Marketing and Management of Apple iPhone: A Comprehensive Analysis

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This report provides a comprehensive analysis of Apple's iPhone marketing strategies, focusing on the LCD screen models. It begins with an executive summary and table of contents, followed by an introduction that outlines the report's purpose and scope. The report then delves into target market personas, specifically highlighting millennial moms as a key demographic. A detailed marketing mix analysis is conducted, providing recommendations for product, place, price, promotion, people, process, and physical evidence. The analysis emphasizes the importance of social media marketing, premium pricing strategies, and skilled experts. The report concludes with references and an appendix, offering a thorough examination of Apple's marketing practices and providing actionable insights for future strategies. The report also touches on the internal and external environment analysis of Apple, with a tactical approach towards marketing being a key recommendation.
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Marketing Management
AQF Level 8
[Student name]
[Student number]
[Marketing and management of Apple iPhone]
Word count: [3500]
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Executive Summary
Marketing is an art, which the brands need to be aware for luring large number of clients and
customers. Tactful approach is needed from the marketers for influencing the purchasing
power and decision of the clients and customers. Strategies are crucial for organizing the
business according to the needs, demands and requirements of the stakeholders and
shareholders. This assignment attempts to shed light on the marketing practices of Apple,
with special emphasis on the iPhone. Narrowing down the focus, iPhones with LCD screens
have been selected for further analysis of the marketing of Apple. Persona for the millennials
have also been prepared, which states that millennial moms are the prospective source of
increasing the sales revenue and profit margin. This is because they are tech savvy and are
aware of the specific technologies used for manufacturing the iPhones. Therefore, social
media marketing is effective for expanding the customer base and diversifying the culture
diversity of Apple.
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Table of contents
Introduction...........................................................................................................................................4
Target Market Persona..........................................................................................................................5
Marketing Mix Analysis and Recommendations....................................................................................9
References...........................................................................................................................................14
Appendix.............................................................................................................................................16
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Introduction
Marketing is a means adopted by the brands for increasing the sales revenue and
profit margin. Communication channels are used for reaching to the large number of clients
and customers. Chalking out concrete plans helps in detecting the ways in which the scope
and arena of the business. Corporate business strategies are crucial for exercising strategic
management (Schäfer and Klammer 2015, p.95). There are different levels of constructing
the plans. On the strategic level, the plans identifies the target market for improving the focus
of the business. Using effective technologies is a means for generating values for the
investments made by the stakeholders and shareholders.
Internal and external environment analysis of Apple forms an important segment of
this report. As a matter of specification, the focus is on the segment of iPhone. Tactical
approach towards marketing is a suitable recommendation in terms of influencing the
purchasing power and decisions of the clients and the customers.
Apple has achieved accolades and glory by emerging as one of the reputed electronic
gadgets companies in the threshold of California. Since the initiation, the company has
transformed itself in terms of the gadgets and its features (Apple.com.au 2019). This aspect
has also added to the customer base, strengthening its position in the competitive ambience of
the market. Retail stores, third party organization and online retailers diversify the scope and
arena of the Apple business. iPhone has achieved the tag of best innovation and technology in
the year 2007 in case of the android phones. Diversity prevails in the iPhones such as iPhone
11 Pro, iPhone 11, iPhone watch series, iPad, Mac Pro, Apple TV, Apple Arcades and others.
Specific information about the latest designs of iPhone is advertised on the social
networking sites and the official websites, which addresses the specific queries and concerns
of the customers regarding the utility values, warranty period and others (Apple.com.au
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2019). Offers, schemes and discounts are the initiatives to expand the customer base.
Promotional offers like A$810 credits on purchase of new iPhones increases the credibility.
The facilities of feedbacks help the brand to assess the feasibility, effectiveness and
appropriateness of the strategies and plans. Accessories are also there, which influences the
purchasing decision and power of the clients and the customers. Typical example of this are
leather cases, silicone cases and airpods Pro, from which the customers can select the
preferred options.
Research and development team works towards altering the outlook and design of the
iPhones. iOS 13 is one such example, which is a latest innovation of the series. Privacy
cookies and policies are used by the brand for enhancing the privacy in the information
shared by the customers (Apple.com.au 2019). The messages are secured with the end to end
encryption, which is an effective means for averting the intervention of the unknown sources
into the mainstream business operations.
Target Market Persona
The important components of the target market segmentation are measurable,
accessible, sustainable, actionable and differential. Stability and sustainable development is
the key towards creating higher potentials for the market. 5C’s of marketing is useful in terms
of enhancing the scope and arena of the business. Consideration of these parameters is vital
for ensuring that there are no unethical issues like that of illegal contracts and issues between
the third parties, collaborators and competitors. Demographic segmentation is effective in
terms of planning the services in the close proximity to the clients and the customers. In case
of Apple, the sales revenue of iPhones increases through the investments made by the
millennials and the Gen Y customers (Fortune.com 2019). These customers are aware of the
aspects of sustainable development, accessibility, differential, measurement and actionable.
