Marketing Assignment

March 17, 2019

Marketing Mix Analysis

Marketing has an important role to play in any organization regardless of its size or the number of products that they have to offer to their customers. The selection of an appropriate marketing strategy and marketing mix determines whether a company will be able to achieve a competitive edge in the market or not. The brand image of a company relies heavily on how well the marketing campaigns are carried out and the effectiveness of the marketing plan in highlighting the most important aspects of the product and the target market (Lee & Carter, 2011). Clearly, every successful and well-known brand in the global market has been a result of using an appropriate marketing plan and a highly effective marketing team to implement the strategy. Apple Inc. is one such global brand that has managed to become one of the most valuable brands in the technology industry globally. It is also one of the global firms that has been able to develop and adopt a highly effective marketing strategies that have been at the core of its success (Marshall & Johnston, 2015). The analysis in this paper focuses on how Apple has made use of the three elements of marketing mix; price, place, and promotion, to enhance its competitiveness of its products in the global market.

Apple’s Marketing Mix

Price

Price is a key element of the marketing mix strategy that is adopted by any organization. Apple Inc. has established itself as a premium brand seller that does not necessarily compete on the basis of prices. Pricing has been a key focus for Apple Inc. when marketing its products (Milder, 2013). Most of the Apple products have relatively higher prices as compared to those by the competitors. The products are usually targeted to a particular market segment, where the target individuals in the high-end market are willing and able to pay the set prices (Pride & Ferrell, 2016). These are the loyal customers who are willing to pay relatively higher prices in order to enjoy the unique features that the products have to offer. As such, these customers are always looking waiting for the next brand of an iPhone, an iPad, a smartwatch, or a MacBook that will be released in the market.

Even though the company uses premium pricing, these prices are set at a range that is within the market range for similar products from its close competitors (Kotler & Armstrong, 2015). However, the premium pricing for most of the company’s products is arguably in line with the design and technological advancement of these products such as the new iPhone XS. The competitors such as Samsung adopt a different pricing strategy, which enables them to attract buyers across the global market since the products are sold at favorable prices.

Place

The place aspect of the marketing mix focuses on how the customers are able to get the product based on the distribution channels used by the company. Apple Inc. seeks to ensure that its target customers are able to access the products in the most effective way (Kotler & Armstrong, 2015). The company has focused on selling its products in only in unique outlets across the world. This has helped limit the sale of counterfeit Apple products, making it one of the companies in the technology industry that has not been affected by counterfeits. The main distribution channel that is used by Apple Inc. are that Apple stores that are distributed across the United States and in other parts of the world where their customers are located (Pride & Ferrell, 2016). These stores make it possible for customers to access original Apple products and make enquiries about the product use.

With the growing demand for the company’s products, there has been an increase in the number of trade partners, distributors, and retail outlets across the world, who help with the distribution of the Apple products. In addition, the company has also been able to sell its products (Lee & Carter, 2011). Online where customers can pre-order them on an e-commerce platform on the company website. As such, Apple has been able to take advantage of most productive distribution channels, thereby enhancing its market coverage and enhancing customer satisfaction.

Promotion

Promotion focuses on the marketing messages used by the company when communicating with the customers in the market. These messaged are delivered using various platforms such as print messages, media, and internet based on the observed characteristics of the target market. Apple Inc. has always used promotions that demonstrate elegance and the ability of the marketing team to use smart marketing strategies (Marshall & Johnston, 2015). The company focuses on the products being offered to the customers in its promotions, by ensuring that the customers are able to distinguish Apple products from those of the competing firms. Effective marketing communications should focus on ensuring that the customers understand the key features of the products being offered and be able to distinguish them from those of the competing firms.

The advertisements used by Apple are appealing to the consumers, highlighting the key product features that are unique from the competing products in the market. The advertisements are made to be simple and direct to the point, which makes them more effective (Milder, 2013). Apple use different media platforms through the premium media where, thereby being able to reach to their customers. This is achieved by integrating both print, media, and the internet which are able to capture the young professionals in the market, who are its main target customers.

Effectiveness of Marketing Communications

The strategy used by Apple Inc. has been very effective in marketing its products. The company has effectively marketed its products in the market, which has formed the basis of its success in the global market. The marketing strategy has enabled the company to promote loyalty among its customers by assuring them of unique features and quality in the products being offered in the market (Kotler & Armstrong, 2015). In addition, the premium pricing strategy has enabled the company to maintain its brand image in the market. This is because the customers view the relatively expensive Apple products as being superior to their counterparts by the competing firms in the technology industry. Over the years, Apple has been a reputable brand for its exceptional quality and unique and artistic features of its products (Pride & Ferrell, 2016). Additionally, the marketing approach gives the products a unique touch that motivates the customers to buy them.

One key aspect of the marketing mix that I believe has been a weakness in terms of the products offered by Apple Inc. is the price. This is because, using the premium pricing approach makes most of their products too expensive for majority of the consumers in the global market. There is a large number of low income and middle income customers who are looking for high quality and affordable products (Lee & Carter, 2011). However, Apple focuses mainly on the high-end market, by setting high prices for most of its products. As a result, the company has lost a significant share of the market to competing companies such as Samsung, which are able to use favorable pricing approaches for its products across various market segments. As a result, the competitors are able to capture a wide market coverage and boost the volume of sales (Marshall & Johnston, 2015). Therefore, it would be important for Apple Inc. to consider using different pricing strategies for different market segments instead of setting a standard price for the global market, which makes most of its products to be viewed as being for the high-end market only.

References

Kotler, P., & Armstrong, G. (2015). Principles of Marketing-Global Edition. Pearson.

Lee, K., & Carter, S. (2011). Global marketing management. Strategic Direction, 27(1).

Marshall, G. W., & Johnston, M. W. (2015). Marketing management (2nd Ed.). New York, NY: McGraw-Hill. ISBN: 9780078028861.

Milder, N. D. (2013). E-marketing. Economic Development Journal, 12(3), 34–40.

Pride, W. M., & Ferrell, O. C. (2016). Foundations of marketing. Cengage Learning.