Unit 41 - Case Study: Apple Inc. - ST Patrick's College London

Main Body

(a) Explaining the key marketing concepts and terminology applicable to Apple Inc.

Apple is the company which is the top most rated offering all type of software and mobile or other devices solutions they are selling and marketing their products all around the world. The distribution channels involve like that of direct store sales, retail stores, online store and through third party vendors (Solberg, 2017). The portfolio of company and its products included that of media devices, music players, software, accessories, networking solution and other digital contents. The products of company are known to be the most selling and profit making products like that of iPhone which is having about 63.4% of total revenue of company. New and innovative products with the latest technology within them are the prime marketing and overall strategies of company which is they following. During the financial year of 2016 Apple sold about 211.8 million iPhones which then accounted the total revenue of about $136.7 million in the same year. While the competition of Apple would be including like that of Samsung, Google and Microsoft and Google being the largest company of mobile operating systems.

Other terminology which would be involve in the basic marketing concept would be including like that of:

Product Strategy- all the products of Apple are based and produced on the strategy that is governing it like that of high quality, innovation and invention. Even months before Apple is launching its products the pre-orders are already being placed by loyal and new consumers. The basic reason behind this would be the most effective product strategy which Apple is applying for their markets and customers (Tomczak, Reinecke and Kuss, 2018). Giving the quality of products to the customers with premium offering is basic agenda which Apple is following it is not necessary that they are serving new product in market every time but it is just that they should be having some innovation within them. With this type of strategies related to products they are not focusing on quantity of products or that of customer rather they have their focus on how to grab loyal customer for the company. They keep on updating their products rather than bring innovation or new products on yearly bases they must be constantly having their changes into the products.

Branding- Apple products as in context of brand are generally regarded to as most valuable products of all time and in whole market. They are focusing mainly on the emotional aspect of branding  strategy like how would they make you feel, how does this affecting your lifestyle and how will this be regulated to the dreams and technology of products. They are having very simple and good brand personality which is driven by product design and making lives of people more and easier (Chen, Benedicktus and Shih, 2018). Apple is having the highest brand equity with about the brand worth of $118.9 billion and they have done many efforts to reach at this position at which they are here.

Promotional strategy- they are also most elegant and innovative style of marketing or promoting their products which is not publishing any of the advertisement on print media especially that on newspapers. Most advertisement of Apple and its products are based on the white background and then having splash of variety of colours this been the most important strength of company. All the promotional activities which company is engaged into would be focusing on better quality and simply passing on to their message to the audience.

Organizational culture- this is emerging as the key factor of success of company which is supporting and determining the capabilities of all employees who are been working within Apple (Analysis: How the iPod changed Apple's fortunes, 2006). They are always supporting the leadership of firm so that they could have differentiated products and services other major element of organisational culture of Apple are creativity, innovation, moderate combativeness, secrecy and top-notch excellence.

(b) Identification of the roles of marketing strategies and programs in achievements of objectives of Apple Inc.

The overall objectives and aims of firm is not be become the market leader by taking the highest market share of mobile or other product if market rather they want to have world class products so that their customers are happy and satisfied with their products. They are having the tag line which wholly defines the vision and mission of Apple which is “Think Different”. Apple is working according to their STP approach that is including segmentation, targeting and positioning of products and service of company into market with their own strategies.

They are having very good marketing strategies that is mainly focusing on how would they enabling or attracting their customers in order to help them buy their products. So they depend upon quality of products which they are selling to their customer rather than on how much it to be sold. Apple is proposing their marketing plan that is having exposure of all the products which company is selling to their customers which is focused on to specified goal of firm. Marketing strategies is involving all the relevant and important factors like that of objectives and goals of firm so that they could meet up their goals and objectives of firm. Thus marketing strategies of company like that of Apple which is famous brand in market would be playing very important role in achievement of their goals and objectives of firm.

Product- The marketing plan or strategies that company is indulging into is always helping product and service to identify and get their strengths so that they could perform in better way. Customer would be coming to know what are the main features and additions into product of company and thus helping them to make decision as whether to buy it or not. This is that part of company which is tangible part of company as customers are making efforts to buy them and firm making efforts in selling or marketing them to their customers.

