Marketing Mix Concepts and Practice

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Table of Contents
I. INTRODUCTION ........................................................................................................................................... 6
II. MARKETING MIX CONCEPTS AND PRACTICE ............................................................................................ 7
2.1 Basic concepts of 4Ps and 7Ps. ............................................................................................................ 7
2.1.1 Product ........................................................................................................................................... 7
2.1.2 Price ............................................................................................................................................... 8
2.1.4 Promotion ...................................................................................................................................... 9
2.1.5 Process ........................................................................................................................................... 9
2.1.6 People ............................................................................................................................................ 9
2.1.7 Physical Evidence ........................................................................................................................... 9
2.2 4Ps of a Practical Case – iPhone ........................................................................................................ 10
2.2.1 Product ......................................................................................................................................... 10
2.2.2 Price ............................................................................................................................................. 10
2.2.3 Place ............................................................................................................................................. 11
2.2.4 Promotion .................................................................................................................................... 11
2.3 Different cases/firms 4Ps comparison in real context – Samsung ................................................... 12
2.3.1 Product ......................................................................................................................................... 12
2.3.2 Place ............................................................................................................................................. 13
2.3.3 Price ............................................................................................................................................. 13
2.3.4 Promotion .................................................................................................................................... 13
2.4 Evaluation of different Ps application ............................................................................................... 14
2.4.1 Advantages .................................................................................................................................. 14
2.4.2 Disadvantages .............................................................................................................................. 15
III. CONCLUSION ........................................................................................................................................... 15
REFERENCES ................................................................................................................................................. 16

Executive Summary
This report is written to analyze the concepts of marketing mix (7Ps), giving practical examples on
how to apply marketing mix of a business and the difference between the application of two businesses.
In order to develop a strategic plan for a new product, it will be launched within 3 months. This report is
divided into 3 parts. The first is a brief introduction to the iPhone and the direction of the article.
Followed by the concepts of marketing mix and practice to know what is 7Ps, analyze 4Ps practical case
to see the marketing mix strategy that Apple applies to iPhone. Compare how to use 4Ps between two
businesses, iPhone and Samsung, to know the difference and diversity of how to use the marketing mix
of two businesses in product development. The next section is an assessment of the advantages and
disadvantages that Apple applies to the iPhone marketing mix to know and avoid those limitations and
promote new products with the right path. Finally, the conclusion is to summarize the article,
understand the concepts of marketing mix, learn from the experience of using the company's 4Ps,
thereby reducing errors and moving in the right direction.
I. INTRODUCTION
Apple Inc. is an American multinational company, one of the largest companies in the world to
design and manufacture countless computer and software products. Famous Macintosh hardware
products like computers, iPods, iPhones, software including Mac OS X, iTunes and other creative
software like iWork represent the face of music, phone and computer. The company operates more than
250 retail stores in sixteen countries and an online store that sells hardware and software products.
Apple presents its iPhone, as the ‘World’s most powerful personal device’. With its unique operating
system, also called iOS, it keeps taking leaps and bounds forward its competitors in terms of looks, tech
specifications, ease of usage and innovative services. It mostly competes with Google’s Pixel, the android
based mobile phone. Although MIUI OS from Xiaomi and oxygen OS from OnePlus, are its another new
and strong competitor in innovation and premium segment mobile phones. Samsung is another old
competitor of iPhone, since a long time. With mobile phones becoming the most sort after gadget and
with advent of ‘internet of things’ and ‘Block Chain’ technology, the market of smart phones is ever
expanding. Now becoming a standing symbol, even the premium segment mobile market is expanding

