Strategic Marketing

Fahad Umar
Abstract: The objective of this paper to give a detailed analysis of strategic marketing in
Apple Inc. This help us the know more about the customer awareness about the product
and how to increase customer loyalty to the company so as to gain more competitive
advantage. Internal and external analysis was conducted to find more about the companys
strength, weakness, opportunities and threats likewise PESTL tool was being used also. With
those analyses we had a clear view on how the market is and how the company is positioned
within the market. Due to high competition in the technology industry, a detailed study of
marketing strategy will help the company in maintaining it position by staying on top of its
customers, to go along with the change, to gain a competitive advantage, to improve on its
future products/services to mention few. At the end of the study various recommendations
have be raised on the subject matter.

Stratford Collage of Business and Management UK

Table of Contents

APPLE INC. ................................................................................................................. 3

Introduction. ................................................................................................................. 3

Brief Company Background. ...................................................................................... 4

Apple Inc. Objectives ................................................................................................... 4

The Microenvironment: .............................................................................................. 5

Internal Analysis of Apple Inc (SWOT Analysis.) ..................................................... 5

The Microenvironment: .............................................................................................. 8

External analysis of Apple Inc .................................................................................... 9

Relationship between corporate and marketing strategy ...................................... 10

Developing of Marketing Strategy ........................................................................... 10

Marketing in Apple Inc. ............................................................................................ 12

Conclusion .................................................................................................................. 13

Recommendations ...................................................................................................... 13
APPLE INC.

The issue of compatibility and price range on Apples Products and services.

Introduction.

Marketing is a dynamic complex function performed by most organizations in

reaching out to new and existing customers about a product or services being produce

or delivered by organization. Marketing is not just about promoting commodities but

rather it serves as one of the key measurement indicator for the success or failure in a

competitive business atmosphere as accreted by Gronhaug et (2005).

Shelby (cited in Ayuba, 2009) defined marketing as the behavioral Science that

needs to explain exchange relationships, he went further to explain that the study of

marketing needs to understand the behavior of buyers directed at consummation of

exchange, and its associated consequences on society(p. 2).

The concept of marketing is developed under the some certain three key words, which

are needs, wants and products/services. Among the mentioned key words marketing

serves, as a facilitator toward achieving some of the unlimited desired human needs

and wants.

For the transaction to take place the two parties most agree on mutually benefiting

agreement where in most cases buyer pay certain amount of money for the

commodity in need. This is why PRICE is a very important driving factor of every

product.
Brief Company Background.

As accreted by Apple Annual report (2013) Apple is one of the American

multinational innovative companies that designs invent and market their products all

over the world. Their products include personal computer (Mac), portable music

player (iPod), cell phones (iPhone), tablet (iPad) and television (Apple TV). The

company also provide divers of interrelated software, services, networking solutions

and some key digital applications. This applications comprises of the iOS operating

system, OS X operating system, iCloud to mention few. This multinational company

sells most of its software and hardware products through iTunes store, App store,

iBooks store and Mac App store. Nevertheless, the company also sales through its

retail stores as well as online stores and sometimes through a third party cellular

network carriers.

Apple Inc. Objectives

According to 2013 Annual Report the three main objectives objective of the company

are.

1- To increase sales.

2- To produce products that offers service and satisfaction to customers.

3- To take the lead in mobile market.

The first objective is to increase and expand total sales, which will be accomplished

through strategic expansion of distribution system to reach more customers. This is

done not only through advertisement but rather through expanding distribution

network, which include through Internet Providers, Third Party Retail Stores and

Flagship Stores. Example of such includes Smartone, 3, CSL, Broadway and Fortress

to mention few.
The company strategically invest on research and development to improve new

generation products and mount new features to their product so as to offer new and

satisfactory product to its customers. Under such circumstance of improving services

and satisfying customers Apple Inc have revolutionized the global networking world

through the new generations of iPhones which offer new features such as Voice

Control, Siri, Face Time, HD Games, HD Cameras,

The Microenvironment:

Ayuba (2009) in marketing, microenvironment signifies means the internal

environment that directly affect either positively or negatively the position/activity of

the company. In which case the internal structural formation and polices governing

the company may be regards to as the micro, this integrate the whole internal

organisation departments.

To analyse the internal organisational environment a well know analysis method is

commonly used. The SWOT analysis, this acronym means Strengths, Weakness,

Opportunities and Threats was developed by Albert Humphrey in the 60s. the SWOT

analysis has been adopted over the years and had been used in various forms of

internal analysis. Using this framework, companys internal factors could be

effectively analysed. The four SWOT factors are usually the decision determinate on

internal basis at the corporate level.

Internal Analysis of Apple Inc (SWOT Analysis.)

According to Villing and Company a site the discussed the genius of Steve Jobs
Strength:
Apple Inc. Is measured to be the most booming electronic company in the world

today, this is so because of its strengths and outstanding products performance,

customer loyalty, strong financial performance, brand reputation leading innovators

and strong marketing/advertising team.

