Marketing Report: Apple's Strategies, Market Analysis, and Mix

This report provides a comprehensive analysis of Apple's marketing strategies, encompassing a detailed examination of the marketing process and stages, including situational analysis, SWOT analysis, PESTLE analysis, and Porter's Five Forces. It explores Apple's objectives, strategies, and implementation tactics, as well as the role of marketing in creating value for customers. The report also delves into Apple's marketing mix (7 Ps), segmentation, targeting, and positioning strategies. Furthermore, it examines the roles of marketing in creating value for customers and stakeholder engagement. The report concludes with an analysis of the advantages and disadvantages of Porter's Five Forces, and the societal marketing concept used by Apple. The document also includes an analysis of the different communication tools used during the project.

Marketing Fundamentals

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1A.........................................................................................................................................1
TASK 1B.......................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing Fundamentals includes a process in which needs and wants of every individual
or group of people create and exchange different products and services that have some value.
Present study is based on the company Apple that is a American multinational technology
company that design, develops and sells computer software and electronics and was founded in
the year 1976 by Steve Jobs. Report will include processes and stages of marketing and different
role of marketing mix. It also includes role of marketing in creating value for customers and
further stakeholder engagement and impact on marketing activities of an organisation. At last a
reflexive report is included on different communication tools that were used during the
completion of the project(Basil, 2019).
TASK 1A
1. Process and stages of marketing and different role of marketing mix
Marketing is a act of promoting goods and services with help of market research and
advertising so that they can create value in the market(Chaffey and Ellis-Chadwick, 2019).
Stages in marketing process:-
Mission statement of Apple:-
Mission of the company is to make innovative hardware, software and services so that
customers can have best experience.
Situational Analysis:-
Situational analysis is a process with help of which company disclose all the opportunity
and risks that can be analysed to bring competitive advantages for the firm. SWOT analysis helps
in analysing the competitive advantages with help of External and internal factors. Strength tells
the way company differ from there competitors on basis of its unique technology, strong
customers bond etc. Weaknesses tells where the business needs to improve and opportunity tells
about the external factors that can bring competitive advantages for the firm like expanding the
business in new market can bring the scope for the business. Threats are some external factors
that can cause harm to the firm(Elshiewy, Guhl and Boztug, 2017).
Objectives of the firm:-
 Objective of the firm is to expand their business by selling their products to customers
that have not yet own any product of the company.
1

 To produce such products that are hassle free and customers enjoy while using the
products.
Strategy:-
 Apple is making strategy to expand there distribution channels so that they can reach out
to all the individual customers.
 Company is investing in Research and development to make there products more
advanced(Kietzmann and Pitt, 2016)..
Implementation:-
The strategic implementation for the Apple includes designing of new products and
taking risk that it will be lead to a successful launch in market.
Control:-
Apple evaluate, monitor and then track the effectiveness of the strategies implemented.
Apple is famous for innovative products like iPhone, iPad etc. this is the results of balance that
Apple keeps while implementing the strategy and monitoring the performance so that control can
be on market(McKay, Hopkinson and Ng, 2018).
PESTLE Analysis:-
Political:-
 Apple is generating higher corporate taxation in US where the major political issue is
income inequality.
 Company is dependent on China for lower cost manufacturing and there are some
political unrest in China that can affect manufacturing by increasing the cost. Cost of manufacturing alternative could be high for the company.
Economic:-
 Strong US dollar can lead to increase in exchange rates and be expensive for Apple to do
there business in Europe and China(Penn, 2017). High Labor costs in China may take away the cost advantages of there various products.
Social:-
 Growth in consumer spending will be seen in areas where people are unfamiliar with
Apple products like Africa.
2

 There would be some ethical concerns about manufacturing of the Apple's product in
China.
Technological:-
 Google and Samsung have duplicated Apple's product and services that no longer makes
Apple's product and services unique in market.
 Apple products are less secure due to growing capabilities of cyber criminals. Smartphones and tablets are lowering the demand of Apple's personal computers(Rowles,
2017).
Legal:-
 As Apple is offering financial services this is increasing the level of litigation that
company can face. Apple's variety of products are covered by intellectual property laws that makes the
company more vulnerable in terms of piracy and litigation.
Environmental:-
 Expenses related to the disposal of devices that contain Lithium batteries may be high
enough.
 Change in the climatic conditions due to green house gases can affect supply chain.
 Concern of government regarding the side effects from data centred may result to
increase in costs(Shaw, 2016).
3