quite ever. This means Apple must carry forward with its exceptionally innovative products. Also,
expansion in the eastwards, is another strategic focus of iPhone’s marketers. It targets the tech savvy
premium customers. As a new member of Apple marketing department, my task with my team is to
devise a marketing strategy plan for a new product. The product will be launched within the next 3
months, so we have to conduct a research to find out how to achieve the business goals of organizations
through the application of marketing mix.
This paper aims to understand the concepts of extended marketing mix (7Ps), provide practices
and examples of the difference in marketing mix usage among businesses and also evaluate the analysis
of Marketing mix that is used by businesses through specific cases.
II. MARKETING MIX CONCEPTS AND PRACTICE
The marketing mix refers to the setting of strategies or actions, that companies use to promote
brands or products by getting them in the right place at the right time at the right price (The Economic
Times, 2020). In 1964, the marketing mix of 4Ps was built by economist McCarthy for tangible products
including prices, products, promotions and locations, and this 4Ps blend was taught in business, colleges
around the world. However, it was said that 4Ps only focuses on tangible products but does not expand
on intangible products as services. In 1981, the marketing mix 4Ps was expanded to 7Ps by Bitner to
reach and respond to customers' needs by providing services. It includes 4Ps in the beginning and adds
three other elements that are processes, people and physical evidence.
2.1 Basic concepts of 4Ps and 7Ps.
2.1.1 Product
Product is a very important element in a marketing mix because according to Kotler & Armstrong,
the product is a combination of goods and services that the company provides to the target market
(Kotler & Armstrong, 2010). Indeed, products are not simply tangible things, things we handle and touch,
but also include intangible things such as services. Products that the company offers must meet the
needs and tastes of its customers and the company must answer questions about what customers really
need and what to do with products to meet the needs and demand of customers.

2.1.2 Price
The price of a product is the amount consumers pay to receive the product (Solomon et al., 2009).
A product, before it is launched, must ensure a price that fits the customer and target market because
price can determine the existence of a company. Price always affects customers' perception of a brand
and its position in the market so before launching the company, make sure the product will be sold at a
reasonable price and bring profits to the company.
To be able to price their products, businesses must know who their customers are by doing some
market research and finding potential customers. Businesses must know how much the product costs,
how much it costs to mark the product, and how many products to sell to make a profit. Knowing the
revenue goals that the business wants to achieve, knowing who its competitors are from then offering
different pricing strategies for the products and how customers can choose their products instead of
other businesses.
There are 5 common ways to price a product:
- Cost-plus pricing: simply calculating your budgets and adding a mark-up.
- Competitive pricing: setting a price supported what the competition charges.
- Value-based pricing: setting a price supported what proportion the customer believes what
you’re selling is worth.
- Price skimming: setting a high price and lowering it because the market evolves.
- Penetration pricing: setting a soft price to enter a competitive market and raising it later.
2.1.3 Place
The place includes the company's activities making the product available in the market to the
target customer (Kotler & Armstrong, 2010). The company must locate and distribute its products in
places that have easy access to target customers where customers will spend most of their time such as
supermarkets, roadside cafes or are places that attract and gather many people. However, the most
important thing is to know what customers really want as well as their needs and requirements for the
product.

2.1.4 Promotion
Promotions are marketing activities to inform and promote products to consumers and encourage
potential customers to buy the company's products (Solomon et al., 2009). Promotions can take many
forms, such as word of mouth, advertisements, articles or offers. In which word of mouth is a new form
of marketing communication that takes advantage of the positive feedback from customers to promote
sales activities for the product.
2.1.5 Process
In 2008, it was defined as the actual mechanisms, procedures and operational flows to which the
service was provided - the system that provided and operated this service (Zeithaml et al., 2008). It is
impossible for a company to develop without a specific operating procedure because it can help
maximize profits, minimize company costs, and at the same time a specific process will help. The
company offers the services needed to provide the customer. Adjusting, evaluating and optimizing the
different parts of the process will help streamline your business efforts and at the same time ensure that
your methods are up to date and consistent with current trends.
2.1.6 People
All human actors have an important role in providing the service and this affects buyers'
perceptions, namely company personnel, customers and other customers in the translation
environment. cases (Zeithaml et al., 2008). In this respect, "people" are both the target customers that
the company is targeting and those who directly participate in providing services are employees.
Thoroughly research on the target customers, understand what they need, their needs of products and
services to be constantly changing to meet the needs of consumers. Employees are the ones who
provide services to customers so recruiting and training the right people is extremely important because
if they are well trained and highly qualified, the company's services will be providing customers with the
most comprehensive way and this contributes greatly to the development of the company.
2.1.7 Physical Evidence
Customers are unable to determine service quality, as it is an intangible commodity. The business
environment (business scape) will therefore be used by them as a key quality alternative (Shanker,
2002). Physical evidence is relevant to the branding of a business because it can give them a major
competitive advantage and help them stand out in the eyes of their customers. The place for customers

