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Table of Contents

Executive Summary ................................................................................................................... 2

1.0 Organization A: Apple Inc.s introduction of the iPhone 7 family of devices ................... 3

1.1 Target audience and IMC Objectives .................................................................................. 3

1.2 Integrated Marketing Communications (IMC) Mix ............................................................ 6

1.3 Measuring IMC Outcomes ................................................................................................... 9

2.0 Organization B: National Plan of Action for Nutrition in Malaysia (NPANM II 2006-
2015) By the Nutrition Division of the Ministry of Health, Malaysia. ............................ 11

2.1 Target audience and IMC Objectives ................................................................................ 11

2.2 Integrated Marketing Communications (IMC) Mix .......................................................... 14

2.3 Measuring IMC Outcomes ................................................................................................. 16

3.0 Analysis of IMC practices between organizations A and B .............................................. 17

4.0 References .......................................................................................................................... 19


Executive Summary

This report aims to highlight the integrated marketing communication mixes that may be
employed by various organizations types. The report analyses the IMC mix employed by Apple
Inc. with the launch of its iPhone 7, focussing on communicating the products functions and
features with the purpose to increase the sale of its devices. This report also draws attention to
a government organization, namely the Nutrition Division of the Ministry of Health and its
efforts to promote healthy eating through the NPANM II plan. The goal of the IMC mix
employed here is the propagation of a PSA that is targeted at reaching all Malaysians citizens
in an effort to create awareness and prevent the rise of obesity.

With the IMC mix of both organizations listed and analysed, this report then evaluates and
compares each IMC mix employed and its effectiveness in communicating the organizations
intended message to its target audience. The comparison highlights the similarities and
differences in the IMC mix of both organizations paying particular emphasis on the
justifications and objectives of each IMC mix and the impact of each strategy on the marketing
environment in order to understand the emerging issues in the global marketplace and its
application in a Malaysian context.
1.0 Organization A: Apple Inc.s introduction of the iPhone 7 family of
devices

The chosen organization for context A: a consumer electronic producer introducing its latest
product into the market, is Apple Inc. and the introduction of the iPhone 7 family of devices,
namely the iPhone 7 and iPhone 7 Plus. The iPhone 7 family of devices was released on
September 7th, 2016 at an Apple Special Event in Bill Graham Civic Auditorium, San Francisco
(Press Info by Apple Inc., 2016).

1.1 Target audience and IMC Objectives

According to Gunter & Furnham (1992), market segmentation is the subdivision of the market
into homogenous subsets of consumers where any subset may be selected as a target to be
reached with distinct marketing mix. With the release of its latest product, Apple Inc. has
applied market segmentation based on measurable consumer characteristics, namely,
behaviorgraphics, psychographics, demographics and geodemographics in order to determine
its target audience and the integrated marketing communication (IMC) mix employed. In terms
of its objectives, Apple Inc. employs a one-size-fits-all approach across all 125 world regions
that its products are distributed to (Hovivian, 2015). As such, the directives for IMC mix and
marketing objectives of Apple Inc. is rolled out from its headquarters in Cupertino, CA.

Behaviorgraphics describes how consumers behave towards a particular product and can be
analysed in terms of past purchase behaviour (Kotler & Keller, 2009). A report by market
research firm Strategy Analytics (Mawston, 2016) states that Apple Inc.s previous flagship,
the iPhone 6s, is the worlds most popular phone in Q2 of 2016, followed by the older iPhone
6 and Samsungs Galaxy S7 Edge with a total of 14.2 million units shipped in Q2 of 2016. The
iPhone 6 also shipped a total of 36.8 million units from the Q2 of 2015 up until Q2 of 2016.
These data reflect past purchase behaviour of consumers and the affinity of consumers towards
iPhones despite the loss of market shares to upcoming smartphone competitors like Huawei,
Samsung and Oppo. It can also be inferred that buyers of iPhones are brand loyal and a large
percentage of future purchasers of iPhones will be returning customers.
Table 1: Global Smartphone Shipments by Model

