Wahlberg Wille

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Smartphone marketing

A study into the past and present

Wahlberg, Wille

2012 Otaniemi


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Laurea University of Applied SciencesOtaniemi

Smartphone marketing A study into the past and present

Wille WahlbergLaurea OtaniemiBusiness Management

Bahelor!s "hesisAugust, 2012


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Laurea University of Applied Sciences AbstractOtaniemiBusiness Management

Wille Wahlberg

Smartphone marketing A study into the past and present

#ear 2012 $ages %%

"he mobile phone industry has seen rapid gro&th and made massi'e leaps in its tehnologyespeially in the last t&o deades( )e& and e*iting +untions ha'e been made possible thatpre'iously &ere only to be +ound in siene +ition( All this ne& inno'ati'e tehnology alsoreuires ertain user +riendliness +or it to be ommerially suess+ul(

"he +ous o+ this study is on ho& smartphones ha'e been and are marketed to the publi andthe possible problems there ha'e been( "he author suggests that smartphones ha'e been pos-sibly perei'ed to be too high-teh and di++iult to use +or non-teh people, there+ore thisstudy aims to point out the issues that ha'e led to this and that ha'e made a hange +or thebetter( "he uestions this researh &orks &ith are ho& smartphones an be utili.ed and antheir users suess+ully use them( $ast problems are introdued &ith a look at modern de'iesand ho& they ha'e o'erome said problems(

"his study &ill pro'ide an insight into smartphone marketing &ith a historial timespan +romthe late nineties to the present( /ntegrated marketing ommuniation pro'ides the theoreti-al +rame&ork +or the study( "he +indings and results generate 'aluable in+ormation +or anybeginning business 'enture in the smart phone game(

A large part o+ this study!s in+ormation and laims are based on the author!s personal e*peri-ene +rom the mobile phone &orld &hih are gained +rom &ork e*periene alongside t&odeades o+ enthusiasm and interest( "o bak-up the author!s ideas and laims uantitati'edata &as olleted in the &ay o+ an eletroni uestionnaire deli'ered to the target groupthrough email and soial media(

"he results supplied numeri data on the user e*perienes and purhase riteria o+ smartphone users that paint a piture o+ &hat users &ant +rom their phone and ho& easy they +indapplying their phone to dynami use(

ey &ords Smartphone, mobile phone tehnology, mobile user, integrated marketing om-muniations


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Laurea-ammattikorkeakoulu TiivistelmOtaniemiBusiness Management

Wille Wahlberg

lypuhelimen markkinointi Tutkimus menneisyyden kautta nykypivn

uosi 2012 Si'um33r3 %%

Matkapuhelinteollisuus on l3pik3ynyt suurta teknologista kas'ua, 'arsinkin kahden 'iime'uosikymmenen aikana( Mahdolliseksi on tehty uusia 4a 43nnitt3'i3 asioita, 4oista aiemmin onpuhuttu 'ain tiede+iktiossa( aikki t3m3 uusi teknologia tar'itsee tuekseenk3ytt343yst3'3llisyyden ollakseen kaupallisesti menestynyt(

"3m3n tutkimuksen aiheymp3rist5n3 on 3lypuhelimet 4a niiden markkinointi, sek3 siihenliitty'3t mahdolliset ongelmat( ir4oitta4an mielest3 3lypuhelimet o'at aiemmin miellettyliian teknisiksi 4a hankaliksi ei-teknisille ihmisille( "3m3 tutkimus pyrkii sel'itt3m33n syit3,4otka 4ohti'at t3h3n 4a miten t3n3 p3i'3n3 k3ytt343t koke'at 3lyphuelink3yt5n($33tutkimuskysymyksen3 on, osaa'atko 3lypuhelink3ytt343t tehokkaasti hy5dynt33laitteidensa monipuolisia toiminto4a( Aiemmat ongelmat esitet33n 4a niit3 pohditaan, mitennykyteknologia 4a laitekanta on ylitt3nyt esiin tulleet haasteet(

"utkimus tar4oaa tietoa 3lypuhelinmarkkinoinnista aika'3lin3 60-lu'un lopusta nykyp3i'33nsaakka( /ntegroitu markkinointi'iestint3 tuo teoreettisen 'iitekehyksen tutkimukseen("utkimuksen tulokset tuo'at ar'okasta tietoa mille tahansa alka'alle liiketoiminta hankkeelle3lypuhelinten parissa(

