Marketing Questions - Essay Example

Marketing Questions Introduction Companies are changing the way they operate on a daily basis. This can be attributed to the fact that competition, customer preferences and natural factors are greatly contributing to this change. Apple Inc. is a world-class electronic company which produces the best mobile gadgets, personal computers and cameras among others. In the discussion below, there are four sections which have relating but different questions. While companies have a different means of connecting with customers, Apple chooses the marketing concept with which it relies upon to identify, penetrate and protect its market. It does this through a process called positioning. Such scenarios give rise the marketing mix in which the 5Cs have been preferred over the traditional 5Ps. The discussion also addressed the consumer buying behavior by highlighting the buying process and product life cycle without forgetting the promise of the brand. 1. On the Basics There exist two concepts used in marketing that determine how business entities interact with customers; selling and market concepts. In selling concept, the firm concentrates on sales volume since it assumes a customer can only buy enough when given a discount. Therefore, the firm ends up forgetting what the customer exactly needs and focuses on producing huge volumes of goods and making sure everything is sold off regardless of the situation. On the contrary, marketing concept emphasizes creation of profits through customer satisfaction (Kotler & Armstrong, 2013). This is a concept that every business entity must have in the current business world. Customers decide what they want and when they want it. Failure to adhere to their cries gives room to creative competitors who capitalize on such situation. Having understood the two concepts, the Apple Company relies on the marketing concept to interact with customers. It values a continuous improvement approach in which customer safety and satisfaction are used in improving the products. Marketing myopia is being caused by firms relying on the selling concept the use of marketing concept is a full package of handling businesses today. By understanding and responding to what customers rely want, it is very easy for the company to attain a competitive advantage and enjoy a lead in the market. Market segmentation is the ability of a company to identify, select and subdivide its customers according to urgency and suitability of the product (Kotler & Armstrong, 2013).The major variables used in segmentation are demographic, geographic, behavioral and psychographic. The said variables form the measurable consumer characteristics which in addition to them includes behavior segmentation. Behavior is a major contributing factor when segmenting a market because it entails loyalty, attitude towards a product and willingness to use it. Since the company in use for illustration uses the marketing concept to deal with customers, it is good to understand the market segmentation. It gives options on the segment type a business entity can enter. This is on the basis of measurability, substantiality, accessibility, and differentiability and action ability. Apple Company uses the mentioned segmentation variables in penetrating the market. Most of the Apple electronics are expensive and thus the most reliable variables are psychographic; lifestyle, personal attributes and motives, behaviorist segmentation which determines how people remain loyal to brands and how they react in relation to price changes. In addition, the demographic variable is important because age, income level, social class and occupation determine how people think about Apple electronics. Geographic variables evaluate the market density, city or state size and locality. To penetrate the market, Apple considers innovation as an urgent requirement given an increase in competition. To make it happen, the company has already began providing services in the education field and making sure every product is unique and fully equipped with user friendly software. Android, an application used by most smart phones is a major threat to Apple’s progress. In penetrating the market, the company has introduced its own operating system, software application, hardware and unique designs. With this in place, it will be easy for the company to protect its market share that had been snatched by a rival company; Samsung, which had dubbed most of Apple’s designs and smart phone features. The target market’s success penetration is attributed to great company resources and financial capabilities, product uniqueness, variations in the market, product life-cycle and competition. 1c. positioning Apple has a unique way in which it differentiates its products from other competitors. It does this by manufacturing high quality products but at a premium price. Most customers if not all agree that expensive is quality. This is how Apple positions its brands. It is aware it cannot control the whole market share. For instance, it controls 10% of the PC market share and it is aware more than the quoted percentage of the customers prefers the premium gadgets. Due to the high quality of the company’s product like I phone 5S, the image it creates in customers is that they are assured technological satisfaction and an attachment to high social class. To remain in position, Apple began by limiting Samsung’s production after winning a court battle against it in a case in which Apple accused Samsung of imitating the features of its I phones’ models. Q2. Strengths and weaknesses of marketing mix Marketing mix is an effective tool used in marketing with the aim of creating value that is essential for attaining a good link between the firm and customers. It is said that firms that create value through the use a marketing mix have an easy time in attaining a competitive advantage. From a seller’s concept