Marketing Mix of Apple

This document provides an analysis of the marketing mix of Apple, including the company's business description, market evaluation, target markets, PESTLE analysis, customer service levels, and risk analysis. The document also discusses the company's products, pricing, distribution channels, and promotional strategies. It concludes with recommendations for managing the risks associated with Apple's operations.

Running head: MARKETING MIX OF APPLE
Marketing Mix of Apple
Name of the Student
Name of the University
Author Notes:

1MARKETING MIX OF APPLE
Executive Summary
Apple is a company that has been operating in the global market for more than two decades
by supplying innovative and stylish products. They have adopted the niche marketing
strategy and thus have priced their products accordingly. However, the company has been
criticised for overpricing their products. They face constant threats from companies such as
Samsung and Google. They have been found to be dependent on the Chinese manufacturing
Unit. They aim of the report is to analyse the marketing mixt of the company, assess the
external environment and to determine the risk associated to the operations of the company.

2MARKETING MIX OF APPLE
Table of Contents
Business description...................................................................................................................3
Market Evaluation......................................................................................................................3
Market size.............................................................................................................................3
Competition............................................................................................................................4
Target markets........................................................................................................................4
PESTLE..................................................................................................................................5
Customer service levels..........................................................................................................6
Review of Marketing Mix..........................................................................................................6
Risk Analysis.............................................................................................................................7
Conclusion..................................................................................................................................8
REFERENCES...........................................................................................................................9

3MARKETING MIX OF APPLE
Business description
Apple is one of the most recognised brands around the world1. They have been
supplying the market with quality electronic products and peripherals for more than two
decades. Apart from electronic products such as mobile phone, media devices, desktops and
laptops, they have been supplying the market with a varied options of software and digital
services2. The aim of the company is to deliver high quality products to their customers,
through which they can boost the experience that the customers gain by using the products.
The company has been able to sustain itself in the market as a result of appreciation form the
customer community. The company has been able to gain appreciation from the latter as they
have incorporated constant innovation and adaptability in their operations. The company
segments their operations geographically. Further segmentation have been incorporated by
the company for each geographic segment which helps the company gain competitive
advantage.
Market Evaluation
Market size
The company takes advantage of their effective distribution networks and have been
able to establish dedicated retail outlets worldwide. The company sells their products through
retail outlets known as Apple stores, departmental stores, and third-party retail and through
online mediums.
1 Heracleous, Loizos. "Quantum strategy at apple inc." Organizational Dynamics 42, no. 2 (2013): 92-99.
2 Agrawal, Vishal V., Atalay Atasu, and Koert Van Ittersum. "Remanufacturing, third-party competition, and
consumers' perceived value of new products." Management Science 61, no. 1 (2015): 60-72.

4MARKETING MIX OF APPLE
Competition
The market in which the company operates is characterised by intense competition3.
The focus of the company is to capitalise on the marketing opportunities that are presented in
the smartphones and the personal computing market. In order to gain competitive advantage
in those market, companies have to subject themselves to the constant critique of the
consumers. The key to survival in such markets is through constant innovation.
Target markets
The target users of the product supplied by the company are distributed across a
varied range4. The primary customers of the company are individuals employed in medium to
large size businesses, students and government employees. The segmentation have been
made on the following criterion:
Demographic segmentation: On the basis of occupation
Behavioural segmentation: Appreciation for innovations
Geographic segmentation: Zone specific: segmented on the basis of location. The segments
include, the Americas, greater China, Japan, Europe and the Asia Pacific.
Psychographic segmentation: Segmentation has been made on the basis of need for
innovation.
3 Raza-Ullah, Tatbeeq, Maria Bengtsson, and Sören Kock. "The coopetition paradox and tension in coopetition
at multiple levels." Industrial Marketing Management 43, no. 2 (2014): 189-198.
4 Lehman, Glen, and Colin Haslam. "Accounting for the Apple Inc business model: Corporate value capture and
dysfunctional economic and social consequences." In Accounting forum, vol. 37, no. 4, pp. 245-248. Elsevier,
2013.

