Marketing Essentials: Apple Inc. Marketing Strategy Report

This report provides a comprehensive analysis of Apple Inc.'s marketing strategies, focusing on the 7Ps marketing mix (product, price, place, promotion, process, physical evidence, and people) and the SOSTAC model. The introduction highlights Apple's global presence and diverse product portfolio. Part 2 delves into the 7Ps, comparing Apple's strategies with Google's across each element. The SOSTAC model, including situational analysis, SWOT analysis, digital channels, objectives, strategy, tactics, and control, is then applied to Apple, illustrating a detailed marketing plan. The report discusses market segmentation, targeting, and positioning, as well as the use of 4Ps (product, price, place, and promotion). The conclusion summarizes the key findings and emphasizes the importance of the 7Ps marketing mix for Apple's success.

Marketing Essentials

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
PART-2............................................................................................................................................3
7P’s marketing Mix.....................................................................................................................3
SOSTAC Model...........................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
To understand role of marketing function has an example of Apple Inc. It is an American
multinational technology company that is headquartered in Cupertino, California. It has wide
brand portfolio and offers it’s services into multiple countries. In the end of the report will
discuss over marketing plan that will be proposed for the Apple Inc.
PART 1
(Covered in PPT)
PART-2
7P’s marketing Mix
It is a set of activities or tactics that organization implements in promoting brand or
product in the business market (Anjani, Irham and Waluyati, 2018). It comprises seven elements
product, price, place, promotion, process, physical evidence and process. Apple and Google both
has applied marketing mix strategy in order to gain their all framed objectives. Marketing mix
elements are described as follows:
Elements Apple Inc. Google
Product Apple Inc. has used product mix
strategy in order to build strong
customer base. It posses’ wide
product portfolio such as Mac,
iPhone, iPod, Apple Watch, Apple
TV, Accessories and Cloud
services. Each product has wide
product line that supports company
to attract customers for buying
product and services effectively.
HR management of Apple Inc.
always keep constant expansion in
While Google has implemented
diverse product strategy in order
to achieve financial benefits. It
posses’ wide product line i.e.
web-based products, operating
systems. Desktop apps, mobile
apps, services and others.
Product development strategy
uses by Google company for
expanding it’s business in global
market and takes competitive
advantage from it’s competitors.

it’s Apple products so that can
maintain sustainable business
performance in the business market
(Doand Vu, 2020).
But after that still company does
not achieve high market share
like Apple Inc. in the technology
market.
Price Premium pricing strategy has
followed by Apple Inc. that
supports to sell it’s products at
premium prices. Apple Inc. fix
premium price for the iPhone
product which is quite expensive as
compared Google and Samsung
products in gaining high profit
margin. With this strategy company
offers highly creative and
innovative features in iPhones that
encourages customer to buy this
brand. When company has
achieved high market share on it’s
iPhone products then uses
freemium pricing strategy. This
strategy includes two term free and
premium that denotes few Apple’s
products are free but users have to
pay extra cost to access or use
highly advanced features. With this
strategy, company maintains
excitement in it’s customers for the
product and services.
However, Google also has
adopted different pricing
strategy like freemium pricing
strategy wherein offers free
product and services but sells
value-added or premium features
i.e. Gmail to the customer. This
feature has premium version for
the business perspective. Market
orientated pricing strategy also
has followed by Google in order
to sell it’s product market
situation that has brought
financial benefits in the
business. It has implemented
penetration pricing strategy to
sell Google Fiber Internet and
cable television services that
supports to gain competitive
advantage from it’s competitors.
Currently it uses value-based
pricing strategy which supports
to give values customer’s money
by offering AdWords online
advertising services to them. It
denotes Google has
implemented effective pricing