perspective, pricing, product, place, promotion and positioning are major elements in such marketing mix. On the contrary, from a marketer’s concept, customer solution, customer cost, customer communication, customer convenience and customer mind are the elements. Marketing mix is very essential in establishing the competitive advantage of Apple Inc. being aware of the ever increasing competition, the company has to work in accordance of providing customer solutions. In 2008 for instance, Apple had to offer alternative a new customer solution when it came up with a new version of I Phones that had simple features yet good for official and casual use. Currently, having understood that customers are highly dependent on electronic gadgets in performing daily activities, it has offered a solution by making I Phones with a large internal storage capacity, improving to 4G wireless and giving customers a new taste of camera and video high definition caption. It has done this while considering customer value in which I Phones with 4G capability and 16 GB in capacity retail at $ 299. Those with lower memory capacity cost less. This makes it easy for the company to attain a competitive advantage since customers looking out for mobile devices from a populated market consider Apple Inc. A major weakness of the marketing mix in Apple Inc. is that any little misunderstanding can greatly create a negative impact on the rest of the 5 Cs. For instance, if a company fails to effectively communicate with customers, which is one of the major marketing mixes, it can cause inconveniences especially when customers need the particular product immediately. For instance if Apple makes its promotion services predictable, then a customer’s mind will be clinched to it and will always wait for such promotions. This may end up affecting the whole marketing idea and making it a costly venture. Recommendations A major issue that Apple has to watch out is the ability to retain and attract customers. A good number of the Apple products are incompatible with other electronics thus causing customer inconvenience. For example, the MAC is not compatible with Windows Operating System. This is a risky way of loosing out on potential customers. In addition, product value can drive away customers who may opt to purchase from other companies that offer cheap prices. To retain customers, Apple Inc must make sure there is an established communication platform with customers to ensure they understand the pricing theory. Such an understanding can offer customer satisfaction in return. To save the marketing mix strategy, the company, in its conquest to go global or gain a competitive advantage must occupy a customer’s mind through personalization kind of marketing. This can include customization of the brands and improving on the gadget technology. Q3. CONSUMER BUYING BEHAVIOR There are five typical steps in which a potential customer undergoes when buying an item. They are need recognition, information search, evaluation of alternatives, purchase decision and post-purchase behavior (Kotler & Armstrong, 2013). Need recognition Apple Inc has a variety of products ranging from personal computers to hand gadgets. A customer has to identify the exact product from the range of products. This is considered the most critical and sometimes a difficult step any buyer can undergo. However, for problem recognition to take effect there has to be a lag in between a potential customer’s actual situation and the ideal desire. It must be noted that not problems influence the buying behavior since the lag has to be identified as an acceptable offer. This always depends on the urgency of the problem. For example, if a student has got lots of assignments, he/she will consider prioritize a laptop ahead of any other thing like a phone because it will be of help in carrying out researches. In some cases, problem recognition depends on either internal or external stimuli. In internal stimuli, customers rely on physiological urges while in external stimuli; customers rely on what they see in adverts among others. During this stage, a customer can always classify the need into functional, social or urge to change. When thinking of a laptop, a student will prefer a superfast laptop that apart from helping in carrying out researches, it can as well allow them save other materials like movies and songs. Social need is derived for the urge to want to belong to a particular social class and urge for change can be because one wants to replace the old machine or upgrade. Information search Having identified the problem, a customer looks out for information regarding the laptops available in the Apple store. Depending on the model of the laptop, the consumer can either dig dip into researching or look out for very little information. This entails looking out for both internal and external information. Since a laptop is a complex thing, a consumer will have to rely on external information which includes family and friend reviews, suggestions, consumer magazines and manufacturer’s websites among others. Evaluation of alternatives Apple Inc. has a range of computer models. The consumer will have to evaluate them and find out the best model that is compatible to his or her needs. To arrive at such a conclusion, the objective characteristics which include functionality and product features have to be assessed. At times subjective characteristics can as well be used in the evaluation. The information gathered in the research stage is used here to set straight the evaluation criteria, make classifications about the wanted features and the available alternatives. At this stage, satisfaction is arrived at and the customer makes considerations of the brands that can fit in. Purchase decision Having considered the brand or model, a customer arrives at the purchasing decision. This will depend on the perceived values of the models identified, features and performance capabilities. However, some of these considerations can be short-lived should there be a promotion, differing terms for sale and bargaining power. Post-purchase behavior After purchasing the laptop, the student will evaluate the product’s capabilities and how they satisfy the original need. Depending on the results, the student will be able to know if it was the right choice or not to make the purchase. Satisfaction will mean it was a right choice while disappointments will mean wrong or misinformed choices. This influences the ability of a customer to be loyal to a brand. 