MKTG101 Marketing Fundamentals: Apple's Marketing Strategy

This report provides a critical analysis of Apple Inc.'s marketing strategies, objectives, and tactics, focusing on the iPhone. It identifies major competitors like Samsung, Google, Microsoft, and Asus, and examines the internal and external factors influencing Apple's marketing approach. The report delves into Apple's marketing theory and practice, emphasizing its customer-centric approach, responsiveness to environmental changes, and commitment to high-quality products and premium service. It also assesses the effectiveness of Apple's marketing strategies, considering the increasing competition and the need for adaptation to ensure long-term success. The analysis concludes that while Apple has successfully built a strong brand and competitive advantage through its marketing and product strategies, the increasing competition necessitates continuous evaluation and adjustments.

Running head: CRITICAL REFLECTING OF MARKETING PRACTISE OF APPLE
CRITICAL REFLECTING OF MARKETING PRACTISE OF APPLE
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CRITICAL REFLECTING OF MARKETING PRACTISE OF APPLE
Executive summary
The purpose of this report is to analyze and determine the marketing strategy adapted by Apple
Inc. It determines the competitors of the company and its effects on the business. It demonstrates
the marketing theory and practice of Apple considering the internal and external factors which
influences the marketing strategy of the company. It analyzes the marketing objectives and
strategies of the business. Lastly, it concludes the effectiveness of the marketing strategy and the
changes required in the marketing strategy to ensures long term success of the organization.

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CRITICAL REFLECTING OF MARKETING PRACTISE OF APPLE
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Major Competitors of Apple iphone............................................................................................3
Marketing theory and marketing practice of Apple.....................................................................4
Internal and external factors influencing Apple’s marketing strategies......................................4
Analysis of marketing strategies and objectives of Apple Inc....................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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CRITICAL REFLECTING OF MARKETING PRACTISE OF APPLE
Introduction
The purpose of this report is to provide a critical reflection on the marketing strategies,
objectives and tactics applied by Apple Inc. It explains and analyzes the key marketing
objectives and strategies of the organization. It identifies the major competitors of the chosen
product Iphone by Apple Inc. It identifies the external factors as well as the internal factors that
influence the marketing strategies and other operational activities of the organization. It explains
and analyzes the marketing objectives and the marketing practice of the organization.
Discussion
Major Competitors of Apple iphone
According to Alon et al. (2016), some of the major competitors of Apple Iphone are
Samsung, Microsoft, Google, and Asus. Samsung is one of the major competitors of Apple
Iphone. The strong competitor Samsung, brings various innovations, and reproduces the ideas
and sells its products at a cheaper rate as compared to Iphone. Apple lost many of their
customers to Samsung. Google is one of the most obvious competitors of Apple Iphone. It offers
Android Smartphone to its customers with innovative features and specifications which Apple
Iphone fails to provide. Regarding the online payment service, Google beats Apple. With
emerging competition in the market, Google stands to be one of the major competitors of Apple
iphone. There is a high degree of competition between Microsoft and Apple. Microsoft offers to
their customers the best products with longevity and offers best customer service (Grant 2016).
However, Microsoft is not as major competitor as Samsung. Microsoft has its own brand of
Smartphone, which competes with Apple Iphone. Asus claims to offers Smartphone which have

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CRITICAL REFLECTING OF MARKETING PRACTISE OF APPLE
longest battery backup and other specifications which Iphone fails to provide. Hence, it poses to
be the biggest threat to Apple Iphone. These are some of the major competitors of Apple Iphone,
it losses many potential customers to its competitors (Nagle and Müller 2017).
Marketing theory and marketing practice of Apple
The marketing theory and marketing practice remains to be the core principle of Apple
which has been effective for the smooth running of the business and creating profitability of
marketing along with gaining the loyal customers. Apple Inc, has mainly three core marketing
practices which has enabled success for the business. Apple is highly empathetic to their loyal
customers, their business is highly customer oriented. They are very sensitive to the needs and
requirements of the customers (Ryan 2016). They offer the best products or service to their
customers. Secondly, they are highly focused on the external and internal factors which directly
or indirectly affect their customers. They respond to the changing environment and eliminate all
the barriers affecting the business tactfully. They provide the best manufactured products to their
customers with the highest quality and provide premium service; it claims to offer the most
useful software to the customers. They present the products is a most creative and professional
manner and disputes the desired quality to the customers. Apple uses these marketing practices
and theories which makes Apple the most valuable company and the most valuable brand all
across the world (Yee and Yazdanifard 2017).
Internal and external factors influencing Apple’s marketing strategies
Being the world famous company and the biggest information technology company, it
has lot of responsibilities and face problems. To analyze the internal factors affecting the
marketing strategies of business, the premium price strategy is not applying to all income group