5MARKETING MIX OF APPLE
PESTLE
The external environment for the operations of the company can be determined with
the help of the PESTLE analysis.
Political: The valuation of high amount of cash has resulted in high amount of tax that the
company has to pay off. Furthermore, the company is reliant on low cost manufacturing from
China5. Alternatives to cheap manufacturing available from china is low. Political unrest in
the country can be threatening for the operations of the company. Reliance of the company on
china can result in unrest with countries such as Japan.
Economic: The cost of labour in china is rising6. Further increase in valuation of the currency
of the United States can make the final cost of production higher. Thus, potential risk of loss
of market share from developing countries can be witnessed.
Social: the company has witnessed a trend that is characterised by lack of affinity towards
expensive products7. Furthermore, lack of loyalty form the part of the young generation and
students can be threatening to the sustainability of the company. In various countries, the
company’s products are perceived to very too expensive. Thus, this can hinder the smooth
operational flow.
Technology: There exists various competitors such as Samsung, One Plus and Google who
pose threats to the market share that is possessed by the company8. The aforementioned
companies have duplicated many of the products and services that was introduced by apple
5 Chan, Jenny, Ngai Pun, and Mark Selden. "The politics of global production: A pple, F oxconn and C hina's
new working class." New Technology, Work and Employment 28, no. 2 (2013): 100-115.
6 David, H., David Dorn, and Gordon H. Hanson. "The China syndrome: Local labor market effects of import
competition in the United States." American Economic Review 103, no. 6 (2013): 2121-68.
7 Jenkins, Michael J., and Suzanne S. Farid. "Human pluripotent stem cell‐derived products: Advances towards
robust, scalable and cost‐effective manufacturing strategies." Biotechnology journal 10, no. 1 (2015): 83-95.
8 Khan, Usman Ali, Mohammd Noor Alam, and Shabbir Alam. "A critical analysis of internal and external
environment of Apple Inc." International Journal of Economics, Commerce and Management 3, no. 6 (2015):
955-961.

6MARKETING MIX OF APPLE
and have former have also backed it up with further innovation. The sale of computer and
computer peripherals can be limited as a result of rise in demand for smartphones.
Legal: The amount of litigation and regulations that the company will be subject to is
assumed to rise as a result of the introduction of financial services9. Furthermore, the
company is aiming to enter into the automobile industry which can further increase the
regulations that the company will be subject to. Increased amount of regulations can lead to
hindrance of operations of rest of the departments of the company.
Environmental: The main environmental concern that is faced by the company is regarding
the by-products of the electronic wastes. The rise in industrial wastes form the manufacturing
units of China has raised flags in the Chinese market. The latter has resulted in regulations to
limit natural fuel wastage and can result in rise of electricity costs that will be incurred by the
company.
Customer service levels
The company customer services through their apple care service. Apart from servicing
at service centres, the company have their very own online support as well as product
manuals. There exists paid version of Apple care services for additional care.
Review of Marketing Mix
Product: The Company offers innovative products in the form of iPhones, iPads, Mac
desktops and laptops, Apple smart watches, Apple music, Apple TV and Apple pay.
Price: The final price of the products are deemed to be high. Close alternatives are available
from the competitors.
Place: Sold throughout the world and segmented on the basis on region.
9 Wells, Guy-Philippe. "Internet regulations and cultural industries: who will run the show?." (2014).

7MARKETING MIX OF APPLE
Promotion: It is assumed that the niche marketing technique has been adopted by the
company.
Consumer: Individuals with medium and high levels of income.
Convenience: Online support and facilities available for every product. Customer service is
efficient.
Cost: Initial cost of production was cheap. However, it is assumed to rise as a result of
increased regulations and increased cost of manufacturing and outsourcing.
Communication: Sales promotional and marketing techniques of all kinds have been utilised
by the company. However, the most successful promotional impediment is in the form of
word of mouth and goodwill.
Risk Analysis
There are various risks associated with the operations of the company globally. They
have been narrowed down above;
1. Global economic crisis: The Company’s products might not be favourable for
individuals of developing and under developed countries.
2. Highly competitive international markets: Samsung, Google, OnePlus and many other
companies pose threats to the market share of the company.
3. Dependency on suppliers: The Company is dependent on the Chinese Suppliers.
Failure form the part of the latter could catastrophic threats to Apple.
4. Outsourcing: The Company is heavily reliant on outsourcing from countries such as
USA and Japan. Relations can be hampered as a result of dependency on China.

