Marketing strategies of Apple Inc - Essay Example

Marketing strategies of Apple Inc 0 Introduction Current global environment is filled with similar services and products. At the same time, marketers are increasingly influencing consumers’ daily lives. The modes or channels through which marketers interact with consumers are diversifying every day. Similarly, competition for consumer’s time share, wallet share and mind share is also becoming intense. Customers too are attracted and influenced by the way in which companies portray themselves over various communication mediums. As such, companies are depending on creative and innovative marketing strategies for fulfilment of their objectives as well as gaining competitive edge over others. Marketing strategies are those activities and processes, which help in directing a company’s resource towards opportunities with an objective of achieving competitive advantage and increasing sales. With traditional marketing being replaced by modern and unconventional strategies, marketers need to clarify their business aims and work with cross-functional team for identification, evaluation as well as implementation of numerous emerging opportunities. The topic of this report is to study the marketing strategies of Apple Inc. Apple is one of the highest valued brands across the globe and falls in the technology industry. The research question is relevant in the present industry because of various reasons. Firstly, Apple has been known to implement innovative and out-of-the box marketing strategies all over the world. It is also the industry leader in many categories such as, laptops, handsets and Smartphone. So, other companies tend to follow the strategies and tactics adopted by Apple in various situations, making the topic interesting and relevant. The report will explore the trends and changes in marketing strategies adopted by Apple in past and present. Apart from that, the report will also focus on effectiveness of these strategies in different situations, failures and how the company recovered from failed strategies in past. Consequently, the analysis will provide a broader view of the company’s future marketing activities. 2.0 Literature Review The primary objective of literature review is to analyze the relevant literature available on Apple’s current marketing strategies and subsequent consequences on the company’s revenue and long-term growth and development. Modern marketing system is a comprehensive model where all major and minor players and intermediaries are described in terms of function, role and influence in the marketing channel. These players are affected by major internal and external environmental forces such as, economic, demographic and technological as well as value chain, management and organizational hierarchy. Each party or player in this marketing system adds a certain value critical for the next stage. So, overall success of the company relies not only on organisational activities, but also on the manner in which entire system collaborates and meets demands of end users. Apple is known for its leadership in creativity and extraordinary future vision. Nevertheless, customers will be able to fully utilize the service or products when needs are identified. In this case, marketing strategies provide a convenient channel for Apple’s offerings to be communicated to target audiences. When Apple was established in 1977, a three point marketing philosophy was assembled by founding members, which also became the underlying market strategy for the company (Forbes, 2012). The company still runs on these three marketing and strategic principles, where all planning and implementation processes are based on above strategies. These are; 1. Empathy: Understanding exact needs of the consumers and identifying them in a faster and better manner compared to any other organization. 2. Focus: Eliminating all issues and problems before utilizing internal and external opportunities. 3. Impute: A book is always judged by its outer appearance or cover. Similarly, making a great service or product will not prove beneficial if the offerings are communicated ineffectively. This is where the marketing strategies come into action. The offerings are presented in a professional and creative manner imputing the desired attributes. Apple has been integrating its marketing strategies with the above marketing principles and has successfully achieved sustainable competitive advantage (Forbes, 2012). According to Chimhanzi and Morgan (2005), companies focusing on human resource and marketing alignment are able to attain success faster and in a more convenient manner compared to those, whose focus is directed only at profit making strategies. Hence, findings provide an important input that marketing executives should improve their relationship with the human resource departments through strategies such as, written communication and joint rewards. It has been observed that efficiency of any strategy implementation is highly dependent on overall quality of personnel involved in the task. In this context, quality implies attitudes, skills, experiences and capabilities required for successful completion of a project or task (Peng and Litteljohn, 2001). Chimhanzi (2004) suggested that cross-functional teams and groups play an important role during successful market implementation of strategic decisions. The same theory is applied by Apple wherein it allows cross-functional teams such as, engineering and business departments, to work together for reducing conflicts and moving towards a common goal of customer satisfaction. The marketing strategies at Apple are never finalised by the top management alone, but is done only after receiving unanimous consent from employees and managers of all departments across the organisation. The marketing models and policies implemented by the company are focussed on creating a continuous customer value. As a result, marketing activities are not limited to simple promotion of products or services, but providing overall education to consumers regarding usage, applications and disposal of the products and services offered by the company (Rapert, Velliquette and Garretson, 2002). Consumer-oriented marketing strategy The marketing strategy of Apple can be rightly termed as consumer oriented. Apple has been spending a great deal of time in observing and analyzing customers, their behaviour and demand patterns. Through this observation, Apple not only builds creative services and products, but also launches innovative and interactive platforms engaging