
diverse nature of people.
Sales Promotions
Sale promotion is part of marketing strategies for
changing consumer behaviour and influencing or convincing it for purchasing a
new product. People have a strong connection and concern for sale promotion.
Sale promotion means companies give extra things with product or less in the
price for consumers on first purchase. Sale promotion used for marketing and
for consumer attraction on digital media and in traditional marketing
techniques. Buy one and get one free is the most common promotion. But in
smartphones, sale promotion includes a percentage off in prices, hand free,
charger and some other items. In marketing strategies, smartphone manufacturing
companies are using sales promotions for diverting the attention of people
towards their products (Quah Li Ling, 2018).
According to Wahid Zahid and Omkar Dastane (2016), it
determined that various factors are effecting the purchase intention of
consumers. The purchase intention of the consumer is effecting form the
perceived prices. The price is most significant concerning issues that affect the
adult’s attitude or behaviour for thinking. The second important factor that
affects the consumer intention for purchasing is its perceived quality. The
quality of products has psychological impacts on the consumer for using product
professionally and for routine working. Quality is a key to rule in the market
as potential buyers never compromise on the quality of products. The factor
that has a strong influence on consumers is brand awareness. Brand awareness is
the most difficult and challenging task for the management and marketing team.
Marketing team plans for developing strategies for making their products as a
brand. The major purpose of banding is that brand have people trust, and it is
easy to market their product. Brand awareness is itself marketing as making a
strong impression of company products on consumers. There is another factor
that influences consumer intention for purchasing is social influence. Social
interaction with people is also a way of marketing. It's mean that potential
customers have their products or brand items. These potential customers suggest
others for purchasing the products of special brand in the light of their
experience. Every new buyer of smartphone consults with their friends and
family before making a purchase in the market. These friends and family members
give them suggestions for purchasing a specific budget item (Dastane, 2016).
Therefore, social influence is a powerful medium that
affects or influence the intentions of people for buying products in the market.
These persons play a role of supporting actor for purchasing the specific brand
in light of their experience. The study shows that young adults have an
interest in purchasing new smartphones. In this research, explanatory research
method is used for analyzing the people and market. The quantitative empirical
data is collected for analysis. The sample collected from more 200 young
adults. In this research, the random sampling technique is used for assuring
the authentic public reviews. For analysis of data, correlation and regression
method used and for this purpose SPSS used. Two major factors have a linear
connection or relationship like an intention for purchasing and influential
factors. There is a linear relationship between social influence and purchase
intention of young or adult persons. The study determined that four factors
have a strong influence on purchasing intention of people. The findings
indicate that social factors have a strong influence on purchasing intention
and brand developing in the market. It is better to use or apply the promotion
mix for smartphones.
Purchase Intention of Benefits and
Threats of Digital Communication Strategies vs Mass-Reach Traditional Marketing
Approach in Global Smartphone Industry on Asian Market. (Comparing the cases of
Sony and Huawei)
The marketing team has the challenge to change the
intention of people for purchasing a new smartphone. The purchase intention of
the consumer for buying product changes due to social influence. These are
factors that marketing team has the need to change like as price factor,
quality factor, brand awareness and social factor. All of these factors
influence consumer purchase intention. Purchase intention did not benefit any
brand until the consumer but their company product. Therefore, the marketing
team use digital media for increasing awareness about their smartphone
products. Digital media can highlight the features of products and
advertisement on social media has long-lasting impacts on user memory. The use
of social or digital media has made it easy to access the people and for
companies to promote their business. Digital media has made it easy to target a
specific area population. It has substantial impacts on human psychology for
monitoring the attitude and behaviour of young adults for making the purchase. In
traditional marketing, traditional tool and techniques used for targeting the
potential customers only. It saves the time and cost of marketing, and the
company has an only potential consumer. Traditional marketing strategies have
serious effects on purchase intention of young adults in Asian.
Asian Young Adults
The innovation in information and communication
technology has changed the way of thinking and understanding. The new advance
level of technology has strong impacts on young minds for approaching for
purchasing products. The study shows that Asian young adults have a strong
connection with technology for meeting global challenges. The adults in China.
