Marketing strategies of Apple - Marketing Essay Example

Introduction

The apple computer Inc is a company which deals with the designing and manufacturing of the personal computers peripherals, software’s, music players as well as providing the networking solutions - Marketing strategies of Apple introduction. The company has over 130 retail stores and it is the leading in the industry in its innovation.

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Mission and goals

The Apple company is committed to bringing the best personal experience in computing to the students, the educators, the professionals as well as the customers globally through its inventive software’s, internet offerings and also hardware’s. The Apple Company has a mission of continuing to strive for innovation as well as continue its well developed marketing plan. Similarly the company aims at developing more high quality products and also taking advantage of its existing opportunities. (Barton 2006)

External environmental trends

Threats
The Apple Inc company faces a lot of pressures from its competitors which include Dell and HP. For instance the Dell Company has low budget computers which have further given the company the largest market share when it comes to the personal computers. On the other hand the HP Company is leafing in the industry with very high gross revenue amounting to 88 billion dollars but on the other hand Dell has the highest net income. Although the Apple Company’s stock is higher than both HP and Dell the existing difference in the market share as well as the revenues are far behind them. Thus the existing very high level of competition in the technology market is a threat for the Apple Company. On the other hand there are very high effects on the company’s product substitution in the computer industry. Given that the technological changes at such a rapid rate the iMacs and the iPods can be possibly replaced by other devices. But on the other hand this kind of change would not result into the collapse of the entire company but it would definitely change the role which is played by the company in the industry. The Apple company will however be forced to further develop new products so that it can prevent this from happening. If by any chance another company would come up with new and better products then the Apple Company would loose its market share to that other company. Another threat which is facing the company is that of the exchange rates which are causing the shifts in the supply and demands of the company’s product. While the company has a very broad international market base its revenues in the foreign countries are directly related to the exchange rates. On the other hand the depreciation of the American dollar could also cause a decrease in the company’s net receivables.  Similarly the appreciation of the American dollar would further increase the net receivables but also decrease the future demand since the prices of the company’s products would increase. (Borden 1978)

Opportunities
The company Apple Inc is globally known for its innovative ideas and because of this it has made a development in its product line which is both attractive and functional. The company’s product line has in the recent past moved to another level and further expanded in order to meet the growing demands of the consumers. Similarly the company’s iPods will soon have the ability to further communicate with the specially devised Nike running shoes whereby an individual can be able to receive data entailing the distance ran as well as the calories burnt. This project will be ale to benefit both the Apple Inc company as well as the Nike shoe company thus boosting the demand for the iPod. On the other hand the company’s iPod line will however have a very clear advantage over all the other existing mp3 players that are available in the market. In addition to this the company could integrate its products with other products such as the latest car models from the major automobiles which have equipped their car models with the iPod connectivity. (Banter and Booms 1981)

Regarding the notebook as well as the desktop sectors the company has made a development of new lines which are less expensive for the customers while at the same time maintaining the company’s high quality standards. The less expensive computers should therefore help the company in increasing its sales in the future expectations. The Apple Inc company has further changed its chip supplier to Intel from IBM and this change would make the company to become more compatible with the other systems thus enabling the company to run the windows operating systems that gives the users more flexibility. Thus the company will enlarge its target market with the new product Nike and also by the integration of the company’s product with new products such as cars. .the Company’s development of the iTunes and music player technology into a mobile phone format will also be a great opportunity for its expansion in both the domestic and the international markets. (Bell 1980)

Consumer behavior

The consumer’s behavior in the company’s industry is determined by several factors which include; the customers shopping trends, the customer’s income, the pricing of the products and also the innovativeness of the company. The customer’s lifestyles trends show that there is a major increase for the top of line cell phones. This means that there is a considerable growth in the market share or the Apple Company’s mp3 players as well as an increase in the popularity among the digital cameras in the high end premiums. In the recent past the consumers shop for new products from the company on the practical basis rather than the style and fashion drive. (Banter and Booms 1981)

Market segmentation

The company has several market segments and this are divided according to the geographical locations of the company’s markets, as well as the functionalities of the company’s products. (Borden 1978)

Target segments

The company’s target segments are inclusive of the students, the businessmen, the professionals as well as the instructors globally.

Positioning

In the international marketing mix of the Apple Inc Company’s positioning in the industry’s markets is virtually important since it enables the company to position itself well in the local and also international markets thus making the company very unique which is considered as a benefit to the company’s target markets. The company studies well its marketing environment and also its competitive advantage so that it strategically positions itself in the existing markets. The company similarly has a first mover advantage in the international and local markets. Apple Company has employed the following positioning strategies; the product attributes, the benefits of the products, the usage occasions of the products, the users of the products, the products classes, away and also against the company’s competitors. On the other hand the company ensures that the differences in its products are also promoted and they should be important, superior distinctive, communicable, profitable and also pre-emptive. (Berry 1994)

Place
The company has various distribution channels so as to make their products reach the global consumers. These distribution channels perform the following functions; informing, promoting, contacting, matching, negotiating, physically distributing, risk taking and also financing.

