Principles of Marketing Report

This report analyzes the marketing principles applied by Apple Watch Series 4 and Fitbit 2, two prominent brands in the smartwatch market. It examines their target market profiles using STP (Segmentation, Targeting, and Positioning) and compares their marketing mix strategies, including product, price, place, and promotion. The report concludes by highlighting the effectiveness of each brand's approach and the key differences in their marketing strategies.

PRINCIPLES OF
MARKETING

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Target Market Profile..................................................................................................................1
TASK 2............................................................................................................................................2
Marketing Mix............................................................................................................................2
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

EXECUTIVE SUMMARY
The aim of this report was to effectively analyse marketing principles and compare and
contrast their application on a pair or brands. For this purpose, Apple and Fitbit has been
effectively used.
The first agenda of report was to determine target market profile for both the brands. To
achieve the same, Segmentation, targeting and positioning approach has been used to determine
how companies apply these strategies differently.
Another purpose of the report was to analyse effectiveness of marketing mix. For this,
Product, Price, Place and Promotions served as basis for comparison of how Fitbit and Apple
uses different strategies to satisfy the market and accomplish their objectives.
Thus, it was found through the research and analysis, that both companies uses different
yet effective STP and Marketing Mix strategies to effectively achieve their purpose and enhance
their marketing position.