Suuri osa tutkimuksen taustatiedoista 4a '3itteist3 perustu'at teki43n henkil5kohtaiseenkokemukseen matkapuhelinalasta kahden 'uosikymmenen a4alta, 4ohon sis3ltyy ty5kokemustasek3 kiinnostusta alaan( "eki43n '3itteit3 tukee k'antitatii'inen tutkimus, 4oka toteutettiins3hk5isess3 muodossa 4a, 4onka 4akelukana'ana toimi'at s3hk5posti 4a sosiaalinen media(

yselyn tulokset ku'aa'at numero muodossa 3lypuhelinomista4ien k3ytt5kokemuksia 4aostop33t5kseen 'aikutta'ia teki45it3 4a luo'at ku'aa siit3, mit3 k3ytt343t halua'atpuhelimeltaan 4a miten su4u'aksi he koke'at sen tehokkaan k3yt5n(

A'ainsanat 3lypuhelin, mobiiliteknologia, mobiilik3ytt343, integroitu markkinointi'iestint3


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"able o+ 7ontents

1 /ntrodution ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( 8

1(1 Bakground o+ the study (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( 8

1(2 "hesis ob4eti'es ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( 8

1(%

Methodology ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( 8

1(9 ey onepts (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( :

1(; "heoretial +rame&ork (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( :

2


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1 /ntrodution

Wireless mobile telephone net&orks ha'e been ommerial in Dinland sine the early se'en-

ties( $eople ha'e been able to make phone alls +rom almost any&here by using a telephone

in their ar and later a handset( "he system bak then &as tehnially a little di++erent +rom

&hat &e ha'e got used to no& and starting +rom the late nineties( "he bu.. seems to be no&

around the %? net&orks and so the so-alled smartphones(

"he smartphones bring mobile phones loser to personal omputers &ith their similar ompo-

nents, user inter+aes and omputing apabilities(

1(1

Bakground o+ the study

"his thesis researhes ho& mobile phones, espeially smartphones ha'e been marketed to the

publi and &hat problems there ha'e been along the &ay( A sur'ey gathering in+ormation on

smartphone o&ner!s user habits &ill pro'ide a random sample on ho& 'ersatile mobile phone

use is today(

1(2 "hesis ob4eti'es

"he main ob4eti'e o+ this study is to reogni.e and analy.e the problems mobile marketing

has +aed in the past and to assess its urrent state( "his &ill be done by introduing some

issues that ha'e possibly reated problems +or smartphone marketing in the beginning and

ho& they ha'e been dealt &ith in the more reent years( "he ob4eti'e is to introdue smart

phone tehnology and +ind out an users utili.e their de'ies as they ha'e been intended(

What elements impat the user e*periene and &hat an be doneE

"he results o+ this study &ill be used in business 'entures in the mobile market( Writing this

thesis also pro'ides the author &ith preliminary researh needed to +or a +uture business

plan( "his in+ormation &ill be 'ery use+ul, espeially &hen designing third party appliations

that &ill make mobile phone use easier and more produti'e(

1(% Methodology

"he researh relied largely on the author!s personal e*perienes, opinions and laims &hih

present the basis +or the study( "o +ind in+ormation to bak the laims an empirial study &as

done on the user e*perienes o+ smartphone o&ners( "he main researh uestion &as ho&

&ell an smartphone o&ners use their phone!s +untions( "his reorded uantitati'e data in


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:

the +orm o+ a uestionnaire( /t inluded the +ollo&ing uestions age, gender, years o+

smartphone o&nership, plat+orm pre+erene, 'arious +untions used, the ease o+ the user

e*periene, purhase riteria(

1(9

ey onepts

/n the enter o+ this researh paper are smartphones and mobile phone tehnology as the ba-

sis o+ their operation( Mobile users pro'ide the +rame&ork +or the researh and &ith a theo-

retial +ous on integrated marketing ommuniations(

Smartphones an be desribed as a ategory o+ mobile de'ies &ith omputer-like +untionali-

ty( "hese de'ies sport omplete operating system and ha'e a plat+orm +or appliation de'el-

opers F?smarena 2012G(

Mobile phone tehnology, onsisting o+ net&orks, ser'ies and apabilities is introdued &ith

a look at its history and present state(

Mobile users in this study are onsidered to be people &ho use modern mobile tehnology in

their di++erent dealings &ith li+e(

/ntegrated marketing ommuniations is the proess o+ de'eloping and implementing 'arious

+orms o+ persuasi'e ommuniation programs &ith ustomers and prospets o'er time FShult.

