Marketing Mix Analysis of Apple Company - Assignment Example

Q1: Introduction/background information of Apple Company Apple Inc. is a company that manufacturers, designs and markets computers, peripherals like portable music players, software and network solutions (Burrows 89). Some of the products available in Apple stores include Macintosh desktops, iTune Music Store, and Mac OS X operating system among others. The company targets diverse markets including the online business marketing opportunities. The other markets include wholesalers as well as chains of retail stores. Apple owns many retail shops worldwide including 125 in the USA. Other large Apple stores exist in Canada, United Kingdom, and Japan. Though the companys headquarters is in the USA, it also targets other affluent markets like Europe, and emerging economies of Asia like India and China (Burrows 90). On the other hand, Apple has shifted its targets to developing economies of the third world especially Africa and Latin America. The implication is that Apple has a variety of target markets. Apple enjoys a strong customer base as opposed to its competitors like Microsoft, Samsung, Nokia, and Blackberry among others (Emerald 14). The company serves the interests of students, businesses, educators, government agencies, creative professionals, as well as the average consumers. Q 2: What are the characteristics of marketing mix (4Ps) analysis and how, when, by whom and why should this analysis be applied. Marketing mix refers to decisions that marketers and product developers undertake before launching products into the market (Gupta 144). Before outlining the characteristics of the 4Ps model, it is vital to distinguish between a marketing mix and the 4ps model. By definition, marketing mix refers to the many choices that a business entity makes before availing new products into the market (Lee et al. 2155). On the contrary, the 4Ps is one of the ways of developing a marketing mix. Therefore, the 4Ps model defines a marketing mix in terms of the product to develop, the price to charge, the place or locations to target and the promotional activities of positioning the product in the market (Gupta 145). One of the characteristics of the 4Ps model is that it defines the product or service to avail into the market (Gupta 146). In this case, the model identifies consumer needs to satisfy, product features as well as all specifications by defining a product in terms of colours, usability, the brand name, and its differentiation from competitors. Finally, the product analysis helps marketers to determine the profitability of selling a product to the target customers. In addition, a good characteristic of the 4Ps model is that it focuses on the product price (Lee et al. 2158). The underlying assumption is that a product must be at the right price and that consumers must get value for their money. Therefore, the price element or variable helps the organisation to understand how consumers value the product; how customers react to price and discounts that the sellers should offer to the consumers. Moreover, price analysis involves a closer look at what competitors charge for the same product or service. Another characteristic of the analysis is that it helps marketers and product developers to determine the feasibility of the location (Gupta 145). In this case, the analysis defines the location where buyers will find the product like retail shops and wholesalers. On the other hand, place analysis involves outlining the perfect distribution channel for the product. A firm also consider online submissions as one of the product places that modern businesses prefer. The final characteristic of the model is that helps in defining the promotional activities to help position the product in the market (Lee et al. 2158). In this case, the firm identifies when and where it can avail the marketing messages. It also involves other activities like advertisement in mainstream as well as print media. Furthermore, the promotional activities must be timely and should take into consideration factors that affect the availability of the product. Finally, the organisation must also identify the promotional activities that the competitors use. The marketing mix (4Ps) analysis begins with product identification where marketers, advertisers, and salespersons give their views on the best product to avail to the market and other factors like price, promotion and place to consider (Gupta 144). When carrying out the analysis, it is important to ask oneself the why and what if questions. For instance, the marketers may ask why the consumers need the goods and what if the product is of high quality. The 4Ps analysis always takes place when an organisation is launching a product into the market. However, there are many reasons as to why organisations should undertake a marketing mix analysis using the 4Ps model. It helps the business entity to identify the right product for the target audience and is the basis for fulfilling customer needs and expectations (Lee et al. 2155). Moreover, it helps a business to identify the right location for the product as well as the most appropriate promotional mix so that the product can enter the market successfully. Q3: Conduct a MARKETING MIX (4PS) analysis on the company you have chosen by conducting an STP analysis on a particular product and showing