8MARKETING MIX OF APPLE
5. Reliant on third party developer: Apple is reliant on third party companies for
software and component of their products10. Failure on their part may result in
functional and operational hindrances.
6. Strict regulation: From manufacture of units in China, to adaptation and move to
sectors such as financial services and automobile sectors has subject the company to
increased regulations.
The risks can be managed by delegating personnel and departments in market research.
Effective and detailed market research will help the company in obtaining information
about the needs, demands and preferences of the consumers. This will further help the
company to further develop understanding of the market conditions for operations.
Conclusion
Apple have been operating in markets throughout the word and have been able to
establish themselves as one of the mist recognised companies in the world. It has been
positioned in the market as a company who supply innovative and stylish products to the
market at a high prices. The company segregates their market on geographic basis globally
and their customers consists of individuals from medium to high income brackets. The
company has been found to be reliant on suppliers and manufacturers form China. Biggest
threats to the sustainability of the company is posed by the competitors and regulations that
can that the company are subject to as a result of venture into new fields. On a concluding
note, it can be said that key to survival of the company lies in locating the needs and demands
of the consumers, abiding by the regulations and innovation.
10 Bergvall-Kåreborn, Birgitta, and Debra Howcroft. "The Apple business model: Crowdsourcing mobile
applications." In Accounting Forum, vol. 37, no. 4, pp. 280-289. Elsevier, 2013.

9MARKETING MIX OF APPLE
REFERENCES
Agrawal, Vishal V., Atalay Atasu, and Koert Van Ittersum. "Remanufacturing, third-party
competition, and consumers' perceived value of new products." Management Science 61, no.
1 (2015): 60-72.
Bergvall-Kåreborn, Birgitta, and Debra Howcroft. "The Apple business model:
Crowdsourcing mobile applications." In Accounting Forum, vol. 37, no. 4, pp. 280-289.
Elsevier, 2013.
Chan, Jenny, Ngai Pun, and Mark Selden. "The politics of global production: A pple, F
oxconn and C hina's new working class." New Technology, Work and Employment 28, no. 2
(2013): 100-115.
David, H., David Dorn, and Gordon H. Hanson. "The China syndrome: Local labor market
effects of import competition in the United States." American Economic Review 103, no. 6
(2013): 2121-68.
Heracleous, Loizos. "Quantum strategy at apple inc." Organizational Dynamics 42, no. 2
(2013): 92-99.
Jenkins, Michael J., and Suzanne S. Farid. "Human pluripotent stem cell‐derived products:
Advances towards robust, scalable and cost‐effective manufacturing
strategies." Biotechnology journal 10, no. 1 (2015): 83-95.
Khan, Usman Ali, Mohammd Noor Alam, and Shabbir Alam. "A critical analysis of internal
and external environment of Apple Inc." International Journal of Economics, Commerce and
Management 3, no. 6 (2015): 955-961.

10MARKETING MIX OF APPLE
Lehman, Glen, and Colin Haslam. "Accounting for the Apple Inc business model: Corporate
value capture and dysfunctional economic and social consequences." In Accounting forum,
vol. 37, no. 4, pp. 245-248. Elsevier, 2013.
Raza-Ullah, Tatbeeq, Maria Bengtsson, and Sören Kock. "The coopetition paradox and
tension in coopetition at multiple levels." Industrial Marketing Management 43, no. 2 (2014):
189-198.
Wells, Guy-Philippe. "Internet regulations and cultural industries: who will run the show?."
(2014).