166%, 1:G(

1(; "heoretial +rame&ork

"his onsists o+ introdution to mobile phone tehnology and marketing onepts +ousing on

integrated marketing ommuniations( A lot o+ the researh is based on the author!s personal

analysis and the results o+ a uestionnaire reording data on smartphone user +eedbak( "he

uestionnaire &as the produt o+ studying marketing researh theory(


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=

2 I translates to ar radio

phone, &as a big de'ie that &ould be plaed in the trunk o+ the ar, &hih de+initely ruled

out any handheld portability( /t used analog tehnology at an DM +reueny o+ 1;0MJ.( /+ no&

&e are talking about the third generation o+ mobile net&orks, %?, the AC$ an be onsidered

0?(

"he phones &orked similar to radiophones, meaning they ould not transmit and reei'e sim-

ultaneously at +irst, but later the tehnology impro'ed enabling it( "he net&ork ells had only

a %0km radius, so &hen tra'eling out range the all got disonneted beause shi+ting +rom

ell to another &as not possible on the +ly( Also the net&ork &as manually operated +rom a

s&ithboard and the +reuenies 'ery easy to san and hi-4ak( /t &as launhed +or ommer-

ial use in 16:1 and the tehnology pro'ided nation&ide o'erage, &hih reahed 100K in

16:=( /t did gain popularity o'er the years, &ith o'er %;,000 users in 16=8, but it did not ha'e

a +uture in the digital age( /n 2000 the net&ork &as terminated(

ARP NMT-450 NMT-900 GSM

Initiated 1971 1982 1986 1991

Frequency 150 MHz 450 MHz 900 MHz 900 / 1800

MHz

Technology Analog Analog Analog Digital

Modulation FM FM FM GSMK

Network cov-

erage

Finland Nordic coun-

tries

Nordic coun-

tries

Europe

Secure No No No Yes

Service Pro-

viders

Telecom Fin-

land

Telecom Fin-

land

Telecom Fin-

land

Radiolinja +

more to come

later


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2(2 )M" "he >Shoephone>

"he gro&ing popularity o+ the AC$ net&ork needed a +ollo&er to meet the publi!s needs(

)M", meaning )ordi Mobile "elephone &as introdued in Dinland in 16=2 and it uikly be-

ame the largest mobile net&ork in the &orld, &ith 110,000 users in 16=; although its o'er-

age &as limited to the )ordi ountries, inluding Dinland, S&eden,


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A 'ery use+ul ser'ie pro'ided by the ?SM net&ork &as the SMS, Short Messaging Ser'ie

through &hih short te*t messages ould be sent +rom handset to another( "his gained huge

popularity in Dinland, espeially amongst teenagers, beause the a++ordable priing rates(

"he ?SM handset ould be used all o'er &orld &here a similar net&ork is in use, this is alled

roaming( Ser'ie pro'iders &orld&ide ha'e made deals together to allo& the use o+ their

net&orks, but at an added ost(


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"he biggest ad'antage is the +ast data trans+er rates, up to 11Mbits in theory, but the a'er-

age high speed in pratie is %=9Mbits( Beause o+ this mobile internet bro&sing is +ast and

more user-+riendly(

A totally ne& +eature &hih still in the =0!s ould only be +ound in si-+i mo'ies is the 'ideo

alling +eature( "he user an send and reei'e li'e 'ideo &hile simultaneously speaking &ith

another party( Aess to the M"S net&ork reuires a dediated M"S handset or %?-phone

&hih is &hat they are also re+erred as( "he handsets still support ?SM +reuenies as &ell as

the M"S net&ork(

%

Mobile "ehnology o+ "oday

Mobile de'ies ha'e mo'ed to&ards personal omputers in terms o+ +untions and usability(