how this affects the marketing mix The marketing mix (4Ps) of Apple Company The first variable of the 4Ps model is the product of which Apple boasts of a wide range of products. There are numerous products under Apple brand including Macs, iPods, iPads, iPhones and the rest (Burrows 89). To evaluate a company’s products, it is vital to outline the variables that make a product or a service a favorite among consumers. Such variables include product form, quality, style, packaging, warranty and guaranty (Gupta 144). For example, Apple iPhone products are of medium sizes and mostly rectangular in appearance. They are also of different colors including yellow, orange, and white among other attractive colors. When it comes to quality Apple ranks as one of the best products with stylish as well as slick appearance (Emerald 14). Besides, Apple products come with beautiful and unique packages, and the company offers up to 12 months warranty. Apple Company charges different prices depending on the location of the market. For instance, the company charges differently for customers in India and the USA. The pricing also depends on product range. There are discount rates charged on different Apple products though the company has been sticking to its price skimming strategy (Emerald 15). The place component of the 4Ps model involves Apple’s wholesale and retail shops, warehousing, order processing and transportation. However, Apple Inc. uses the right promotional mix for its products (Emerald 13). The main aim is to convey benefits and generate awareness. The company advertises most of the products on print media as well as electronic media like the internet and Television. On the other hand, sales promotional activities involve exchange offers and modified payment methods or plans (Burrows 90). Other elements of the promotional mix include direct marketing, personal selling and public relations. Segmentation, Targeting and Positioning of iPhone 6 In terms of segmentation, the Apple’s iPhone 6 targets consumers whose aims are to store information, communicate with people and get entertainment. Therefore, Apple has segmented its markets in terms of user preferences. In this case, the company segments its markets to consist of students, professionals, entrepreneurs, corporate-users as well as healthcare professionals (Burrows 89). Apple has mainly segmented its markets and focused on the regions that AT&T serves. However, it should also target market segments of Europe or Western countries. In terms of targeting, the company uses the right marketing mix to reach out to its consumers. The table below shows how Apple has targeted its iPhone 6 consumers. Target Consumer need Features/benefits Professionals Staying in touch everywhere Recording information anywhere Email services, instant messaging Mac OS application for record-keeping Students Performing many functions on a single device iPhone, iPod, TV shows, PDA and internet Corporate users Access and input data anywhere Wireless calendar access and address books Entrepreneurs Organize, access and schedule contracts Wireless address and calendar access Medical users Access, update and exchange of medical records Wireless address and calendar accessibility About positioning, the company utilizes all positioning elements to enter the market. Apples iPhone positions in consumer minds as a product of value, flexibility and convenience (Burrows 9). Besides, the company uses its strong brand name to position itself among the consumers (Emerald 14). The way Apple targets, positions and segments markets affect its marketing mix. For instance, the unique market segmentation implies that the company must provide of high-quality products to satisfy diverse needs and expectations. In terms of market targeting, the company uses unique features for each target markets. In this case, pricing also differs for all the target markets. Finally, the company uses its product specifications to position itself among the many users. The implication is that promotional activities are different for each of the markets or locations. Conclusion Briefly, Apple Inc. Utilizes the right marketing mix to avail new products into the market. Though the company manufactures a myriad of electronic products, it only takes the right marketing mix to ensure that they enter the markets successfully. One of the marketing mix models is the 4Ps analysis of product, price, place and promotion (Lee et al. 2155). Companies use the model to analysis their new products in terms of its specific features; the prices to charge, the place or location to avail the products and the promotional mix for market positioning. The report has outlined how Apple Inc. Targets, segments and positions iPhone 6 in the market and how such decisions affect the intended marketing mix for the product. Works cited Burrows, Peter. “Welcome to Apple world”. Business Week, ISSN 0007-7135, 4043. 1(2007), 89-92. Print. Emerald. “In from the cold: How Apple has blossomed”. Strategic Direction, 24. 3(2008), 13 – 16. Print. Gupta, Abhishek. "Marketing mix in developing countries: an overview." ZENITH International Journal of Multidisciplinary Research 3.9 (2013): 144-147.Print. Lee, Chang Han, et al. "Marketing mix and customer equity of SPA brands: Cross-cultural perspectives." Journal of Business Research 67.10 (2014): 2155-2163. Print. Read More