Source: Strategy Analytics

Chart 1: Percentage of smartphone sales

Source: Slice Intelligence


Psychographics pertains to two aspects of a consumers: personality profiles and lifestyle
profiles. The variables provide additional information to enhance a companys understanding
of the behaviour of potential target markets (Gunter & Furnham, 1992). Psychographical
segmentation divides consumers according to attitudes, values, lifestyles, interests and
opinions (Pickton & Broderick, 2005). Based on the official Apple Inc. advertisement (Apple
Introducing iPhone 7, 2016) it can be inferred that Apple Inc. has targeted a diverse segment
of the market with the release of its latest product. The ad captures a range of young people
doing everyday things such as texting, capturing images and videos while on the move,
listening to music while working out, swimming, commuting under the rain and other daily life
situations.

Geodemograhics relate to the geographic clusters in which consumers reside or frequent. The
assumption is that clusters such as neighbourhoods or zip codes share similar population
demographics and lifestyles. The placement of Apple Stores throughout the world are located
in more affluent shopping malls. In Malaysia, authorized Apple resellers are located in malls
such as Gardens, KLCC, Bangsar Village II, and Setia City Mall (Find Location, 2017). This
reflects the demographic of the target market of Apple Inc. as being of a higher income bracket
or with an amount of spending power.

Demographic targeting is centred around aspects such as age structure of a population,


household composition, income, education and marital status (Armstrong & Kotler, 2005).
These variables are often easy to identify and measure. According to Slice Intelligence, an
agency that tracks online shopping data, a higher percentage of customers who buy the iPhone
are between the ages of 25 and 34 (Minney, 2015). A similar survey carried out by Consumer
Intelligence Research Partners (CIRP) consists of 500 subjects within each quarterly of the
U.S. who have purchased a mobile device in the preceding 90 days. The survey results are
shown in the following chart.

Chart 2: Sales of Apple iPhone according to age groups

Source: CIRP
Taking into consideration the consumer measurable above, Apple Inc. has positioned its iPhone
7 in the reach of the most beneficial target market. A result of effective positioning is a
persuasive reason for the target audience to purchase a particular product (Kotler & Keller,
2009). Hence, the iPhone 7 is primarily targeted at every-day, urbanite Millennials, those born
between the years 1982 and 2002 with a considerable spending power (MCMC, 2015).

With the release of the iPhone 7 family of devices, Apple Inc.s integrated marketing
communications (IMC) projects the globally consistent message of delivering product
innovation packaged in an intuitive user experience across all the marketing tools employed
(Apple Inc., 2016). The primary IMC objective is to increase the Apple iOS user base. This
can be inferred from the simultaneous launch of accompanying products alongside the iPhone
7 such as the Apple AirPods and the iWatch series 2. These simultaneous launches aim to entice
users into the highly-integrated Apple ecosystem that consists of other products that work
seamlessly together such as the MacBook Pro as well as services such as ApplePay and iCloud.
In addition, Apple Inc. aims to reboot the sales of the iPhone which has suffered a dip in the
smartphone market reflected in a 27% decline in profit from the sales of Apple Inc.s previous
flagship phone the iPhone 6s (Wakabayashi, 2016) and the rise of device-makers such as
Huawei and OnePlus (Dou, 2016). This is achieved through Apple Inc.s emphasis on the new
features of the iPhone 7 (Press Info by Apple Inc., 2016).

1.2 Integrated Marketing Communications (IMC) Mix

Apple Inc. utilizes several media advertising mediums. iSpot.tv (2017), a real-time television
ad analytics service provider, posits the average airing of the Apple iPhone 7 ads at 1,424 a
month across cable providers in the United States alone. A research by Accenture Strategy
(Macdonald et al, 2016) shows that advertising on multiplatform TV has an effect on search,
display and short-form video advertising within integrated campaigns. On average, 18% of the
Return on Investment (ROI) that is typically attributed to these channels are a direct impact of
multiplatform TV ads. According to MarketShare (2015), an advertising performance analysis
across multiple media outlets has shown that TV has maintained a high-frequency of consumer
interactions across various consumer groups. In Malaysia, these ads are also distributed on
locally available channels such as Diva Universal (Apple Inc, 2016). The ads are also
distributed via social media channels such as Youtube and Facebook as a study reflects that
45% of internet users in Malaysia are likely to follow brands on social media (McGrath, 2016).

