Analyze the effects of the marketing mix.
Marketing is not just advertising and selling but involves a set of activities. A vital management process ensures producers to interpret market demand and reach the target customers. The process of marketing is vital to both large and small business organization to understand the competitive market and making certain to capture the crucial trends, reaching the target group with the right product at the right time, price and place. In the contemporary technologically innovative digital world, communication has effectively improved (Armstrong et al., 2014). This innovation has also offered new marketing tools and techniques for more effective marketing. Nowadays, as aggressive marketing increased, marketing skills are one of the most important attributes of employees and managers. Which once regarded as a departmental commotion now considered as an innovative business approach for a business organization. The marketers who strategically plan and execute marketing strategy contribute to the overall goals and development of a business organization (Boone & Kurtz, 2013). Strategically planned and implemented marketing strategy retains customers, improves sales figures and increase revenue earning, producing prosperity for the organization. Implementing strategic marketing structure is essential to reach organizational goals and objective. It enables a business organization to sketch market activities in advance, analyzing what works, and implementing in effectively where they are most relevant.
Apple has an extensive product line, which the company has to offer for its customers. Apple has a product line of smartphones, and they have varied types to meet the diverse requirements of their diverse consumer segments.
Smartphones are an important useful and compact electronic device that fits in an individual’s pocket in both budget and size. It has become an integral part of an individual’s life mostly in urban population. In the contemporary world, people are more inclined to use smartphones rather than desktop computer or laptops, as it is equivalent to a laptop or desktop. The Smartphone industry is one of the fastest growing industries globally and expanding quickly as the emergence of new markets in developing countries. From its time of introduction in 2007 by Apple, it has changed a lot to meet customer demand and sustain in the competitive market. The high-end Smartphone market is very productive and viable (Bosomworth, 2013). The industry shall persist to develop, and innovative as customer demands and requirements are varying with today’s innovative technology industry. (Refer to Appendix 2).
Development of a marketing strategy begins with a comprehensive and continuing analysis of the market and segments. Business organizations look at the cultural, social, economic, political, technological trends that are influencing the market, their situation within the market, and the assets, they can assemble to modify or influence it which known as the marketing audit. A marketing plan explaining purposes, intentions and performance measures then planned, along with a revenue budget. While detailed objectives identified, substitutes to the status quo need to discuss and selecting alternatives in achieving them.
IPhones has created a brand image, which cares for customers emotions. It is about how iPhones experience makes an individual feel. The iPhones brand individuality is regarding lifestyle; liberty regained; innovation; imagination; hopes, dreams; passion; and aspirations; and individuals feel the authority and power utilizing technology. The brand brings a sense of community or oneness among the users. The brand equity of iPhones is comparatively high in context to its competitors. Apple has been collaborating with marketing and other corporate departments and activities like production finance, research, and development that are essential to successfully executing the marketing strategy of iPhones. Apple has successfully implemented the above-discussed eight P’s of marketing in launching and suitably promoting iPhones product lines. The recent venture is iPhone 6 plus. Apple prolonged its product range and profitably immerged as an innovative and leading international technology corporate organization. (Refer to Appendix 3).
Marketing mix cannot be described as a scientific theory, but simply a theoretical framework that classifies the primary decisions marketers formulate in positioning or putting together in a particular order the product or service to go with consumers’ demands. The marketing tools used to formulate both long-term strategies and short-term strategic programs. The extent in the marketing mix can change as it differs from the product-to-product (Kotler, 2012).
Product:
The “product” is the main component that the business organization is offering to its consumers. It can be a physical product, such as a mobile phone, bicycle; a service, such as a consultation, massage; or everything that the business organization can trade with customers. The key choice about the product relies on its usefulness, value, and branding. On the other hand, business organizations as well necessitate judging its styling, security, guarantee, presentation, sustainability and after sales services. A product should meet market demand to sustain a particular target market. A marketers’ familiarity and awareness of the particular target market and the possible competitors in the existing market will put aside the product, gaining competitive advantage, and avoiding valuable blunders. In June 2007, Apple Inc. introduced the first generation of iPhones. Ever since, the Apple has established its significant position in the competitive market of smartphones and developing brand loyalty globally as the iPhones are uniquely built and not easy to imitated by other business organizations to produce “me too products” on the lower price (Apple, 2016). Apple iPhones has successfully maintained the two important characteristics of the product that is, technological improvement and innovation and maintaining the strong brand image, that are supposed to include a lot to the development of the alleged value advantage. (Refer to Appendix 1).