"here is no longer need +or mobile phone spei+i en'ironments suh as WA$, beause almost

e'erything users ha'e gro&n austomed to &ith their personal omputers an no& be a-

essed and used &ith a mobile(

%(1

Long "erm @'olution

Long term e'olution is the term used +or the +uture diretion o+ mobile tehnology

F?smarena - Mobile terms glossary, 2012G( "his is mainly aimed at inreasing data trans+er

rates in mobile net&orks( "hese ne& +aster net&orks are marketed as 9? and &ere launhed

ommerially in 2006 by "eliaSonera in Oslo and Stokholm( "his is the latest e'olutionary

phase o+ ?SMM"S tehnology(

%(2

Ser'ie pro'iders

"he Dinnish mobile phone market &as operated by one ser'ie pro'ider until the early nine-

ties( "his &as done by "eleom Dinland Oy, &hih &ould later beome Sonera Oy( "eleom

Dinland operated in analog net&orks and in 1661 they got a digital ompetitor &hen Cadiolin-

4a Oy began pro'iding ellular ser'ie using the ?SM net&ork(

%(%

Subsriptions

A subsription to a ellular net&ork, in this ase ?SM, represents the deal made bet&een ser-

'ie pro'ider and ustomer( All neessary ustomer in+ormation &ill be oded into a S/M ard

&hih is subsription spei+i and one inserted into a mobile phone &ill register all tra++i&ith the user!s in+ormation(


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1%

"he net&ork settings &ere di++erent &hih eah ser'ie pro'ider and &ould Htell> the phone

ho& to ommuniate &ith the net&ork through the orret gate&ays and pro*ies( "his might

sound ompliated and rather under-the-hood and it &as, at least to the ma4ority o+ users(

"he operators did start a ser'ie &ere you ould ha'e the settings sent to your de'ie diretly

'ia SMS and the de'ie &ould store them and &eb sur+ing ould begin( "here &ere ertain

limitations to this, as the ser'ie did not support all a'ailable handsets euipped &ith ?$CS,

or MMS( /n ase your de'ie &as among the ones le+t out o+ the list o+ supported de'ies the

only option &as to +igure out the orret settings hope+ully +ound +rom the ser'ie pro'ider!s

&ebsite and manually input them as desribed by $aananen F2000, %8G( "his problem present-

ed itsel+ rather o+ten &hen sending an MMS message( Although the reipient!s de'ie did sup-

port the tehnology, the user might ha'e not managed to on+igure the de'ie to aess the

+eature(

9(%

Appliations

Mobile phone plat+orms make it possible to install proprietary so+t&are made by either the

de'ie manu+aturer or third party, 4ust like on a personal omputer( "his +eature opens up a

&hole ne& &orld o+ opportunities +or the user and +or so+t&are designers it represents ne&

potential business( "his meant that i+ your phone did not ha'e a &orld lok +eature, you

ould install one to get the added +untion(

"he atual pratie o+ this meant that you had to searh the internet +or the appliations and

one +ound you had to make sure it &as designed +or your plat+orm, or the spei+i make and

model o+ your phone( A+ter this the users needed to trans+er the installation +ile on to the

de'ie, &hih ould be done by either linking your de'ie to your omputer 'ia able, email

attahment, or trying to do&nload it +rom the a'ailable &ebsite &ith the de'ies o&n &eb

bro&ser(

Digure 1 Sreenshot o+ Apple!s App Store +or the i$hone


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"he modern eui'alent o+ this is muh more user-+riendly &ith Apple, )okia and ?oogle!s An-

droid o++ering eah an integrated marketplae +or all appliations that are o++ered +or eah

phone( "hey are similar to any &eb store, &here you an bro&se and searh +or your item o+

interest( /nstalling is then 4ust a +e& steps a&ay and made aessible to all users( A'ailable

are many +ree appliations as &ell as those &ith reuire a purhase( $ayment is made easy as

the user &ill be billed to their redit ard, or their monthly ser'ie pro'ider in'oie(

"he lak o+ suh a ser'ie in the past has been the stepping stone in appliation marketing as

many no'ie users ha'e had no idea that third party appliations an be installed(

; Smartphone Marketing 7ommuniation

Marketing is pratied by ompanies to bring +orth their produt, beause people annot buy

something unless they kno& o+ its e*istene, or that they need it( /n the past this &as been

largely based on ad'ertising and selling, or Htelling and selling> Fotler, 200;, 8G(

