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Concept of marketing mix
Advantages of marketing mix
Minor concept of marketing mix
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THE MARKETING MIX
A marketing mix is all aimed at selling a product, a company will create a marketing mix around a product to make sure it is advertised, in the correct price grange, is what the customer wants and is accessible for people to purchase.
Product
This is when a company must look at trends and decide if they are offering in terms of e.g. bright colours, features or size. This also involves benefits like reduced price. Apple surpassed customer expectation when they brought out the IOS operating system. Apple managed to bring out this new system before Windows 8 and Android stealing some of their customers. When it came to marketing the iPhone, Apple thought was that people will buy what others have. The unique white Apple headphones let everyone know who owned an Apple device. This was an intelligent selling strategy used by Apple that gave them constant advertising by their customers.
Price
Out of all the aspects of the marketing mix the price is the one that will decide how much profit a product makes. Price is mainly determined by how much a customer values the product at, customers will pay more for the quality of a product that they will have for a long time, or a reliable product that they know won’t break. Apple uses the technique of skimming price, this is when a product is put on the market at a
Companies need to think about where to sell their product or service to get the most sales. This could be in shops, online or companies could make their product exclusive to specific shops to increase demand. Due to Apples success in Greater China with revenue at more than $2.6 Billion, Cybermart International which is part of Foxconn (Apple supplier) announced they would open 500 new stores. This is an impressive number that will help increasing the popularity and visibility of Apple 's computers and their mobile devices in the
The 4 Ps of the marketing mix are: Product, Promotion, Price, and Place. The marketing mix puts the right products, at the right price point, in the right place, at the right time. The following examines how Claire’s Chocolates optimizes its marketing mix (Yoo, Donthu, & Lee, 2000, 195-196).
Marketing strategies are based on the 4 P’s or Product, Price, Promotion and Place or Distribution Channel. This section will briefly look into the Product and Pricing strategy of Apple and will illustrate various factors how it has been capable of sustaining competitive advantages in times of extreme competition.
An advantage of Apple Inc. is the strength of its brand image. This can be seen in the 19% increase of its brand value from $153.3 billion in 2011 to 182.9 billion in 2012 while maintains $75 billion ahead of its competitors (H n.d.). The strength of its brand image can be attributed to the success of its operational efficiency. The behind the scenes work done in Apple Inc has allowed it to improve the brand economically. One example of its operation efficiency is how Apple has decreased its production cost over the past few years. The cost of creating an iPhone 6s Plus is estimated to be $236 but at the time of the products release the sale price was $749. This equates to a 217.4% markup with a genuine profit of $486 per unit sold.
Apple Inc. uses the Apple brand to compete across several highly competitive markets, including the personal computer industry with its Macintosh line of computers and related software, the consumer electronics industry with products such as the iPod, digital music distribution through its iTunes Music Store, the smart phone market with the Apple iPhone, magazine, book, games and applications publishing via the AppsStore for iPhone and the iPad tablet computing device, and movie and TV content distribution with Apple TV. For marketers, the company is also establishing a very strong presence to rival Google in the advertising market, via its Apps business and iAd network
Cutting costs by competitors is the most logical way for competitors to be more competitive in the market. By cutting costs, there are more profits to be made and to gain market share by offering lower cost substitute products. The industry is flooded by competition, but no other competitor of Apple really focuses on creating great technical upport or brand loyalty. (Elliot, 2014)Apple’s primary focus is to develop innovative products and create a unique product that consumers can depend on the being the most highly anticipated technological device while offering great service and support for these new products. Apple uses business model innovation which introduces new products that are compatible with each other such as iTunes and the iPhone or ipod. This has proven to be a very effective business model and competitors are trying to replicate the same model to their advantage. (Jakab, 2015) By being an innovator and first mover on this type of technology, it gave Apple the competitive advantage in the market. In order for competitors to be more effective in the industry, they must attempt to gain customer loyalty and offer a simliar business strategy to that of Apple if they are to be the industry
Elaborating that they make components before the competition will be occurred, when actual the competition prevails in the market, Apple itself earlier seize the customers, it’s a riskier strategic operations followed by the Apple, if company were not excellent in anticipating the market needs. To make supply chain, Apple can monitor sales on retail store by the hour if it
Product. Companies that follow this approach try to create a consumer product or service that is supposed to be unique or better than that of the competitor 's. Uniqueness or some upgrades in the product were believed
Overall, Apple has a strong strategic advantage in these industries currently. While these advantages are important, they are not sustainable due to the efforts of R&D of other companies and the thought that consumer electronics are becoming more of a commodity for consumers as opposed to luxury goods. If Apple does not work to maintain high barriers to entry through their powerful knowledge base and keeping the market growing rapidly by introducing more niche products, they can expect their rivals to catch up with them technologically and potentially pass them because of their larger financial ability to market their products.
The Apple brand name is a household name, the brand value of Apple, Inc. improved to $13,724 million in 2008 from $11,037 million in 2007 (Datamonitor PLC, 2009). Apple is different from its competitors because it produces high quality products, its products are also unique and attractive and this has helped to increase its market shares. Since Apple is known globally, 54% profits come from foreign markets (Datamonitor PLC, 2009). Apple products are easy to use and carry around, majority of its products are light, small and very easy to carry around and it has a major advantage of product diversity, there is something for every one of all ages.
is yet to reach its maximum potential. Truly a unique entity in its accomplishments and organization, apple through the conviction and leadership of Steve Jobs its founder and then CEO; have pioneered the revolution of mobile technology. When it comes to strength, apple Inc, has a great marketing team with great marketing and advertisement capabilities, strong brand awareness, a strong and extensive distribution channel, and most of all a vertical integration and the most obvious which is customer loyalty. With the acquisition of valuable companies such as Beats, WhatsApp, mobile payment systems with the IPhone 6, wearable gadgets like the IWatch, apple uses these opportunities to satisfy its loyal
According to Ideavist (2011), due to the increase in competition as rival companies try to capture a piece of the market share leads businesses to employ various tactics to handle such situations. Some of the strategies used by companies and that Apple could find very constructive could include the below marketing strategies to be used for future success.
The Apple Inc. can use this tool when they want to increase their sales either by expanding product or by entering a new market. With the help of this grid, market expansion strategy is determined.
A marketing mix is what businesses use to detail the main functions of business marketing and do into further explanation as of how those functions influence the success or failure of a business. There are several different marketing mix tools, the four P’s is a very useful tool explaining the main functions of a marketing mix. A basic way of describing the marketing mix is the four P’s: Product,Place, Price, Promotion. A very important part of understanding how to use this tool is asking yourself questions that will help you understand each individual part of the marketing mix. Many people use this process to check their existing business to see if there are improvements to be made. The four P’s marketing mix system could also be used before starting a new business or offering a new product to give yourself guidelines on how to run your new business.
Apple Inc. is a multinational company, based in America, which innovate, develop and sell personal computer its software named Macintosh and various other products like the iPhone and the iPad. In 1976, Steve Jobs started the apple era and the business has grown rapidly to one of todays’ iconic inventors of consumer electronics. Despite the company operates in a wide field of products, Apple is handling every of their products as a separate business unit, but with a similar and recognisable design. This report will focus on Apples last invention, the iPad, and analysis its position within the market and future perspectives (Apple Inc., 2012).
Apple keeps product SKUs simple, the salespeople inside the stores have the in depth knowledge of the products. Just think that when you enter an Apple store and one of the sales staff greets you, you’re not asked, “How can I help you?” Rather they ask, “What would you like to do today?” They satisfy you by going to the heart of any technology user’s question, any question related to the technologyand the user is interested in.