strategy as compared Apple Inc
(Güreland Tat, 2017).
Place Distribution pricing strategy has
followed by Apple Inc. in
improving it’s product availability
across the world. Currently Apple’s
stores are located into multiple
countries to offers high standard
services to the customers. Such
availability of physical stores of
Apple Inc. in different countries
supports to access new customers
to buy it’s product and services.
thus, it has expanded product
availability in the world effectively.
Google has established strong
online presence in the business
market. For example, Google
allows it’s customer to
download Google App anywhere
whereas has strong connectivity
of internet. It has involved
various internet provider
companies i.e. Nexus in this
strategy to expand efficiency of
it’s business by maximizing
internet.
Promotion To promote Apple’s product has
followed different promotional
strategies by Apple Inc.
Promotional mix strategy includes
different media i.e. advertising,
sales promotion, public relation and
personal selling which supports to
increase awareness in customer
about product and services (Medell,
2018). With this strategy Apple Inc.
has established large customer base
as compared other companies like
Google.
On other hand, Google uses
minimal promotion strategy that
has brought beneficial effects on
the business performance
because it have to invest little
fund for the promotion. As
resulted more funds available in
order to invest other areas i.e.
R&D of the company. Online
advertisement strategy also has
followed by Google for creating
awareness in customer about
Gmail. Promotion marketing
mix strategy of Google is not
quite effective as compared
Apple Inc.

Physical evidence Organization infrastructure of the
Apple Inc. is quite creative and
innovative which bring high
communication among staff
member and upper management.
Upper management of the company
always focuses on outer design of
the products like iPhone so that
customers attracts from it’s
products and encourages to buy
them.
It is located at Mountain view,
California. It has strong
connectivity from internet
provider companies which
supports customers to directly
access Google’s App anywhere
effectively.
People Apple Inc. always focuses on staff
and their creativity so that they
always bring creative ideas at the
working place. Brain storming
competition always conducts by
Human resource management of
Apple Inc. so that individuals can
use their creativity in order to win
competition. Thus, company stay
innovative it’s staff.
To maintain standard of the
working environment recruits
only top talented brains and
people so that both can work
effectively in order to maintain
innovative business culture.
Thus, Google keeps people
proactive mentally and
physically at the workplace.
Process It posses’ two type delivery process
i.e. online and offline. In other
word, Apple Inc. follows B2B and
B2C business model to offer
product service to the different
stakeholders. B2B business to
business framework indicates that
company sell it’s product only
company to company. While B2C
business to consumer model
While Google follows B2C
business to consumer model that
supports to fulfil needs to
consumers by offering different
type of app services to the user
accordingly their needs. But it
does not have any physical
appearance across the world due
to this most of the areas like
rural areas, traditional areas

denotes that company provides
product services directly to the
consumer without involving third
party (Nazarko and et.al., 2017).
With this strategy Apple has
influenced product demand in
customers.
people unaware about Google
and it’s product.
SOSTAC Model
It is a marketing planning tool that is implemented in various commercial situations.
Sostac model is used for Apple Inc. in relation to Google to create successful marketing plan
because it has aim to increase sales revenue of it’s product like iPhone into multiple countries
through it’s Apple’s stores which are located across the world. This marketing plan will support
Apple Inc. to gain it’s framed goal within timeframe. Sostac model is mentioned below:
Situational Analysis
Apple Inc. applies Race framework that is used to target those potential online users i.e.
business man and other potential customers who are highly active on social media and always
give preference to online shopping as compared traditional media. However, this framework is a
type of digital marketing tool that is followed by Apple Inc (Rebecca and Maharani, 2018). The
reason behind is that there are various customers who does not want to waste more time for
buying products and services. In modern world, everyone has become highly updated about e-
commerce market that has increased online purchasing ratio as compared traditional shopping.
With this model Apple Inc. provides touchpoints facilities such as likes, comments and rating to
the customer which supports to build loyal customer base.
Swot Analysis
Strengths
Apple Inc. has strong global presence that is major strength of the business. So, it is quite
easy for the company to aware customers about it’s all products which keeps different prices.

Apart from this, it has wide brand portfolio that is one of the major reason in order to fulfil all
needs of customers
Weakness
It has wide product line but all are expensive. So it unable to sell it’s product to all type
customers in the multiple countries like other companies i.e. Samsung, Google.
Opportunity
It has opportunity to increase huge customer base by offering some reasonable price
products as well. With the reasonable product production strategy it can easily attract other
customers like middle class, low-class customer towards it’s products.
Threats
Samsung can become major threat for the Apple Inc. because it provides wide features in
it’s mobile products like iPhone at lower cost that can reduce selling revenue of the iPhone.
Competitors analysis
Samsung, Google etc. are the major competitors of Apple Inc. because these also runs
their business in similar sectors like Apple Inc. and provides same features in it’s existing
products at lower cost so, it is essential for upper management of Apple Inc. to take effective
action in order to maintain it’s brand in the business market.
Digital Channels
Apple Inc. follows both type channels like internet and social media that plays huge role
in increasing customer engagement (Saidani and Sudiarditha, 2019). However, internet media
supports Apple to sell it’s products to the customer while social media helps to increase
awareness in customer about product and services.
Objectives
 To improve huge customer base by end the year of 2022.

