Marketing Strategies of Apple Inc.

This report discusses the marketing strategies of Apple Inc., including its background and philosophy. It explores how these strategies increase customer satisfaction and help the company gain a competitive advantage. The report also examines the reasons and implications of changes with competitors.

MARKETING PRINCIPLE
FOR BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task..................................................................................................................................................3
Background and philosophy of organisation ..............................................................................3
Marketing strategies and how it increases segmented customer satisfaction .............................5
Reasons and implication of changes with competitors ...............................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing principles refers to ideas that form basis for most product promotion
strategies. These principles help in making aware about the company products to its end
customers. Companies use variety of strategies related to marketing in order to improve market
performance of existing products which also takes into consideration how to launch new
products in marketplace. These are principles upon which product promotion strategies are
based upon which help companies in gaining competitive advantage over others. Apple is
multinational company based out of America that create, design and is in selling of consumer
electronics such as laptops, phone and others, computer services and online services. Present
report will address to marketing strategies adopted by company in accordance with marketing
mix and how it helps company's in increasing customer satisfaction. It will also throw some light
on background/ philosophy of chosen organisation and will lay reasons and implication of
changes with that of competitors.
MAIN BODY
Task
Background and philosophy of organisation
Apple, was founded in year 1976 by Steve jobs& Steve Wozniak who laid vision of
forming a company where it changed the way how people see computers. There ideas were
based on designing computers that are small and efficient which may help its customers to carry
easily whereever they want. It was being formed as business partnership between the two where
companies where its first ever product named Apple 1 was being built and designed in a garage
and was sold without keyboards, monitors and others
With the launch of Apple's next product the industry was revolutionized by introduction
of technology of colour graphics in its system where sales jumped with huge numbers and was
year when Apple as organisation became public. Wozniak then in year 1983 left company due to
lack of interst in business operation of company where Jobs than hired Sculley to take in charge
of company which gave rise to controversy in lives of Jobs where it went on new and big things
and formed company named as NeXT & also brought Pixar which later on became huge success
in computer animation industry.
Plans of Jobs were all set in motion where its profits were becoming more and more.
Apple's business suffered in the years betweeen 1990-1996 where it accounted to slow growth.

Apple has proved its way in computer industry not single time , but all times throughout its
inception. Jobs has revamped the computer industry where it introduced iBook(a personal
laptop) and also jumped out in iPods and iTunes. It believed in pushing limits of creativity and
innovation so that they can create and produce products that are interesting and valuable for
societies. It is unbeatable that company has profound impact on technology innovation which not
only influences how computers and other electronic products are used but also activities for
which they are being used.
The company is based out of the philosophy that what matters most is what one love to
do in life where its Vision statement serves to “make the products that are best in word and to
leave the earth better than they found” where it is also being added by its vice president of
environment, social initiatives that “We aim to create not just the best products in the world, but
the best products for the world” Thus vision of company are aligned with strategy of corporate
social responsibility which puts emphasis in sustainability of environment & overall
improvement in ecological impact of business.
Apple's Mission statement is “ to bring computing products that are the best and support
to educators, students, scientists, engineers, designers, consumers and businessperson in 140
countries all across the world, where it focuses on products that deliver as organizational outputs
where its products not just encompasses smartphones and computers, but also other products
and services which are highly focused in technology. It focuses on changing business dynamics
that lays down strength of what company can do in near future. Its main purpose is to make
personal computing accessible to each an every individual so to implement change that is being
thought, learned, worked and communicated upon. The company's USP in providing high quality
products with exclusivity where it does not market or communicate it through expensive
advertisement but by providing products such as iPhones, iPads etc. which really speaks out to
them and provides unique characteristics to its products. Its value proposition lies in its motto
that is Think Different and also in providing high tech security as compared with its competitors
where it provides aspirational messages that believes that its products should be more than
collection of features (Apple Mission statement and Vision statement,2019).