customers and gaining sufficient attention. The customer marketing strategies of Apple concentrates upon building compatible experiences. For instance, Apple had realized that consumers want an intuitive and streamlined method whereby entertainment and computing devices could be integrated into one system. Thus, the company offered one-stop solution for all digital and entertainment needs. An important resource of Apple is its customer focused employees who are constantly providing the company with inputs (Forbes, 2013). Marketing mix strategy Marketing mix are critical functional tools, which aid in execution of marketing strategies and facilitate their effective implementation. Marketing mix can also be considered as a crude form of marketing strategy, which is modified accordingly so as to generate desired strategy. Apple’s product strategy is based on a combination of extraordinary design, innovative styling and unprecedented features (Hair, 2011). Apple’s products are diversified into numerous categories and product lines, keeping pace with the highly competitive electronics market. Apple’s products are considered as futuristic, implying that they launch products and then create demand for it. At present, the company’s products are famous for their customization aspects such as, those of iPhone and as a result, are highly demanded by the target market. In a similar manner, Apple has been following premium pricing as well as price skimming strategies for placing products. Premium pricing is generally applied to technologically advanced products. Similarly, the company applies price skimming after products are launched in order to drive volume sales and intensify competition (Slater and Olson, 2001). It is interesting to note that only few studies have stressed upon strategic implementation of marketing activities. Bantel (1997) evaluated two key aspects of marketing strategy, which were market focus and product strategy. In terms of performance, two importance strategies identified were employee empowerment and stakeholder input. The study also established relationship between market strategies and implementation variables. According to Homburg, Krohmer and Workman (2004), overall marketing orientation of an organization plays an influencing role for effective implementation of PPD or premium product differentiation process. Customer discovery as well as differentiation was achieved through innovative Apple stores. These creative retail stores provided an interactive forum for Apple to showcase its design expertise. This retail marketing strategy enables Apple customers to experience exclusive products. Apple stores also provide a platform or touch point by providing support and assistance to customers. 3.0 Research questions and objectives The research aim of this study is to investigate the marketing strategies of Apple Inc. The priority of this research is to evaluate underlying causes behind unique and innovative marketing strategies undertaken by Apple from time to time. The broader objective of the study is to enhance overall knowledge of the researcher regarding successful marketing strategies followed by renowned companies such as, Apple and their various implications. Research questions 1. What are the marketing strategies followed by Apple, in general and specific situations? 2. How have these marketing strategies evolved over time and what is their present state? Research Objectives 1. To establish a general understanding of past as well as present marketing strategies implemented by Apple. 2. To explore the inter-relationships between consumer demands and purchase patterns and marketing strategies of Apple. 3. To explore marketing strategies of Apple based on internal and external business conditions and changing business environment. 4.0 Research Methodology The most appropriate research methodology will include factors such as, theoretical review of the subject under study, review of appropriate research philosophies, designs, methods and strategies, tools used for data collection and techniques for data analysis (Ariola, 2006). 4.1 Research Philosophy The objective of the present study is to explore the marketing strategies of Apple. Here, overall marketing policies and principles will be reviewed and analyzed taking into account certain influencing factors such as, internal and external environment, country culture and customer demands. Hence, the appropriate research philosophy will be positivist style. Positivist research philosophy is characterised by extensive testing of hypothesis, which in turn is developed from an existing theory. According to this philosophy, knowledge can be valid only if it is based on relationships and observational realities. These observational realities in turn rely upon cause-effect theories and generate predictable outcomes (Saunders, Lewis and Thornhill, 2007). The belief system of this philosophy is grounded on prediction, control, value-free research and empirical verification. Positivist theory was selected for the present dissertation because of various factors. Firstly, launch and implementation of marketing activities by Apple is based on a certain objective. Secondly, relevant objectives are present behind changes made by Apple in context of marketing strategies over years. Thirdly, researchers have access to both primary as well as secondary data. The positivist research philosophy can be associated with exploratory nature of the research study. The underlying focus of the research problem is experiences and observations made by Apple’s management and their influence on past and present marketing strategies. 4.2 Research Approach Two major research approaches are adopted while carrying out research studies. These are deductive and inductive approach. Deductive approach tests an existing theory or model by hypothesis testing, casualty analysis and final approval or rejection of the theory. Inductive approach, on the other hand, emphasises on formulation of new theories or statements based on data and information. While deductive approach uses hypothesis, inductive approach greatly considers research questions in order to narrow down scope of the research study (Hair, 2011; Bhattacharyya, 2009). For proper execution of present research study, inductive research approach will be implemented. Following inductive approach, the researcher will formulate analysis statements or final theories, only after effective implementation as well as analysis of collected data and information. Inductive approach can also be termed as theory building (Denzin and Lincoln, 2011). Under this framework, researcher will enumerate the marketing strategies followed by Apple Inc. The broader analysis will be on inter-relationship between market/environmental forces and marketing activities surrounding Apple. On basis of the findings, new statements and theories will be established. 