/n the business &orld o+ today marketing has e'ol'ed into a muh larger onept linking to-

gether many di++erent proesses and business units that pre'iously had nothing to do &ith

marketing in its traditional +orm( /n his book otler F200;, 8G de+ines marketing as a soial

and managerial proess by &hih indi'iduals and groups obtain &hat they need and &ant

through reating and e*hanging produts and 'alue &ith others(

"his hapter &ill take a look at ho& smartphones are and ha'e been marketed, &ith a +ous

on integrated marketing ommuniation(

;(1 Marketing Mi*

Marketing uses a set o+ tools to in+luene demand +or produts kno&n as the marketing mi*(

otler F200;, p(%9G desribes Marketing mi* in the +ollo&ing &ay Hthe set o+ ontrollable ta-

tial marketing tools that the +irm blends to produe the response it &ants in the target mar-

ket>( /nluded in the marketing mi*, or the N+our $!s! are produt, prie, plae and promotion

Fotler, 200;, p%%G( Belo& are the N+our $!s! listed and brie+ly desribed in the author!s per-

sonal 'ie&

$rodut &hat is sold

$rie ho& muh does it ost

$lae &here and ho& to get it

$romotion anything that ommuniates the 'alue o+ the produt(

"he elements o+ the marketing mi* an be inorporated indi'idually or all together in the+irms marketing strategy( /t an be used to make 'ery tatial and uik ations, or to build a


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1;

more long term plan( /n smartphones there has been a trend &here one manu+aturer has

ome up &ith a &orking onept &hih ompetitors ha'e then in turn tried to adapt into their

line o+ de'ies( @*amples +rom the past o+ these trends in this produt oriented marketing an

be BlakBerry!s big sreen and &erty keypad, Sony @risson!s superior 7yber-shot amera

phones and more reently Apple!s i$hone &ith it!s easy to use touhsreen inter+ae(

"he table belo& gathers together a +e& e*amples o+ ho& Apple, )okia and Samsung are using

the marketing mi* &ith their ompeting de'ies(

$rodut

Apple i$hone 9S

o ery good design

o Strong brand

)okia Lumia =00

o )e& inter+ae W$:

o Solid design

Samsung ?ala*y S2

o Superior tehnial spei+iations

o Android

$rie

Apple i$hone 9S

o ery high prie

o $akage deals

)okia Lumia =00

o Jigh prie

o $akage deals

Samsung ?ala*y S2

o Jigh prie

o $akage deals

$lae

Apple i$hone 9S

o

Apple store

o Limited dealers

)okia Lumia =00

o Ser'ie pro'iders

o Some ontrol o'er retailers

Samsung ?ala*y S2

o Ser'ie pro'iders

o Mobile phone retailers

$romotion

Apple i$hone 9S

o

Brand bu..

o Apple store openings

)okia Lumia =00

o $ress hype

o Big e'ents

Samsung ?ala*y S2

o Ad'ertising

o "ehnial e*ellene

"able 2 Smartphone Marketing mi*

"he three large phone manu+atures ha'e 'ery 'isible marketing strategies and really bring

the ompeting models out there( Although they are ompeting &ith roughly 'ery similar prod-

uts they use 'ery di++erent strategies to market them(


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18

;(2 /ntegrated Marketing 7ommuniation

A 'ery good de+inition by Shult. F166%G desribes /ntegrated Marketing 7ommuniation, or /M7

as Hthe proess o+ de'eloping and implementing 'arious +orms o+ persuasi'e ommuniation

programs &ith ustomers and prospets o'er time>( /M7 +ouses on the promotion element o+

the N+our p!s! FBelh, 2001, 10G( $romotion, or in this ase ommuniation an be done in

many &ays and /M7 aims at making the di++erent &ays one entity, or Hattempts to ombine,

integrate, and synergi.e di++erent elements o+ the promotional mi*, so to onsumers, mes-

sages through a 'ariety o+ di++erent mehanisms look, sound, and +eel alike>( Fithen

$elsmaker, 2009, 1=G

;(2(1

$romotional mi*

"he promotional mi* mentioned in the pre'ious hapter onsist o+ elements that /M7

inorporates( Belh F2001, 19G desribes them as >the basi tools used to aomplish an

organi.ation!s ommuniation ob4eti'es>( "he elements are ad'ertising, diret marketing,

interati'einternet marketing, sales promotions, publiitypubli relations and personal

selling FBelh, 2001, 1;G(

Digure 2 "he $romotional mi*

When analy.ing Apple!s, Samsung!s and )okia!s e++orts to promote their produts, espeially

their ri'al +lagship de'ies, 'ery similar praties are +ound +rom their respeti'e strategies(

