International Marketing Report: Apple's Strategies and Theories

This report delves into the realm of international marketing, focusing on the strategies employed by Apple. It begins with an introduction to international marketing and highlights the importance of adapting strategies for global success. The report presents a customer-based brand equity (CBBE) m...Read More

INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
ASSESSMENT 1.............................................................................................................................1
Customer based brand equity model (CBBE) of ZARA........................................................1
ASSESSMENT 2.............................................................................................................................1
P1. Critical analysis of Apple's marketing mix with adaption of it across three different
international markets..............................................................................................................1
P2. Discussion of internationalisation process theory............................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
International marketing can be understood as formulating strategies with basic and
complex principles in order to do business more than a nation. It is fundamental for an
organisation to rapidly look into various aspects like technology, communicative acts, transit and
different financial flows so that to obtain a good market share at global level (Akaka, Vargo and
Lusch, 2013). Firms which are being chosen under this report in two different tasks are ZARA
that makes or manufactures trendy clothes and Apple which deals in electronic market. Both of
these heavy named brands are continuously fulfilling needs of their consumers and carries great
reputation at international market. Along with this, assignment is going to include a presentation
in which CBBE Model is being mentioned of ZARA. On the other hand, in second task is
enclosed with analysis of marketing mix of Apple under three different global markets. Lastly,
description of theory is going to get encapsulated which is being taken by firm in order to do
business at international level.
ASSESSMENT 1
Customer based brand equity model (CBBE) of ZARA
Covered in PPT
ASSESSMENT 2
P1. Critical analysis of Apple's marketing mix with adaption of it across three different
international markets
Doing business at international market requires guts as firms have to make strategies and
planning as well to do promotion of their products and services which they are offering to their
consumers (Berthon and et. al., 2012). Every single country has its own policies and carries
different tax rates therefore, it is must for administration of organisations to keep on making
alterations accordingly in order to do business. Along with this, it is must for companies to
rapidly analyse the targeted markets so that initiatives can be taken so that to gain competitive
advantages. This includes various factors like products, place, price, promotion, people, physical
evidence, process which needs to be considered in an appropriate manner. While doing business
at international market. Apple is a multinational technology firm which was formally found in
the year of 1976. Steve Jobs, Steve Wozniak, and Ronald Wayne are main souls that made Apple
and have generated approximately US$229.234 billion as revenue along with, it has almost
123,000 staff members which was counted in 2017 year. Mostly, they develop and design
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electronic products and then sells them to consumers and try to fulfil their requirements. There
are some famous electronic goods of this organisation which are being mostly like by people and
these are iPhone, iPad, Mac-book and so on. Along with this, they look into bringing innovation
under their clients life through providing them next level technology into their products and
services.
Apple's headquarter is in California and they are trying to expand their business among
places where they do not deal at the moment. They have to make different strategies in order to
do marketing at different places as United Kingdom's citizens have their own perceptions then
people of China. India comes on the 3rd number that have fastest growing economical conditions.
Therefore, these three nations are there that may put impact on doing business of Apple as they
have to follow tax policies and legislative acts that these countries have. It has been examined
that mostly nation's rules and regulations differ from each other (Cadogan, 2012).
A marketing mix has been made below in order to do critical analysis of the international
market of these countries and initiatives which are being taken by Apple in order to maximise
both productivity and profitability of it.
Marketing Mix of Apple:
Marketing mix is enclosed with various sort of elements and these are: product, place,
price, promotion, process, people and physical evidence. Apple has to make alterations in their
prices according to the consumers pocket in different countries in which they are dealing. United
Kingdom's citizens have same perceptive as United State's nationalists have and also likes to use
new technology. Along with this, China carries its own technology therefore, it is must for Apple
to make decisions that are related to promoting their products and services so that sales can get
enhanced of its commodities that they are selling in China. India carries a good economical
growth in current instance where Indian people also likes to use new technology. Here, as Apple
has already have a huge brand name in all over world. Thus, it is not much for this organisation
to do promotions of electronic products that are selling (Cavusgil and Cavusgil, 2012).
Product: Apple Inc. deals in electronic items in all world. Some devices which are being
made by this firm are: iPhones, iPad, Mac laptops, computers, iPod and so on. Along with this,
majorly that helps Apple in generating heavy revenue are iTunes, iCloud, Mac Store. Away from
this, engineers of this company has developed iOS along with OS X operating system software.