Customer loyalty: When countless number of customers sleeps outside a store to buy

a product its obvious that Apple Inc. has a strong customer and product loyalty.

Apples products are highly user friendly and attractive. This amazing prospect gives

Apple high customer loyalty and high customer satisfactory rate.

Brand reputation: Basically Apple products have the same well design architectural

interface and excellent product performance which makes customers adapt easily, this

function gives customers a pretty good idea of the products they are about to

purchase. In the year 2012, Apple brand is appreciated to $76.5 billion USD and

considered to be the second most valuable brand in the world.

Financial performance: in terms of financial performance, Apple is consider to be

one of the best in the world. At the end of 2012 the company hold $10,000,000,000

liquid cash with a gross profit of 43.9% and zero dept.

Best Innovators in mobile technology: Over the years Apple has been considered

the most innovators in mobile sector; in 2012 it has been chosen to be the best leading

mobile innovator for the third time. Apples strategic innovation motive is aligned

with the need of consumers and to bring something unique to the market.

Strong Marketing and Advertising Teams: Apple has a strong marketing and

advertising team, which help in standing them out among their competitors. Apple use
less-is-better (built to achieve) marketing strategy and advert their products in a more

persuasive and appealing style.

Weakness: Although Apple Inc. Have several strengths but on the other hand it also

has some key weakness within the product and in the market as well which will be

discussed in explicit below.

Price: Apple products are considered to be expensive compared to the service and

quality provided by the products. Taking one of their products into consideration,

iPhone, one has to put into concern about the price compare to other competitive

products by other companies. Take Sony for instance, they provide almost the same

service and quality of product but Apples is relatively more expensive. This can

easily make some of their customers to go for other alternatives at lower price.

Furthermore, looking at the profitability ratio analysis its clear that apple products and

services prices is relatively higher that the production cost with more than 40% which

is very rare in other competitive companies, this is becoming alarming and customers

are gradually realizing the to the potentials in other relevant products of the

competitors.

Opportunities: Apple Inc. Uses it price weakness in developing a new scope of

opportunity, the company in its recent innovation of iPhone5 produced iPhone5c

along with a lower price, both of this phone have the same futures and functions only

that the c is relatively slower and cheaper. These prices difference make a tremendous

impacts to the sales of this products in the third world countries, this decision is

carried along as part of the late founding wishes to create a brand loyalty in the

developing countries and also among the younger generation.

Threats: Technological changes can serve both as a threats and a weakness, as a

threat in such a way that new features are being explored by some of the companys

competitors. Samsung as one of the top competitors of Apple are developing

products that possessed more futures and function than Apple products, this is posing

as a serious threats to the companys customers. Nokia company is producing a new

cheap product I the brand range of Nokia Asha, despite the reduction of price of apple

product with the mission of preserving customer loyalty Nokia asha is posing a threat

in which case its product are relatively more affordable to the developing countries

and the younger generation than the apple products.

The Microenvironment:

As accreted by Armstrong (1999) the microenvironment includes the external driving

forces that outside the organisation that also affect the marketing position of the

organisation either positively of negatively. This are mostly considered being above

the organisational control. In handle this aspect, a popular framework known as

PESTLE is usually being used.

The PEST is an acronym meaning Political, Economic, Social, Technology and Legal

which was recently included. Where the political factors signify the government

regulation and legal policies under which the organisation will function, the economic

factors are the economic rules, policies and circumstance, which affect the

organisation in carrying out its function. it include inflation rate, monetary policies,

interest rate to mention few. The other two are the social and technology, the social

factor embarks on the the socio-cultural day to day activities while the technology

signify the rapid growth of technology as to how it affect function of an organisation.

External analysis of Apple Inc

As accreted by a cite named marketing minds (2012)

Political. In the year 2005 study has shown that Apple soled 52% of it product

outside the united state America due the political crisis between the Unites State and

other countries. This issue put the company at a ricks due to the fact that, the

company Apple Inc dont have the autonomy to influence some of this issues in a case

where United State engage in a crisis with the companys production or assembly

centre there is communication barrier tendency to which itll affect the company in a

negative way.

Economic. The factor of global economic crisis is a universal problem being faced by

every company; the general raise in inflation rate triggers the unemployment rate to

rise also. By so doing the number of people can afford some of Apples product will

eventually also decrease, by so doing the itll be hard for the company to meet up its

expected sales. Furthermore, the issue of currency fluctuations is another critical

economic factor that can easily affect the financial stability of the company, which is

why Apple Inc uses the Value-at-ricks model to closely monitor this factor.

Social. This has to do with customers socio-cultural activities, globalisation in these

regards. Apple cantered their designs in line with global needs, in terms of cloud

computing and music facilities icloud and itunes respectively. These two social needs

are among the driving market forces of the companys products. As the modern world

is becoming more electronically Apple products are becoming more accepted and

socially recognise.
Technology. As we are moving deep into technological age, Apple Inc is investing

heavily on technological research and development on new technological innovations

which is why today the company as being regarded as the ultimate leading innovation

company. This competitive advantage gives the company a strong stand among its

competitors.