All three ompanies implement eah o+ the si* promotional mi* elements( As ma4or players in

the market they use muh o+ the same ad'ertising hannels, $C tatis and sales promotions,

there still are di++erenes bet&een them, espeially in their appeal to the publi( Belo& is

listed a +e& uniue harateristis o+ eah ompany

Apple

7ult-like status that o&es a lot to +ormer 7@O obs!s harater

O&nership o+ Apple produt has a high soial status

The PromotionalMix

Advertising Direct MarketingInteractive/Internet

MarketingSales Promotions

Publicity/PublicRelations

Personal Selling


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1:

Samsung

Cespeted manu+aturer o+ high teh eletronis, although laking in personal

appeal

A good hoie &hen seeking modern uality )okia

"he name +or many is a synonym +or mobile phones

Ceent years ha'e ompromised their +ormer market dominane and +ored them

to re-think their strategies(

;(% /mplementation

Mobile phone marketing has o+ten o++ered a ertain li+estyle, or solutions +or problem &hih

are made possible by the de'ie( Belo& is an e*ample o+ typial early nineties mobile phone

mentality, &here o&nership o+ a mobile phone &as parallel to that o+ a sports ar(

Digure % "&o young business-types ask +or a raise, but instead are gi'en mobiles(

"he story in the photograph abo'e is not appliable today as phones are mass produed and

are a'ailable +or anyone through entry le'el models( Mobile phones ha'e established them-

sel'es as a standard in ommuniation, but in the early nineties they &ere pried as high as a

small ar and &ere de+initely a sho&-o++ item amongst those &ho ould a++ord one(

Later in the so alled %? hype it seemed manu+aturers &ere promising more than atually

got deli'ered in a larger sale( "he problem lay o+ten in the user, as the de'ies &ith their

re'olutionary tehnology o+ten seemed to be di++iult to take in to use, or proper net&ork

support &as to be +ound(


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1=

/n today!s mobile phone market the possibility o+ making phone alls on the go is a standard

and &ith phones being +ound in e'eryone!s purse or poket the manu+aturer!s need to +ind

ne& gimmiks to get the publi to sho& interest in their ne& produts( Jighly important as-

pets in the modern market are design, brand and the tehnial apabilities o+ the de'ies(

7onsumers no& hoose a mobile phone &hih is a mi* o+ these attributes, or lean to&ard

&hat is most important to them(

;(%(1 $rodut positioning

7ompanies &ork hard to get a ertain response to their produts( "he reation &anted +rom

the publi is largely related to ommuniation used by marketers( "his onept is alled

produt positioning and is e*plained by otler F200;, 9%2G as Hthe &ay the produt is de+ined

by onsumers on important attributes the plae the produt oupies in onsumers! mindsrelati'e to ompeting produts>(


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16

Apple &ith its i$hone 9S is leaning the most to&ard the importane o+ design and has estab-

lished a 'ery strong brand +ator( /t is still a high teh de'ie, but learly has a larger stake

on image pereption than the t&o ri'al de'ies(

Samsung!s ?ala*y S2 has it all in terms o+ tehnial spei+iations( As a brand Samsung is

kno&n +or uality onsumer eletronis, but has a many ompetitors &ith similar produts so

it needs to try and stand out more &ith its produts( $eople &ho hoose the ?ala*y S2 do it

beause o+ its tehnial superiority o'er any other aspet(

Dalling in bet&een the t&o is )okia!s Lumia =00( )okia has made itsel+ a highly appreiated

name in mobile tehnology and is an automati hoie +or many &hen buying a mobile phone(

"he si.e o+ the balloons re+lets the market share o+ eah de'ie in omparison to eah oth-

er( Samsung has surpassed )okia as the &orld leader in smart phones mainly thanks to its An-

droid based smart phones aording to in+ormation tehnology researh +irm ?artner

F$itk3nen, 2012G(

8 Solutions

One time goes on and tehnology matures better de'ies &ill be introdued &ith an in-

reased le'el o+ usability( /n the ase o+ smartphones it is largely due to impro'ements in the

issues introdued in hapter 9(

8(1 $akage deals

/n the past mobile phones and subsriptions &ere sold separately, &hih &as simple and did

not reuire any long-term deal!s to be made( Jere the ser'ie pro'ider did not ha'e any &ay

to make sure eah sold de'ie &ould be able to utili.e all its +untions in the net&ork( 7hang-