to use the services of a business is a place where they meet and interact with customers, which is an
important factor in creating a level of brand identity such as When it comes to something outstanding of
the business, consumers will immediately know which business it is.
2.2 4Ps of a Practical Case – iPhone
2.2.1 Product
The iPhone is a well-known technology product of Apple, a major US technology corporation and
one of the world's leading technology corporations. The iPhone is packed very nicely in a simple, yet very
attractive, white rectangular box, under which the box comes with many accessories. iPhone products
are warranted for 1 year from the date of purchase, depending on the extent of damage and technical
defects will be warranted by the replacement of another device. Apple warrants the warranty of all
iPhone hardware and technical defects for reasons which do not originate or interfere with the user, and
Apple only guarantees the warranty period when purchasing direct shipment (online) or from Apple
Apps Store. Each year Apple launches a new iPhone product to replace the previous iPhone products, the
latest iPhone version is iPhone 11 with 3 variants are iPhone 11, iPhone 11 Pro and iPhone 11 Pro max.
Each year, a new product line is launched, which causes the higher price of the new iPhone compared to
the old versions however, this does not reduce Apple's revenue on iPhone since the old versions will fall
into the lower income customer segment with affordable prices. iPhone is equipped with a unique
operating system, i.e IOS, which is speedy, flexible working environment and multitasking of light. The
special thing is that Apple items such as Apple Watch, AirPods, MacBook or iPad can all be linked and
synced, which turns of Apple acts as a hook for other products.
2.2.2 Price
On account of its uniqueness, quality and status, Apple iPhone follows price skimming strategy.
Skimming price means if a brand wants to stand out, it will invest a lot on R&D for bringing their X Factor
with every new launch. This R&D cost and the X-factor, allows the iPhone, to charge more as part of its
marketing mix pricing strategy. This price is gladly accepted by the target segment, as these are very
loyal consumers. Apple does not provide discounting on any of its product, for it will lead to either Brand
Dilution or loss of focus from premium category. Although selling stores and online stores keep coming

with discounted price, once the market value of product decreases with new launches. Also, Apple
iPhone surveys similar pricing policy across all markets. While it follows a cost-effective operating model,
with limited costs spent on production, while maximum for R&D, to allow for price efficiency. Apple
stores offering its customers an experience, including price dependent on the added value of experience
over goods.
2.2.3 Place
Following is the distribution strategy of iPhone:
iPhone has a strong allocation and place strategy as a part of its marketing mix. Some of them are as
below:
I-stores: These are Apple-owned stores with highly knowledgeable service people who spend a
lot of time and effort getting technical specifications for their customers. These stores with well-trained
salespeople with tips to provide to create a great experience and help enhance consumers' iPhone
buying experience. These exclusive showrooms get products directly from the company at lower prices.
Independent stores: Very few high-end shops, especially in malls, also order iPhones with other
mobile phones. The products purchased from these stores are equally good as these are high end stores
within themselves and are purchased from distributors rather than the company itself.
E-commerce: Apple products are available on many global commercial websites like ebay, flipkart
or mainly Amazon. Company’s website also offers the service of fining nearest locations.
Second Hand Market: A huge market is present for older Apple iPhone mobile kits because of the
durability and status symbol attached to it. Ebay is one of the major trading websites in this old segment.
2.2.4 Promotion
iPhone has created a unique position in the market with countless different factors. Its new
models always have a new slogan such as the iPhone 6 saying 'The only thing that has changed is
everything'. The purpose of setting slogan for the product is to position itself and increase brand value.
Its ads never compete with rivals, but show how the world is changing with each iPhone for tech-
savvy customers. Launch events are very dramatic for iPhones. The new wireless charging feature has

