Evaluation and Analysis of Core Principles of Marketing

This report evaluates the core principles of marketing and their impact on Apple Inc. It discusses Porter's Five Forces, societal marketing concept, branding strategy, Ansoff marketing strategies, and stakeholder engagement.

Evaluation and analysis of the
core principles of marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1..............................................................................................................................................1
2. The role of marketing in creating value for customers................................................................3
Definition of societal marketing concept and how it is practised by Apple Inc.....................3
Definition of branding and its advantages along with the usage of branding strategy by Apple
Inc...........................................................................................................................................3
Ansoff marketing strategies....................................................................................................4
Usage of relationship marketing by Apple.............................................................................4
3. Stakeholder engagement and their impact on the marketing activities of the organisation.........5
TASK 1B.........................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing define as an activity in which entity influence its potential customers with the use
of promotion, selling, researching and advertising to buy organisation products and services
(Huang and Jiang, 2020). Present report has been conducted on Apple. Along with this
discussion on stages and process of marketing along with its role in covered in this report. In
addition with this report include stakeholder engagement along with their impact upon
organizational marketing activities. Lastly, reflection on communication tools is also involved in
this report.
TASK 1
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Porter’s Five Forces framework acts as a strategic management tool that aid an organisation
to evaluate factors that are prevailing in external environment in order to ensure their strategic
edge in respective industrial segment. All the forces of this analysis have significant capability to
reduce organisation market share, business development revenue and profitability that further
affect company to decrease its profitability and market share (Williams, Clark, and Wilfong,
2020). In context with Apple by undertaking use of this analysis entity can gain better
understanding industry structure and can further formulate strategies in order to strengthen its
competiveness in all around the world. This has been evaluated that Apple is facing strong
competitive rivalry as entity like LG and Samsung continuously engage in the process of
competing with Apple product and services. They undertake use of aggressive advertisement and
rapid innovation in order to impose strong competition in industrial environment. Along with this
in context with product differentiation these entities offer similar product and services in order to
fulfil demand of consumers. Thus this condition leads towards creating forces that easily
encourage consumers to switch to other providers (Vlad, 2020). Further due to low switching
cost consumers easily switch from Apple to other competitive brands that create threat of
competition for apple that are required to be considered by them by developing unique and new
products in order to strengthen entity market share positioning. Along with this by building
sustainable differentiation and collaboration with competitors entity can make significant
increase in their market size and can further ensure maximum competitive advantage in
electronic equipment industry.
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While on the other hand bargaining power of buyers is a strong force in respective
industrial sector that are affecting business operations of Apple. It has been evaluated that due to
low switching cost consumers easily change their perception towards other companies. In this as
to overcome this issue entity is require to invest its capital expenditures in research and
development in order to innovate new and unique services and products like apple watch and air
pods in order to significantly build brand loyalty. It has been evaluated that from past many years
apple ensure success in establishing large base of consumers by offering them innovate products.
Thus, by offering innovative offerings on continuous basis entity can ensure loyalty of their
customers for long period of time (Su, Johnson and O’Mahony, 2020). By rapidly innovating
new products and offering discounts and low cost commodities aid entity to reduce bargaining
forces of buyers.
In context with bargaining power of suppliers Apple is facing low force as this has been
evaluated that suppliers in respective industrial sector is having weak bargaining power due to
moderate to high number of suppliers in respective industry. Due to its global size Apple is
having excess number of suppliers all around the globe. Further it has been evaluated that
respective entity is having option to select its potential suppliers among large number. Thus
Apple is having easy switching cost from one supplier. Further this has been determined that
bargaining power of supplier does not pose threat obstacle towards Apple and they can
effectively negotiate with suppliers in order to ensure its competition in electronic market
industrial sector. However, bargaining power of substitution is weak force in context with
Apple Inc. This is significant factor of porter analysis that determines substitute product strength
in order to attract attention of consumers (Anikin, 2020). This has been identified that due to low
performance of substitutes and there low performance develops opportunity for apple in order to
impact significantly upon consumers buying behaviour. Due to high quality and unique product
and services Apple consumers prioritise their perception towards organisational offerings
because of their maximum features. Thus, it is not essential for company emphasize management
decisions bargaining power substitution. In terms with threat of new entrants Apple is facing
low force as in order to establish company in respective industry entity require high cost along
with additional cost in order to establish brand recognition. Any new entrance must invest in
their personal computing and research and development in order to manufacture distinct product
and services. Due to existing competition prevailing in this industrial segment and with the
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existence of major competitors like Apple, Samsung, Google and Amazon new entrants my
eventually face number of challenges. In this it is essential for Apple to strengthen their
competition image by offering brand loyalty and developing new product in order to ensure their
competitive edge. Along with this by offering low fixed cost per unit company can encourage
large space of consumers.
Apple operates their function as a leading and successful company in all over the world. As
by providing robust technology product as well as exceptional software services entity satisfies
its customers in best effective manner (Ardiansyah, 2020). Major strength of Apple is that it is a
most valuable brand and reliable in terms with personalized advanced computers and smart
technology devices. Along with this proficient research and expansion in services is also main
strength of entity. While weaknesses of company is limited promotions and advertisement, along
with high priced product. Apple faces intense competition from other brands like Samsung and
LG. In this by taking advantage from opportunities like utilising artificial intelligence, qualified
professional and expansion in distribution channel Apple can increase their profit margin in a
significant manner. This has been evaluated that threat for Apple is due to increase in
competition, market penetration, corona virus outbreak and aggressive competition within blue
chip.