 To increase 40% sales revenue of Apple’s branches that located in multiple countries by
the end year of 2024.
 Improve online selling up to 60% within a year.
These are smart objectives that directs to develop actual and measurable goals which can ben
fulfilled within timeframe.
Strategy
STP strategy uses by Apple Inc. to target particular market and product so that can
achieve goal effectively.
Market segmentation
Market segmentation strategy uses by Apple Inc. to target it’s specific markets such as
demographical, geographical and psychological. These markets like demographical is further
categorized customers based on their preferences, ages, disposable income etc. Psychological
market is classified customer accordingly their sending behaviour and attitudes.
Targeting
Apple targets upper-class and middle-class customer through targeting strategy.
Positioning
It has strong global presence in the market so it will help to gain high beneficial profit.
Tactics
4P’s marketing mix
 Product: It uses wide brand portfolio strategy and each brand has wide product line that
are quite enough to attract customers.
 Price: Freemium and premium pricing strategy follows by Apple Inc. and provides value-
based services to the customer.
 Place: Distribution pricing strategy follows by Apple Inc. Apart from this, Apple Inc.
involves authorize sellers i.e. Walmart, Best Buy in it’s distribution strategy because

these operates various stores into different strategic locations i.e. shopping malls around
the world (Camilleri, 2018).
 Promotion: Promotional mix strategy follows by Apple Inc. that will support to increase
revenue of it’s existing products.
Action
Marketing management of the Apple Inc. plays effective role in implementing all defined
strategies effectively by delegating different tasks among staff members and supports them to
deal with complex tasks effectively. With digital marketing mix strategy, marketing manager
increase people engagement and transform them into customer by offering value-based services
thus it, will huge customer base objective (Venaik and Midgley, 2019). Tactics are also
undertaken by marketing manager to differentiate Apple’s product from others that supported to
improve sales revenue up to 40% on Apple’s product. Thus, all enlisted actions are followed by
marketing manager of the Apple Inc. in order to gain all framed objectives within timeframe.
Control
360-degree feedback strategy follows by marketing manager of the Apple Inc. in order to
keep control all received objectives and individual performance. In this strategy manager of
marketing department gathers feedback from marketing team at personal level that makes them
feel valuable part of the company (Vinerean, 2017). Thus, Apple Inc. maintain wellbeing of
individuals and control over all implemented strategies so that sustainable benefits achieves for
long time.
CONCLUSION
7P’s marketing mix strategy also used by Apple Inc. in respect of Google to highlighted
success of different strategies in this report. Sostac model has used by Apple Inc. that comprised
company’s target market, marketing objectives and it’s activities in order to achieve goals of the
business within defined time as well as implemented different resources in this plan.

REFERENCES
Books and Journals
Anjani, H.D., Irham, I. and Waluyati, L.R., 2018. Relationship of 7P Marketing Mix and
Consumers' Loyalty in Traditional Markets. Agro Ekonomi.
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Do, Q. and Vu, T., 2020. Understanding consumer satisfaction with railway transportation
service: An application of 7Ps marketing mix. Management Science Letters, 10(6),
pp.1341-1350.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Medell, K., 2018. Digital marketing plan for a non-profit organization.
Nazarko, Jand et.al., 2017. Application of enhanced SWOT analysis in the future-oriented public
management of technology. Procedia Engineering, 182, pp.482-490.
Rebecca, I.T. and Maharani, A., 2018. Exploration of Methods for Small Businesses in
Determining The Brand Positioning through Marketing Mix Concept. The
Winners, 19(1), pp.1-7.
Saidani, B. and Sudiarditha, I.K.R., 2019. Marketing Mix-7Ps: The Effect on Customer
Satisfaction. Jurnal Pendidikan Ekonomi Dan Bisnis (JPEB), 7(1), pp.72-86.
Venaik, S. and Midgley, D.F., 2019. Archetypes of marketing mix standardization-adaptation in
MNC subsidiaries. European Journal of Marketing.
Vinerean, S., 2017. Importance of strategic social media marketing. Expert journal of
marketing, 5(1).