It has been critically examined that in United Kingdom, almost 52% of the population are
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iPhone users as Apple has built their phones with keeping the perspective of giving high quality
with innovations and has made electronic items that are easy to use. Away from this, 22%
Chinese uses Apple products which needs to be considered by this firm in order to enhance their
profit margins and needs to give competition to Chinese electronic companies like Xiaomi, Vivo
and so on. On the other hand, India comes under fastest growing counties but still there are
heavy number of people who comes under poverty line. Almost 35% of Indian people comes
under as iPhone users. Here, it is must for Apple to make decisions like lowering the rates of its
products or do promotion of different sites like Facebook, Instagram, YouTube and make other
marketing strategies through which firm can grab eyes of consumers in heavy numbers (Chung,
Lu Wang and Huang, 2012).
Place: Apple stores are being considered as the main source of this element. As most of
consumers mostly likes to buy electronic items which are being made by this Apple organisation.
Tim Cook who is current CEO of Apple have stated that they are just not selling iPhone, iPod
into apple stores. They sell gratitude through delivering quality electronic items to their users.
Critical analysis which is being done of this element has located that Apple in grabbing
attention of consumers of United Kingdom, China and India through selling their products at
online websites. This has removed the barriers and mediators as well which directly impacted on
profitability of Apple. Along with this, it has been examined that doing online business has
helped firm in attaining goals and objectives right on time (Czinkota and Ronkainen, 2013).
Price: Apple's electronic products are mostly expensive in nature which cannot be
afforded by common people. Therefore, it is must for organisation to make products with less
prices so that profitability can be enhanced at marketplace. In the year of 2017, firm introduced a
whole new smartphone named as iPhone X which comes under products that are most expensive
under this sector. Price of this product was same in US and in UK which is impossible. Apple's
CEO Tim Cook has blamed the Brexit that directly affected it.
According to the analysis, it has been located that this factor can directly put impact on
Apple's profitability. Therefore, it is must for administration of Apple to keep on making
alterations in their prices of products and services that they are selling so that to gain good
competitive advantages in all three countries UK, India and China (Douglas and Samuel Craig,
2011).
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Promotion: Apple has a unique way of doing advertising products and services that they
are offering at marketplace. They mostly, consider common people and make ads with them
rather than picking or hiring a famous celebrity (The Scope of International Marketing, 2018).
This way of doing promotion has helped organisation in attaining goals and objectives of them.
As per critical analysis which has been done it is being observed that, this factor mostly
put positive impact on profit margins and or negative as well sometimes if supervisors have not
done proper analysis of marketplace. Along with this, it has been located that Apple makes
advertisements according to perceptive of consumers in different countries. Sometimes they have
to make ads with considering all the cultures that are into the world (Evers, Andersson and
Hannibal, 2012).
Summary of applied strategies:
Considering all these above factors which has been discussed may aid Apple in making
relevant changes that will directly put positive impact on their sales of products and services that
are being manufactured by them and on profitability as well. Along with this, locating at
marketing mix of Apple it can be concluded that Apple has already gained a good reputation in
all over world. But in countries like, China and India, organisation has to make various
improvements so that to enhance their profitability and productivity at the same time.
In United Kingdom, consumers mostly likes to use new technology after sometime
therefore, it is must for administration of Apple to consider those requirements and make
updation into their electronic products which has helped them in hitting their targets and on
regular basis as well (Fletcher and Crawford, 2013).
P2. Discussion of internationalisation process theory
In modern era, every single organisation is looking forward to internationalising It which
means firms are looking forward to do business in foreign countries. This is being done by
administration in order to gain profit at marketplace as their main motive is this only.
As per given by Griffin and Pustay, (2012), there are ample number of
internationalisation process theories that may aid Apple in hitting targets in much more effective
ways so that to gain competitive advantages at marketplace in order to give good rivalry to
competitors. It has been examined that there are various approaches in this context that are being
used and considered by Apple. There are two main hypothesis under this are mentioned beneath:
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 Behavioural formulation: This consist of various theories that may aid Apple in taking
initiatives (11 Biggest Challenges of International Business in 2017, 2017).
 Economical approach: Under this as well it has been located that there are many theories
which are being taken under by Apple in order to hit their targets.
Behavioural approach: Under this, Uppsala Model theory is one of the theory of
internationalising an organisation this includes various view points of consumers experiences
that directly put impact on profit margins of company as well as on productivity (Malhotra,
2011). Basically, it consist of behaviour of consumers towards operations of Apple if it is
looking forward to expand its business at international level. Cultural and geographical are two
elements that are being mostly considered by administration in an appropriate manner in order to
run business at international level. Innovation theory of internationalization: Another theory
that aid Apple in enhancing innovative level of firm that helps organisation in internationalising
its business (Meissner, 2012).
