Advanced Marketing Strategies of Apple: Analysis Report

This report provides a comprehensive analysis of Apple's advanced marketing strategies, focusing on the introduction of Apple TV. The report begins with a situation analysis, including a SWOT and PESTLE analysis, evaluating Apple's strengths, weaknesses, opportunities, threats, political, economic, social, technological, legal, and environmental factors. The report then delves into Apple's segmentation, targeting, and positioning strategies, examining the target market demographics and psychographics, and how Apple positions its products as luxury items. The report discusses mono-segmentation, geographic, demographic, behavioural and psychographic segmentation. The report highlights the premium pricing strategy and its effectiveness in achieving customer satisfaction. Finally, the conclusion emphasizes the importance of innovation, market analysis, and adapting to external challenges for continued success. The report references several academic sources to support its claims.

Running head: MARKETING
Advanced marketing strategies of Apple, United States
Name of the Student:
Name of the University:
Author note:

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Table of contents
Introduction................................................................................................................................2
Part 1- Situation analysis............................................................................................................2
SWOT analysis.......................................................................................................................2
Pestle analysis........................................................................................................................4
Part 2-.........................................................................................................................................5
Segmentation, target and positioning of apple.......................................................................5
Target market.........................................................................................................................6
Positioning..............................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9
Bibliography.............................................................................................................................10
Appendices...............................................................................................................................11
Appendix 1...........................................................................................................................11
Appoendix 2.........................................................................................................................12

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Introduction
Marketing is an art, which need proper planning for achieving positive outcomes.
Rationality and logical thinking are important for luring the clients and the customers.
Several steps have been taken by the companies and organizations to establish their brand in
the market. Lack of proper planning compels them to encounter losses in the form of
customer turnover, providing the contemporary brands with an opportunity to enjoy higher
competitive advantage (Olson et al., 2018). This assignment speculates the marketing
strategies of Apple for achieving customer satisfaction. The main focus is on Apple TV, a
latest innovation in the products.
Part 1- Situation analysis
SWOT analysis
Strengths
 Strong brand image
 High profit margin
 Innovation in the gadgets
 Skilled labours
 Variety in the products
Weakness
 Limitations in the supply chain
network
 High selling prices
 Dependence of sales on high end
market segments
 Deprives the low-income group
customer to purchase the branded
products
 Declining sale of iPhone
Opportunity Threats

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 Social media marketing
 Supply of quality materials, which
can increase demand for the
electric gadgets
 New product lines
 Strategic partnerships
 Compatibility in the products
 Intensified competition
 Threats of substitutes
 Rising labour costs
 Negative effect of sales on the brand
image
 Infringement of the tax and property
rights
Table 1: SWOT analysis of Apple
(Source: Apple.com. au, 2019)
Innovation in the electrical gadgets is assistance for Apple in terms of reaching to
large number of customers. Sale of the gadgets in bulk orders enables Apple for achieving
high profit margin. These aspects indicate a wider supply chain network. However, lack of
appropriate communication channels shuns the communication between the functional heads
of the departments. This lacuna is further a matter of concern for the Apple personnel
regarding estimations for forecasting the demand and supply. Adopting social media
marketing is assistance for enhancing the trafficking of the audience towards the brand
image. Increasing the product lines would upgrade the standards and quality of the operations
(Apple.com. au, 2019). Threat of substitutes intensify the competitive rivalry between the
telecommunication brands. Rising labour costs is also an issue for dealing with the financial
instabilities.
Decline in the sale of iPhone has adversely affected the brand image of Apple. In such
a situation, Apple TV can suffice the need of product diversification, improving on the
product line. Establishing contact with the research and development team relates with the act
of innovating the standards and quality of the gadgets. This includes picture and sound

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quality, clarity, number of channels with the facilities of Netflix, Amazon Prime and Hotstar.
Customer oriented practices in these services would be apt for achieving higher competitive
advantage over the brands like Samsung, Nokia and Google Pixel and Xiaomi (Apple.com.
au, 2019).
Pestle analysis
Political  High corporate taxation
 Political instabilities
 Anti-trust concerns and political pressures
Economic  High labour costs
 Stagnant middle class incomes
 Increase in the exchange rates
Social  Consumer spending habits
 Emotional attachments
 Criticism of music marketing strategy
Technological  Android pay
 Apple TV
 Smartphones and Tablets
Legal  Strictness in application of the legislations
 Increase in the litigation levels
 Intellectual property laws
Environmental  Disposal of the used and non-working electronic devices
 Climactic changes
 High vulnerability to increase in electricity costs
Table 2: PESTLE analysis of Apple