just been launched, and all such technology, amazes everyone. Social media, Youtube, and other
channels are some of the platforms that are heavily used by iPhone to talk about the uniqueness of
features and it is also used by tech experts to compare specs, etc. The others are knowledgeable
salespeople and point of sale advertising. With its unique value proposition, it sets a standard in
products and does not have the same tight competition as it is now, the reason being a vast customer
base. Therefore, this concludes mixed marketing iPhone.
2.3 Different cases/firms 4Ps comparison in real context – Samsung
Apple and Samsung are long-standing competitors of each other on every front. Apple's iPhones
are beautifully produced, smartly advertised, and along with the website interface, the quality of the
retail experience is completely different from its competitors. This helps Apple attract and attract most
consumers around the world, however, iPhone products are often considered too expensive because it is
beyond the affordability of a customer segment. Besides, Samsung products are available to all income
classes from low to high. This helps Samsung attract most market segments and especially the Samsung
Galaxy product is very appealing to young people because it has excellent quality camera and multi-
tasking processing. It can be said that while Apple is making a profit by selling luxury brands, Samsung is
leading the market by targeting the entire segment. Samsung has been able to access market segments
with different prices suitable for all classes, while Apple is still limited by targeting the high-end segment.
2.3.1 Product
Similar to Apple, Samsung is constantly changing and improving its products, however, Samsung's
products are more diverse giving consumers more choices than the iPhone. If talking about the usage
time, perhaps Samsung will win the iPhone because based on experience and feedback from customers,
the battery life of the iPhone is quite small and not as long as Samsung. However, if talking about the
profits generated from the product, Apple's iPhone accounts for a huge profit from their high-end
segment and Samsung is also taking over that huge market share day by day. One more thing that is
about product quality is undeniable that the iPhone is very good quality, much better than Samsung but
in return the iPhone product is limited as diverse as Samsung.

2.3.2 Place
It is an easy task for buying a Samsung phones because Samsung sells its products wherever they
want as long as retailers are willing to take stock. Therefore, Samsung can sell directly or indirectly to
customers. iPhones are sold through Telco’s, the Apple Store Apple website and their retail distribution
channels. Moreover, compared to Apple's iPhone, Samsung is able to quickly expand and saturate the
market with its products anywhere in the world except the US - because the US Telco relationship
requires Samsung to create out different phone versions. Unlike Apple, Samsung doesn't need a lot of
resources to bring its phones to new markets. These distribution channels will also be available for future
dissemination of other Samsung products. This means that if they want to, they will be easier to market.
2.3.3 Price
Skimming prices - Samsung's smartphones are among the best on the market and the market
leader in the features and USP they offer. The recent Samsung Note 3, Galaxy J series is another
competitor in the market that is attracting people. Therefore, Samsung uses Skinkle prices for these
products in which it tries to achieve high value right from the start before rivals catch up. Once the old
model or any rival has launched a similar product, Samsung immediately drops its price.
Apple in this case has applied a pricing strategy that is best suited to the online segment (glide),
in which early adopters are targeted at those who are less price sensitive and want to benefit. of new
technology. It allows more cash flow for the company and also conveys perceived benefits for other
target segments. The company wants to target key users and cannot respond to early adopters (young
tech experts, experts) for future development. They tried gliding and version strategies. Now Samsung's
pricing strategies compared to apple are as follows:
2.3.4 Promotion
Promotion is a strong pillar in the marketing mix of Samsung. Samsung believes that
advertising the simplest sort of promotion to interact potential consumers and position the brand.
Samsung promotes new products using digital media and newspapers. To take the advantage of the
large number of followers of celebrities, the brand has invited many celebrities to be the brand
ambassadors and promote the merchandise. Big placard, hoarding and posters are put up on
highways. Besides advertising, Samsung also uses different promotional tactics to form customers

