21
4.0) Marketing Mix – An Overview of Apple’s Implementation of Marketing Strategies Marketing mix consist of four major elements: Product, Price, Promotional and Place (4-Ps), which serves as the key decision areas that marketers must manage so that they satisfy or exceed customers needs better than the competition (Jobber, 2007). The key decision areas may refer to the marketing strategies used by the company to fulfil their customers’ needs. The marketing mix helps to provide a “picture” of the organization’s marketing strategies employed. It deals with the way in which a business uses the 4-Ps to sell its products. It is known as ‘mix’ because each ingredient affects the other and the ‘mix’ must overall be suitable to the target customer (Tutor2u.net, 2011). By identifying Apple Inc.’s marketing mix, we can find out how its marketing strategies are put in action, which would also provide an evaluation and analysis of the effectiveness of its marketing strategies. PROMOTION PLACE PRICE PRODUCT TARGET MARKET Figure 1: Marketing Mix (Adapted source: Kotler & Armstrong, 2010) 4.1) Product The product decision involves deciding what goods or services should be offered to a group of customers. These product decisions also involve differentiations, product lines, branding and image positioning (Jobber, 2007). 4.2) New Product Development

4.0) Marketing Mix – An Overview of Apple's Implementation of Marketing Strategies

  • Upload
    met-us

  • View
    0

  • Download
    0

Embed Size (px)

Citation preview

4.0) Marketing Mix – An Overview of Apple’s Implementation of Marketing StrategiesMarketing mix consist of four major elements: Product, Price, Promotional and Place (4-Ps), which serves as the key decision areas that marketers must manage so that they satisfy or exceed customers needs better thanthe competition (Jobber, 2007). The key decision areas may refer to the marketing strategies used by the company to fulfil their customers’ needs. The marketingmix helps to provide a “picture” of the organization’s marketing strategies employed. It deals with the way inwhich a business uses the 4-Ps to sell its products. Itis known as ‘mix’ because each ingredient affects the other and the ‘mix’ must overall be suitable to the target customer (Tutor2u.net, 2011). By identifying Apple Inc.’s marketing mix, we can find out how its marketing strategies are put in action, which would also provide an evaluation and analysis of the effectiveness of its marketing strategies.PROMOTIONPLACEPRICEPRODUCTTARGETMARKETFigure 1: Marketing Mix(Adapted source: Kotler & Armstrong, 2010)4.1) ProductThe product decision involves deciding what goods or services should be offered to a group of customers. These product decisions also involve differentiations, product lines, branding and image positioning (Jobber, 2007).4.2) New Product Development

As technology and customers taste change rapidly, Appleis active in developing new products, which plays a very important role in replacing those out of date and inferior products with features that customers value (Jobber, 2007). Numerous product ranges that provide product lines to attract customers have been introducedthroughout the years since 1983, for example, portable computers, servers, accessories, wi-fi based stations, developer, iPod, iPhone, iPad, iTunes, peripheral products and more. Consequently, the Company has come up with newer versions of its product lines (product line length) with similar characteristics (product linewidth) that are also updated from time to time. For instance, in the iPhone portfolio range, Apple initially came out with the iPhone 3G, then iPhone 3GS and iPhone4 (Apple Inc., 2011). These three versions ofthe iPhone are considered as the product line of the iPhone range, as they are a group of products derived from a common product, having similar physical characteristics, customer segments, distribution channels, pricing methods, promotional campaigns, and other elements of the marketing mix (For more, see Appendix 1).4.3) Product DifferentiationApple is proud of its innovations. Reviewing Apple’s production history, this attitude has permeated the company during its peaks of success. For instance, Apple pioneered the PDA market by introducing the Newton in 1993, easy-to-use iMac in 1998, high stable operating system (OS) in 1999, and iTunes in 2001 (Linzmayer, 2004).Launching the iTumes marked the beginning of Apple’s new strategy of making the Max the hub for the “digitallifestyle” and also launched the iTunes Music Store online in 2003. Slowly, Apple opened its own stores andexpanded internationally. The iPod was then introduced and it “changed the way people listen to music”. Apple

continued their innovative streak with advancements in flat-panel LCDs for desktops and improved notebooks in years 2002 and 2003. In addition, the Company offers its ownIn order to satisfy consumers’ favour, Apple Inc. has their product line for the iPod: iPod Shuffle, iPod Nano, iPod Classic, and iPod Touch. The different storage capacity of iPod with difference price make it affordable for the consumers from different level of wealth.When the iPod was first introduced, Apple made sure that it also had its iTunes store in place.As the competition from Sony’s new Walkman, Apple Inc. started to interested in learning more about how consumers view on iPod about the ownership and usage patterns of different iPod models, the features that consumers value, and consumers, attitude towards the iPod. Apple Inc. draft a questionnaire to the existing consumers and setting up an online questionnaire on theiTunes website.AppleCare offers a range of support options for the Company’s customers. These options include assistance thatis built into software products, printed and electronic product manuals, online support including comprehensiveproduct information as well as technical assistance, and the AppleCare Protection Plan (“APP”).Net sales of iPhone and related products and services accounted for 39% of the Company’s total net sales for the year. Net sales of iPad and related products and services accounted for 8% of the Company’s total net sales for 2010. Net sales of the Company’s Macs accounted for 27% of the Company’s total net sales in 2010. Net sales of other music related products and services accounted for 8% of the Company’s total net sales for 2010. Net sales of iPods accounted for 13% ofthe Company’s total net sales for the year.Products

