BRICK AND
MORTAR AND
ONLINE
INTEGRATION
Leave Behind
▪ In order to simplify the vast amount of companies who have brick and
mortar stores and online stores, we decided to focus on the technology
products of two successful technological companies – Apple and
Microsoft.
▪ Apple has a unique single brand identity. Some products include iPad,
iPhone, iPod, MacBook's and personalized accessories. They also supply
services such as Apps, iTunes and Safari.
▪ Microsoft has more of a versatile product line which can expand to
other devices from other companies, such as, the Surface (tablet),
Windows Phone, Xbox, Laptops and Microsoft Office.
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THE PRODUCT VARIETY OF APPLE AND MICROSOFT
THE CUSTOMIZATION AND TARGETING OF A PRODUCT
▪ Customization is “customizing a product or service but also personalizing the
marketing and overall shopper experience” (Book).
▪ Target is “a specific group of customers at which a company aims its products
and services” (Entrepreneur Website).
▪ Both companies endorse their products to fit consumers income giving them
a larger variety for a price range they can afford.
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▪ Individual customization is a new template that replaces mass production
which is no longer suitable for today’s turbulent markets, growing product
variety, and opportunities for commerce.
THE CUSTOMIZATION AND TARGETING OF A PRODUCT
▪ Now with increasing options to its products Apple is the most popular
commercial retail company in the world. Microsoft, Dell, and Samsung
are implementing new customization methods to sell products as well.
To succeed other companies must make this the norm as well
(Stojanova 2013).
▪ Integrating between brick and mortar services with e-commerce
configurators that support the specification of products an individual
has created can further enhance customers changing needs. In
integrating these services companies can meet their bottom line of
making money and providing a product that customers are satisfied
with, without compromising their companies image and further
increase their presence in the retail industry (Stojanova 2013).
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▪ Since 2010, IPhone and Samsung are competing for supremacy and
hasn’t changed their market influence since. This shows the changing
dynamics that come within the retail industry (Stojanova 2013).
Business Insider. (n.d.). Retrieved March
29, 2015, from
http://www.businessinsider.com
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FIGURE 1
Androidheadlines.com. (n.d.). Retrieved
March 29, 2015, from
http://www.androidheadlines.com
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FIGURE 2
Phone Arena - Phone News, Reviews and
Specs. (n.d.). Retrieved March 29, 2015,
from http://www.phonearena.com
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FIGURE 3
CUSTOMIZATION AND OPTIONS THAT ARE LISTED
ONLINE
▪ Customization are not as effective online as offline, however, it is
important to have this information available in order for customers
to look at their experiences.
▪ Both companies recognize that such aspect of individual
customization is critical to the success of the product, product line,
and product mix in today’s modern market.
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▪ While shopping online, both Apple and Microsoft, make it
convenient for customer to personalize a product.
THE BENEFITS OF ONLINE TARGETING
▪ By targeting audiences based on their recent online activity,
you can increase the relevance of your messages, drive
campaign efficiency, and improve your marketing ROI. In
short, this simple method yields one of the most powerful
and effective forms of online advertising available today
(Microsoft Advertisement).
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▪ Behavioral Targeting is a technique to increase sales through
information collected by a consumers web-browsing behavior
(Kerin 559).
THE IMPORTANCE OF PRICE AND COLLEGE
DISCOUNTS
▪ Reduced prices or other benefits with purchase make a potential
customer consider a product that they’d otherwise disregard
▪ College students (18-24 years old) have an inherent need for new
technology to keep up with their studies and course requirements.
▪ In a recent poll conducted with 280 undergraduate students, this study
showed that bonus packs increased impulse buying, which proves more
affective to price discounts. Therefore, retail can reach their bottom line
by integrating bonus packs with price discount incentives to sell more
units to their target market (Xu 2014).
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▪ Targeted price discounting attracts specific demographics to the store
location or website
THE APPLE COLLEGE DISCOUNTS
▪ Around August and September, Apple has “Back to School” specials: Buy
a Mac and Get $100 Gift Card or an iPad for a $50 Gift Card (Peckman
2013).
▪ Apple is targeting college students with these options and motivates
them to buy Apple products and use their services. However, the gift
card is not a physical item so students might forget about this special
deal.
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▪ Apple has discount education pricing and payment plans available to
college students and staff at all education levels (Apple).
▪ Office 365 University gives professors and students the chance to install
Office on their computer for free; example, Pace students can download
the entire Microsoft suite through MyPacePortal. This heavily
encourages the use of Microsoft software (Microsoft).
▪ In addition, University careers offer scholarships to computer science
students.
▪ Through these discounts, Microsoft appears to be more invested in the
future of college students and their reliance on technology. This gives
the brand a more universal appeal to the younger prospective buyers.
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THE MICROSOFT COLLEGE DISCOUNT
▪ Due to misleading sales practices because of the internet, consumers
are more aware of what their buying so they have developed a mistrust
of salespeople (Riquelme 409, 2014).
▪ Retailers need to rethink brick and mortar stores because the primary
reason to go to the store has change – consumers no longer need to go
to the store to get what their want. So there must be an added value.
▪ Stores can exploit the social benefits of shopping and have interactive
activities.