Audience- All the targeted audience of Apple which mainly includes professionals, music lovers and other products and service base audience. So marketing plan should be playing role to achieve the target of company in way that they could retained the old one and invite the new one to buy their products like that of iPhone, iPod, iBook and Apple pay or the other one. Customers who are buying their products and service or watching their advertisement could be regarded to as audience of Apple.

Competition- If they want to achieve target with the help of marketing strategies so they should be involving or identifying who are competitors within market, what are they selling and how much market are they grabbing (Knutson, 2017). This role would be played by a good and comprehensive marketing plan containing the history of all products and service which competitors are having with them.

Revenue- The main aim of any marketing plan or strategies is to gain more and more revenue which they had last year should be improved in present year and for the future they must be having more better plans. Revenue is overall involvement of profits of firm like that of selling price, cost of product and cost to advertisement which was occurred by Apple. The actual revenue and projected one should be the same having no major difference.

(c) Explaining how the marketing concepts and principles are applicable within Apple Inc.

There are many types of marketing concept which are to be included with company assisting them to gain market share and higher amount of profits for firm. All the techniques and tools related to marketing that are applied within Apple should be concentrating on their products and service and the way in which company is selling its products in market.

Marketing Mix (7P's)

Product- Company is designing and selling the best form of products and service to customers all around the world. All the Apple products are having their own brand image and presence in market with having high quality, good performance and latest technology involved within. The products like that of iPhone and iPad tablets are market leader and high revenue generation which is iTunes (How many does the iPhone X cost around the world?, 2017). All the products are different from each other and designed by simplicity and elegant as the prime feature.

Place- Firm is having its own 499+ authorised stores in about 22 countries of world other than this they are selling their products on direct retail stores, online bases, third party wholesaler or retailer and value added resellers as well.

Price- They are having their own unique price setting strategy which Apple adopt and gain lot of profits with their help. The key one are price skimming that is defined to as frequently setting up high price of the product before their competitors in market are launching the similar products in market (Gilbert, 2017). Apple is also involved in setting of price of their product on the bases of geographical area like they are having difference in their price in Asia from that in USA.

Promotion- Company is having the promotional techniques like that they are not using any kind of print media including newspapers into their promotional plans. Apple mainly promote their products on TV or online bases with very much simple and unique concept of white background which is having different colours on them.

People- Apple was the main idea of Steve Jobs who is regarded as the mastermind behind this world largest company who himself was the iconic public figure. Company is having encouraging CEO at preset Tim Cook who is always motivating his team to come up with new and innovative ideas so that they could implement those changes into company (Lane and Parthasarathy, 2018).

Physical evidence- All their products majorly iPhone is having its physical evidence into market which is more that of the whole company.

Process- Company ensures that whatever they are producing should be simple and not complex which is not understandable to their customers. Website of Apple works in step by step manners so that customers are not having any issue in operating it and if they are emerging with any problems then they could go to the nearest Apple store to resolve their concerns.

Segmentation, Targeting and Positioning (STP)

(S) Segmentation-

Apple is having mainly three of their major segments of targeted customers who are buying the products of Apple on regular bases. The segmentation includes the premium customers who are usually buying the Apple product in case of their lifestyle symbol. The fragment is generally the urban populace with enough purchasing power for acquiring Apple items. These are individuals who are early adopters throughout everyday life except the brand value of Apple is with the end goal that even slouches have begun receiving the items. Division includes partitioning populace into bunches as per certain attributes, though focusing on suggests picking particular gatherings recognized because of division to offer items (Kotabe, M. and Murray, 2018). Normal arrangement of attributes shared by Apple target client portion incorporate acknowledging plan, quality and execution of innovation items and administrations over their costs.

(T) Targeting-

Apple is the high tech technology in terms to set the market target, position and segmentation. Apple believes in continuous improvements. They always look for the further enhancement technological development in their product and services. This makes brand more strong and stable. Apple set their own principles in order to get the best target market position.

In the Marketing methodology of Apple, it has three target gatherings

• One is the music darlings who are focused by the Apple I pod and I tune.
• Another objective the experts or even young people who are focused for Apple I phone, Tablets, Mac book and other such contraptions which can be utilized by anybody, regardless of age (Hao, Heijman and Huo, 2018).
• Also, third is the group which can utilize their different items and administrations like Apple TV and Apple I watch. They likewise utilize I book, Apple pay and so on.