buy the merchandise. Samsung is usually famous for its product quality and user experience but
Samsung is additionally known for being an enormous in sponsoring events. Samsung also sponsors
major events. Samsung offers heavy discounts during national festivals. This conclude s the Samsung
marketing mix analysis.
Promotion
iPhone promotion never competes with rivals but always impress people. The new wireless
charging feature has just been introduced, and everyone is fascinated by all these technologies.
Social networking, Twitter and others networks are several of the sites that iPhone uses most to
speak about the quality of apps, and tech experts often use it to compare specifications and many
things else some are experienced salespeople and promote sales. It sets a standard in products with
its unique value proposition, and does not have close competition as it is now, which is why it is a
vast client base. That concludes the marketing mix for iPhones.
2.4 Evaluation of different Ps application
2.4.1 Advantages
- iPhone has gained a lot of profits to Apple although Apple does not have any promotions for
iPhone products because when new products are priced high, people with low income will not buy it so
this will attract a segment of customers who buy previous iPhone products at lower prices, and thus they
have just sold both new and old products.
- With a unique strategy, Apple allows the iPhone to connect and sync any of their products using
iCloud and this strategy acts as a fishing hook to increase consumer interest and thereby Other products
are also popular.
- iPhone is delivered to consumers all over the world through I-Stores, independent store,
e-commerce or second hand market.
- Apple's marketing success is easily achieved through their Marketing strategies. They use a
number of different advertising strategies to achieve this success such as Advertising, Media, Personal
Sales and Sales Advertising. Each of these strategies is devised by Apple 's best managed agencies to
adapt to our current economy and most importantly consumers.

2.4.2 Disadvantages
- The limitation of the iPhone is the diversity of models, Apple only launches one iPhone product
with 3-4 different versions each year, which is easy for consumers to not enjoy because the majority of
consumers like diverse designs.
- Next is the price of the product, Apple produces the iPhone with the target market of the middle
and upper classes so the price of the product is usually very high and the iPhone is not discounted, which
makes many consumers feel uncomfortable.
- All iPhone users are monitored by Apple's geolocation capabilities, so it can sometimes make
consumers uncomfortable and lose privacy. Need to expand and strictly control the product distribution
system. Information of new iPhone products that are about to be launched should be more strictly
controlled by Apple because the iPhone launch event is no longer as attractive as it used to be because
the leaked information makes consumers can imagine how will the product look like before it hits the
market.
III. CONCLUSION
With all the information analyzed above, our team can plan the right strategy and path for the
new product. Understanding the concepts of marketing mix (7Ps) will help the product be developed in
the best way, how to distribute products to consumers' hands at reasonable prices, know how to make
advertising strategies. The product can be advertised to make it more popular and which human
ingredients will affect the development of the product. In addition, the iPhone marketing mix strategy is
also analyzed to see the strengths and weaknesses in using the iPhone marketing mix, and the difference
between the marketing mix usage of the two rival businesses is the iPhone. and Samsung. Seeing the
difference in the marketing mix will help identify which is the best direction for the new product and
reduce some of the limitations faced by the previous products.

REFERENCES
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Shanker, R. (2002). Services Marketing - The Indian Perspective (1st ed.). New Delhi: Excel Book.
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Stevie Langford, (26, September 2019), 7Ps of The Marketing Mix: The Acronym Sent to Streamline your
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https://economictimes.indiatimes.com/definition/marketing-mix
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