▪ “Not only may there be short-term gains in profitability by doing so, but
also retailers who actively provide consumers both entertainment and
social shopping experiences may create long-term positive sentiments
towards their traditional stores” (Riquelme 419, 2014)
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PLACE: MAKE STORES AN EXPERIENCE
THE PERSONAL IN STORE EXPERIENCE
▪ Both stores proved to be visually captivating and enticing to the consumer.
They shared a lot of similarities: Interactive product use, open and organized
layout, and education lessons for the use of their products.
▪ The Apple store was borderline overwhelming at first but the experience
proved to be more helpful than simply visiting Apple.com. The Apple staff
went out of their way to make the visitor feel comfortable with their product
and allowed them to leave feeling more knowledgeable about their
technology.
▪ Microsoft was less crowded, but quickly provided a more personalized
experience. The Microsoft store highlights the social aspect of shopping by
allowing the visitors to play XBOX games and just enjoy the products there.
The Microsoft store proved to be a store where consumers would rather
spend their time rather than online.
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▪ While researching Apple and Microsoft, the in-store experience was crucial in
the final evaluation of what traits to recommend to an organization that has
required our services.
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▪ Through online and in store research, we came up with two successful
promotion techniques: brand promotion and product promotion. Brand
promotion focuses on the brand image as a whole while product
promotion accentuates the best features of each individual product.
▪ Apple’s advertising convinces the consumer believe that they need
Apple in their life; Apple consumers buy Apple products for the Apple
name, even if the tech specifications are not the best in the market.
Apple has created such a strong brand loyalty, that consumers will
continually choose Apple for their technology needs.
▪ Microsoft chooses to highlight individual products because Microsoft is
a huge conglomerate of software and hardware products. Their multiple
product lines can satisfy the needs of consumers in every socioeconomic class.
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PROMOTION: BRAND VS. PRODUCT
PROMOTION
▪ By analyzing online sites and visiting the physical stores of similar
companies, we came up with theories to improve both online and in
store sales that can be applied to most companies.
▪ We addressed each point of the marketing mix – product, price, place,
and promotion – and came up with a solution that supports each
category.
▪ Once these points are successfully applied, we believe that sales will
increase and the company can successful omnichannel retailer – “an
integrated sales experience that melds the advantages of physical stores
with the information-rich experience of online shopping” (Frazer 2014).
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CONCLUSION
WORKS CITED
Androidheadlines.com.
(n.d.). Retrieved March 29, 2015, from http://www.androidheadlines.com
Behavioral Targeting Solutions. (n.d.). Retrieved March 29, 2015, from http://advertising.microsoft.com/en/behavioraltargeting
Business Insider. (n.d.). Retrieved March 29, 2015, from http://www.businessinsider.com
Frazer, M., & Stiehler, B. E. (2014). OMNICHANNEL RETAILING: THE MERGING OF THE ONLINE AND OFF-LINE
ENVIRONMENT. Paper presented at the , 9(1) 655-657. Retrieved from
http://search.proquest.com/docview/1503677861?accountid=13044
Riquelme, I., & Román, S. (2014). The Influence of Consumers' Cognitive and Psychographic Traits on Perceived
Deception: A Comparison Between Online and Offline Retailing Contexts. Journal Of Business Ethics, 119(3), 405-422.
doi:10.1007/s10551-013-1628-z
Office 365 University. (n.d.). Retrieved March 29, 2015, from https://products.office.com/en-us/university
Peckham, M., & Peckham, M. (2013, August 6). Back to School: Buy a Mac from Apple and Get a $100 Gift Card, or Buy
an iPad and Get a $50 Gift Card | TIME.com. Retrieved March 29, 2015, from
http://techland.time.com/2013/08/06/back-to-school-buy-a-mac-from-apple-and-get-a-100-gift-card-or-buy-an-ipadand-get-a-50-gift-card/
Phone Arena - Phone News, Reviews and Specs. (n.d.). Retrieved March 29, 2015, from http://www.phonearena.com
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Bajarin, T. (2014). The Real Difference Between Microsoft and Apple. PC Magazine, 44-46.
WORKS CITED
Save on a new Mac and iPad for your studies. (n.d.). Retrieved March 29, 2015, from
http://store.apple.com/us/browse/campaigns/education_pricing
Stojanova, Teodora, Valentina Gecevska, Zoran Anisic, and Dimitar Mancev. "Implementation
of Mass Customization Strategy for Individualized Products." International Journal of
Engineering Tome XI (2013): 227-32. Print.
Target Market Definition | Small Business Encyclopedia. (n.d.). Retrieved March 29, 2015,
from http://www.entrepreneur.com/encyclopedia/target-market
University Careers. (n.d.). Retrieved March 29, 2015, from
http://careers.microsoft.com/careers/en/us/university-programs.aspx
YIN, X., & JIN-SONG, H. (2014). EFFECTS OF PRICE DISCOUNTS AND BONUS PACKS ON ONLINE
IMPULSE BUYING. Social Behavior & Personality: An International Journal, 42(8), 1293-1302.
doi:10.2224/sbp.2014.42.8.1293
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Riquelme, I., & Román, S. (2014). The Influence of Consumers' Cognitive and Psychographic
Traits on Perceived Deception: A Comparison Between Online and Offline Retailing Contexts.
Journal Of Business Ethics, 119(3), 405-422. doi:10.1007/s10551-013-1628-z