ing +or ser'ie pro'ider to another meant the users had to on+igure the phone to make sure

the orret net&ork settings &ere hosen( Although this &as made easier &ith the operator!s

automati messages &hih sent the orret setting diretly to the phone, it &as still relying

on the user!s ompetene(

$akage deals &ere introdued to Dinnish onsumers in 2008( "his meant that ser'ie pro'id-

ers ould o++er a pakage that inluded both the subsription and phone( "he pakage deals

o+ten onsist o+ a t&o year subsription &ith an airtime pakage +or all minutes, SMS and

internet gate&ay use inluding a monthly payment +or the de'ie( "his &ay the phone!s prie

ould be di'ided e'enly into 29 eual monthly payment installments added to the bill &hih

made e*pensi'e smart phones more aessible and appealing(


20/33


21/33

21

Stage ;


22/33

22

$ermission &as applied +rom Laurea ni'ersity o+ Applied sienes to ondut this uestion-

naire FAppendi* 2G( $ermit &as granted FAppendi* %G +or the time period o+ 09(0;(2012

26(0;(2012( "his proedure &as needed to gain aess to email mailing lists o+ students and

+aulty members o+ the shool!s di++erent units around the metropolitan area(

:(% Celiability and 'alidity

An aurate and proper sur'ey should sho& reliability &hih is Hthe e*tent to &hih a meas-

urement reprodues onsistent results i+ the proess o+ measurement &ere to be repeated>

Malhotra and Birks F2008, 190G and 'alidity Hthe e*tent to &hih a measurement represents

harateristis that e*ist in the phenomenon under in'estigation> Malhotra and Birks F2008,

190G(

"he goal o+ the sur'ey &as to +ind out ho& easy smartphone o&ners perei'e 'ersatile and

e++iient use o+ their de'ie( As the uestionnaire &as mainly sent to students at Laurea ni-

'ersity o+ Applied sienes it &ill add reliability to the researh as students tend to be inter-

ested in modern tehnology and +ollo& ne& trends( @speially the students studying business

and tehnology should be keen to utili.e modern tehnology i(e( smartphones in their studies

and &orking li+e( Also the uestionnaire &as 'ery brie+ and took 'ery little time to omplete,

&hih &ill make it 'ery easy to repeat and a similar response ould be e*peted(

Added 'alidity to the uestionnaire is brought by the medium it &as made in( "he &eb ser'ie

eLomake pro'ided +reedom +or the ans&erer to partiipate best suited +or their shedule and

&ithout any reser'ations, or time limits( "he possibility to approah the author &ith any

uestions brought a more personal touh to the sur'ey(

:(9 Cesults

"he uestionnaire &as sent out to roughly %;00 reipients( /t reei'ed %9; ans&ers &hih &as

a 'ery positi'e outome, as the goal &as to reah 100 ans&ers( "he data olleted by this

sur'ey is +rom May 2012 and the uestionnaire &as online the &hole month(

Only one ontat &as made through email and only three through soial media about the

uestionnaire( All +our ontats onerning the sur'ey &ere about unlear issues in the last

uestion measuring purhase riteria( "here &as only only one option a'ailable +or hoie and

they &ould ha'e &anted to hoose multiple riteria( Dor the purposes o+ this researh only

the most important riteria &as needed and the +igure belo& paints a lear piture o+ &hat

users +ound to a++et their purhase the most(


23/33

2%

Digure ; Smartphone purhase riteria

As the +igure abo'e displays many users +ound the most important aspet a++eting purhase

to be the tehnial spei+iation o+ the de'ie( O+ten it is a ombination o+ the +our attrib-

utes that appeals the most to the buyer, but here emphasis &as on only one riterion( As o'er

hal+ hose tehnial spei+iations it an be assumed that they also &ant to get their money!s

&orth in terms o+ per+ormane and usability(

"he laim o+ this researh is that modern smartphones ha'e e'ol'ed into more user-+riendly

de'ies than those o+ the past( As the +igure belo& indiates the most popular operating sys-

tems are the ne& and highly graphi i$hone!s iOS alongside Android( "his is leaning to the

author!s suggestion that Apple!s i$hone and its peers pro'ide one solution to the problems

disussed in hapter 9(

5!

"5!

"!

"#!