Apple Inc.s recent Shot on iPhone ad campaign which began with the introduction of the
iPhone 6 showcases beautiful photos shot by users of the iPhone from all over the world. These
stunning visuals are displayed on billboards all across the world. In Malaysia, a study (Osborne,
2009) shows that billboard ads, which accounted for 2% of ad spend in 2009 is fast growing
by 35% per annum. A study of private car ownership in Kuala Lumpur reflects a rise in the
dominance of private cars on Malaysian roads, correlating with an increase in viability or
billboard advertising (Mohamad, J & Kiggundu, A. T., 2014). In addition, a study showed that
71% of consumers often look at messages on roadside billboards and that billboard viewers
make shopping decisions while in the car (Williams, 2009). As such, billboard ads do get
noticed by consumers and influence consumers decisions. The eye-catching photos featured
by the ad campaign have a higher chance of getting noticed by consumers in traffic.

Image 1: Billboard showcasing ad campaign Shot on iPhone in Los Angeles

Source: Daily Billboard


Image 2: Billboard showcasing localized Shot on iPhone billboard in Bangsar

Source: says.com

Apple Inc. also employs store signage and point of purchase advertising not only within its
own Apple Store and Apple Authorized resellers, but also at the stores of partner mobile
carriers such as Maxis, uMobile and DiGi. An article on Forbes (Babej & Pollak, 2007) states
that over 70% of purchase decisions are made in-store, and ad messages delivered at point-of-
purchase have the best chance to influence impulsive behaviour in consumers. In-store
marketing for the iPhone 7 ranges from banners and signs within the store to TV screens in-
store and along the perimeter of the storefront, replaying short video ads. By partnering with
local mobile carriers all across the globe, Apple Inc. manages to place iPhone 7 ads in more
than just the official Apple Stores, widening its reach.
Image 3: iPhone 7 banners and signage found in local mobile carrier stores

Source: gadgetmtech.com

In addition, Apple Inc. has reintroduced its consumer-oriented marketing promotion in the form
of the iPhone Upgrade Program where buyers may upgrade to the latest iPhone every year with
an additional fee. The introduction of this plan spurred local mobile carriers to introduce similar
upgrade programs. Maxis first introduced its upgrade program Zerolution in conjunction with
the launch of the iPhone 6 and is continuing this promotion with the iPhone 7 (Wong, 2016).
These customer-oriented promotions allow brands to stay ahead of the competition by
increasing brand awareness and presence, allowing users to take an interest in a brand and find
out more about the product before making purchase (Whaley, 2015). Promotions generate free
word-of-mouth publicity from consumers who share about brand promotions as simultaneously
increase consumer traffic. In addition, promotions encourage trial purchase of a product
especially among consumers new to the brand or product. This diverse mix of IMC tools is
employed by Apple Inc. in order to extend its reach towards its target audience.

1.3 Measuring IMC Outcomes

The IMC mix employed by Apple Inc. may be measured in order to determine the success of
the mix in achieving its desired marketing objectives. Other benefits of evaluating a
marketing campaign include improved decision-making, risk reduction and cost savings for
future campaigns (Pickton & Broderick, 2005).
IMC Tool IMC Outcomes
Media advertising
a) TV commercials Number of viewers of a particular TV show where the
commercial slot is situated in order to identify the reach
and frequency of which the ad is viewed.
Employ analytics tools such as Google Analytics that
b) Social media allows the tracking of individuals, groups of similar
individuals and users as a whole and generates metrics
such as reach, site traffic, leads generated, as well as sign-
ups and conversions. Surveys may be conducted on
selected audiences.
Place advertising
a) Billboards Mapping travel routes and traffic density within routes
where the billboard is located to determine reach of ad.
In-store and point-of- Commercially available eye-tracking data can track eye-
purchase advertising movements to brands displayed in-store and at point-of-
purchase that measures the visual attention and general
correlation between attention to brand in-store and its
influence on out-of-store memory. (Pieters & Warlop,
1999)
Consumer-oriented Promotion plan can be measured by calculating
marketing promotions profitability of the sales promotion, incremental customer
sales and the sales volume of a product prior to
implementing a promotion.
Table 2: IMC Tools and methods of measuring IMC outcomes