INTRODUCTION
Marketing refers to overall activities that are undertaken by organisations in order to
appropriately present and communicate their products and services to the customers. It is an
essential activity which is necessary to help companies enhance familiarity of their products in
the marketplace (Kotler and Armstrong, 2015). The following report is based on Apple watch
series 4 and Fitbit 2, which are two of the widest recognised brands in the world. It effectively
evaluate the target markets of each brand and 4P's of Marketing which is essential to determine
how differently these two companies could apply these principles.
TASK 1
Target Market Profile
For any appropriate brand, it is essential to determine the target market profile effectively
in order to channelise marketing strategies appropriately. To effectively achieve this, it is
essential that the marketing planning of each brand focuses effectively on finding the most
appropriate target market for their product. A detailed target market profile for both the chosen
brands are described below:
Apple Watch Series 4:
Customers of Apple seek advanced technology, effective design, quality and most
importantly performance in its products. Since 2015, Apple Watch has been one of the most
prime choices of customers seeking all these features (Apple Watch release date is April 24th,
2018). Since then, the firm effectively has produced largest selling smart watches. The company
is tactful when it comes to choosing its target market. The STP approach for Apple Watch Series
is mentioned below: Segmentation: Majorly, there are 3 market segments which are used by Apple. For
appropriately establish its brand in the market, the company uses Geographical,
Demographical and Behavioural Segments. All these segments help the company in
gaining appropriate insight to choose the right type of target market. Targeting: Apple Watch Series 4 is a high end brand and it is of vital importance for its
target market to be composed of individuals with appropriate attributes. For the brand,
the firm would be choosing general public of Urban UK, of age between 20-45, who are
high earners, favourably professionals and managers who are extremely loyal to the
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brand and are inclined towards using technology (Apple Segmentation, Targeting and
Positioning, 2018).
 Positioning: Apple uses almost all forms of modern as well as traditional media to
effectively make their product and its specification visible to customers.
Fitbit 2:
Fitbit was founded in 2007 and has effectively reached great heights in ways which made
it a $4 billion company (The story of Fitbit: How a wooden box became a $4 billion company,
2018). In comparison with Apple, Fitbit applies its market targeting strategies. Its STP approach
is analysed below: Segmentation: The company as compared to Apple, apply tactical approach towards
segmenting the market. Majorly, it consists of just demographical and behavioural
segments, however, the firm also considers geographical segments too. Targeting: Firbit 2 would be targeting customers who are aged between 18-45, with
moderate income level, belonging to any profession, favourably in sports. In addition, the
target customers must be inclined towards fitness and must be specific to use technology
as a support for their products.
 Positioning: Fitbit mainly uses social media to attract millennials and use compelling
videos that provide information about its specifications.
Thus, both the companies uses segmentation, targeting and positioning effectively as per
their objectives and nature of their target market (Rowley, 2016). While Apple Watch Series 4
targets customers who are professionally sound and technologically inclined, Fitbit 2 targets
customers with more sense of physical fitness. Both the companies uses appropriate blend of
STP to effectively enhance the scope of targeting customers.
TASK 2
Marketing Mix
Marketing Mix refers to elements of the marketing which is essential for developing an
appropriate strategy by companies to market their offerings to their customers (Kotler and et. al.,
2015). It includes 4P's, mainly, Product, Price, Place and Promotion. The strategies used by both
the brands are evaluated below:
Product:
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To effectively analyse the product strategy of each brand, Levitt's Model of a Brand is
being chosen which would effectively help in distinguish within each brand.
Illustration 1: Levitt's Model of a Brand
(Source: Levitt's Model of a Brand, 2018)
The model has 4 aspects which are evaluated below: Core Product: Currently, people within the market wants smartwatch to effectively
handle all their digital operations appropriately (French and Russell-Bennett, 2015).
Apple Watch Series 4 effectively provides all the extensive features and themes which
stands out as unique in the market with all essential features as well as a few extra like
imagery and touch surface even at the farthest reach on screen. In comparison, Fitbit 2
provides core features essential for fitness, such as pulse and heart rate, calender and call
alerts, guided breathing and cardio sessions, etc. However, packaging of both the
companies provide effective support to the product and along with necessary manuals for
guidance of its use. Expected Product: It is expected from Apple Smartwatches to give unique features to
customers. To address this, the entire surface of Apple Watch Series 4 has been
redesigned in order to provide richer details to customers. For Fitbit 2, the watch provides
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all day tracking of activities of an individual and provides effective battery life that lasts
almost 5 days long. Augmented Product: Where differentiation comes to place, Apple makes sure that its
products are unique and provide better features than other companies (Seddon, 2015).
Apple Watch Series 4 has the largest display of with narrower borders that allow
customers to view over areas which are over 30% larger than previous watches. As for
Fitbit 2, the watch provides features like tracking of sleeping pattern by using heart beats
to help understand the state of sleeping better.
 Potential Product: As for a potential offering, Apple Watch Series 4 has used effective
AI along with new technologies like Infograph watch face and Digital Crown which
enhances the feasibility of this watch. In contrast Fitbit 2, has multiple sports mode which
helps in tracking various different exercises and features like SmartTrack and Cardio
Fitness Level that is very feasible for the customers.
Both the firms use effective strategies to appropriately enhance their likeliness in the
market. However, both are different in functional and emotional level. While Apple Watch uses
a range of features for a range of operations, Fitbit uses each feature related to fitness.
It is also important, however, to effectively determine the personality type of each brand.
According to Aaker's Brand Model, there are five personality types which is possessed by
companies.
Illustration 2: 5 Dimensions of Brand Personality (Aaker)
(Source: 5 Dimensions of Brand Personality (Aaker))
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As per these types, Fitbit possesses Competence as it is intelligent and reliable, however,
personality type of Apple is Excitement as focuses on going along with trend as well as uses up-
to-date knowledge.
Price:
The pricing strategy adopted by each firm has a huge impact on its success. This is
because it helps in influence customers effectively. To help achieve a comparison, it is essential
that a uniform platform is chosen to compare pricing. For this, online shopping store Amazon
has been used, which gave the following finding on the prices of Apple Watch Series 4, Fitbit 2
and another competitor Samsung Galaxy Watch.
COMPANIES PRICES
Apple Watch Series 4 £429
Fitbit 2 £99 - £271
Samsung Galaxy Watch £244
As per the above research, it was found that Fitbit uses market penetration to attract a
huge number of customers. It develops a perception of the company considering customer
demand to effectively attain a better market position. However, companies like Apple and
Samsung uses Premium pricing considering the kind of services offered by the organisation in
their watches.
Place:
It is essential for a company to distribute its products as effectively as possible to make
them available most conveniently in the market. Where Apple is concerned, the organisation
uses direct as well as indirect channels to distribute its product. Apple Watch Series 4 is
available at the company store which is situated at effective places within urban countries. To be
more appropriate, it has more than 506 stores worldwide and is continuing to penetrate newer
markets. It helps the company in enhancing the buying experience of customers (Apple Stores,
2019). Where online market is concerned, the product is available at various big online stores
like Amazon. Fitbit on the other hand uses indirect channels too for selling its Fitbit 2 watches.
However, the firm has issued a list of authorised buyers which provides assurance of original and
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quality product available to people. It is a mass market product, where there are multiple
channels as compared to Apple Watch Series 4 which have lesser outlets.
Promotion:
To promote their products, each company must adopt strategies that provide their
message appropriately to customers. Where Fitbit is concerned, the company used social media
traditionally and had information at its own website. However, the firm soon realised that it had
to get past its methods and try different strategies to market the products. Thus, the firm must use
other digital channels like television and radio to extensively promote their Fitbit 2. The
organisation is positioning themselves as socially conscious manner where they are making
compelling advertisements of the wearables and its robust features and how fitness could be
managed using their products. Thus, adopting multiple strategies might help the company in
gaining a better momentum.
As for Apple, the firm has always used all the types of media available to market their
products. With Apple Watch series 4, the firm is continuing with its strategy of creating
appropriate and effective advertising which focuses on how the product is different from that in
the market. Moreover, the firm has provided outstanding information on each specification of
this watch, which would help in developing interest in customers regarding the same. The
company has always positioned itself effectively in minds of buyers as a luxury product with
amazing features. However, with its premium pricing, the firm must provide specialised and
personalised service via promotional methods to help create bigger market share (Atwong,
2015).
CONCLUSION
Thus, it is concluded from above information that marketing principles are essential to
help set up effective target market and develop effective market strategies. Elements of
marketing mix help in comparing and contrasting various strategies adopted by different brands.
Lastly, Segmentation, targeting and positioning strategies help in acquiring effective target
market.
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REFERENCES
Books and Journals
Atwong, C.T., 2015. A social media practicum: An action-learning approach to social media
marketing and analytics. Marketing Education Review. 25(1). pp.27-31.
French, J. and Russell-Bennett, R., 2015. A hierarchical model of social marketing. Journal of
Social Marketing. 5(2). pp.139-159.
Kotler, P. and Armstrong, G., 2015. Principles of Marketing-Global Edition. Pearson.
Kotler, P., and et. al., 2015. Marketing. Pearson Higher Education AU.
Rowley, J., 2016. Information marketing. Routledge.
Seddon, J., 2015. The Brand in the Boardroom: How Ogilvy & Mather Reinvented The
Marketing Principles of Brand Valuation. Journal of Advertising Research. 55(2).
pp.146-161.
Online
Apple Segmentation, Targeting and Positioning. 2018. [Online] Available Through:
<https://research-methodology.net/apple-segmentation-targeting-and-positioning/>
Apple Stores. 2019. [Online] <https://www.macrumors.com/roundup/apple-retail-stores/>
Apple Watch release date is April 24th. 2018. [Online] Available Through:
<https://www.theverge.com/2015/3/9/8162455/apple-watch-price-release-date-2015>
The story of Fitbit: How a wooden box became a $4 billion company. 2018. [Online] Available
Through: <https://www.wareable.com/fitbit/youre-fitbit-and-you-know-it-how-a-
wooden-box-became-a-dollar-4-billion-company>
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