Porters 5 Forces:-
Figure:-1
To examine five key forces of competition in Apple Porter's model is being used.
Industry Competition:-
Level of competition is very high to the major companies that compete directly with
Apple in the sector of technology like Google, Samsung etc. All companies are investing in huge
amount in research and development as Apple is doing. That is the reason competitive forces are
strong within the industries. Consumers usually not think much in switching the Apple's iPad for
other tablet computers in market(Waters, 2017).
Bargaining power of buyers:-
Apple usually have two points:- The individual bargaining power of buyers and collective
bargaining power of the buyers. Individual bargaining effect negligible amount of revenue for
the company where as in case of Collective bargaining power have a possibility of mass
customer defections to a competitor is a strong force. Apple is countering the strong force with
help of the research and development and keep developing unique products like Apple Watch,
Air pods etc. that can build brand loyalty(Zhao and Balagué, 2015).
Threats of new entrants to the marketplace:-
4
Illustration 1: Porter 5 forces

Threats of new entrants to the marketplace is relatively low to affect market share of
Apple and reasons are the high cost of establishment and high cost involve in making the brand
name recognised in market. As the new entrants enter to the market company need to invest in
research and development so that it can compete with these rivalries and keep its brand value in
market(Basil, 2019).
Bargaining power of Suppliers:-
Bargaining power of Suppliers is relatively weak force for the products of Apple as
potential suppliers are higher in number for the company. Switching cost is also very low as
Apple can exchange supplier from one another without any obstacle.
Threats of Buyers opting substitute products:-
Substitute products are relatively low for the company as most of the substitutes have
limited features and quality that compared with Apple(Chaffey and Ellis-Chadwick, 2019).
SWOT analysis of Apple:-
Strength:-
 Customers are loyal towards the brand and have a strong brand image in the market.
 Apple is known for the best customer service in the market that is the reason company
have such loyal customers.
 Company's focus is on Research and development and they always come up with an
innovative product change. Have a huge market share that helps the company to keep a good position in market and
as a result there revenue is also high(Elshiewy, Guhl and Boztug, 2017).
Weaknesses:-
 There is a limited use of outside software that can be uploaded on Apple products.
 Apple products are not working with different carriers There products are Counterfeit
Opportunity:-
 Company can launch training session stores.
 They can expand mobile devices and different mediums of communications.
 Company can launch retail stores(Kietzmann and Pitt, 2016).
5

Threats:-
 Rapid change in the technology industry can bring huge competition for the firm.
 Decrease in demand for popular Apple products like desktops, Portable devices etc.
 Competitors are bringing products that can be at same level as Apple is in the market.
Advantages and disadvantages of Porters 5 forces:-
Advantages:-
 It tells competitive forces in the industry It helps to make a proper planning by analysing the threats for the firm(McKay,
Hopkinson and Ng, 2018).
Disadvantages:-
 It ignores other factors that may affect company's operations.
 It is not useful for all in industries in same way as industries are having different
customers having different taste and preferences.
Segmentation:-
It involves division of population into different groups on basis of the characteristics like
Apple segments include design, quality and performance of technology products with their
prices. Devices, services, operating systems, accessories are segmented in different criteria(Penn,
2017).
Targeting:- It involve choosing of specific groups on basis of segmentation to sell products.
Apple target market according to different age groups, according to gender and occupation of the
person.
Positioning:- It refers to selection of marketing mix to target customer segment like Apple as a
premium brand offering products and services(Rowles, 2017).
Marketing Mix:-7 P's Product:- Apple is offering products that are simple in design and its usage is convenient.
There products are durable and quality is very high. They upgrade there products in
periodical way and always comes up with new innovative features. Product range is
limited but there sizes and colours have a variety of range. They have a unique hardware
6

and this can only be used with company's own products that can become negative point in
the competition(Shaw, 2016). Price:- Apple basically uses premium pricing strategy and there products are available in
market at a highest price tags. Company also uses price skimming strategy according to
which they set very high prices for new products and then lowering it as competitors
comes up with similar products in market. They also use Geographical pricing and set
different prices in different parts of the world. Place:- Company is selling there products in there retail stores that are mainly located in
different malls. They also have there official website with help of which customers can
purchase there products from home. They also have partnership with many wholesalers
that distribute there products and services globally(Waters, 2017). Promotion:- Apple is promoting there products by advertising with different mediums
like giving impressive Ads with help of TVs and You tube that can motivate customers to
purchase the product. There are many social media platforms like Facebook, Instagram
etc. where company is having many followers. People:- They are hiring new fresh minds from renowned universities and are paying
them in huge amount so that they can work in development of the firm. All employees
are very supportive and kind. Process:- They aim to match up with the market conditions by developing the products
that can bring a good experience for the customers.
 Physical Evidence:- Company is having high quality products with an impressive
packaging. There products are very simple but good in features(Zhao and Balagué,
2015) .
2. Roles of marketing in creating the values for customers
marketing concepts of apple:
Marketing mean to spread the information about the products in the market by which the
potential buyers get information and comes to buy the goods and services. Marketing concept is
related to the philosophy of the firm which can be use to determine and fulfilling the needs and
wants of the customers. It is benefited to both the customers and firm. It is the strategy which a
organisation can apply to satisfy their buyers and increase the profit and sales of organisation.
7