4.3 Research Strategy A research strategy is a step-by-step process, which provides directions to thoughts and efforts as well as helps the researcher in conducting a constructive and systematic study. Researchers have been using numerous research strategies such as, action research, case study analysis, ground theory analysis, sample surveys, experimental research, ethnographic and archival research (Pannerselvam, 2004). The present research study will implement archival as well as survey research. Survey research will be carried out on target participants like, employees of Apple, management or industry experts. At the same time, archival study will include extensive review of literature regarding the marketing strategies undertaken by Apple in various settings and contexts. The empirical data collected will also help in comparing and contrasting present and past marketing strategies of Apple. 4.4 Data collection Data collection can occur through tools such as, sampling, interview, observations and secondary data collection. Data collection will be done from both primary and secondary data sources. While primary data will be collected through interviews, secondary data will be gathered from archives and other relevant as well as authentic secondary data sources. The current study aims to analyse and evaluate marketing strategies followed by Apple. Hence, secondary research will help in recognising useful information, besides facilitating establishment of research background (Sekaran and Bougie, 2009). Sources for secondary data collection are books, online databases, journals, company websites company annual reports, government websites as well as paid authentic websites. As the study focuses on marketing activities, majority of the secondary sources will be from marketing and strategic context. Research population is characterised as a large collection of objects or individuals with major focus on a particular research or scientific query or question (Blaxter, Hughes and Tight, 2006). The objective of the current research is to explore marketing strategies followed by Apple Inc. So, research population for this study will include Apple’s management and industry experts. Management will include marketing and strategic leaders and other managers associated with marketing decisions of the company, providing important information and data on internal marketing strategies followed by the company. Industry experts will include experienced professionals from various marketing and strategic backgrounds (Cachia and Millward, 2011; Thompson, 2012). The sample size of management and employees will be 20 and that of industry experts will be 5-8. For the employees and management of Apple, questionnaire will be used as the primary data collection tool. Similarly, for industry experts, focus group interview will be conducted. A questionnaire comprising a series of closed-ended, open-ended, semi-structured or structured questions is presented to the target audience. For managers of Apple, a semi-structured questionnaire will be prepared with 10-15 questions (Hesse-Biber, 2011). The questionnaires will be distributed through emails to these managers. The focus group interview will take place at the city hall and duration will be 6 hours with a break after every 2 hours. The interviews will be both recorded in audio as well as video format and in turn help in studying current market strategies followed by companies. The researcher will also ensure that information pertaining to participants is not misused in any form. The collected data will be analysed using Excel tools. In this case, descriptive analysis using questionnaire survey will be conducted, where common tools such as, median, mean and mode, will be used for calculating single values. Other data will be examined through techniques such as, pattern matching, where past and present marketing strategies of Apple will be compared. The data will also be interpreted through graphical analysis. 5.0 Project Plan Activity Oct Nov Dec Jan Week number 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Literature Study Evaluation of background structure and drafting literature outline Reading literature methodology Finalizing approach of research and research strategy Completion of first draft Teacher Feedback Literature Review writing Formulating outline of the research Review of research questions Developing Focus Group, Questionnaire and Interview session Review of research approach Primary Data Collection (questionnaire and focus group survey) Evaluation of the Collected Data Comparison of past research with present findings Summarizing Findings of the Research Writing final dissertation Printing and Binding Final submission 6.0 Conclusion Making a good research plan is prerequisite for a successful research project. This requires certain steps and stages, which should be duly and efficiently followed, so as to generate meaningful results. Identification of research aim and objectives are the first steps, which are followed by designing the research methodology. The three parts of a research methodology, namely research philosophy, approach and data collection and analysis, provide a framework for the research. Primary and secondary data are collected through various sources and subsequently analysed using appropriate statistical methods. Reference List Ariola, M.M., 2006. Principles and methods of research. Philippines: Rex Bookstore, Inc. Bantel, K.A., 1997. Performance in Adolescent, Technology-Based Firms: Product Strategy, Implementation, and Synergy. The Journal of High Technology Management Research, 8, pp. 243-262. Bhattacharyya, D. K., 2009. Research methodology. New Delhi: Excel Books India. Blaxter, L., Hughes, C. and Tight, M., 2006. How to research. 3rd ed. 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Research Methods for Business Students, 4th ed. Harlow: Hall Financial Times. Sekaran, U. and Bougie, R., 2009. Research Methods for Business. 5th ed. Chichester, West Sussex: John Wiley& Sons. Slater, S.F. and Olson, E.M., 2001. Marketing’s Contribution to the Implementation of Business Strategy: An Empirical Analysis. Strategic Management Journal, 22, pp. 1055-1067. Thompson, S. K., 2012. Sampling. New Jersey: John Wiley & Sons. Read More