Compiled by Author
2.0 Organization B: National Plan of Action for Nutrition in Malaysia
(NPANM II 2006-2015) By the Nutrition Division of the Ministry of
Health, Malaysia.

The chosen organization for context B: A government effort to promote healthy eating among
its society via IMC, is the National Plan of Action for Nutrition in Malaysia (NPANM II 2006-
2015) executed by the Nutrition Division of the Ministry of Health, Malaysia. It was first
developed as a response to the World Declaration on Nutrition and Plan of Action adopted by
the International Conference on Nutrition (ICN) in Rome in December 1992. Following that,
an updated version records strategies, targets and programmes that are in alignment with the
goals and objectives of the National Nutrition Policy approved by the government in 2003
(Chua, 2006).

2.1 Target audience and IMC Objectives

In 2015, Malaysia, known as Asias fattest country (Nearly half Malaysias population
overweight or obese, Health Minister says 2016) recorded an increase in obesity rates with the
latest statistics showing the overweight make up nearly half of Malaysias 30 million populaces
as revealed by Health Minister Datuk Seri Dr. S. Subramaniam. According to the National
Health and Morbidity Survey of 2015, obese Malaysians make up 17.7% of the population
while those categorized as overweight make up 30%.

Image 4: Overweight population prevalence in southeast Asian countries

Source: WHO Non-Communicable Disease Country Profiles, 2011


Three earlier studies conducted in 2002 collectively dubbed Obesity in Malaysia sampled a
wide demographic and geodemographic of a total of 29,000 Malaysians from both the urban
and rural population which includes various ethnicities in order to assess body weights in
relation to ethnic differences, comorbid risk factors and to examine energy intake, energy
expenditure as well as basal metabolic rate (BMR). The studies revealed the prevalence of
obesity among Malaysians aged 30-65 years (Ismail et al, 2002) which encompasses a majority
of Malaysian adults.

Chart 3: Overweight and obesity prevalence according to age groups in Kuala Lumpur

Source: Kasmini, et al (1997)

In addition, a recent article on The Star (Helping Malaysians be healthier, 2016) highlights the
unhealthy behaviorgraphics and poor psychographics in terms of behaviour and lifestyle
choices of Malaysians with regards to food, physical activities and sleep. It reports a survey by
the Ministry of Health showing 94% of Malaysian adults do not eat enough fresh fruits and
vegetables and one out of three Malaysian adults are not physically active. As such, the primary
target audience of NPANM II are adults, especially those aged between 30-65 years. In
addition, the NPANM II also targets the general population of Malaysia in order to create
awareness among younger Malaysians as to the risk factors involved with obesity and
overeating as well as the benefits of healthier eating for the prevention of obesity.

In light of the overweight and obesity statistics, the Nutrition Division of the Ministry of Health
aims to achieve and maintain optimal nutritional well-being among Malaysians and improve
the nutritional status of the population as well as prevent and control non-communicable
diseases related to diet. To ensure effective implementation, monitoring and evaluation of the
action plan, the strategy is customized and divided into the foundation, enabler and facilitator
strategies.

The foundation strategy of NPANM II is through incorporation of objectives, nutritional issues


and components into policies and development plans of the nation. The enabling strategies
include direct objectives that can achieve immediate impacts on the overarching strategy of
NPANM II. Facilitating strategies have been stipulated as objectives of NPANM II that are
identified as being able to provide mechanism and support for the realization of the enabling
strategies (NPANM II, 2006-2015).