Pricing:
“The price of a product is not merely the value that a business organization assigns for a particular product; rather it includes a complete succession of decisions about how the price will be assigned and accustomed.” The most important concern is the pricing strategy the business organization will trail before launching a market. For instance, the business organization can “scan” the market by fixing a high price and targeting only the rich customers, or it can strategize mass marketing the product by allocating a more affordable pricing. A business organization as well requires considering how it determines to fix the cost for different channels; whether the product should go for collaboration for lower the cost; if the organization is in a situation to effort for price discrimination in the market. The strategic pricing approach needs to reflect the suitable positioning of the product in the market and outcome in a pricing that protects the cost per unit and comprises a profit margin. The consequence should be neither wolfish nor reserved. “Apple Inc. increases their small wholesale discounts to resellers with additional considerable monetary incentives if the resellers promote Apple iPhone products at or higher than a certain cost, which is known as the “minimum advertised price” (MAP).” (Burgess, 2012). By this process retailers create extra revenue per unit sale, on the other hand, MAP put a stop from presenting customers major discounts, as a result of the nearly uniform Apple pricing that is customers across the globe are used to. This pricing strategy assists Apple in a many ways. Primary, Apple creates more revenue on direct sales and does not have to struggle alongside marked-down prices offered by resellers. As Apple’s retail outlets are the most commercially successful globally, subverting the smartphones prices for the reason of a wider supply system would be damaging.
Place:
The place usually concerns the distribution and availability of the product. Therefore, it refers to where the customers avail it. The main task of a manager to strategically analyze and select the productive and effective supply and distribution channels, counting conventional retail outlets, direct promotion, online promotion, etc. Moreover, the business requires considering how it will cover the market, and how it will manage its store and supplies, warehouses, supply centers and shipments and transportation. This element of the marketing mix greatly associated with a business organization’s operations and operational competence. The Apple Inc. management has constantly intended on immense distribution globally (Online sales, traditional brick, and mortar retail shops, and other channels). Apple stores have dedicated corner, which dedicated to the iPhones to make sure a transparent understanding and cognizance of the usage of iPhones to the visiting customers in the store. The presentation and display of the iPhones in the Apple outlets are impressive which helps iPhones to gain competitive advantage. Keeping a strong hold on the pricing of its products, Apple decreases the possibility of potential conflict within the distribution channels; it also ensures keep the retail operations working in the secrecy.
Promotion:
Promotion is most likely the element of the marketing mix that people most connected using the term marketing. The promotion concerns to the different marketing communications utilized by a business organization. “Promotional mix includes advertising, sales promotions, public relations and publicity, as well the largely the promotional strategy, for instance, if the organization will mainly apply intensive marketing, technology push or consumer pull.” (Kotler, 2016). Lastly, a business organization needs to judge how promotional budget best suited to the selected promotional strategy. Apple Inc. endorses the Apple iPhones through media promotions that used in incorporates the planned communication to the customers. Nearly all of the promotions demonstrate the iPhones touch screen functionality that makes it in the competition. The promotions of iPhones are attractive, innovative and unique. Apple’s marketing department before starting a promotional campaign, call for its advertising agency to investigate on media consumer patterns and selects the suitable time for the targeted audience at the time of the product introduction. Apple maintains regular publicity to make certain that the awareness acknowledged by the targeted audience is as much as necessary to maintain the product rolling in the market.
