Thursday, December 12, 2019
Marketing and Strategy Apple Inc
Question: Discuss about theMarketing and Strategyfor Apple Inc. Answer: Introduction The marketing mix is one of the most effective business tools which is used in marketing for the purpose of determination of the types of products and services of the brand. This paper would discuss the 4Ps of marketing such as price, product, promotion and place of two largest telecommunication organizations namely Apple and Samsung. Discussion The marketing mix of Apple Inc. shows that the company places utmost importance to its marketing activities. It shows the effectiveness by which the company addresses the conditions of the market. The company uses the marketing mix in its global operations by the utilization of various channels. Apple has set an excellent example regarding the usage of marketing mix in improving the business success. The marketing mix of Apple can be described as follows- Products- The company has constantly strived to expand the range of its products. It has created a wide product lines along with large differentiation of the products in individual category. There are wide range of products such as Mac, iPhone, iPad, iPod, Apple Watch, Apple TV and others. These categories are further diversified. For example, the company has introduced several products under the iPhone category such as iPhone 6s, iPhone 7, iPhone 6s plus and others. The company strives to develop new innovative products such as Apple Electric Vehicle which would fulfill the needs of the customers. Place- Apple has adopted a holistic approach towards the distribution of its products. It has adopted a wide variety of distribution channels so that their products are accessible by a large section of the population. A selective distribution strategy is being used by the company in which the company authorizes the sellers to exert sufficient control. There are variety of distribution channels such as online store, apple stores, telecom companies, authorized retailers, fulfillment services and others. Price-The company is well known for formulating premium pricing strategy for all its products. The prices of Apples products are high and represent the premium image of the company along with its products. The company attracts the niche customers that comprise of only upper classes and the elite population. The high price of the products ensures high profit margins of the company and it creates good revenue generation for the company. Promotion-The company engages in the constant development of creative advertisements and uses a variety of medium such as television, social media platform, radio and others to propagate their message. They come up with new taglines for their updated versions of iPhones, which has fascinated the users. The company engages in extensive advertisements, sales promotion and public relations. It even engages in personal selling of its valuable products through the Apple stores. The promotional activities have created a loyal customer base who are unwilling to shift to other brands. The marketing mix of Samsung is done in an intelligent manner. The South Korean company has formulated effective marketing mix that is used by the company for competitive advantage. It is described as below- Products- Samsung has a wide range of products like tablets, televisions, mobile phones, cameras, air conditioners, refrigerators, microwave ovens and others. The performance of the products has been consistently good, which is the primary reason for its popularity. The advent of Samsung in the smart phones category has made it a status symbol among the target audience. It is also known for excellent after service of the products and also the products of the company demonstrate minimal defects. Price- The company is known for formulating different pricing strategy for different products. It caters to all the sections of the society as per their financial capabilities. The brand is known for competitive pricing for its different range of products. Samsung is known for skimming pricing which implies that it tries to engage in maximum profit generation immediately after the launch of the products. The company engages in strict monitoring of the competitors and once a competitor launches a similar product, then Samsung reduces the price of its product instantly. The company also believes in early entry in the market to capture the market in an effective manner. The companies price their products accordingly so that they can compete with Samsung. Place- Samsung distributes its products through several channels present in the market. It has adopted the channel marketing idea which utilizes sales as well as service dealers, distributors, modern retail stores and others. The company is also involved in the corporate sales. It targets single distribution scheme with a particular distributor who deals with all other retailers for the purpose of distribution of its products. The single distributor would sell the companys products to all the retailers in the particular geographical region. Promotion- Multiple promotional methods are used by Samsung for the purpose of promotion of the products. It believes in the pull strategy and it tries to attract the customers through attractive advertisements. It devises advertisements based on the seasons such as festive season as well as non festive seasons. Samsung is believed to involve celebrities in their brand advertisements for greater appeal of their products. It also gives special offers for the trade partners so that they can drive the sales of the products of the brand. This way the brand utilizes the push strategy. The marketing team of Samsung uses both push strategy as well as pull strategy for attracting the customers. The company plans to allocate 5% of the total revenue generated for promotional purpose, which is the reason behind its successful advertisement campaigns. Conclusion The marketing mix of Apple and Samsung presents interesting tools for the marketers in order to position its products effectively in the market. The multiple products of the companies need to be promoted well in the market. Proper planning is essential for the implementation of the 4Ps of the marketing. It is important to consider all the factors of the marketing mix such as price, products, place and promotion for the purpose of product success. References Apple", 2016, https://www.apple.com [accessed 27 October 2016]. Cain, P, "Brand management and the marketing mix model". inJ Market Anal, 2, 2014, 33-42. Gordon, R, "Re-thinking and re-tooling the social marketing mix". inAustralasian Marketing Journal (AMJ), 20, 2012, 122-126. "Samsung", 2016, https://www.samsung.com [accessed 27 October 2016]. Tapp, A F Spotswood, "From the 4Ps to COM-SM: reconfiguring the social marketing mix". inJournal of Social Marketing, 3, 2013, 206-222.