Intergrated Marketing Channels and Distribution System Executive Summary 2022

Running head: INTEGRATED MARKETING CHANNELS AND DISTRIBUTION SYSTEM
INTEGRATED MARKETING CHANNELS AND DISTRIBUTION SYSTEM
Name of Student
Name of the University
Author Note

1INTEGRATED MARKETING CHANNELS AND DISTRIBUTION SYSTEM
Executive Summary
The aim of the report is to provide a detailed analysis of the marketing channels and
distribution system of the iPhone 6S. The study begins with the introduction of the product
followed by the brand positioning of iPhone 6S. The market leader in the smartphone
industry is stated next along with the identification of the product with the niche market. The
pricing strategy for the chosen product as well as the distribution channel and the consumer
adoption process are described further in the course of the study.

2INTEGRATED MARKETING CHANNELS AND DISTRIBUTION SYSTEM
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Brand Positioning...................................................................................................................3
Market Leaders.......................................................................................................................5
Identified Niche for the Product.............................................................................................5
Consumer Adoption Process..................................................................................................6
Pricing strategy.......................................................................................................................7
Distribution channel...............................................................................................................8
Conclusion..................................................................................................................................8
References................................................................................................................................10

3INTEGRATED MARKETING CHANNELS AND DISTRIBUTION SYSTEM
Introduction
The Apple iPhone 6S is one of the premium products that is developed, designed and
marketed globally by the Apple Inc. The product belongs to the ninth generation of iPhones
and incorporates updated hardware with a strengthened chassis, 12 mega pixel camera,
upgraded system on chip, enhanced fingerprint recognition sensor, “Hey Siri” abilities. Along
with these attractive attributes, the product also features an innovative hardware facet, the 3D
Touch, that enables pressure sensitive touch inputs (Apple.com, 2019). The purpose of this
report is to analyze the effective brand positioning for the product stating out the market
leaders in the global smartphone market. The niche market that the company identifies with is
also described in accordance with the chosen product. The consumer adoption process for the
iPhone 6s is also analyzed in a detailed manner. This is followed by the appropriate pricing
strategy for the product as well as the assessment of the distribution channels suitable for the
product.

4INTEGRATED MARKETING CHANNELS AND DISTRIBUTION SYSTEM
Discussion
Brand Positioning
Image 1: Brand positioning idea of Apple
Apple is a lifestyle brand and with the brand philosophy, “Think Different”, it creates
products that are smart, creative, innovative and clever in both design and performance
(Klein 2015). The Apple iPhone 6S, is also the same in this matter, as every product created
by Apple is different and has some upgraded features than the existing products. The brand
positioning for Apple iPhone 6S is firstly influenced by the association of the brand Apple,
having created a niche in the market, any product that the company introduces is pre-hyped
and demanded in the market since the launch date of the model is announced. Various other
attributes influencing the position of the product in the market can be altered and manipulated
with effective advertising and promotional strategy. The promotional strategy of Apple for
the iPhone 6S follows the aggressive strategy, wherein the company utilizes unique ideas to
promote the product in ATL (Above the Line) platform, since they are promoting a premium
product.

5INTEGRATED MARKETING CHANNELS AND DISTRIBUTION SYSTEM
Image 2: Perceptual Map of Apple
With the help of a perceptual map, the position of the brand in the market shall be
clearly understood (Lee et al. 2016). The Apple products are of premium quality and are
hence, have prices higher than the other similar products in the m market. The Apple iPhone
6S with advanced features like the 3D Touch, is also priced higher than the existing products
of the company with promising deliverance of its unique facets combined with the brand
name of Apple.
Market Leaders
In the smartphone industry, Apple occupies a major position in the market, as it
surpasses the other companies due to its highly acclaimed brand name and the products that
are premium in quality and are considered as status symbols (Chen and Ann 2016). In
accordance with the market conditions for the sale of the iPhone 6S, companies like Xiaomi,
Samsung, Huawei and such others might prove to be major competitors in the global market.