(P) Positioning-

Apple being the world's number 1 mark has the highest personality situating and there is presumably that when somebody discusses Smartphones or Laptop or Tablets, Apple is the principal mark that strikes a chord most extreme number of times. Situating alludes to the choice of the promoting blend the most reasonable for the objective client fragment. Apple utilizes mono-section kind of situating and influences a placing to request towards a solitary client fragment. The multinational innovation organization positions itself as an exceptional brand offering items and administrations with cutting edge capacities and abilities for extra expenses. In like manner, Apple target client fragment contain well-off people who will pay additional for innovation items and administrations with cutting edge configuration, capacities and abilities.

(d) Explaining the relationship of marketing functions with the other departments

Marketing department is that one which is helping the company to achieve their goals and objectives in order to make profits to firm. The work of this department would be that of making marketing plan, setting out the objectives of department in alignment with that of overall objectives of company and then tracking out success of this plan. On the other hand they are also having a job which is associated with whole company that is to regulate proper, correct and timely communication with all the other departments of firm (Complete guide to Apple Park, 2017). An organisation would not be able to perform if all the segments of firm are not working together to achieve the target and goal of company. There are several other departments which are actively working within team like that of operations, selling and distribution, human resource, manufacturing and research and development. All the segments of Apple are also working on together bases so that their own and company's goal could be achieved in given time period. It is important to note here that how all other segment of company are closely linked and related to marketing and what role marketing play in their development.

Selling and distribution- The work of this department is to look about stock and finished goods of the company they help company in distribution of their goods and services across the world. As Apple is having more than 500+ stores all around the world and excluding this there are other retailers and wholesaler who are selling the products. So marketing department would regulating and checking what are the demand and supply of product in market on the bases of which selling and distribution department taking the order of the products.

Human resource management- This department is working to ensure that company is having the best qualified professionals and employees who are been employed in the team. They should be those who are self-motivated and performing very good into the market (Hao, Heijman and Huo, 2018). So this is the work of marketing department to analysis the need of number of employees and advertise this on various media channels like that of online websites or other.

Manufacturing- This department work for the making and designing of product model with the help of R&D brining out new and innovative ideas are the main aim of this segment with greater  emphasises on quality of products. So marketing department would be making out calculation of how much to produce and what are the demand of customer in relation to the development of products

Conclusion

At the end, it can be summarised that Apple is the best company in market of mobile phone communication which is making the highest amount of profits. They are creating strong overall marketing strategies for their products and managing every aspect of the majority of launched products.

Recommendations

It can be recommended that company should be making their efforts in developing stronger marketing plan which would be helping them in order to make presence in market more manageable.

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References

• Chen, S., Benedicktus, R., and Shih, E., 2018. Teaching Design Thinking in Marketing: Linking Product Design and Marketing Strategy in a Product Development Class. Journal of Marketing Education, p.0273475317753678.
• Gilbert, M.A., 2017. The social media marketing strategy of the Emirates American Football League. Routledge Handbook of International Sport Business.
• Hao, J., Heijman, W. and Huo, X., 2018. Cooperative membership and farmers' choice of marketing channels-Evidence from apple farmers in Shaanxi and Shandong Provinces, China. Food Policy. 74. pp.53-64.
• Knutson, B.J., 2017. The foundation of twenty-first-century hospitality marketing strategy. Routledge Handbook of Hospitality Marketing.
• Kotabe, M. and Murray, J.Y., 2018. Global Sourcing Strategy: An Evolution in Global Production and Sourcing Rationalization. In Advances in Global Marketing (pp. 365-384). Springer, Cham.
• Lane, V. and Parthasarathy, M., 2018. A Comparison of Excess Stock Market Return to Standard Marketing Metrics. In Research, Practices, and Innovations in Global Risk and Contingency Management (pp. 20-37). IGI Global.
• Lane, V. and Parthasarathy, M., 2018. A Comparison of Excess Stock Market Return to Standard Marketing Metrics. In Research, Practices, and Innovations in Global Risk and Contingency Management (pp. 20-37). IGI Global.
• Solberg, C.A., 2017. International Marketing: Strategy development and implementation. Routledge.
• Tomczak, T., Reinecke, S. and Kuss, A., 2018. Introduction. In Strategic Marketing (pp. 1-18). Springer Gabler, Wiesbaden.

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