Japan, India, Korea, Malaysia and some other countries have the ability to use
the latest technology. Therefore, digital marketing techniques or methods have
strong impacts on Asian young adults. Digital marketing is the best method for
targeting the young generation and diverting their intention for purchasing. The
role of Asian young adults for purchasing intention also effected by social
factor. The friends and family have strong impacts or influence on purchasing
intention of people. Traditional marketing method or techniques have just
focused or targeted marketing to a special group of people. Traditional
marketing required some innovative methods for changing the intention of young
adults for purchasing brand smartphones.
Buying Behavior of Benefits and
Threats of Digital Communication Strategies vs Mass-Reach Traditional Marketing
Approach in Global Smartphone Industry on Asian Market. (Comparing the cases of
Sony and Huawei)
The study shows that the buying behaviour of consumer
or young adults changes as new product or smartphone comes in the market. Marketing
is a tool for creating awareness among people about new smartphone features.
Therefore, marketing has an influence on buying behaviour as its most
challenging job. It is not easy to change the mind or thinking of a person,
especially about smartphones. Therefore, marketing job is very difficult to
change mind for purchasing the smartphone after six months. The buying
behaviour of consumer-controlled through various techniques and methods. The
marketing team have special offers for customers to controlling the buying
behaviour in Asian countries. Asian people have diverse culture and nature for
purchasing smartphones and their buying behaviour controlled for offering them
special offers. SEA region in Asia consists of seven key markets for careful monitoring
the consumer behaviour. Digital and traditional marketing techniques used for
motivating young for purchasing the smartphones (Dastane,
2016).
According to Maral Jamalova and Constantinovits Milan
(2019), it founded that there is a strong relationship between smartphone and
socio-economic indicators. They both have an influence on consumers for making
the decisions. Socio-economic indicators and smartphones are influencing the
decisions of people. It has impacts on the operating system in the market.
Indicators have impacts on socio-economic conditions and smartphones sale or
purchase. These indicators are GDP per capita in the country, gross saving in
the country and the ratio of inflation. The other indicators are the ICT
development index and unemployment in the country or region. Socio-economic
indicators have impacts on the selling of smartphones in the market due to the
human development index. The human development index consists on the following
factors like as a culture, psychology, personal factors and health. These are
the factors that affect the marketing strategies developed for digital
marketing and traditional marketing. The variables have impacts on marketing,
business and profitability in the market. Marketing analysis provides a clear picture
on the regional level in developing countries and under developing countries. These
are the trend-setting indicators for smartphone market (Anon., 2019).
Mobile phone/Cellular phones technologies have strong
impacts or revolutionary impacts on people. Smartphones are the basic need for
each person to stay connected with their friends and family. The consumers
belong from different perspectives and backgrounds in the Asian region for
using services and applications. Smartphones have various application for
serving like banking, health, travel, hotel booking, maps and various other
applications. The smartphone handset changed the level of thinking or
understanding. Rapid technological development in the 21st century
has increased the multimedia services. Smartphone companies are improving their
services for GPS, 3G-5G network and mobile phones. The operating system or
software installed for networking features. Smartphone companies are installing
new operating systems, programs and application to meet the demand of customers
or consumers. Consumer behaviour is complicated as cultural or social impacts
have different responses for Android or iOS.
Smartphone Market of Benefits and Threats of Digital
Communication Strategies vs Mass-Reach Traditional Marketing Approach in Global
Smartphone Industry on Asian Market. (Comparing the cases of Sony and Huawei)
Digital marketing has an advantage over the
traditional marketing as it has the capacity to cover the mass population
across the world. The digital marketing has no boundaries, border and limits.
Social media has now become the most powerful influencing sector for
advertising. Millions of people in each country are now using social media and
connected with each for professional linkage or cultural. The smartphone market
in the Asian region has large opportunities for companies to make their brand
worth with high-level marketing strategies.
Socio-Economic Indicators
The socio-economic indicators have strong impacts on
marketing strategies using by smartphone companies for motivating people to
purchase mobile phones. These indicator describes the economic position of
people in the country. It’s very useful for companies to target the specific
group of the population. These socio-economic factors are like as given,
GDP per capita Income of Benefits and
Threats of Digital Communication Strategies vs Mass-Reach Traditional Marketing
Approach in Global Smartphone Industry on Asian Market. (Comparing the cases of
Sony and Huawei)
The GDP ratio of the country indicates the position of
income in the market as it describes the per capita income. The GDP ratio of a
country indicates the per capita income of a person. It is very helpful for
determining the level of potential customers for purchasing the products or smartphones
and set the range of buying. The buying power of persons indicates that large
population has the capacity to buy which level of smartphone or range of price.