6INTEGRATED MARKETING CHANNELS AND DISTRIBUTION SYSTEM
Identified Niche for the Product
Image 3: Concept of Niche Market
The Niche market is a subset of a market, wherein a particular type of product is
concentrated (Toften and Hammervoll 2013). Apple is situated in the niche market segment,
wherein the company produces goods that are highly demanded and hence have high income
potential. The competition for the products of the company are few, since Apple has
established itself in a position wherein its prime competitor is its own reputation for
innovative products. Apple itself is one of the leaders in the global smartphone industry. The
followers of the iPhone 6S can be identified as Samsung, One Plus, Xiaomi and such other
companies. The product shall be launched in a market wherein the brand Apple has a well
established position in the smartphone industry.
Consumer Adoption Process
The target market for Apple iPhone 6S is the niche market including individuals with
high income, as well as individuals having interest in innovative technological advances. The
consumer adoption process is more of a mental process wherein the customer is introduced to
a product and then familiarized with the various facets of the product. Through this process
the customer is influenced to purchase or adopt the chosen product by the end of the process
as well as refer the same product to others, thereby promoting the brand name (Shams, Alpert

7INTEGRATED MARKETING CHANNELS AND DISTRIBUTION SYSTEM
and Brown 2015). The consumer adoption process for Apple iPhone 6S can be described in
five stages:
 Awareness: At this stage, the customers are made aware of the innovations
incorporated in the Apple iPhone 6S such as the new 3D Touch and improved camera
specifications through advertisements in television, social media, print ads and such
other marketing means.
 Interest: Herein, the customers become interested in the chosen product and searches
for the specifications of the innovation, and such other functions, services,
availability, brand, price, color and other relevant aspects of the iPhone 6S.
 Evaluation: In this stage, the customer has already gathered the information and
applies the same for evaluating the worth of the innovations. The customers compare
the attributes of the chosen product with the existing products in the market to decide
about the investment in the product.
 Trial: This stage is crucial as the customers try out the product in a small scale in
order to verify the information gathered previously. The customer can either buy the
product or try out samples in retail stores.
 Adoption: In the final stage the customer adopts the product by purchasing it, having
evaluated the varied facets of the iPhone 6S.
This consumer adoption process can also incorporate another segment, wherein the
consumer’s post adoption behaviour can be incorporated. In this stage, the customer if
satisfied with the chosen product shall continue associating with the brand and even refer the
brand to the other potential customers. The customers for this product shall be gathered with
the help of certain paid advertisements on varied platforms and shall be targeted to both
heavy users of the Apple products as well as early and new adopters in the market.

8INTEGRATED MARKETING CHANNELS AND DISTRIBUTION SYSTEM
Pricing strategy
The pricing strategy for Apple iPhone 6S incorporates a premium pricing strategy that
has always been followed by the company. The premium pricing strategy is applied when the
product has enhanced features and is of premium quality for high end user experience
(Heracleous 2013). The price of iPhone 6S was at $199 for 16GB, $299 for 64GB and $399
for the 128GB variant (Amazon.com 2019). The hardware and the interface are designed to
provide appropriate value for the price. It must also be noted that Apple utilizes skimming
price for its products as the iPhones have a higher price than the other phones especially the
android phones in the smartphone industry. The company has a premium target and the
promotions are also done in accordance to the targeted customers who are willing to purchase
the products at the premium prices. The unique technology that the company provides its
customers with, has a value added pricing system, which makes the customers focus on the
products sold by the company than the products of the organization’s competitors (Liozu and
Hinterhuber 2013).
It must also be mentioned that Apple attempts to enhance the demand of its products
like the iPhone 6S, through differentiation. Apple creates demands for its products by
providing the company with a power over the pricing of the products with the aid of
innovative advertising, secured brand loyalty, and hype regarding the product before the
launch date. By setting the price above the average range, Apple procures an artificial barriers
for new entries in the market.
Distribution channel
With its huge expanse over the global market, the varied range of Apple products are
sold in majority of the countries of the world (Qiang, Ke and Anderson 2013). The
distribution channel that shall be implemented in case of the iPhone 6S is through retailing. In
the process of distribution, Apple utilizes varied channels, from which the first method of

