Strategic Positioning of Apple Inc.

The assignment analyzes the marketing strategies of Apple Inc., specifically focusing on the iPhone 7. It highlights the importance of conducting research to find advanced technology, emphasizing the strengths of the iPhone's features, and promoting it through proper marketing strategies. The organization should also focus on industrial organization paradigm to gain knowledge about how industry structure influences its behavior and performance. Furthermore, the company can apply market penetration and segmentation strategies to expand its market size in different areas.

Running Head: Marketing Management
marketing management
[Document subtitle]

Marketing Management 1
Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................1
Marketing Mix.................................................................................................................................2
Marketing Strategies........................................................................................................................5
Competitor Analysis........................................................................................................................6
Contemporary Issues.......................................................................................................................8
Impact of Contemporary Issues on Apple Inc.................................................................................9
Recommendations..........................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................13

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Executive Summary
This paper shows marketing mix of iPhone 7, competitors, and marketing strategies which
provide summarize and significant information about the central elements of marketing mix.
Different elements of marketing mix and marketing strategies are reviewed under the concept of
marketing management. On the other hand, contemporary issues are also studied to support the
marketing strategies. This will help marketers in understanding the marketing mix elements of
iPhone 7 and its promotion strategies. This knowledge can further applied by marketers to
resolve contemporary issues and gain competitive advantage.
Introduction
iPhone 7 is launched by Apple in September 2016. Apple is considered as an American
multinational technology organization whose headquarter is situated in Cupertino, California. In
this paper, we will discuss the marketing mix of iPhone 7 and marketing strategies chosen by
Apple Inc. for marketing of iPhone7. It was established in 1976 to invent and sell high-quality
personal computers to different customers. The organization produces, designs, and market
media and mobile communication devices, portable digital music players, personal computers
and deals in a range of different software, peripherals, services, third-party digital content,
applications and different networking solutions (Wouters, 2014). The organization is also dealing
with digital content and applications through App store, iTune Store, and iBookstore. It sells its
products across different countries through its online stores, retail stores, third-party cellular
network, and direct sales force. The organization is producing different products such as iPhone,
iPod, iPad, and Apple TV. Apart from all this the organization also sells a range of third-party
iPad, iPhone, iPod, Mac and different compatible products which include application software

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and various other things. The organization sells its products to different consumers as well as
various business houses, government customers, education and small business enterprises. As per
the revenue, it is considered the largest information technology organization. Total revenue for
the organization in 2015 was approximate $233 billion. Due to its high growth Apple become the
first organization of US who earned more than $ 700 billion in a particular year. It has more than
115,000 permanent employees work for the success of the organization and 480 online retail
stores across 17 Countries. The organization contributes a large part of GDP of different
countries.
Marketing Mix
Marketing mix plays an important role in the success of iPhone 7. Marketing mix of iPhone 7 is
appreciated by every business house because it was product driven at the same time the
technology were outstanding. Marketing mix of iPhone 7 includes following components:
Product
Product in marketing mix considered as a procedure of planning. It is related to intangible
service and tangible commodities offered by a particular organization. Product in the iPhone
Marketing Mix is following:
 Processing Speed: Generally, it can be said that only operating system cannot attract a
large number of customers, it needed processing speed also (Fan, 2015). The hardware of
iPhone 7 is very much compatible with the operating system and the software used to run
smoothly.

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 Operating System: The prior and important quality which every person loved in iPhone 7
is access to the world renowned Apple ios operating system. The Mcbook is considered
the most desired laptop and the iPhone 7 gave access to a similar operating system such
as Mcbook which is ios.
Price
iPhone mainly utilizes two pricing strategy. First one is skimming price, and the other is no
discounts. Generally, it can be said that price of Apple iPhone doesn't require any explanation.
With the promotions and product, and with a premium target to support the targeting, iPhone 7
mainly utilize price skimming strategy. It is of higher price as compared to available
smartphones in the market. Furthermore, it can be said that Samsung tried enough to compete
with iPhone 7 but fails. However, customers of the iPhone 7 are not budging, and they become
loyal to the brand of Apple Inc.
On the other hand, iPhone 7 also follows pricing strategy of no discounts. Apple Inc. provides
discounts only during sales promotions and exchange offers. But otherwise, no any discount is
provided by Apple Inc. on iPhone 7.
Place
The place is a combination of different factors related to suppliers, customers, and distribution
channels. iPhone 7 is present across the globe with an excellent service backup. Apple iPhone 7
mainly target high premium customers. Hence it is found in high-grade areas. On the other hand,
iPhone 7 stores are found in malls and premium areas of high profile cities across the whole
nations (Kotler, 2015). On the other hand, it can be said that iPhone has named its retail counter
as iStore. This highlights the complete product line of Apple Inc. Furthermore, iPhone 7 is