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people; hence this strategy is not very effective (YouTube. 2019). However, it believes in
seaming the cream policy and acquires loyal customers. The company is losing their market
share; there is a negative impact on the marketing strategy due to inefficiency of the
management. However, the profit margin of the company is higher, but it is analyzed the
premium price strategy will not be very effective in the long run due to further increase in price
and increase in competition (YouTube. 2019). The external factors affecting the marketing
strategy of the company is rapid increase in the growth and advancement of technology, the tax
policy is increased, there are huge threats from the competitors, there is increased price pressure
from its major competitions like Samsung. The Android OS popularity is increased, the
competitors have increased their focus on online marketing. However, there is an increased
demand for Smartphone and technology; hence this is an added advantage to the company (Ryan
2016).
Analysis of marketing strategies and objectives of Apple Inc
The marketing strategy of the company is based on the concepts of simplicity and
premium based. They offer products and services at a premium price. The product strategy of the
company is the core marketing strategy of the company. The marketing strategies of the
company have become its competitive advantage (Yee and Yazdanifard 2017). The product
Iphone offered by the company is most successful as they are known for its simplicity, and are
highly intuitive as compared to its competitors. The Iphone is build with simplicity with simple
design (Nagle and Müller 2017). By offering complimentary products, the company has created
sustainability and increased brand loyalty. Apple employs the approach of retroactive and
proactive as a part of their product strategy. One of the company’s major competitive advantage
and core marketing strategy is technological advancement which is the most desirable in the

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company (Nagle and Müller 2017). By offering premium priced products, the customers are
made to believe that their products are of excellent quality (Wingfield 2019). Further, the
company implements the strategy of vertical integration; it is also one of the competitive
advantages of the company. The company follows a strict standard of software, which enhances
customer service. However, with increasing competition, there has been poor performance of
Apple and it has poor product strategy (Ryan 2016).
Conclusion
Therefore, from the above critical reflection it can be concluded that the company
successfully implements its marketing and product strategy which helps them build effective
competitive advantage. The brand value of the company is one of the most important advantages
of the company. There are various factors internal and external which affects the business.
Though the company has a strong marketing strategy, it is not very effective in the long run as
there is increased competition in the market.

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CRITICAL REFLECTING OF MARKETING PRACTISE OF APPLE
References
Alon, I., Jaffe, E., Prange, C. and Vianelli, D., 2016. Global marketing: contemporary theory,
practice, and cases. Routledge.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Nagle, T. T., and Müller, G. 2017. The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.
Ryan, D. 2016. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Wingfield, N. 2019. Apple’s Lower Prices Are All Part of The Plan. [online] Nytimes.com.
Available at: https://www.nytimes.com/2011/10/24/technology/apples-lower-prices-are-all-part-
of-the-plan.html [Accessed 21 Mar. 2019].
Yee, F.M. and Yazdanifard, R., 2017. The comparison between ngo marketing and conventional
marketing practices from SWOT analysis, marketing mix, and performance evaluation
perspectives. Economics, 2(9), pp.1075-1087.
YouTube. 2019. 10 Business Marketing Strategies That Made Apple Worth Billions. [online]
Available at: https://www.youtube.com/watch?v=dJD03K-2P5c [Accessed 21 Mar. 2019].
YouTube. 2019. Steve Jobs Marketing Strategy - Sell Your Ideas the Apple Way - Dan Lok.
[online] Available at: https://www.youtube.com/watch?v=wdjmJpdiFu0 [Accessed 21 Mar.
2019].

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CRITICAL REFLECTING OF MARKETING PRACTISE OF APPLE