There are five marketing concepts named societal marketing concept, product concept,
marketing concept, production and selling concept(Basil, 2019).
Societal marketing concept:
This concept main goal is not only the profit maximisation as well as well fare of the
society. It is done for making an effective brand image in front of market or society. This
concept is concert for where the marketing strategies is in the form of development of well being
of the society or not. In this kind of concept Apple has to make sure that the three factors are
fulfils the most i.e. Profits: it is the main goal of the firm to maximise the profitability, this is the
main objective of firm, the company can not exist without it. Consumers: Apple maintains there
products quality to maintain the customers. Society: Apple keeps in mind about the human well
fare. Apple supply there goods in the recycled paper box which can be reduce the garbage and it
can be a better initiate to the social welfare by the company(Chaffey and Ellis-Chadwick, 2019).
Branding:
Branding is the process by which the potential buyer can identify the specific product.
This process involves name of the product and image of that goods in front of the consumers.
The main goal of branding is to creating a differentiate presence of that particular product in the
market that can attracts the buyers. It is generally done through the advertisement campaigns.
The main purpose of branding is to make simple and easy for the buyers to identify the product.
By the logo or the colour or and packaging the firm can communicates their brand to the
consumers(Elshiewy, Guhl and Boztug, 2017).
Advantages of branding:
 It boost the product awareness and loyalty of the customers.
 It provide the legal protection from the competitors because of the trademark law.
 It provides consistency in the market place.
 Branding boost Loyalty of the customers.
Disadvantage:
 It is quit expensive.
 It is tough to making change in the branding.
 May it creates the negative image, if there is failure
 limited flexibility(Kietzmann and Pitt, 2016).
Ansoff matrix:
8

Figure:- 2
Illustration 2: ansoff matrix
Ansoff matrix is a strategic planning tool through which it can be defined the framework to helps
to the managers and marketers to facilitates the advise of strategies regarding the future growth
of the company. This tool is provides the four different growth strategies named marketing
penetration, market development, product development and diversification. In which product
penetration means the firm can seeks to increase the growth with the help of existing products.
Which means to increases the market share in current segment of market. Market developments
states that the company can seek the growth targeting the new market segment with the existing
product(McKay, Hopkinson and Ng, 2018). While product development says that organisation
can look for the growth by launching new products into the existing market segment. And the
last strategy of Ansoff matrix which is diversification says that the company can look for the
growth by diversify the new enterprise into fresh business through new products for new
markets(Rowles, 2017).
9

3. Stakeholder engagements and there impact on the marketing activities
Stakeholder:
The stakeholder is a group or individual or any company who has an interest in a
organisation which can be affect or being affected by the firm. Stakeholder may defined as an
investor, employees, customers, owners, government and suppliers and those from whom the
organisation draws their resources(Penn, 2017).
Different between internal and external stakeholder:
S. No. INTERNAL STAKEHOLDER EXTERNAL STAKEHOLDER
1 Internal stakeholders are those groups or
individual who are part of the
organisation such as owner, employees
and managers.
External stakeholder are the person or
group that re not a part of the firm, but they
affects or being affected by the firm's
activity. Such as government, suppliers,
creditors, customers and so on.
2 Those stakeholders normally having a
big influence on the way the company
runs.
External stakeholders having a small
influence on the company' way of doing
business.
3 They are primary stakeholder(Shaw,
2016).
This are secondary stakeholder.
4 Such stakeholder can participates
dominantly in the management system
of the company.
External stakeholders are not workers of
the firm or employed by firm but they get
affected by its activity that an be
performed.
5 Internal stakeholders are going to serve
the company.
While, external stakeholders are get
influenced by the works or the company.
6 Business activity can directly impacts on
internal stakeholders.
Activities of business may indirectly
impacts on such stakeholders(Waters,
2017).
7 Internal stakeholders includes owner, External stakeholders includes the
10