2. The role of marketing in creating value for customers
Definition of societal marketing concept and how it is practised by Apple Inc
Societal marketing concept can be identified to be a marketing concept which is based on
the premise that an organisation should undertake marketing decisions while taking into account
not only the needs and wants of customers and company but also the long run interest of society.
Apple Inc leverages societal marketing concept for the determination of needs and wants of
target market and delivery of satisfaction to them in a manner which is superior to the rival firms
and that inflates the well being of society as well as consumers at large (Mehmet, Roberts and
Nayeem, 2020). To carry out societal marketing concept in an effective manner within the
premises of the company, Apple Inc leverages Corporate Social Responsibility initiatives and
sustainable development.
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Definition of branding and its advantages along with the usage of branding strategy by Apple Inc
As per American Marketing Association, branding can be defined as the names, designs,
symbols, terms and other features which provide assistance in giving identity to the offerings of
the company distinct from the rival firms. There are certain points of significance which
underpin the importance of branding strategy used by companies operating within an economy. It
enhances the appeal of the company among the customers.It enhances the loyalty of customers
and helps in retaining them for a long period of time in future context.It inflates the engagement
as well as alignment of employees to the achievement of corporate goals and objectives.
Ansoff marketing strategies
Ansoff matrix is a composite of 4 marketing strategies which is being applied by Apple Inc to
identify the most suitable marketing strategy.Market penetration implies the launch of existing
offerings within existent territories. This strategy if applied by Apple Inc. would imply an
increment in the customer base as well as revenues.Market development is concerned with
launch of existent offerings within new markets. If this strategy is applied by Apple Inc, it would
imply a better reach for the company, thus providing assistance to it in inflating its scale of
operations. Product Development signifies the introduction of new products in existing
markets. The implication of this strategy by Apple Inc. would implyenlargement of product
portfolio. Diversification means the launch of new products into new markets with an aim of
inflating the market stature and positioning of Apple Inc.
On the basis of above discussion, it can be said that diversification is the most suitable
strategy as it allows the entity to increase its market reach and revenues in rapid course of time.
Usage of relationship marketing by Apple
Relationship marketing is acknowledged to be an important facet of customer relations
management which tends to put due focus over loyalty and long term engagement of customers
rather than short run goals like increment of sales and customer acquisition. Apple Inc makes use
of relationship marketing in order to create healthy relations with customers and retain them for a
long period of time in future context. The aim of Apple Inc associated with relationship
marketing is creation of strong as well as emotional customer connection towards the brand as
this implies the sustainability of the respective corporation in the long run. Relationship
marketing is also used by Apple Inc so as to take advantage of the benefits of word of mouth
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promotion. This means that the long term vision linked to the employment of relationship
marketing by the organisation is maximisation of revenues and profits.
3. Stakeholder engagement and their impact on the marketing activities of the
organisation
Stakeholder can be defined as the individual or group which is affected or affects the strategy
and operations of a business. Stakeholders are of 2 types, namely, internal and external. Internal
stakeholders can be defined as the groups that belong to within an entity that are impacted by and
impact on corporate strategy such as employees, manager, Board of Directors, investors etc.
Besides this, external stakeholders are the stakeholder groups belonging to outside the
organisation such as consumer, regulator, investor, supplier etc.
TASK 1B
This has been analysed by me that, Communication is defined as an exchange of information
between more than two individual with the use of symbol sign and any other medium. Along
with this Berlo’s communication model is being used that mainly stress upon relationship among
person who send the message and the receiver. Along with this, I determined that, this model is
having four main components and each one have their own sub component which is further
define below with a diagram.
Figure 1Berlo’s communication model
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In addition to this Integrated Marketing Communication is defined as a process in which
entity effectively integrate and co-ordinate many communication channel in order to provide
clear message. This has been evaluated that Apple is taking advantage of digital media, social
media platforms, direct marketing etc in order to advertise their product and services.
CONCLUSION
As per the above mentioned report it has been concluded that by identifying micro
environmental factors with the use of different model entity can effectively able to ensure its
competitive edge. In this marketing play most important role through which company can
strengthen their relationship with customers. By taking use of different strategies and models
likes SWOT, pestle and ansoff matrix successful completion of goals and objectives. Along with
this by engaging stakeholders company can strengthen their organisational structure and can
increase their profitability at great extent.
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REFERENCES
Books and Journals
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Marketing Practice: A Cross-Cultural Case Study in Taiwan and Mainland China
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Ardiansyah, I., 2020. THE APPLICATION OF MENU ENGINEERING TECHNIQUE IN
DETERMINING MARKETING STRATEGY AT THE DEN OF KALAHA
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Osakwe, C.N., Palamidovska-Sterjadovska, N., Mihajlov, M. and Ciunova-Shuleska, A., 2020.
Brand orientation, brand-building behavior and brand identity in SMEs: an empirical
evaluation. Marketing Intelligence & Planning.
Hagenbuch, D.J. and Mgrdichian, L.M., 2020. MINDFUL MARKETING: A STRATEGY-
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MARKETING. Marketing Education Review, 30(1), pp.15-28.
Hagenbuch, D.J. and Mgrdichian, L.M., 2020. MINDFUL MARKETING: A STRATEGY-
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Williams, T., Pryce, D.K., Clark, T. and Wilfong, H., 2020. The Benefits of Criminal Justice
Internships at a Historically Black University: An Analysis of Site Supervisors’
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Länsipuro, H., 2020. Capability Maturity Model for data-driven marketing.
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