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distributed through forwarding and carrying agent. In addition, it also has a corporate sales
department which does corporate tie-ups for the organization.
Promotion
iPhone 7 promotion is considered excellent. It is because iPhone utilizes a large number of
promotion strategies to attract its customers. It mainly utilizes ATL and BTL strategy for
promotion. Whenever a new phone launched, Apple Inc. ensures its presence at every store and
ATL platform. On the other hand, it also utilizes home advertising with the point of sale
advertising and hoardings.
Partnerships
Apple Inc. is slowly moving forward towards strengthening its partnership with different
business associates. In an attempt to expand the availability of online iPhone 7 the organization
enters into the partnership with various e-commerce organizations. This enhances the distribution
channel for iPhone which ultimately enhances its sale (Leonidou, 2013).
People
The main strength of the Apple Inc. is its employees. Its people are the main reason behind its
success. Human resources of Apple are known for high innovativeness and knowledge. They
chose their employees from high-level institutes and colleges. People of Apple are supportive
and kind. They welcomed everyone with a great smile and resolved all queries regarding their
products and services.
Processes

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Apple is recognized for its operations and process. They have various warehouses and
production departments all around the world and follow a systematic process for all its products
and services. On the other hand, Apple utilizes high-quality processes to produce iPhone 7. Due
to good process, it can maintain the quality of its iPhone which is able to attract a large number
of people in a particular time.
Physical Evidence
Apple Inc. has an effective and efficient store which is a class apart and gives different service to
customers. Web site of the organization is very attractive and smooth with fewer words and more
art.
Thus, it can be said that marketing strategy utilizes by the organization to promote itself is very
effective and efficient. Skimming price and product differentiation strategy of the organization
helps it in penetrating a large number of markets and gaining competitive advantage.
Apart from focusing on the marketing mix, Apple also focuses on maintaining the uniqueness of
its selling price (USP). Apple Inc. offers high technology products at high costs which help it in
maintaining a competitive advantage in its iPhone market (Wachowiak, 2016).
Marketing Strategies
Apple Inc. utilizes effective and attractive marketing strategies for the promotion of iPhone 7. It
mainly utilizes two marketing strategies. These are following:
 ATL: It stands for ‘Above the Line Marketing.' ATL marketing is chosen to cover a
broad market. Promotion of iPhone 7 through ATL brings various growth opportunities.

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With the help of ATL marketing strategy the organization able to target premium
segment. The presence of Apple iPhone 7 is greater in the ATL segment than BTL
segment. On the other hand, by using ATL marketing strategy, the organization gives
iPhone taglines in a newspaper advertisement. These iPhone ads come up with interesting
taglines. Due to it, Apple Inc. able to attract a large number of people for purchasing
iPhone 7.
 BTL: Apart of ATL, Apple Inc. also utilizes BTL marketing strategy for the promotion
of iPhone 7. For BTL marketing, iPhone utilizes home advertisement with hoardings and
point of sale advertising in big retail outlets (Hossain, 2015). Apart of this, it also utilizes
a large number of sales promotions and exchange offers activities to aware more and
more consumers about features of iPhone 7. This not only grows its sale but also enhance
the market reputation of the organization.
Thus, it can be said that marketing strategies chosen by organization make it different from its
competitors. On the other hand, marketing strategies of the organization contribute enough to
make Apple iPhone 7 one of the best-selling smartphones in the market.
Competitor Analysis
It cannot be denied that smartphone market is globally a crowded competition in which there are
a large number of technology organizations in the world. It is necessary for Apple Inc. to focus
more on its competitors. Apple iPhone 7 faces huge competition from its different competitors.
The first and the foremost important competitor of Apple Inc. is HTC. HTC struggles
continuously to bring and innovates new technology and products so that it can make improve its
offerings. Product quality and advanced technology of HTC smartphones give strong

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competition to Apple. Apart of the HTC, Apple Inc. also faces huge competition from Samsung.
Both organizations share the global smartphone market share in an efficient manner. Generally,
it can be said that Apple needs to get rid of the identity of the “fast follower” and should become
a real innovator (Ryan, 2016). As these organizations are much larger in size and scope of
products offered, they create the biggest threat to iPhone 7 as leading producer of the
smartphone. Furthermore, the most notable anticipated moves of these competitors contain
further investment in research and development, expansion, and cost cutting initiatives.
Increasing investment in research and development or further expansion can create a big threat to
Apple iPhone7, as these organizations create more capabilities and gain more capacity (Siddiqi,
2014). Furthermore, cost cutting initiatives by these organization can also create a threat to price
competition may intensify. The Below mentioned table represents the competitor analysis of
Apple iPhone 7:
Current company’s
strengths and
weaknesses
Potential
Competitor’s
strengths and
weaknesses
Competitive Rival’s
strengths and
weaknesses
Target Market High-Income lead in
High margin
Lower income group Lower income group
Product iPhone Samsung Galaxy Good Android
version
Place Online Apple Stores Large size of
Retailers
Online stores and
Retailers