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Millennials are the best targets of the iPhone, as they possess the highest capacity and
affordability towards spending.
On an average, Millennials are emotionally attached to the brand of Apple. As a
matter of specification, millennial are of different types. These are hipennial, old school
milennials, tech savvies, clean and green millennials, millennial moms and anti-millennials.
Hipennial These people are conscious, cautious, charitable and
information seekers. These accounts for 29% of the total
population.
Old school millennial These customers are self-dependent and lack connection with
the brands. Confidence is one of the important characteristic
traits of these customers. These customers represent 13% of
the total population.
Tech savvies They are aware of the latest technologies and are confident
about the benefits. These customers are at ease at all times,
which makes them approachable.
Clean and green millennial These customers are impressionable, cause driven, healthy
and possess positive approach towards the marketing
initiatives. The percentile of the customers’ accounts for 10%
of the total population.
Millennial moms These type of customers belong to the aristocratic society,
where spending capacity is also high. Confidence regarding
the technologies is also accounted to be high. 22% of the
total population are considered to be the millennial moms.
Anti-millennial 16% of the population is accounted to be the anti-millennials,
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who are locally minded, conservative and hesitate to invest in
the greener marketing practices.
Gen Y or the millennials are comfortable with any kind of technologies. Therefore,
promotion of the iPhones with latest designs would act assistance for Apple in terms of
expanding the sales revenue and profit margin. The collective buying power of these
millennial customers are estimated to be $200 billion annually. This is accompanied with the
indirect spending power of $500 billion. In case of the Hipennials, social media marketing is
an effective means for enhancing the profitability for Apple. However, McGrath (1986, p.45)
states that consciousness needs to be exposed towards identifying the homemakers and the
unemployed students as the targets, as they look for lucrative sources. For the old school
millennials, social media would not be that effective, as they spend less time for surfing the
internet. On the contrary, print medias like newspaper, magazines and others seem to be
useful for disseminating the essential information about the latest iPhones to the customers.
Pay per click advertising is one of the effective aspects, which can upgrade the financial
parameters of the Apple business.
Tech savvies are also accounted as one of an important customer segments of Apple.
Uploading the specific information about the iPhones with LCD screens and cameras on the
social networking sites would be beneficial in terms of increasing the trafficking of the
audience towards the brand image. These customers contribute to the digital marketing by
contributing contents through feedbacks, which is assistance in terms of detecting the areas,
in which modifications are to be made for upgrading the standards and quality of the iPhones
(Edge 2018, p.56) . Focusing on the male customers belonging to the above average income
group contradicts the aspect of gender diversity. Clean and green millennials are those
customers, who are passionate towards possessing a healthy and sustainable environment.
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The students are one of the important target segments of Apple, who contributes through
sharing lucrative contents on the social media through the valuable feedbacks. Millennial
moms are highly social, which adds value to the online shopping for the iPhones. These kind
of customers have high spending power, therefore, installation of the latest technological
features in the iPhones and promoting them on social media is a huge potential for Apple in
terms of expanding the customer base. Special discounts, offers and schemes are one of the
ways in which these customers can be lured to the services. As per the arguments of Lemon
and Verhoef (2016, p.70), apps are effective for assisting these customers to avail the benefits
in the maximum value.
The segment of Anti-millennials are concerned only about their self and family
members. Conservative mind-sets compel these customers to think only about their personal
issues. Dissatisfaction level towards spending for the greener services is also higher, which
compels the brand, Apple, to practice sustainable development in the business operations.
Mention can be made of the initiatives to achieve community development, which expands
the scope and arena of the business.
Among these, millennial moms are the potential targets for the brand, Apple. This is
because the prices of the iPhones are quite high and the purchasing power and decisions of
the segment is simultaneously higher. Surveys are conducted by Apple in terms of gaining an
insight into the specific needs, demands and requirements of these customers (Chaffey and
Ellis-Chadwick 2019, p.90). These surveys provides an insight into the approaches of the
customers, which act assistance in mapping the feasibility of the plans in the current business
scenario. Involving the customers in the decision-making process makes them a valuable
asset in the business. This participative managerial practice and style reflects the transparency
in the operations of the Apple, contradicting the instances of conflicts, misunderstanding and
biasness. In this context, mention can be made of ethical code of conduct, which standardizes
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the organizational behaviour. Privacy cookies and policies are used for protecting the
information shared by the clients and the customers.