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(Source: Apple.com. au, 2019)
Higher corporate taxation is a matter of serious concern for Apple, which results in
economic inequality. The marketing of music is one of the areas, which leads to anti-trust
concerns and political pressures, indicating breakage in the brand image, especially in the
market share. Increased labour costs are an issue in terms of manufacturing quality products.
In addition to this, the inaffordability of the middle class customers aggravates the
complexities to cope up with the competitive pace of the market. This has added an
interrogative parameter to the sales. Moreover, resentment to the music marketing strategy
has resulted in client turnover, reflecting the loss.
Android Pay has enhanced the ease of the customers regarding the online payment
fraud issues. Apple TV is a new attraction in the market, surpassing the smartphones and
tablets (Apple.com. au, 2019). Installation of security cookies and policies has drastically
reduced the amounts of cyber crimes. This is one of the areas, where customer’s satisfaction
is high. Increased levels of regulation affect the import and export activities. In such a
situation, offering financial service to the clients is an impending threat in the form of
litigation threats. Intellectual; property laws for the software, music and the gadgets is a
means to avert the risks of piracy and litigation.
Disposal of the used and nonworking devices is a serious issue. Climactic changes,
due to global warming affects the shipping of the products. This is a huge challenge in terms
of maintaining the balance in the supply chain network. Dependence on data centres adds
vulnerability in the infrastructure. Typical evidence of this lies in the increased electricity
costs (Apple.com. au, 2019).

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Part 2-
Segmentation, target and positioning of apple
Mono-segmentation is used by Apple to position its products in the market.
Technological support acts assistance in enhancing the brand image. Geographic,
demographic, behavioural; and psychographic segmentation is also used for identifying the
targets. Usually, densely populated areas are chosen for the sale of iPhone, iPad, App Store
services, iOS operating systems and accessories like Apple TV. The age group for this is 20-
45 years, mainly influential and possesses stable income. Apple TV is a luxury, status symbol
for this section of society, sufficing the need of recreation after a hard day’s work. This are
the potential users, affluent with the latest technological trends (refer to appendix 1).
Target market
The marketing strategy of Apple is segmented into three groups: music lovers,
teenagers, passionate towards modern technological gadgets and users, which sound
knowledge of the technology operations (refer to appendix 2).
Teenagers are one of the potential target markets for Apple, as they are affluent with
the usage of iPods. The usage varies from interacting with friends, listening to music, surfing
social networking sites and others. Numerous gaming apps are one of the other attractions.
College students are one of the other target markets, through which Apple earns huge sales
revenue. These students use iPads, Macbooks and iPhones for recording lecture notes. The
texture of the products is such, which can be easily carried. This feature makes it more
preferable among the college students. For businessperson, iPhone is an useful device
sufficing the needs of making phone calls, finishing the work by contacting the clients,
organising the documents to be send and others. Apple TV enhances the needs of the high
earners, sufficing their recreational; needs (Apple.com. au, 2019).

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Target segmentation is done by Apple through:
Fig: Methods of target segmentation by Apple
(Source: Khan, Alam & Alam, 2015)
Positioning
Apple has achieved accolades and glory by serving as a luxury brand. Everyone
desires the products of Apple; however, affordability is a bus issue. Inflation has stalled the
productivity of the products. However, price is secondary to brand image in case of Apple.
This is in terms of gaining trust, loyalty and dependence from the clients and the customers.
Positioning is done in terms of product characteristic, user application, product class
and competitors. High sound, picture quality and clarity are important factors of Apple TV.
These features make it unique in the market, attracting the customers. The higher income
group people are well acquainted with the operation of Apple TV, which increases its self life
and add value in its service (Kodama, 2018). Warranty and guarantee of good service for
minimum 3years is an initiative towr4dws delivering quality goods to the customers. In such

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a case, premium pricing strategy is effective, as the users are ready to pay for additional
services. This is one of the main areas of differentiation with the competitors (Özbölük &
Dursun, 2017).
There are millions of Apple stores, which indicate the threats of Substitutes in case of
the Apple TV. In such a situation, attempts can be made to increase the RAM memory
storage of the TV, so that the durability of the TV gets increased. Rationality in this case
would indicate higher customer satisfaction.
Fig: Position map of Apple
(Source: Brockmann, Stieglitz & Cvetkovic, 2015)
Conclusion
Apple has been successful in attracting large number of clients and customers through
the products like iPhone, iPad, Macbook and Apple TV. The market segmentation is diverse

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starting from the teenagers to the adults and businesspersons, satisfying their recreational
needs. Premium pricing strategy proves beneficial for achieving higher customer’s
satisfaction, as they are ready to pay for the extra technological services. External challenges
are overcome through the means of offshore marketing, which diversifies the scope and arena
of the business dynamics. Contacts with the research and development team for increasing
the memory storage of the Apple TV would be apt in terms of achieving better placement in
the competitive ambience of the4 market.

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References
Apple.com. au (2019). About us. Retrieved 26th May 2019 from https://www.apple.com/au/
Brockmann, T., Stieglitz, S., & Cvetkovic, A. (2015, March). Prevalent Business Models for
the Apple App Store. In Wirtschaftsinformatik (pp. 1206-1221).
Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external
environment of Apple Inc. International Journal of Economics, Commerce and
Management, 3(6), 955-961.
Kodama, M. (2018). Apple versus Sony: strategy transformation by capabilities congruence
through asset orchestration: Driving Congruence in Capabilities. In Sustainable
Growth Through Strategic Innovation. Edward Elgar Publishing.
Özbölük, T., & Dursun, Y. (2017). Online brand communities as heterogeneous gatherings: a
netnographic exploration of Apple users. Journal of Product & Brand Management,
26(4), 375-385.

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Bibliography
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