Marketing Concept and Strategy for Apple's iPhone: A Case Study

This case study explores the marketing concept and strategy adopted by Apple for its iPhone, including product, price, place, and promotion. It also covers SWOT analysis, segmentation strategy, purchase decision process, and brand positioning. The impact of environmental factors and secondary research on iPhone sales is also discussed.

Marketing
Iphone Case Study

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Table of contents
Marketing concept...........................................................................................................................2
Marketing mix elements..................................................................................................................2
SWOT..............................................................................................................................................2
Environmental scan.........................................................................................................................3
Segmentation strategy......................................................................................................................3
Purchase decision.............................................................................................................................3
Secondary research..........................................................................................................................4
Positioning map...............................................................................................................................5
Brand position..................................................................................................................................5
Consumer product............................................................................................................................5
References........................................................................................................................................7

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Marketing concept
Marketing concept adopted by Apple Inc. is a customer centred ‘sense and respond’ philosophy.
Here the brand aims to understand customer needs and offer products which stand apart from
those of competitors. Apple adopts a ‘customer first’ approach. Under this concept, customer
focus and value are the only determinants of sales. Apple strongly believes that they don’t need
to find the right customers but they need to offer the right product to their customers. Profits are
achieved through high levels of customer satisfaction.
Marketing mix elements
Product: The recent iPhones launched are iPhone XS and iPhone X.
Price: Apple Inc. has adopted a premium pricing strategy for its iPhones. This strategy includes
pricing a product higher than competitors in order to position the product effectively.
Place: The case throws light on Apple products being sold in Canada. However, Apple Inc. sells
all its iPhones worldwide. They are available at ‘Imagine retail stores’.
Promotion: Apple has adopted excellent digital marketing, social media marketing, television
ads as well as print advertising strategy.
SWOT
Strengths: The biggest strength is the strong brand name of Apple as well as fierce loyalty of
Apple customers especially with regards to iPhones.
Weaknesses: The high price of iPhones make it difficult for a large segment to afford the
product.
Opportunities: Introducing low priced options can be a good opportunity to enhance customer
group.
Threats: The growth of competition poses a major threat. Specifically with manufacturers like
Google, Samsung and One Plus.

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Based on the above presented SWOT, Apple should work towards introducing low cost options
in iPhones and keep a close track of competitors in order to sustain the market.
Environmental scan
Two key environmental factors would have a direct impact on iPhone sales.
The growth in technology and the increasing use of internet in everyday life would increase the
demand for iPhone and hence would have an optimistic impact on sales.
Secondly, the increasing competition in the mobile phone industry makes it imperative for Apple
to consistently evolve new technology and offer something different to customers. The level of
brand loyalty is also going down and hence Apple must put efforts to ensure increased sales as
well as high levels of customer retention.
Segmentation strategy
Marketing segmentation refers to the process of dividing a market in different segments
depending upon customer needs. Apple Inc. targets customer between the ages of 25 and 34 as
well as 45 and 54. Apple’s segmentation is also psychographic in nature and targets customers
who adopt a luxurious lifestyle and hence can afford iPhones.
Purchase decision
There are five stages to a purchase decisions. The purchase decision process for an iPhone
involves the following steps:
Need recognition: In this step the customer identify the need for a phone. They identify the
attributes that they require in that phone as per their usage. In this step a customer evaluates their
budget, their purpose to buy a phone, their preferences regarding phone attributes etc.
Information search: Based on the need identified, customers search information on the internet
or they may ask people they know in order to identify available alternatives.

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Alternatives evaluation: Once a few options have been shortlisted, they evaluate these options
in terms of price, availability, post purchase service, user friendliness, battery backup, RAM,
phone memory and other product details as well as brand’s image.
Purchase decision: After evaluating the alternatives, they finally decide that they wish to buy an
iPhone. Based on several factors, they also shortlist, which iPhone model do they wish to buy.
Post purchase behaviour: Post purchase, they evaluate the phone on the basis of its
performance. They may even recommend the phone to others. IPhone customers are known to be
loyal to the brand.
Secondary research
There are several online blogs as well as journals that can be used to gather more information
about iPhones.
The two recommended sources of secondary research and information are as below:
The first source is by the author Chris Matyszczyk for the blog ‘Technically incorrect’. This is an
online report that talks about why people prefer iPhone over other models. This can help in
gaining information about features of iPhones that help the brand stand out against competitors.
The second source is an online paper by author Giachetti by the title “Explaining Apple iPhone’s
success in the mobile phone industry.” (Giachetti, 2018). This paper throws light on the
magnificent growth and acceptance witnessed by iPhone in the mobile phone industry.

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Positioning map
Brand position
Apple’s iPhone has adopted a premium branding approach. It is manufactured and sold under the
umbrella of Apple Inc. This private brand has its own set of advantages and disadvantages. A
strong brand name of a private brand enhances customer awareness and allows customers to trust
the product a lot more than a generic brand. Moreover products sold under a brand offer
improved service and customer management. There is a large amount of information that is
available online for products coming from a generic brand.
On the other hand, a private brand is more expensive for customers. There is a severe lack of
customization and the product is available only on registered outlets.
Consumer product
Mobile phones usually are conceived as Shopping products as different phones are compared
against each other and then a decision is made. However, Apple’s iphone falls under the category
of a speciality product. Customers of iPhone spend a long time in evaluating their own needs and
demands and then further understanding the available options and evaluating them. Speciality

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products have unique attributes. iPhone is very different from all its competitors as it runs on
Apple’s unique operating system. IPhones are also more expensive as compared to other phones
and hence require additional efforts from customer’s end.
Speciality products are less compared against each other. Customers are usually aware about
what they want. They also demonstrate a high level of brand loyalty. These special efforts and
brand loyalty make Apple’s iPhone a speciality product.

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References
Giachetti, C. (2018). Explaining Apple’s iPhone Success in the Mobile Phone Industry: The
Creation of a New Market Space. In Smartphone Start-ups (pp. 9-48). Palgrave Macmillan,
Cham.
Matyszczyk, C. (2018). Why do people want a new iPhone. Technically incorrect. Available at
https://www.zdnet.com/article/why-do-people-want-a-new-iphone-this-research-gives-a-
fascinating-clue/. Retrieved on 15 October, 2018.