People:
People are possibly the fundamental aspect of any marketing mix, although it plays the significant function in the marketing of services. People symbolize the employees, and anyone else who communicates with customers on behalf of the organization, and their actions can have an effect on the customers buying behavior (Turnbull, & Valla, 2013). The important, crucial concern people mix to educate employees to respond efficiently to meet customer requirements, on top to guarantee that all employees are conscious of the organization’s policy towards its customers. The above can maintain with the development of an effective customer-oriented organizational culture. All the above attributes are applied by Apple to educate and train their staffs and employee to ensure that they are knowledgeable and ready to answer any quire by prospective customers or effectively handling customer questions and obligations.
Process:
The process explains the process with which customers are provided with product or service and is mainly applicable to service industries. As a result, consumers not only suppose an assured quality of service, other than which also look forward to receiving an equivalent intensity of service to other clients of the organization. As a result, the organization should make sure that the process delivered to the premier quality and maintained balance in the process for all customers. In reality, problems and conflicts arise if a particular customer is given importance or the vice versa, which can lead customers to consider they are being treated as less important. “Apple controls the whole experience, from the limited range of products on the shelves, to the training of the young, intentionally geeky/hip employees, to the manner in which some stores are designed with architectural flourishes normally reserved for museums, to the tech support received at the Genius Bar, to the educational classes offered in stores for using Apple products.” (Apple, 2016). According to market experts, the factor, which other smartphones companies do not duplicate, is Apple’s customer service that is undoubtedly superb, others do not realize the importance of it. Therefore, Apple’s great customer service is one of the reasons for iPhones continuing success in the competitive market.
Physical Evidence:
Physical evidence is one more vital element of services marketing and information marketing. The reason is that services and information condition tend does not have any physical outcomes. Whereas in the case of a physically obtainable product, if a customer is not satisfied or find defects within the product can return it, but in the service industry, once a service is commenced and if it does not meet customers need cannot be returned or exchanged. Thus in service industry customer often go through distress and confusion before buying a service, principally in remote distribution channels like the internet. To overcome this, business organizations required offering physical evidence, like, photograph, customer testimonials or data and information, which sustain the claims about the quality and value of the service. To ensure that the customers got a good and connected after sales service, it has opened 416 Apple stores around the globe. Apple iPhones have the good image in the context of after sales service. The spectacular rise in iPhones reliability attain also reflects not only after-sales service but a lesser possibility of running into any problems which need support.
Productivity and Quality:
This aspect solely dedicated to service marketing. Productivity and quality have been known that general productivity and effectiveness of a business organization may be largely effected by focusing on not on promotion and sales but also concentrating on the reduction of the overall cost of the delivered service. In services management, regularly the unpredictable costs are more than fixed costs, and so are incremental costs, these costs are strategically managed which will largely affect on productivity. As a result, a business organization can significantly gain by appropriate re-engineering of processes and altering if necessary to upgrade the productivity of the service. According to market scholars, the process improvements bring improved consistency and therefore superior worth in services. Quality cognizance is an essential distinguishing reason on services management and for sustainability of the service. Business Process Remodeling can direct to key effectiveness process improvements, which all over again can affect quality as is truly delivered to the customers by the service organization. In 2012, there was a massive complain about the iPhones 5’s Apple Maps usability and camera problems. Apple’s management took instant action, apologized publically, and reduced its production for quality control measures. Apple’s management has always been strict and promotes in maintaining the quality of products including iPhones.
Apple is one of the best global IT Company, leading worldwide. Despite being the market leader in smartphones and launching successful product line on the brand name Apple iPhones, they too have some shortcomings and customer grievances regarding product and services. The author would like to recommend the follow according to his study and findings in this report.
Conclusion:
In the above study, it is observed that how the world is an ever changing place and changing market demand and requirements. An individual is very unambiguous about personal needs and requirements. Here in the report, the author has critically analyzed the effects of the marketing mix has helped Apple iPhones to create a strong brand image the competitive market of the smart phone industry. Apple’s iPhones identified for bringing pioneering, innovative, comprehensible products, which have turned into enormously admired in the market. The market audit of iPhones has conducted in the above study analyzing the cultural, social, economic, political, technological trends that are influencing the market, their situation within the market, and the assets, they can assemble to modify or influence. The report is concluded by accepting the various factors that Apple implement to attain sustaining the leading position in smartphones industry.
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