Analysis of Apple's Marketing Mix and Pricing Strategies

This assignment delves into Apple's marketing mix, with a specific focus on its pricing strategies. The analysis examines various pricing approaches, including value-based pricing, where prices reflect the perceived quality and value of Apple products. The assignment also explores price skimming, a strategy where initial high prices are set to target early adopters, and competitive pricing, where Apple aligns its prices with competitors based on product quality and market positioning. The assignment further touches upon the concept of cost-plus pricing and penetration pricing. The analysis highlights how Apple uses these strategies to maintain profitability, satisfy customer needs, and differentiate its products in the market. The assignment provides an overview of how Apple's pricing strategies contribute to its overall marketing success.

Marketing Mix is referred as the seven elements of
product and services to satisfy the need and desire
of consumers. These 7P's are described as product,
price, place, promotion, people, public relations,
physical appearance.
Managers of Apple organisation use this pricing
element to differentiate their specialised product for
target market to satisfy their needs and wants.
Value-based pricing: - This is expressed as the product
price according to its specialised quality. Managers of
Apple can use this to satisfy their customers on the
value of its quality produced.
Price skimming: - This enables to set high price and
lowering its market. Managers of Apple can use this as
their quality of product is high which can lead to have
pricing for their target market.
Penetration pricing: - It means to set least cost of
product while entering in market and increasing it later.
Managers of Apple can use this strategy when they are
entering new market.
Managers of Apple are using price skimming strategy
for their product as they have highly qualified product
which attracts their target market which makes their
consumers to pay high prices.
This pricing element of marketing mix is further
classified as described under: -
Cost-plus pricing: - It is the expense in which total
production cost incurred with addition of profit
margin. Managers of Apple can use this pricing to
attain profit on sale of products.
Competitive pricing: - It is the price on which
company can compete their product through quality,
quantity, brand, etc. Managers of Apple can use this
to have competitive price of their apple product as it
has its specialisation with high quality which attracts
consumers to purchase.
Marketing Mix
INTRODUCTION