Marketing Mix Analysis and Recommendations
Product Iphones with LCD panels
Place Retail stores, online stores, telecommunication companies,
authorized sellers
Price Premium pricing strategies
Promotion Advertisements, personal selling, public relations
People Skilled and qualified experts who possess good fluency with the
latest technological gadgets
Process After sale services
Physical evidence Employee discounts, Holiday gifts
Iphones with LCDs is an innovation for the millennial moms. Promoting the recent
innovations on the social networking sites is an efficient means for increasing the trafficking
of the audience towards the brand image. Premium pricing strategies is assistance for the
brand in terms of luring the millennial moms towards the brand image (Hall 2017, p.89).
Retail stores are effective in terms of marketing the iphones with the LCD screens. Skilled
and qualified experts are hired for manufacturing the phones according to the needs, demands
and requirements of the customers. Employees discounts, holiday gifts are the initiatives,
which are undertaken for motivating and supporting the employees in executing the
operations. Corporate business strategy includes social media marketing, where
advertisements are aired for enhancing the awareness of the customers about the latest
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innovations within the iPhones. These initiatives are the evidences of strategic planning and
marketing.
After sales services are considered for ensuring the extent to which the operations of
Apple align with the identified benchmarks. Divisional organizational structure is assistance
in this context, which enhances the productivity in terms of upgradation of the labour
potentials. Post training tests are taken, which helps the managers of Apple in assessing the
capability of the staffs towards making practical application of the learnt skills in conducting
the operations (Lieb and Szymanski 2017, p.78). The scores in these tests is further assistance
in estimating the nature to which the business would head in the upcoming years. The store
managers are also provided with the training in terms of catering to the business transactions,
both online and physical. Consciousness is placed towards product displays for attracting the
customers.
Operating system software are used for producing the iPhones with the LCD screens.
In this context, mention can be made of the millennial moms, who are aware about the
software, which are used for producing the iPhones with LCD screens. Third party agents like
Mac, IOS are hired for enhancing the compatibility. However, LCD screens only supports
iPhone 8 and iPhone 8 Plus. The backlight is a panel, which is as large as the screen and
suffices the need for flashlight when the screen is on. Kocienda (2018, p.67) states that Anti-
millennials cannot use these phones, as they are concerned mostly about their family and the
business. LCD screens allows the customers to take photos on the iPhones, which is possible
only for the millennial moms, as they are highly tech savvy. Apps have been introduced for
the customers, which also includes the facilities of camera. This is an innovative experience
for the customers, which allows them to access the phone from any location. According to the
recent trends, facilities of watching TV series, which reveals the product diversification.
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Commercial advertisements for the latest innovations in the iPhones with LCD
screens provides Apple with a higher competitive advantage. The major drive behind this is
the feedbacks in the form of quizzes, pay per click advertising, contests and others. In this
advertisements, white backgrounds are used as a contrast to the stylish iPhones (Weinstein
2018, p.56). Logos are used inversely with the black backgrounds, which enhances the brand
loyalty and image. Product diversification is one of the important components of the
marketing strategy, which reflects the cultural diversity for Apple. Along with this, mention
can also be made of the different channels of e-retail sites, corporate resellers prove to be
effective for expanding the scope and arena of the business. Outsourcing the portfolio of the
iPhones with the LCD screens is useful for increasing the profit margin. Sending drafts to the
managers about the plans to the higher authorities is useful for undertaking fair and
transparent decisions regarding marketing of the iPhones.
Premium pricing is used by Apple for setting the prices of the iPhones with the LCD
screens. Millennial moms are targeted as their purchasing and spending capacity is higher as
compared to the other segments of the millennials. Price skimming is a technique, which acts
assistance in terms of setting higher prices for the iPhones, which have LCD screens and
cameras (Kocienda 2018, p.45). However, this strategy is applicable only for the specific
brands of iPhones. Geographical pricing is also used for pricing the iPhones in accordance to
the different requirements in different countries. Celebrity endorsements for the promotion
relates with the high prices of the iPhones, which is only possible for the segment of
millennial moms.
Skilled and qualified marketing team staffs of Apple are conscious towards the use of
different ways in which the customers can be served. They are provided with training
regarding the execution of the marketing mix. In this context, business models are to be
included, where key channels and key resources occupy a central position. iPhones with LCD
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screens and cameras are diversification, which increases the shelf life. Hiring research and
development experts is a means for adding innovative designs into the iPhones with LCD
screens (Lieb and Szymanski 2017, p.34). The LCD screens acts as a flashlight as well as TV
in phones reflects the multi-functionality of the product. Versatility of the iPhones is a key
towards achieving technological advancements. However, it does not support video recording
facilities, which can be a problem, but the intensity is not that high.