Relationship between corporate and marketing strategy

According to M. Porter (2006) corporate strategy typically focuses on organizational

profitability, strategies on how to increase profits and reduce overhead total cost &

operating expenses. Corporate strategies also involve organizational structure,

diversifying product so as to reduce organizational dependency on single product,

adequate debt management to get a better companys financial status. Where as

marketing strategy involves plans on how to foster product selling which revolved

around the four Ps Product, Price, Place and Promotion. Therefore, marketing

strategy is a sequential process that involve producing the right product, at the right

place, with the right price and promoting the product suing the right channels.

The top executives are expected to pay more attention to marketing departments so as

to see how to integrate corporate strategies with the marketing strategy. This is the

only way for the organization to maintain it balance, if any of it corporate strategy

could not align with the marketing strategy the organization has a high tendency to

tumble on implementation of that strategy.

Developing of Marketing Strategy

Trellian (2012) concentrating on product or service development is an essential aspect

of organizational growth, but this those not gives the organization a clear view to plot
its long team future goals and objectives. In the year 2012, Apple was voted to be the

number one marketer by CMO award of marketing excellence and for the proceeding

years Apple maintain its position of being the best marketer. Looking back at 1977

when the company was incorporated one of it investor with the name Mike Markkula

created a three point marketing philosophy, amazingly 35years letter the company

still manage to use it and gain strong marketing position and customer loyalty. The

three-point philosophy includes.

1- Empathy: To understand existing and potential customers better than any other

company.

2- Focus: To eliminate the irrelevant matters and focus on significant

opportunities.

3- Impute: To present its product in a professional and creative manner there by

imputing the great desired quality because people do juge book by its cover.

They company believe that even if they have the best quality product with the

most amazing and useful features but if it is presented in a slipshod way,

customers will perceived it as slipshod.

The company uses this three-point philosophy over the years to become the worlds

most valuable company and one of the world most valuable brand as measured by

market capitalization.

Apple Incs Competitive Advantage

Bayaran Ben (2011) competitive advantage is a strategic advantage as to when a

company obtain I higher recognition and benefit over its rivals existing within the

same competitive industry. Achieving such kind of advantage helps in strengthen and
positioning the company in a better and higher level within and outside the electronic

industry.

Marketing in Apple Inc.

As asserted by a cite switchtomac (2009), the company Apple Inc. stands out in its

general marketing activities. The company uses all majors to know what exactly its

customers want and how to get them excited with its products and services. This is

related to the companys vision on how to make its customers life better with its new

invention of technology rather than the features and technology involve in the product

or services. The company also engage in in-your-face campaigns, which in a way

have shown Intel-based laptops on fire and getting crushed steamrollers. The

company also use a unique logo positioning style where the logo light comes up when

you open the laptop and positioned at the back. This is so because the company

believe the logo is not for the existing customer but rather for the anticipated

customer, a person who is in the market for one. Its clear that the company uses their

customers to market their products, as to its competitors their logos are not eye-

catching compare to Apples, even though other customers spot other product like

Samsung, HTC, HP to mention few, that white bright light on Apples product will

always seems to attract them more.

Electronic companys are usually organized as Business unit so as to make it possible

to integrate their R&D and P&L, most of this business units are in competition with

one another and are carrying high ricks of lowering companys loyalty and brand

equity. On the other hand Apple Inc is very organized in managing its products, the

company uses one R&D across most of it products and the company also looks at a

singe P&L although it has huge turnover. This is why it products are fully compatible
with one another, accessories and applications could be used on multiple platforms be

it on iphone, ipad, macbook or ipod. By given such avenue a customer enjoy great

brand experience and also allow customers to have brand trust.

Conclusion

This paper is centred on Apple marketing strategy, the study helped in highlighting

more about positioning, branding, segmentation and marketing mix strategies.

However, the internal and eternal analysis where done to recognize opportunities and

threats as well as the strengths and weakness the company is may be facing. The

analysis will also help the company in getting the success factors that will help the

company to be at the edge of it competitors, which will be an added advantage to the

companys profit level, brand power and customer loyalty.

Recommendations

The company should provide high value for the products being offered to customers

since customers have this perception of the products having a premium quality in the

electronic industry. Therefore the company should distinguish its products from its

competitors so as to maintain it premium pricing and quality.

The company should increase promotional programs, this never seems to damage any

firm but on the contrary it proves to be significantly beneficial. Therefore, Apple

should conduct more promotion to attract potential customers and boots customer

traffic and sales. This can be achieved by using TV commercials to educate existing

and potential customers about its new products and services, meanwhile showing how

appealing it is.
The company should constantly make new innovations in their product designs,

specifications and features so as to dominate the market and distinguish their products

and services form competitive brand because technology market is highly competitive

and the issue of clone is very common, a competitor can easily clone your product

and sale. This is why it is of high significant for the company to constantly invest in

new innovations, features and designs.

However, since the company dont want compromise it premium price, gift card, VIP

card and vouchers could be made to customers. This will allow customers to buy the

products more often and at the same time attract more attract more potential

customers with great loyalty.

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