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Promotion Sales Promotion Advertisement Public Relation and
Advertising
Price Premium pricing
Strategy
Skimming Price Product
Differentiation
Competitive
Barriers
Asset Specificity Fabless Business
Models
High Entry Cost
Likely responses High growth in future Growth Decline in
near future
Growing in future
Contemporary Issues
There are lots of contemporary issues facing by marketers today such as corporate social
responsibility, technology advancement, social media interactions, environmental concerns,
ethical concerns, and globalization. They not only influence the marketing strategies but also
influence the market position of the organization. These are following:
Corporate Social Responsibility
CSR is an important issue which is facing by marketers nowadays. It not only influences the
market reputation but also affects the future growth opportunities. Generally, it can be said that
corporate social responsibility policies have been gaining increasing attention from marketers
and senior executives. So, it is necessary for marketers to focus more on avoiding corporate
social responsibility.

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Ethical Concerns
Ethics play an important role in the success of an organization. Ethics not only help the
organization in satisfying a large number of human beings but also helpful in building credibility
in the market (DesJardins, 2014). So, it can be said that ethical concerns is an important issue for
marketers and they should try to avoid it by following all ethical practices.
Environmental Concerns
Generally, an organization exists in the market. So, it influenced highly by environmental
aspects. Marketers should consider all environmental factors while conducting future planning.
This not only helpful in gaining significant advantage but also helpful in avoid risk factors.
Globalization
Globalization is an important issue recent days. It helps the marketers in gaining domestic as
well as international opportunities. Globalization issues can handle by marketers by
standardization of products, distribution channels, prices, and promotional campaigns.
Social Media Interactions
Social media interaction is a significant contemporary issue for marketers. With the help of
social media, marketers can promote its products in an effective manner. But, they should focus
more on avoiding issues associated with the use of social media.
Impact of Contemporary Issues on Apple Inc.
Generally, it can be said that contemporary issues influence the Apple Inc. in a great manner.
The following are the impact of contemporary issues:

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 Customer Retention: Contemporary issues affect the customer retention in a great
manner. Consumers may choose to not do business with such organizations that have a
reputation for being socially irresponsible, and unethical. Due to this, Apple not able to
maintain its customer loyalty for a long time (Hanssens, 2014).
 Competitive advantage: Contemporary issues influence the competitive advantage of the
organization in a greater manner. It is because marketing strategies of organization highly
influenced by the contemporary issues. If they are not adequate, it cannot build
competitive advantage in its potential market.
Generally, it is said that ethical marketing efforts and decisions should fulfill and suit the
requirements of suppliers, customers, and business partners. The presence of contemporary
issues not only affects market reputation but also influence the relationship of organization with
its stakeholders.
Recommendations
It can be said that Apple is the first one to introduce multi-touch smart features in its product,
and then it should focus more on conducting research to find more advanced technology. It can
be said that marketing mix of iPhone 7 is strong enough due to its key factor-advanced features.
Features of the iPhone are strong enough than any other smartphone. So, it can be said that the
organization should focus more on the promotion of iPhone. It is because iPhone of the
organization is strong enough and it requires only proper marketing strategies. On the other hand,
it can be said that place and pricing strategies of Apple contribute well to make iPhone 7 one of
the best-selling smartphones in the market. Furthermore, Apple Inc. needs to focus not only on
industry factors but also the external market orientation (Hollensen, 2015). It is because these are

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considered the primary determinants of organization performance. Furthermore, it also suggests
that the strategic position of Apple Inc. largely depend on its activities. It is necessary for the
organization to differentiate its activities from its competitors. It is because performance and
profitability of organization largely depend on its competitive dynamics and structure within
which it operates. On the other hand, the organization should consider Industrial Organization
paradigm. It is because with the help of this paradigm the organization can gain significant
knowledge about how the structure of the industry influences its behavior and performance. With
the help of such knowledge, the organization can develop an effective strategy to gain
competitive advantage.
Conclusion
After studying all this, it can be concluded that that Apple Inc. has an efficient composite
business structure with decentralized branches and the abundant brands. If the organization
wants to position itself in its existing market, the above-mentioned recommendation strategies
help the organization in doing so. This will be done through removing its weaknesses and
strengthening the existing capabilities. It could formulate market penetration strategies for
expanding the size of its potential market in different areas (Huang, R., & Sarigöllü, 2014). It can
be said that Apple Inc. has a significant reputation in the market which can be fluently utilized in
exploiting the existing business opportunities. Furthermore, the company can also apply a market
segmentation strategy for niche markets in established economies. With the help of all these
initiatives, it can efficiently utilize its existing technologies and resources which further prove
beneficial in achieving predetermined goals of the organization.

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Consumer attitude metrics for guiding marketing mix decisions. Marketing Science, 33(4), 534-
550.
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