§  Price

The company has adapted the following pricing strategies in its international and local marketing mix; the product line, company’s optional products, the company’s by-product, the company’s products bundle and the company’s captive products.

§  Promotion

In promoting its products the company ensures that the consumers are aware of the products themselves where they can finally purchase them for their personal use.

The Apple Company emphasizes on its international and also local marketing mix in the promotion, pricing, placing and positioning of its products. This is because in the international markets the company has a wider coverage of its consumers unlike in the domestic market mix where the coverage of the consumers is limited. The apple computer Inc has further taken several marketing positioning strategies so that it can be positioned way ahead of its competitors thus giving it a competitive advantage over its existing competitors. These measures include;

Pricing of the company’s products and their terms of access in the markets
There are several ways by which the apple Inc has been pricing its products in both the domestic and the global markets. The company has had a price matrix which has been very suitable since it has incorporated factors such as the demand of the goods, the supply of the company’s products domestically as well as internationally, the quality of the company’s products and also the economy of the country in which the company is based. The company’s price mix has been very suitable when considering the company’s right pricing strategy to be utilized (Borden 1964)

The Product adoption
This means that the company has further been making modifications to existing products and at the same time strategically raising its prices such that they can be affordable to the consumers.

The Availability and security
The company has been countering the perceived risks by overcoming the risks that are involved in the transportation of the company’s goods and also the other costs thus making a suitable price for the product in the market. (Braun and Robert 1989)

Technical
The Apple Inc company has been demonstrating its superior products. Such that issues which include shortening the life cycles for the company’s products will be considered. Similarly the technical advice is also given to the customers who have different views and opinions on the pricing of the company’s products. (Dale 2006)

 

The Total adaptation and management of the company
This strategy further guides the company’s organizational and technical portfolios especially in the development of the new products for low earning persons who want to enjoy using the company’s products. (Clinton 1948)

 

Conformity of the company products in the markets
This involves the Strategizing on how legal matters, tariffs and also legislation for the business will be handled without hitches such as encountering losses

Penetration pricing of the company’s products
In this strategy the prices of the Apple companies’ products can be set to be lower than what it is in other companies as this allows it to have a higher market share than its competitors. It also includes a low price strategy which enables the company to have a penetration price which is necessary to allow more products to sell at first but when it catches up, other pricing strategies are adopted. (Fletcher & Brown 2005)

Low pricing
The Apple Company can lower its prices so as to improve it sales and in order to implement this, the company started to offer its products at a lower price than its competitors. Low pricing products consist of products that are provided at the lowest price to the customers. The prices are lower than of the competitors. This marketing also  includes the customers orientation which  reveals the company’s capability in recognizing  the customers needs in relation to the competitive contributions and as well as transforming this knowledge into designing better-quality products and high service delivery. (Nagel 2002)

 

This orientation is a solution to influencing the company’s creativeness, satisfying customer wants and enhancing long term business performance. While many companies regularly exalt the merits of a customer orientation and co relating with customers, less interest is given the essential organizational practices and activities which block improvement of customer orientation (Lee and Carter 2005)

Marketing is the most important aspect of the Apple company thus it has a well coordinated marketing strategy which ensures that the company captures and even extends its sales targets. Thus, the Apple Inc has invested a lot in the advertisement of its products and it is also involved in other marketing promotions activities so as to ensure that the customers are aware of its new products, so that they can buy them. The company is also aware that the poor marketing strategies leads to poor sales which in turn may lead to the company’s collapse The Apple Inc company has incorporated the e-commerce aspect so as to be able to reach a wider market. Internet provides a unique avenue of both marketing and at selling at the time. (Kotare and Helena 2004)

Today, the e-commerce plays an important role in ensuring that company succeeds in its activities. The Technological aspect is another important factor that the company has used so that it can be more responsive to the customer and also successful in its marketing strategies. The well advanced and innovative technology in the company enriches and also adds value to the company’s products and this goes along well in satisfying the needs of the customers. This is because presently the customers are more knowledgeable and they also view the quality of the company’s products as well as the comfort of using the products more than the prices of the products. Thus, the Apple Company has invested well in the technological advancement so that it can offer quality goods to the standards of the customer who requires high quality and efficiency.