The current models of iPhone are supporting with that of Mac OS X, which only the
millennial moms are aware. These customer segments possess updated knowledge about the
delicate design user interfaces, which are installed in the devices. iPods would be an initiative
of Apple for increasing the scope and arena of the business. Style, design and appearance of
the iPhones matters for the millennial moms, as they upgrade themselves to the current
fashion trends. Feedbacks can be collected from these customer segments regarding the
implemented designs of the iPhones (Hall 2017, p.23). Their experience and confidence
about the technologies would be crucial for adding innovations. Expert advice in this context
is essential in terms of averting the issues of malfunctioning in the software and operating
systems.
Innovative apps in the retail stores were one of the initiatives by Apple in terms of
enhancing the accessibility of the customers. According to the recent trends, the apps are
linked with MacBook, which adds value to the aspect of product diversification, especially
the iPhones. Cost effective operation strategies are developed for minimizing the
manufacturing costs, which maximizes the expenditure on research and development. The
store purchases concretises the experiences of the customers regarding adding value to the
investments in the iPhones.
According to Kahney (2019, p.12), Apple iPhone is considered to be the powerful
personal device. iOS operating systems provides higher competitive edge in terms of
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appearance, usage, innovation and others. Expenses on advertisements can also be considered
as something, which contributes in setting the prices of the iPhones. Since 2014, there has
been 50% change in the expenses on advertisements. Aggressive marketing and branding
policies is assistance for Apple in terms of mapping the stability of the operating systems.
Positive visibility of the marketing is the cornerstone towards generating proper value in the
business, especially in the investments of the stakeholders and shareholders. Radio,
television, magazines are used for the advertisements of latest innovations in the iPhones.
These print medias contributes to the direct marketing through the means of contents, which
brings the target into the hipennials. However, Chaffey and Ellis-Chadwick (2019, p.100)
assumes that as they intend to seek new information about the products, they can be one of
the prospective sources for enhancing the profit margin of the Apple.
After sales service is a kind of evaluation for Apple, which helps in assessing the
feasibility of the plans and strategies in the current competitive scenario. iPhones with LCD
screens is something, which is innovative as compared to the competitors like that of
Samsung, Nokia and others in terms of look and design. Risk assessment along with problem
solving cycle is a means for ensuring the safety of the customers (millennial moms) while
using the device (Lemon and Verhoef 2016, p.80).
1. Conclusion
iPhones has revolutionized the business of Apple through the means of innovative design
and latest technological features. Skilled and qualified experts are hired for manufacturing the
devices according to the needs, demands and requirements of the clients and the customers.
Feedbacks are collected from the customers in the social networking sites, which helps in
detecting the areas, where modification is to be done for upgrading the standards and quality
of the iPhones. Product diversification along with premium pricing strategies forms a
cornerstone in terms of diversifying the cultural parameters of the business.
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References
Apple.com.au 2019. iPhones. Available at: https://www.apple.com/au/iphone/ [Accessed on
16th Dec 2019]
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
Edge, C., 2018. Build, Run, and Sell Your Apple Consulting Practice: Business and
Marketing for IOS and Mac Start Ups. Apress.
Fortune.com 2019. These Are the Brands Millennials Are Emotionally Attached To.
Available at: https://fortune.com/2018/03/09/millennials-apple-brand-intimacy/ [Accessed
on 16th Dec 2019
Hall, S., 2017. Innovative B2B marketing: new models, processes and theory. Kogan Page
Publishers.
Kahney, L., 2019. Tim Cook: The Genius who Took Apple to the Next Level. Penguin UK.
Kocienda, K., 2018. Creative Selection: Inside Apple's Design Process During the Golden
Age of Steve Jobs. Pan Macmillan.
Lemon, K.N. and Verhoef, P.C., 2016. Understanding customer experience throughout the
customer journey. Journal of marketing, 80(6), pp.69-96.
Lieb, R. and Szymanski, J., 2017. Content-the atomic particle of marketing: the definitive
guide to content marketing strategy. Kogan Page Publishers.
McGrath, A J 1986, 'When marketing services 4Ps are not enough', Business Horizons, May-
June, pp. 44-50.
Schäfer, A. and Klammer, J., 2015. Service-dominant logic in practice—Using online
customer communities and personas. Marketing Review St. Gallen, 32(5), pp.90-96.
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Weinstein, A., 2018. Superior Customer Value: Finding and Keeping Customers in the Now
Economy. Routledge.
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Appendix
Fig: iPhone with LCD screen
(Source: Apple.com.au 2019)
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