3b. rate of adoption The rate of adoption is a relative measure of individuals or groups who use a certain new technology in comparison to the whole society. Such rates are affected by the benefits that come along with adopting, the ease of incorporating such technology in daily routines and the ability of the society to see the innovation as worthy. For instance, reports reveal that Apple’s iOS 8 has an adoption rate of 52%, iOS 7; 42% and earlier versions posting an adoption rate of 5%. Apple Inc. has shown little progress in its innovation and thus has to wake up and show the world what it is worth of doing. While it has the best hardware, Apple has got issues with its software. It has to reconsider its first-arty applications even with the new innovations like IOS7. Another key area that the company has to improve on is advertising. Most reviews indicate Apple has lost its sense of humor in this field. Lastly, the developers of most Apple’s gadgets put strict regulations to the extent that users find it difficult adding other favorite applications. This has to change if people have to continue loving the company’s products. Q4. Brand and product life cycle Apple has got the best hardware in the market and thus making its brands the best sellers. Since its inception, Apple brands have withstood the test of time because not company yet has outshined it in terms of technological prowess. This has made its name a valuable brand all over the world. Due to its use of the marketer’s concept, it has brought satisfaction to customers who have so far become loyal to its products. A major weakness to the brand is with the software. While it very unique, it has been termed incompatible with most of the known software applications in the market. This means that if a customer has different products with one being Apple’s, it can be difficult to collaboratively use them. It has been observed that developers of Apple’s software put stringent regulations to the extent of denying customers they freedom of installing other foreign yet useful applications. 4 i) recommendations The company should upgrade and continuously come up with new innovations. It has been long since Apple came up with something unique. All of the existing features are centered at what the former CEO and founder; Steve Jobs first came up with. Software developers must rely on strategic alliances so that whatever they develop is compatible with other applications in the market like Microsoft, Android among others. This however has to be done keenly to prevent piracy. 4 ii) product life cycle The Apple’s Mac, I Phone 5S are among the brand products that are in the growth stage. Even though they are facing competition, no company has managed to imitate the exact hardware and software after Samsung was found guilty of that. This means the sales are increasing at an increasing rate and people are appreciating being part of the Apple family. Customers are loyal to the Apple brand because they get satisfaction from every single product. The high quality, durability, performance and low maintenance is all a customer requires. For this connectedness to exist even in the future, the company has to establish a platform through which customers can interact with the manufacturer and leave comments, suggestions. Loyal customers can as well be rewarded by getting discounts on future products. 4b). the promise of Apple’s brand Apple’s brand promise is authentic because it has gone a step further to offer the emotional attachment. It is an extension of the company’s positioning because it enables the promise to take effect. This has been Apple’s promise by virtue that it is cool being part of the Apple family. From the very beginning, Apple made a promise of making a machine that will work collaboratively with a human being instead of over depending on commands. This could be the reason why people just love Apple products because they are made for the consumers. To honor its promise, it does not actually derive its ideas from an original point of view but instead follows them up until they are actualized. By starting small, it has managed to beat all the competitors at any challenge they brought along the competition path. Take the example of the I Pad, which apart from honoring its promise is an easy to use product and has funny and interesting features. Conclusion The discussion above gives an impressive understanding of what happens in Apple Inc. it is among the companies that impress and perceive its operations from the customer’s view point. This has propelled it to greater levels since it has been easy working with what customers really feel. This has altered the traditional marketing mix which involved the 5Ps by transforming it to 5Cs to favor the customer. Through this understanding, it is easy to know that just like any business; customers have a particular behavior which affects marketing in a company. Such customer behavior is engraved in the decision process through which a customer undergoes before buying a product. Independently, Apple as company has its own strengths and weaknesses. Corrections have been discussed and recommendations given. The whole understanding can summarize the promise of Apple’s brand. Work cited Kotler, P., & Armstrong, G. (2013). Principles of Marketing 15th Global Edition. Pearson. Read More