Technical s$eci%ications

Design

&rand

Price


24/33

29

Digure 8 Smart phone operating system pre+erenes

"he results o+ the sur'ey learly indiate that the 'ast ma4ority o+ the %9; partiipants use

their smartphones to per+orm tasks that they ould also do on a personal omputer, suh as

internet, email and soial media( Also %%0 partiipants ans&ered that they +ind the be+ore

mentioned tasks easy to per+orm on a smartphone and %19 in turn ans&ered that they do&n-load and install third party appliations on to their phone(

Digure : Smartphone use

'(!

'(!

('!

)!

"!

#!

iPhone

Android

Symbian

*indo+s Phone

&lack&erry

,ther

'"(

(-((.(

5

())

"#"

'("

(#)

.5

"5.

5

"

"5

(

(5

'

'5

0sers


25/33

2;

As said earlier in hapter 8 the author +eels that Apple!s i$hone launhed in 200: is in a big

&ay responsible +or the re'olution that made smartphones more appealing to a larger publi(

A lot o+ that is due to impro'ements in the issues e*plained in hapter 9( "he +igure belo&

indiates that a larger luster o+ partiipants are +airly ne& smart phone o&ners( Many rea-

sons ould ha'e a++eted this &ith the possibility that smartphone in the past ha'e been

harder to use as this researh paper has laimed(

Digure = #ears o+ smartphone o&nership

''!

'!

")!

-!

'! "!'!

1ess than " year

"2( years

'2 years

52# years

-2) years

.2" year

"" or more


26/33

28

= 7onlusion

pon gathering material +or this study many memories o+ smartphone use o+ the past ame to

li+e( "he author has o&ned and used smartphones o+ 'arious manu+aturers +or ten years and

the three ma4or problems presented in this study seemed to play a big role in e'ery turn

&hen reminising past use( /t seemed there+ore 'ery important to inorporate them into this

researh paper and the onept o+ this study &ould not be omplete &ithout them(

Marketing theory +ousing on integrated marketing ommuniations &as hosen to reate the

theoretial +rame&ork +or this study( As the theory pro'ides solid support +or the researh it

is the author!s o&n personal researh, opinions and e*periene that makes this study &hat it

is +rom the initial spark that started the idea to making it into a ready researh paper(

7ommuniation in smartphone marketing has o+ten +ollo&ed a similar approah &hih beame

e'ident &hen obser'ing the three ompetitors Apple, Samsung and )okia as this study did(

"hroughout history mobile phones ha'e been marketed through an idea o+ something that an

be ahie'ed &ith the ne& de'ie and the same applies &ith the pre'iously mentioned manu-

+aturers marketing their +lagships( @ah ompany aggressi'ely brings +orth their respeti'e

model!s tehnial inno'ations and promises added 'alue to the user &hen applied said inno'a-

tions(

Analy.ing the data +rom the uestionnaire painted a rather lear piture that modern and

+airly ne& users o+ smartphones are utili.ing their +untions e++eti'ely( "his means phone

usage other than alls and SMS( Also the ne&est and most user +riendly phone user inter+aes

seemed to be the most popular( All this bak-ups the author!s laims that modern

smartphones ha'e o'erome the problems presented in this study and beome more user-

+riendly(


27/33

2:

Ce+erenes

Belh, ?eorge, @( 2001( Ad'ertising and $romotion an integrated marketing ommuniations

perspeti'e( M?ra&-Jill

ithen, $hilip, (


28/33

2=

Digures

Digure 1 Sreenshot o+ Apple!s App Store +or the i$hone (((((((((((((((((((((((((((((((((((((((( 1%Digure 2 "he $romotional mi* (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( 18

Digure % "&o young business-types ask +or a raise, but instead are gi'en mobiles( (((((((( 1:Digure 9 $rodut positioning hart ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( 1=

Digure ; Smartphone purhase riteria ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( 2%Digure 8 Smart phone operating system pre+erenes ((((((((((((((((((((((((((((((((((((((((((((( 29Digure : Smartphone use (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( 29Digure = #ears o+ smartphone o&nership ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( 2;


29/33


30/33

%0

Appendies

Appendi* 1 Smartphone sur'ey ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( %1Appendi* 2 Cesearh permit appliation ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( %2Appendi* % Cesearh permit (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( %%


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%1

Appendi* 1 Smartphone sur'ey


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%2

Appendi* 2 Cesearh permit appliation


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%%

Appendi* % Cesearh permit

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