Percentage of Apple Inc.’s total salesiPhone39%iPad8%Company’s Macs27%iPods13%Other music related products and services8%The strong brand name of AppleFrom a brand architecture viewpoint, the company maintains a "monolithic" brand identity - everything being associated with the Apple name, even when investing strongly in the Apple iPod and Apple iTunes products. Apple's current line-up of product families includes not just the iPod and iTunes, but iMac, iBook,iLife, iWork, and now iPhone. However, even though marketing investments around iPod are substantial, Apple has not established an "i" brand. While the "i" prefix is used only for consumer products, it is not used for a large number of Apple's consumer products (eg Mac mini, MacBook, Apple TV, Airport Extreme, Safari, QuickTime, and Mighty Mouse). (marketing minds)Apple Brand Strength Now Creating Financial SuccessSo far, Apples' branding strategy is bearing fruit. Forexample, Apple reports that half of all computer sales through its retail channel are to people new to Macintosh, the company's sales and margins have been growing strongly since 2006, and Apple has achieved several "best ever" quarterly financial results during the past couple of years. Leveraging the success of theiPod, Apple launched the iPhone (released in July 07) to extend the brand even further. Apple's buzz marketing efforts in the first half of 2007 were truly superb, culminating in the release of one of the most

highly anticipated products for many years - and launching apple into a completely new market: mobile handsets. By July 2008 the buzz about the 3G iPhone resulted in over 1 million units being sold in the first 3 days of its release in over 20 countries aroundthe world. This success was repeated in 2010 with the introduction of the iPad tablet computer, and in March 2011 with the launch of the iPad 2 which sold 1 millionunits within 24 hours. (marketing minds)Apple Re-entering the Corporate Market via the iPhone and iPad Halo EffectOver the next few years it seems likely that Apple willre-focus on the Corporate marketplace: In 2009, when Apple announced "Snow Leopard" (the current version of the Apple Mac operating system) it included features allowing Mac computers to fully support Microsoft Exchange. This enables corporate IT departments to support business users who wish to use Apple Macs for their main email clients. Apple has said the next version, Mac OSX Lion (due in Summer 2011) includes allthe functionality needed to use a Mac as a business server.Microsoft continues to bring out advanced versions of Microsoft Office for Apple Mac, and - very significantly - in mid-2008 Apple announced a software upgrade for the iPhone which allows iPhones to be fullysupported by Microsoft Exchange email servers. Corporate IT departments can now include iPhones as email clients.Apple's strategy seems clear: to use the popularity of the iPhone and iPad to break back into large corporations, sell lots of those devices, and have Apple Mac back on the desks of large businesses (or more probably - in the laptop bags of middle and senior managers in most large businesses).After Halos - CloudsApple has invested in a 500,000 (soon to be one million) square footApple data center in rural North Carolina. It is likely data centre this

will be used as the core of a data repository for its MobileMe and other online services, and that Apple willseek to leverage it's customer franchise into an even broader market space. This is one of many ways in whichApple and Google are fast becoming arch rivals. (marketing mix)Nike + iPodIn fact, Apple's CEO Steve Jobs has been noted long time that 5,000 people have iPod, half of the people use it while exercising. Thus, Steve seize the opportunity to bring these people who like sports into iPod platform .Not only that, iPod is also trying to sell holster, small accessories , only the sales of these accessoriesreach to one billion. Because people want to buy an average of three to four to make them look more cool.Nike looks very relevant to the positioning . In parker's opinion, why not let people have this association, that is, with iPod, jogging should be put on a complete set of Nike shoes; while wearing Nike running and bringing the iPod ,it is so wonderful. Thus, Parker and Jobs hit it off. Nike and Apple are calling their technology team and the brand team to develop a new lifestyle program, combine the two products together perfectly, for those core consumers who love the sport, build a series of shoes, data, music, matching clothing.May 23, 2006, after 18 months of cooperative development, the Nike and Apple announced in New York, for the first time sports and music were combine together, introduced the innovative "Nike + iPod" products. the first product is a set of wireless systemlet Nike sports shoes "dialogue" with iPod nano.The campaign components include in-shoe sensor and receiver connected with iPod, so that, iPod can store and display time, distance, calories burned and pace of