9INTEGRATED MARKETING CHANNELS AND DISTRIBUTION SYSTEM
distribution is the Apple website wherein the customers can pre order the chosen product
even before it is available in the market. Secondly, the Apple stores that are located across the
globe in distinct buildings, making it easily accessible for the customers. Thirdly, the huge
range of electronic firms through which the company distributes its smartphones. For
instance, Amazon, which is the prime online avenue where iPhones as well as other Apple
products are available. The process of marketing through promotional events and
advertisements also acquires certain customers who are ultimately led to purchase the product
(Jackson 2013). The management at Apple also strategized the method to acquire the
appropriate customers by overhauling their previous supply chain and making it efficient and
lean, thereby reducing the inventory levels and enhancing the sales margins (Bergvall-
Kåreborn and Howcroft 2013).
Conclusion
Therefore, it can be inferred that the iPhone 6S is positioned in the market under the
leading market position of Apple. Along with the efficacy of the pricing strategy, distribution
channels and the consumer adoption process, the products is hoped to bring about beneficial
returns for Apple.

10INTEGRATED MARKETING CHANNELS AND DISTRIBUTION SYSTEM
References
Amazon.com (2019). Amazon.com: Mobile Shop USA - iPhone 6, 6S, 6 Plus & 6S Plus: Cell
Phones & Accessories. [online] Amazon.com. Available at:
https://www.amazon.com/iPhone-6-6S-Plus/s?rh=n
%3A12522859011%2Cp_6%3AA39YHAI3NCE75F [Accessed 27 Aug. 2019].
Apple.com (2019). iPhone 6s - Technical Specifications. [online] Support.apple.com.
Available at: https://support.apple.com/kb/sp726?locale=en_US [Accessed 24 Aug. 2019].
Bergvall-Kåreborn, B. and Howcroft, D., 2013, December. The Apple business model:
Crowdsourcing mobile applications. In Accounting Forum (Vol. 37, No. 4, pp. 280-289).
Taylor & Francis.
Chen, C.M. and Ann, B.Y., 2016. Efficiencies vs. importance-performance analysis for the
leading smartphone brands of Apple, Samsung and HTC. Total Quality Management &
Business Excellence, 27(3-4), pp.227-249.
Heracleous, L., 2013. Quantum strategy at apple inc. Organizational Dynamics, 42(2), pp.92-
99.
Jackson, N., 2013. Promoting and marketing events: Theory and practice. Routledge.
Klein, S.E. ed., 2015. Steve Jobs and philosophy: For those who think different (Vol. 89).
Open Court.
Lee, A.J., Yang, F.C., Chen, C.H., Wang, C.S. and Sun, C.Y., 2016. Mining perceptual maps
from consumer reviews. Decision Support Systems, 82, pp.12-25.
Liozu, S.M. and Hinterhuber, A., 2013. The confidence factor in pricing: driving firm
performance. Journal of Business strategy, 34(4), pp.11-21.

11INTEGRATED MARKETING CHANNELS AND DISTRIBUTION SYSTEM
Qiang, Q., Ke, K., Anderson, T. and Dong, J., 2013. The closed-loop supply chain network
with competition, distribution channel investment, and uncertainties. Omega, 41(2), pp.186-
194.
Shams, R., Alpert, F. and Brown, M., 2015. Consumer perceived brand innovativeness:
Conceptualization and operationalization. European Journal of Marketing, 49(9/10),
pp.1589-1615.
Toften, K. and Hammervoll, T., 2013. Niche marketing research: status and challenges.
Marketing Intelligence & Planning, 31(3), pp.272-285.