Economic approach: Policy makers and some other members are there which comes
under this aspect. Theories which are being considered under this are: International product life
cycle theory: It mentions that Apple's can do internationalisation is the ultimate result following
some steps which starts from exporting and has an end with an establishment of a new facility
aboard. Another theory which is Transactional cost theory: That helps in doing or establishing
foreign subsidiaries (Paliwoda and Thomas, 2013). Along with this, it has been examined that
Apple can use various approaches through which Apple can do business at international level in
an appropriate manner.
It has been critically analysed that these approaches which are being discussed above can
help Apple in gaining competitive advantages at international level. Cost of products should be
properly maintained on a regular basis and alterations should be made so that to enhance
profitability and productivity as well (Papadopoulos and Heslop, 2014).
CONCLUSION
As per above mentioned report, it has been concluded that business can get run in
successful manner at international level through doing proper marketing research. Long run
benefits can be seen in an organisation if all the elements of marketing mix has been taken under
in an appropriate manner. Along with this, effective strategies should be made on a regular basis
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through which products and services can be promoted in much effective and efficient manner so
that to gain attention of consumers in huge numbers.
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REFERENCES
Books and Journals
Akaka, M. A., Vargo, S. L. and Lusch, R. F., 2013. The complexity of context: A service
ecosystems approach for international marketing. Journal of Marketing Research. 21(4).
pp.1-20.
Berthon, P. R. and et. al., 2012. Marketing meets Web 2.0, social media, and creative
consumers: Implications for international marketing strategy. Business horizons. 55(3).
pp.261-271.
Cadogan, J. W., 2012. International marketing, strategic orientations and business success:
reflections on the path ahead. International Marketing Review. 29(4). pp.340-348.
Cavusgil, S. T. and Cavusgil, E., 2012. Reflections on international marketing: destructive
regeneration and multinational firms. Journal of the Academy of Marketing Science.
40(2). pp.202-217.
Chung, H. F., Lu Wang, C. and Huang, P. H., 2012. A contingency approach to international
marketing strategy and decision-making structure among exporting firms. International
Marketing Review. 29(1). pp.54-87.
Czinkota, M. R. and Ronkainen, I. A., 2013. International marketing. Cengage Learning.
Douglas, S. P. and Samuel Craig, C., 2011. The role of context in assessing international
marketing opportunities. International Marketing Review. 28(2). pp.150-162.
Evers, N., Andersson, S. and Hannibal, M., 2012. Stakeholders and marketing capabilities in
international new ventures: evidence from Ireland, Sweden and Denmark. Journal of
International Marketing. 20(4). pp.46-71.
Fletcher, R. and Crawford, H., 2013. International marketing: an Asia-Pacific perspective.
Pearson Higher Education AU.
Griffin, R. W. and Pustay, M. W., 2012. International business. Pearson Higher Ed.
Malhotra, N. K., 2011. Basic marketing research. Pearson Higher Ed.
Meissner, H. G., 2012. Strategic international marketing. Springer Science & Business Media.
Paliwoda, S. and Thomas, M., 2013. International marketing. Routledge.
Papadopoulos, N. and Heslop, L. A., 2014. Product-country images: Impact and role in
international marketing. Routledge.
Ringle, C. M., Sarstedt, M. and Straub, D. W., 2012. Editor's comments: a critical look at the use
of PLS-SEM in MIS quarterly. MIS quarterly. 36(1). pp.iii-xiv.
Terpstra, V., Foley, J. and Sarathy, R., 2012. International marketing. Naper Press.
Turnbull, P. W. and Paliwoda, S. J. eds., 2012. Research in international marketing (Vol. 39).
Routledge.
Wilson, A. and et. al., 2012. Services marketing: Integrating customer focus across the firm.
McGraw Hill.
Yang, Z., Su, C. and Fam, K.S., 2012. Dealing with institutional distances in international
marketing channels: Governance strategies that engender legitimacy and efficiency.
Journal of Marketing. 76(3). pp.41-55.
Zhou, L., Wu, A. and Barnes, B. R., 2012. The effects of early internationalization on
performance outcomes in young international ventures: the mediating role of marketing
capabilities. Journal of International Marketing. 20(4). pp.25-45.
Online
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11 Biggest Challenges of International Business in 2017. 2017. [Online]. Available through
:<http://www.hult.edu/blog/international-business-challenges/>.
The Scope of International Marketing. 2018. [Online]. Available
through :<http://www.businessstudynotes.com/marketing/international-marketing/
scope-international-marketing/>.
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