This paper discusses the marketing mix factors of Apple laptops in the American market. It also includes PESTLE analysis to identify the major external factors for them along with the discussion of the impacts of these factors on the marketing mix decisions of Apple laptops.
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Running head: MARKETING MANAGEMENT Marketing management Name of the student Name of the university Author note
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1MARKETING MANAGEMENT Table of Contents Introduction......................................................................................................................................2 Marketing mix strategy....................................................................................................................2 Product.........................................................................................................................................2 Price.............................................................................................................................................3 Place.............................................................................................................................................3 Promotion....................................................................................................................................3 PESTLE analysis.............................................................................................................................4 Political factors............................................................................................................................4 Economical factors......................................................................................................................4 Social factors...............................................................................................................................5 Technological factors...................................................................................................................5 Legal factors................................................................................................................................5 Environmental factors..................................................................................................................6 Impact of the macro factors.............................................................................................................6 Conclusion.......................................................................................................................................7 Reference.........................................................................................................................................8
2MARKETING MANAGEMENT Introduction Regardless of the size and scale of the operation, each organization is having the need for effective strategic approaches in order to gain competitive advantages. Apple laptop is one of the leading laptop brands in the world with having their presence across the world and higher product ranges. The most popular model of Apple laptops is MacBook Air, which is also the best value for money product of them. They are based in California, United States and having their manufacturing facilities in countries such as China (Montgomerie & Roscoe, 2013 pp. 290). This is helping them to meet the worldwide demand of their products in competitive price points. However, in the recent time, the market domination of other brands especially the Chinese vendors is posing huge threats for the Apple laptops in maintaining their competitiveness. Hence, determination of the market environment is becoming more important for Apple laptops to maintain their leadership position in terms of profitability (Arora & Chawla, 2014 pp.372). This paper will discuss about the relevant marketing mix factors of Apple laptops in the American market. In addition, PESTLE analysis will be done to identify the major external factors for them along with the discussion of the impacts of these factors on the marketing mix decisions of Apple laptops. Marketing mix strategy Product Diversity and variations are being maintained in offering the products. There are number of variants of laptops being offered by Apple in terms of specifications of storage capacity, processors and price. This is helping them to cater to different requirements of the different customer segments (Jun & Sung Park, 2013 pp. 907). Periodical up gradation of the products are
3MARKETING MANAGEMENT being done in terms of designs and software. This is prompting the customers in upgrading their existing ones with newer ones. Thus, purchase rate for Apple laptops is getting increased. Price Premium pricing policy is being initiated by Apple laptops for their products. This is helping them to create the exclusivity among the target customers along with having better profitability over their competitors. Price skimming strategy is also being followed by them, which enables them to reduce the price of their older products gradually. This is helping them to tap the customers in the lower price points along with extending the life cycle of the products (Davcik & Sharma, 2015 pp. 781). Seasonal rebates and discounts are helping Apple to push the sales of their laptops in the festival seasons. This is enabling them in increasing their sales volume along with the revenue and market share. Place In terms of place and distribution, Omni Channel approaches are being maintained by Apple laptops, which enable them to have their presence in both online and offline mediums. Intensive distribution strategy is being followed by Apple laptops, which involves selling only through the authorized resellers (s22.q4cdn.com, 2019). This is helping them to maintain their exclusive branding in the market (Verhoef, Kannan & Inman, 2015 pp. 174). Involvement of the third party vendors is helping Apple laptops to have larger market penetration across the world. This is due to the reason that authorized resellers are having limited exposure in the market. Promotion Extensive promotional activities are being initiated by Apple laptops involving both the offline and online mediums. However, the advertisements of Apple laptops are having limited
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4MARKETING MANAGEMENT exposure in the market due to the limited and niche target audience. Hence, mass Medias are used in intensive manner (Hubnet, Holzapfel & Kuhn, 2016 pp. 255). The creative content of the promotional activities of Apple laptops is more focused more on its aspiration and aesthetic and social values over their utilities. This is helping in catering to the premium customers preferring exclusive products (Bell, Gallino & Moreno, 2014 pp. 45). PESTLE analysis Political factors United States are having favorable business environment with having the capitalist approach. Thus, it is beneficial for Apple laptops in doing their business without the political interference. Democracy of the United States is consists of two political ideologies. Thus, the risks involved in changing of political regime are less for Apple laptops (Escobar, Dagnino & Alvarez, 2018 pp. 30). However the recent political turmoil in the internal political environment of the United States causing the shutdown is having negative impacts on the business of Apple laptops. Majority of the manufacturing of Apple laptops is being done in China(s22.q4cdn.com, 2019). However, the recent trade war between the United States and China is creating hindrances in the trade patterns for Apple laptops. Economical factors United States witnessed economical slowdown in the last few years but currently having growth. This will pose favorable impact on the business of Apple laptops. The trade issues growing between the United States and other countries are increasing and this is causing challenges for Apple laptops in their global sourcing strategy (Breen, 2017 pp. 228). With the