Marketing strategies and how it increases segmented customer satisfaction
It refers to forward looking, long term approach and overall plan of Apple which lays
down fundamental goal of achieving and sustaining competitive advantage by understanding
wants and needs of segmented customer to derive there satisfaction level (Yang,2018). It refers
into account its target customers, competitors strategyto target markets & value proposition that
is offered on basis of analysis of prevailing best market opportunities
Customer satisfaction defines how happy customers are with company products, services
and offerings. It could be better understood by STP analysis on how they have increased
segmented customer satisfaction
Segmentation – It includes segmentation based on demographic, geographic, behavioural and
psycho graphic bases where its demographic segment is successful as Apple is developing
products on basis of life cycle , occupation of people& age where product distribution in on
basis on age, family size and others. Coming to geographic base apple have established its
business all over the world where it implements to choose a strategy where it focuses on
expanding business through stores. In behavioural base it helps in deriving customers satisfaction
into account its target customers, competitors strategyby providing adequate information to its
customers by taking initiatves of promotion on various social media platform as they have good
brand image. Apple fulfil psycho graphic segment by delivering products which are based on
individual lifestyle such as for younger generation Macbooks which helps in deriving status
symbol for same (Haryanto,Suhaimi,2020).
Targeting – The most prominent areas for targeting are teens who use iPods for reasons to,
listening to music, socialize with friends and others, college students who are also on target
markets for as they use products such as iPads, mac-books, iPhones etc. Target market for Apple
also includes business person as its products derive high quality which is a source if status
symbol for them (A Study on STP strategy of Apple.Inc, 2018).
Positioning- Apple position itself in marketplace by providing products that are highly quality
driven and derive status symbol. It's product are positioned as premium which are generally
priced higher than its competitors which helps apple to avoid getting in price wars where it can
compete on innovation and unique selling proposition which serves as base for its positioning
((Wuryandani, Ismoyowati, Nugrahini, 2018).

Company recent marketing strategies can be understood better by using marketing mix
strategy of apple which includes 7 P's of apple.
Product- Apple has always been focused on its products, that are innovative and are highly
focused around satisfying needs of its customers and are appealing in nature. Company is
obsessed with developing innovative, easy to use and stylish products which have revolutionised
way how people use technology and which helps company in winning over competitors.
Price- Product prices of Apple are generally higher than its competitors as it provides with
quality that its competitors lack. These are price's of apple products that customers pay for to
enjoy the same. It uses minimum advertised retail prices which prohibits dealers and resellers to
advertise Apple products below a certain minimum price. It maintains skimming and premium
pricing strategy which means products launched in market are relatively at cost which is higher
than its competitors because of benefits to customers and unique selling feature
(Tien,Long,Phuong,2018).
Place- Apple uses selective distribution stratgy, which counters to exclusivity that limits its
product market reach. Apple products are find out in apple stores, authorised dealers, online
apple store and others. Apple partners out with many wholesalers' to distribute its substantial part
of product and services in majorly all parts of countries. Its place of distribution also includes
third parties cellular networks such as Vodafone group and others who sell products under their
part of own packages.
Promotion – It also refers to communication mix of apple where it promotes its product through
various ways such as advertisements, sales promotion, personal selling and by building public
relations through various campaigns and other things where it uses google digital advertising
networks. Company has tie up with prominent websites to promote and advertise companies
products. Personal selling happens in company where its store staff provides and promotes
sufficient information about company products to influence visitors for purchase in stores
(Wu,Li,2018).
People- People aspect of marketing in apple is sufficient enough as they are highly trained and
educated as they understand needs of customers and deliver the best customer services and
creates value proposition. Apple has effective teams that are highly technical and which helps in
promoting culture that is relaxed and fun loving for customers as well as employees.