Marketing mix

The Apple Inc Company has launched so many of its products into the markets so that it can adapt to the marketing mix in the industry.  The company has had strategies which aim at meeting the needs of the consumers both locally and internationally. However in both the international and the domestic markets the Apple Company has adapted various strategies which take into account the cultural backgrounds of the consumers, the consumers buying habits and also the consumer’s levels of their personal disposable income. (Oscar and McEwen 2004)

This has enabled the company to further deliver a well tailored program for its marketing mix globally to suit the needs of the consumers. Jus like in its domestic marketing mix Apple Company which is a global player has adapted their product as well as their marketing mix strategy so as to meet the needs of the global customers.  The standardization strategy for this company helps it in reducing its costs and this is because it thinks global thus helping it in establishing itself in the foreign markets. On the other hand the domestic and the international marketing mix of the company focuses on strategies that would help in meeting the needs of the local and also regional consumers. This does require a lot of input as it does in the international markets. Similarly the company gets a lot of profits from the international markets and also the domestic markets thus it should strategically position itself so as to attract more consumers in the international and domestic segment as well. (Moore 2001)

Promotion

The company also has promotional strategies which help best in meeting the demand of the consumers. The company highly emphasizes on advertising its products globally and it has strategies which assist in achieving the advertising goals as well as ensure that the issues of the language barriers are well taken care of. Similarly the company in its international and domestic promotion strategies it ensures that their advertising messages are not offensive in any way to the residents of the other countries. In both its international and domestic promotional strategies the Apple Company takes a lot of concern in the level of the media development in various countries. The company has further adapted a strategy of adapting its advertising messages to the international markets so that it can successfully meet the demands of the consumers. On the other hand in the domestic marketing mix the company has adapted the domestic promotional strategies and it does lay a lot of emphasis on the language barriers just as in the case of the international marketing promotional strategies.  (Steven 2002)

Pricing

The Apple Company has also adapted some international pricing strategies which has eased the international pricing difficulties. It puts into considerations factors such as the fixed and the variable costs, the company’s objectives, the competition, the proposed company’s positioning strategies as well as the target group and the willingness of the consumers to pay for the products.  Similarly the company in the domestic as well as the international pricing strategies makes considerations on the cost of transportation and it also looks into the import duties or even tariffs that could be levied on its products as they are sold on an international scale. On the other hand the company makes considerations on the incomes of the international customers as well as the economic situations of the international countries as well as their influence on the pricing process of the company’s products. (Boyd 2006)

The company has also adapted into using the internet as a tool for its pricing procedures and this has made it become more transparent for the international consumers and also for the domestic consumers. Similarly the company’s goods can also be purchased on line by several international organizations at very fair prices. This has given the company a competitive advantage over its competitors thus tightening the competition in the international and local markets. In the domestic marketing mix as in the international marketing mix the company does put a lot of emphasis on pricing its products since it does not only focus on the domestic customers. In the company’s international aspect it has made some major considerations in the pricing of its products since it covers a very huge market segment. (George 1994)

Placement or distribution

The Apple Company has several distribution strategies in the global markets. This ensures that the company’s products swiftly move from the manufacturers to the wholesalers to the retailers and they finally get to the consumers. The company puts into consideration the many other intermediaries that are involved in the in the distribution process of the company’s products in the international and also the domestic markets. The Apple Company has also adapted internet as a very effective distribution channel thus allowing the company to make more sales from the consumers who use internet most often. In its international and local marketing mix Apple Company identifies its local and international markets so that it can know the existing potential customers who are selected for marketing. Emphasis is laid on the target market so that the company can be able to segment its market as well as have the ability to determine the existing different markets for the various segments. (Michael 1996)

Product

The products of the Apple Company are offered to the customers and there are several issues which are evaluated before the release of the product to the consumers. The company ensures that it fully understands its products from the views of its customers both locally and internationally. In the product description of the Apple Company can clearly state why their products are perfect for their international and local customers as well as what their products would do best and a comparison to the other products in the market. The company’s products are more descriptive in nature and this helps in attracting more customers globally. On the other hand the company pays a lot of attention on the functionalities, the features and also the benefits of its products in its international arena. The company has strategies which allow it to properly position its product in the international markets. This is effectively done by the company’s prioritization in the international target market so as to determine the development of the products progress.  The company also gives a lot of emphasis on its product adaptability such that by understanding the adaptability of its products the company can thus incorporate the necessary elements into their international marketing mix. The Apple Company uses the following factors in measuring the adaptability of its products.

The company considers the relative advantage of the product.
The company considers the compatibility of its products in both the domestic and the international markets.
The company considers the complexity of its products in the domestic and the international markets.
The company considers the divisibility of its products such as the trial portions of the products which can be purchased.
The company considers the communicability of the products as it looks at how its products appear in the public places where they are easily seen and also studied by the potential users. (Chokeman  and Don 2005)
Recommendations and conclusion

The company can however expect a very prosperous future as well as achieve a steady increase in its sales if it would follow the following recommendations;

The company should continually develop and also acquire new strengths and this means that the company will be more innovative in producing high quality products and it should also have an effective marketing plan. This will cause the threat of substitution as well as the company’s competition to highly decrease.
On the other hand the company should minimize the number of the faulty components of its products.  As this will allow the company to maintain the customer loyalty.
The company should also decrease the prices of its products as this will result in the company gaining new customers in the market industries.
The company should also pay its dividends which it had stopped paying in 1995 and also which the competitors have not been paying. This will lead the company to further improve its stockholder loyalty.
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