Enabling Strategies:

- Improve guaranteed household food supply especially among low-income groups.


- Encourage optimal nutritional practices in infants and small children.
- Prevention and control of nutritional deficiencies
- Encourage healthy eating and active lifestyle
- Supports efforts to protect the consumer in terms of quality and food safety

Facilitating Strategies:

- Ensure that all individuals can get nutritional information.


- Assessment and continuous monitoring of the nutritional situation
- Encourage research and continuous development
- Ensure nutrition and dietetics are practised by trained professionals
- Improve institutional capacity in nutritional activities

The targets of NPANM II with regards to healthy eating includes the increase in proportion
of people meeting the Malaysian Recommended Nutrient Intake (RNI) and the Malaysian
Food Pyramid compared to the First Malaysian Food Consumption Survey. It also aims to
increase the proportion of people aware of the Malaysian Dietary Guidelines compared to the
National Health and Morbidity Survey III, 2006 (NPANM II, 2006-2015).

2.2 Integrated Marketing Communications (IMC) Mix

In order to realize the objectives of NPANM II, the Nutrition Division utilizes events and
programmes as a marketing means to engage the general public and to spread its public service
announcement (PSA). Nutrition Month Malaysia is a programme organized by three
professional nutrition bodies in Malaysia, namely, the Nutrition Society of Malaysia (NSM),
the Malaysian Dietitians Association (MDA) and the Malaysian Association for the Study of
Obesity (MASO) that receives support from the Nutrition Division of the Ministry of Health.
In 2015, it has organized awareness events such as Food-Fit-Fun Fair which have been held
annually in popular locations such as Midvalley Megamall and 1 Utama Shopping Centre and
includes simple physical activities, exhibitions, nutrition screenings and healthy food
preparation demonstrations by professional chefs.

Project Healthy Community Kitchen (DSM) was created by the Nutrition Division to improve
the implementation of nutrition promotional activities carried out by health personnel at health
clinics. In light of the facilitating strategies of NAPNM II, this program aims to expand the
scope of nutrition promotion which includes preparation of family meals and home economics
that encompasses menu planning, recipe modification, hygiene and food safety as well as
kitchen management. The target group of the program primarily includes housewives and
homemakers and is expanded to include other family members and society as a whole. The
program includes activities such as cuisine and demonstration sessions that showcases healthy
cooking recipes and the experimentation or new healthy recipes, health screenings such as
monitoring blood pressure, glucose levels and Body Mass Index (BMI), as well as recreational
sessions that demonstrates basic exercise routines.

In 2011, a campaign to promote healthy eating in supermarkets was officiated by then Minister
of Health, Dato Seri Liow Tiong Lai as the Giant hypermarket in Shah Alam. As supermarkets
are the publics focal point to obtain household food supplies, the selection of groceries at
supermarkets are crucial in determining healthy eating habits of families at home. Activities
carried out under this campaign are designed to provide the public with accurate nutritional
information when making food choices at points-of-purchase. It emphasizes the different levels
and weightages of the food groups within the Malaysian Food Pyramid. Programs and events
have been selected as marketing tools as it engages the public directly with the outlined
strategies of NAPNM II as well as creates a close interaction between the target audience and
the NPANM II initiatives (Pant, 2015). In addition, offline engagements such as these events
leads to amplification of NPANM II via digital channels such as social media.

Publications and print materials are also used to achieve the strategies of NPANM II. Brochures
such as Malaysian Dietary Guidelines document localized information on healthy eating that
is tailored to the food culture of Malaysia. In addition, health-centric recipe guides are
published under NPANM II in conjunction with festive seasons such as Chinese New Year and
Hari Raya to remind the public of the importance of counting calorie intakes in the midst of
festivities as well as to provide the public with healthy alternatives to prepare festive favourites.
These brochures are utilized as it is a cost-effective way to easily distribute nutritional
information to the general populace in different venues.