Process- The process at apple are efficient and effective which helps in smooth functioning and
smooth flow of business operations where its customers comes first and ensuring in enhancing
into account its target customers, competitors strategy relationship. It gives high degree of
importance to every aspect of development through innovation and increasing customer
experience.
Physical evidence- It is part of service utilised by apple customers who have the feel of brand
image portrayed by company which can be through on-line or in stores where environments
needs to be right enough for its employees and customers and which attracts same and beats its
competitors (Apple Marketing Mix: 4P’s.2017).
Reasons and implication of changes with competitors
The biggest competitors of Apple are Dell, Lenovo, Samsung, Sony and various others
for which company monitors closely and evaluate various criteria as market is uncertain and it is
never known on side of competitors who can anytime come up with new product and services
which can capture huge market base and can result in loss of loyal and steal of customers leading
to non smooth functioning of business operations and resulting company to face loss. Apple
always come up with innovative changes to beat market of its competitors and to capture market
share and to establish goodwill in marketplace by delivering products and services which serves
as sources of customer satisfaction of needs and wants which customers may feel lack in its
competitors products (Jacquemin,De Jong, 2016).
It also helps in ensuring and knowing where the products of Apple are standing and
whether customers are willing to purchase at price which is being quoted by company for new
product launch or they will consider competitors product at price lower. It also helps apple as
company to use knowledge to create marketing strategies that helps in knowing weakness of
competitors and helps apple to increase its performance level and to attract large customer
number of customer. Company can also understand the areas which needs to be improved in
terms of its promotion techniques in which they might be lacking where competitors can take
advantage of same and can promote its product in better way by use of various techniques which
may lead in loss of competitive advantage (Jain, 2016). Company also finds way of identifying
its strengths where apple in every product launch comes up with innovation which makes hard
for its competitors to compete on certain grounds leading in less preference of competitors
products on side of large number if customers. Major reason for change is it helps in

differentiating products and services with that of its competitors which helps in creating value
towards company products in minds of its customers.
CONCLUSION
From the above report it is being understood that for every company marketing plays a
vital role in influencing the decision of company. It should be monitored, reviewed and
continuously evaluated to ensure the success of company in various given situation as it helps in
reaching to prospective customers and turning them into full and final customers for company
products and services. It helps company in increasing sales which directly affects the revenue
generated as more company reaches out to its customers, the more the customers reach out for
same brand. It simply helps in creating high end services and products with best chances of
making profits, which takes into account its target customers, competitors strategy and what
trends prevail in market.

REFERENCES
Books and Journals
Haryanto, J. and Suhaimi, H., 2020, September. Increasing revenue using a marketing plan on a
geotracker product based on the business coaching method. In Contemporary Research
on Business and Management: Proceedings of the International Seminar of
Contemporary Research on Business and Management (ISCRBM 2019), 27-29
November, 2019, Jakarta, Indonesia (p. 48). CRC Press.
Jacquemin, A. and De Jong, H.W., 2016. European industrial organisation. Macmillan
International Higher Education.
Jain, P., 2016. Resistance to Change in an Organisation. Available at SSRN 2740232.
Tien, N.H., Long, N.T. and Phuong, D.T., 2018Price policy in international marketing
comparative analysis between Samsung and Apple.
Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce. Internet Research.
Wuryandani, S., Ismoyowati, D. and Nugrahini, A.D., 2018. STP analysis in marketing
pigmented rice as functional food. KnE Life Sciences, pp.128-135.
Yang, M., 2018. International entrepreneurial marketing strategies of MNCs: Bricolage as
practiced by marketing managers. International Business Review. 27(5). pp.1045-1056.
Online
A Study on STP strategy of Apple.Inc. 2018[Online]. Available
through<https://www.slideshare.net/SubhradeepBhattachar2/a-study-on-stp-strategy-of-
apple-inc>
Apple Marketing Mix: 4P’s.2017[Online]. Available
through<https://notesmatic.com/2017/02/apple-marketing-mix-4ps/>
Apple Mission statement and Vision statement.2019[Online]. Available
through<https://fourweekmba.com/apple-mission-statement-vision-statement/>