5MARKETING MANAGEMENT increase in the unemployment rate in the United States, the purchasing power for the customers in buying the niche laptops of Apple is getting reduced. Social factors The United States is one of leading developed and globalized countries in the world. Thus the major section of the customers is having awareness about the latest products and technologies. This is helping Apple laptops in offering more premium and newer products in the market (Grubb, 2015 pp. 9). With the offering of latest and innovative technologies with the laptops, Apple is staying ahead in the competition in terms of meeting the needs of the customers effectively. Apple enjoys a unique and distinctive position in the American market for its all American root and innovations, which always helps to create demand for their newer laptops in the market. Technological factors Apple laptops are the leading organization in the world in terms of the technologies. They are known for their innovative approaches in their product strategy. Apple laptops are operating in the premium segment and the higher level of profitability is helping them to invest more in technological development (Baden-Fuller & Haefliger, 2013 pp. 419). Apple laptops are gaining from their closed innovation strategy, which helps them to have the distinctiveness in terms of software also. This includes the apps, operating system and interface being used in Apple laptops are unique and are not being offered by others. Legal factors Apple laptops are having favorable environment in terms of legal factors. This is due to the reason that legal challenges in doing business in the United States are less from the side of
6MARKETING MANAGEMENT the authorities. However, in the recent time different privacy relate issues are being emerged from the businesses and thus a few stringent regulations in relation to the maintenance of the privacy of users are being imposed. Imposing of higher taxation rate on the businesses for outsourcing their operations will cause increase in the cost if operation for the Apple laptops. Environmental factors Regulations and standards in relation to the environmental sustainability are evident in the business operation of Apple laptops. They are also being held responsible for the generation of electronic wastes and thus assurance of recyclable and disposable materials is mandatory. Reduction of carbon footprints and gaining carbon neutrality is also important for Apple laptops in gaining goodwill in the market. Impact of the macro factors The developed economical scenario of the United States is the enabling Apple laptops to price their products in premium. This is due to the reason that of major sections of the customers in the country are having the capability of purchasing higher end products. Initiation of the price skimming strategy is also helping to deal with the fluctuations of the unemployment and growth rate in the country. This is due to the fact that price skimming is helping Apple laptops to target the customers across different price points. In case of the recession, this strategy will help them to maintain their momentum in the market. The higher sets of technological awareness among the major section of the customers are also prompting Apple laptops to initiate the frequent up gradation of their laptops in terms of newer technologies and software. Conclusion
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7MARKETING MANAGEMENT This paper concludes that there are number of challenges and opportunities being faced by Apple laptops in doing business in the United States. PESTLE analysis is done to identify the major and relevant external factors for Apple laptops. The marketing mix strategies of Apple laptops are also discussed in this paper. It is identified that external business factors are having influences on the marketing mix strategies of Apple laptops and these impacts are also discussed in this report.
8MARKETING MANAGEMENT Reference Arora, R., & Chawla, A. (2014). Mapping of consumer perceptions for laptops: a case study.Int. J. Adv. Res. Manage. Soc. Sci,3(7), 357-372. http://garph.co.uk/IJARMSS/July2014/30.pdf Baden-Fuller, C., & Haefliger, S. (2013). Business models and technological innovation.Long range planning,46(6), 419-426. https://www.sciencedirect.com/science/article/pii/S0024630113000691 Bell, D. R., Gallino, S., & Moreno, A. (2014). How to win in an omnichannel world.MIT Sloan Management Review,56(1), 45. https://courses.helsinki.fi/sites/default/files/course-material/4482621/17.3_MIT2014%20Bell.pdf Breen, T. H. (2017). “Baubles of Britain”: the American and consumer revolutions of the eighteenthcentury.InColonialAmericaandtheEarlyRepublic(pp.197-228). Routledge. https://www.taylorfrancis.com/books/e/9781351950572/chapters/10.4324/9781315259949-8 Davcik, N. S., & Sharma, P. (2015). Impact of product differentiation, marketing investments and brand equity on pricing strategies: A brand level investigation.European Journal of Marketing,49(5/6), 760-781. https://www.emeraldinsight.com/doi/abs/10.1108/EJM-03-2014-0150
9MARKETING MANAGEMENT Escobar, A., Dagnino, E., & Alvarez, S. E. (2018). Introduction: The cultural and the political in Latin American social movements. InCultures of Politics/Politics of Cultures(pp. 1-30). Routledge. https://www.taylorfrancis.com/books/e/9780429969683/chapters/10.4324/9780429501135-1 Grubb, M. D. (2015). Overconfident consumers in the marketplace.Journal of Economic Perspectives,29(4), 9-36. https://www.aeaweb.org/articles?id=10.1257/jep.29.4.9 Hübner,A.,Holzapfel,A.,&Kuhn,H.(2016).Distributionsystemsinomni-channel retailing.Business Research,9(2), 255-296. https://link.springer.com/article/10.1007/s40685-016-0034-7 Jun, S., & Sung Park, S. (2013). Examining technological innovation of Apple using patent analysis.Industrial Management & Data Systems,113(6), 890-907. https://www.emeraldinsight.com/doi/abs/10.1108/IMDS-01-2013-0032 Montgomerie, J., & Roscoe, S. (2013, December). Owning the consumer—Getting to the core of the Apple business model. InAccounting Forum(Vol. 37, No. 4, pp. 290-299). Elsevier. https://www.sciencedirect.com/science/article/pii/S015599821300032X s22.q4cdn.com.(2019).Retrievedfrom https://s22.q4cdn.com/396847794/files/doc_financials/quarterly/2018/Q4/10-K-2018- (As-Filed).pdf
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10MARKETING MANAGEMENT Verhoef, P. C., Kannan, P. K., & Inman, J. J. (2015). From multi-channel retailing to omni- channel retailing: introduction to the special issue on multi-channel retailing.Journal of retailing,91(2), 174-181. https://www.sciencedirect.com/science/article/abs/pii/S0022435915000214