Place advertising such as transit ads in the form of informational posters is also a means of
advertising employed under NPANM II in order to create awareness among the public
regarding obesity and non-communicable diseases. These posters have been placed in areas
with high traffic such as transit stations and on board public transportations such as the LRT.
Transit ads allow for the promotion of NPANM II to reach a variety of audiences throughout
the day (Koblinski, 2005).

Image 5: Informational posters

Source: Nutrition Division of the Ministry of Health


2.3 Measuring IMC Outcomes

The IMC mix employed under the NPANM II is measured to determine the success of the
mix in achieving stipulated objectives as well as provides a basis for the formulation of
NPANM III (2016-2025).

IMC Tool IMC Outcomes


Event marketing The numbers of people in attendance at events can gauge the
success and reach of an event. Registration booths can be set up at
events as an indication of how well the targeted message has been
received. In addition, post event surveys may be distributed to
attendees, especially those who have registered at events.
Publications Printed publications may be measured with the addition of a call-to-
action number or e-mail address for readers to attain more
information as well as to gauge to response to the information
presented within brochures.
Transit advertising Depending on the location of transit ads, the traffic density of
locations may be predetermined. For instance, at transit stations, the
ticket sales at a particular station may be an indication of the reach
of said transit ad.
Table 4: IMC Tools and methods of measuring IMC outcomes

Compiled by Author
3.0 Analysis of IMC practices between organizations A and B

In the previous sections, the analysis of both Apple Inc.s marketing strategy and the execution
of NPANM II has revealed similarities and differences between the implementation of the IMC
mixes employed by both organizations. Although both organizations utilize IMC mixes in the
propagation of advertising, they are both situated in very different contexts and are driven by
very different objectives.

In the case of Apple Inc.s IMC mix, its objectives reflect its commercial intention towards the
growth of sales and market shares whilst the Nutrition Divisions IMC mix reflects the
spreading of public awareness without commercial gain. With the launch of the iPhone 7
devices, Apple Inc. utilizes IMC as a means to generate publicity through paid mediums such
as television commercial spots and out-of-house advertising. On the other hand, NPANM II
uses an IMC mix that is relatively low in cost as it benefits from the backing of government
channels such as the Nutrition Division as well as the partnerships of Non-Profit Organizations
(NPO) that share a common cause. As such, the broadcasting of its PSA may entail a lower
cost as its partnership with NPOs gives it access to lower rates in attaining place advertising
spots as well as in the distribution of its informational publications.

Although both IMC mixes analysed are executed in Malaysia, the IMC mix of Apple Inc. is
applied globally across all countries in which the iPhone 7 devices are launched, save for
translation into the local languages. Therefore, the justification for the IMC mix is highly
driven by research that originates from the U.S. The execution of its IMC mix takes a general
stance, addressing its Malaysian audience as it would any other audience globally. In contrast,
NPANM II is a plan that is highly specific to the Malaysian population, although the origin of
the plan is inspired by an international nutrition conference. Events and publications produced
and distributed takes into consideration the specific behaviourgraphics and psychographics of
everyday Malaysians.

In addition, although the iPhone 7 devices are designed to be easily used by all segments of the
market, the target audience of Apple Inc.s IMC mix is identified through a process of market
segmentation in order to effectively tailor the advertising mediums employed in order to reach
the right niche. However, in the case of the IMC mix of NPANM II, although research data has
identified a specific age group suffering from issues of overweight and obesity, the target
audience applies to the entire population of Malaysia as the objective of the campaign is not
only about reducing obesity but to prevent it altogether.

To conclude, although both Apple Inc. and NPANM II share same general intention of
propagating information to the public, the IMC mix employed and the execution of its mix
occupies different spectrums and targets different audiences. Both IMC mixes result from an
acute understanding of both the message being propagated, the target audience receiving the
message and the most effective mediums available at their disposal. The proper planning and
strategizing of an IMC mix determines the effectiveness of the impact a message makes on the
market environment.

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