Gross Saving of Benefits and Threats of Digital
Communication Strategies vs Mass-Reach Traditional Marketing Approach in Global
Smartphone Industry on Asian Market. (Comparing the cases of Sony and Huawei)
The gross saving indicates that how much a person or
average persons are saving from their income. The gross saving ratio indicates
the overall money-saving ratio of persons. It also indicates the potential
customers and their capacity range for purchasing the smartphones in the
market.
Inflation
The factor has impacts or influence on the purchasing
power of the consumer. Inflation ratio is higher in the country means that
consumers have less buying power. If the inflation ratio is less or lower in
the country, its mean people have the high saving level and have capacity to
spend more on purchasing. Therefore, inflation is a key factor that has effects
or influence on consumers purchasing power. Marketing teams have a deep
observation of inflation and for their marginal profit.
ICT Development Index
ICT development index indicate the purchasing power of
consumers as it has direct impacts on the economy or economic condition. It has
a strong role in helping the marketing team and leadership for developing
strategies for the smartphone in the market.
Unemployment
Unemployment in the Asian region or under developing
countries is an important factor that has effects or influence on buying power.
The unemployment in young or adults has negative impacts on the buying power of
customers. Unemployment has negative impacts on earning condition and its mean
that people or young people did not have a job. Money is most important for
spending on their life necessities. Life necessities are most important as
people prefer to fulfil their basic needs and after that pays attention on
purchasing other products. The sale ratio increases with the number of
employment opportunities and decrease with the decreasing in employment
opportunities.
Human Development Index
Human development index applied by world bank for
monitoring the economic conditions of countries in the world. Human development
index has more than five indicators that shows the condition or buying power of
country people. The survey of the human development index is based on GDP
ratio, per capita income, gross saving, health, education and economic export
or on some other indicators. These indicators show the development in human
resources and infrastructural resources. Smartphones manufacturing company’s leadership
and management have a deep observation on these indicators as its show the
potential buying power in the country. Human development index also provide an
opportunity for brand companies to establish their units as labor has lower
cost and low taxes ratio.
Cultural, Psychological and Personal
Factors
Digital marketing and traditional marketing has an
influence on people for purchasing the new smartphones. Companies are using
motivational techniques, push and pull strategies for consumers for purchasing
new smartphones. The culture of the country has a significant influence on
marketing strategies. The psychological and personal factors have a role for
developing new strategies for controlling the influencing factors. Digital
marketing has positive psychological impacts, and traditional marketing has
positive impacts on personal factors. Both marketing strategies motivate Asian's
for purchasing new smartphones with an advance level of applications (Milán, 2019).
According to Wei-Lun Tsai and Ping-Teng Chang (2018),
it founded that the performance of smartphone manufacturers has competitive
growth and development. The global system of mobile communicate founded that
there were more than 5.7 billion mobile phone users in the world. The new
advance technology has changed the mental approach and communication technology
has changed the understanding of power. In recent years, smartphone companies
have good performance as the demand for cell phones is increasing in the
market. The competition in the industry has positive impacts on consumers as
companies are offering the best products in an affordable range. The digital
marketing and traditional marketing has covered mass population and covered the
targeted market. It observed that smartphone manufacturing companies' efficiency
increased and its capacity also increased. In the Asian region, smartphones
companies are using competitive advantages for improving their brand value.
These are like as trademark, patent application and intellectual property
rights. The marketing team is focusing on the supply chain, brand value and
marketing channels for increasing sale (Chang,
2018).
According to Kuljit Kaur and Harmeen Soch (2017), it
founded that the image of product or smartphone company has impacts or
influence on shopping for a smartphone. In the Asian market, it determined that
face consciousness or company reputation has a strong role in its selling
products. The image of company for shopping shows its brand reputation for
consumer and have effects on consumer behaviour. In the Asian market, people
are face conscious, and company social image deals with purchase decision
making in the market. The purchase of smartphone linked with the factors such
as social factors (Soch, 2017).
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