the movement, the user can also know these real-time data by headphones .In addition, online music bookstore of iTunes Music Store added a new Nike Sport Music section on the new nike plus Web site , offers personal service which can help users to feel sports experience from the "Nike + iPod" . ( Shaw Cook, 2010)PlacePlace involves decisions concerning the distribution channels to be used and their management, the location of outlets, method of transportation and inventory levels to be held. Its objective is to ensure that goodquality products and services are available at the right time and place. It is important in managing good customer relationship by providing cost-effective access to the marketplace. (Jobber, 2007)Firstly, there is direct distribution though Apple stores located in many countries and accessed on line. Apple, Inc Headquarters are located at is located at 1 Infinite Loop, Cupertino, California. The Apple Consultants Network includes independent professional service providers and technology consulting firms that specialize in Apple and third-party solutions. Certified on Apple technologies, these providers deliver on-site technology services and support to homeusers and businesses of all sizes. Apple Inc. has a number of largely Apple exclusive and company-authorised retailers. Mainly selling the range of Applehardware products (iMacs, iPods and so on) and some other peripheral, complimentary products and software, these include such businesses as AppleCentres and FirstByte stores in Australia.Secondly, there is one intermediary channel of distribution. This is where there is a retailer betweenthe manufacturer, Apple, and the consumer. This involves mainstream, general retailers such as Harvey Norman, who stock iPods as one of many like products.

Not seen, not sold. The hypermarket's rules applies to the AppleStore.The Apple Store (80 000 references) is a large hypermarket. With shelves and products inside. The consumer comes through the door of the App Store, and then visits the various departments: Games, Business, Comics, Books, Education .... At the entrance of each department, at the head of the shelves, the Best Sellers. In the department, we find first the good sellers. And after, the low sellers. The more sales declines, the more they go to the bottom of the shelves.Apple has expanded and improved its distribution capabilities by opening its own retail stores in key cities around the world in up-market, quality shopping venues. it has entered into strategic alliances with other companies to co-brand or distribute Apple's products and services (for example, HP who was selling a co-branded form of iPod and pre-loading iTunes onto consumer PCs and laptops though in retrospect this may now just have been a stepping-stone). Apple has also increased the accessibility of iPods through various resellers that do not currently carry Apple Macintosh systems (such as Harvey Norman), and has increased the reach of its online stores (marketing minds). Apple retail stores give prospective customers direct experience of Apple's brand values. Apple Store visitors experience a stimulating, no-pressure environment where they can discover more about the Apple family, try out the company's products, and get practical help on Apple products at the shops' Guru Bars (marketing minds).PromotionPromotional mix is to gain awareness of target audienceon the existence of a product or services, and the benefit it confers to customers. Advertising, personal selling, sales promotion, public relations, direct

marketing, and online promotion are tools of promotion that a company may use to target their customers (Jobber, 2007). Apple Inc. also has their principal promotional tools such as:Personal sellingThis form of promotion is most relevant to the Apple exclusive and authorised retailers. Staff are trained to have a high level of product knowledge and are completely focused on the sale of Apple’s range. These sales people are in the best position to provide immediate and hands on promotion of a product that theyclearly support.AdvertisingApple has used a range of media advertising to promote the iPod. Electronic, print, the Internet and alternative media (such as billboards and bus shelters)have all been used.Advertising costs are expensed as incurred. Advertisingexpense was $691 million, $501 million and $486 millionfor 2010, 2009 and 2008, respectively. (increasing indicating that advertising is an important tools for the firm in gaining new customers or sales. )Cross promotionThis involves the use of one product to support anotherand vice versa. One of the clearest examples is provided by the iPod cross promotion of the rock group U2 and its album ‘How to dismantle an atomic bomb’. Apple designed a special black ‘U2’ iPod for the launchof the album—a strategy that effectively cross-promotesApple’s and U2’s products.InternetInternet has replaced the traditional promotion media and is proven to be a powerful communication tool (Jobber, 2007), the Apple Consultants Network website provides a search tool allowing visitors to locate nearby certified Mac product consultants in the U.S, Canada, and a number of international locations. The

online Apple Store offers free shipping for orders over$50 and also offers iTunes gift cards. This may helps Apple Inc. in attracting online customers to purchase from them as the shipping fees maybe quite expensive insome areas.(Ingredients for the success of the Apple iPod: Marketing,By STEVE BARRILE)The Company further believes providing direct contact with its targeted customers is an effective way to demonstrate the advantages of its products over those of its competitors and providing a high-quality sales and after-sales support experience is critical to attracting new and retaining existing customers.The official iPhone website does more than just provideinformation about the product. The website provides toptips and tricks for the use of an iPhone, as well as a huge focus on apps. Almost the entire iPhone page displays images of apps, provides the "App of the Week," the website also contains sections titled "Apps for Everything," and the "Top Apps." Apple's website isa great marketingtool for current iPhone users and consumers that have an interest in purchasing the iPhone. The promotion of the apps will create a stronger source of revenue for Apple. As customers see top rated applications, they are more likely to download the app, rather than searching through 25,000+apps to find one that may be of any value to the consumer(articlebase, 2010).The ‘halo effect’Under the ‘halo effect’, consumers who were buying eht sought after iPods were now considering other Apple products due to their positive experiences. Apple is using iPod, iTunes, iPhone, and now iPad to reinforce and re-invigorate the Apple brand personality. At the same time, these product initiatives are growing a highly relevant, appealing brand image in the minds of

consumer segments that Apple has not previously reached.Apple hoped that the popularity of iPod and iTunes among these new groups of customers would cause these segments to be interested in Apple's computer products.Since the take-off of the iPod there has been a dramatic rise in Apple's computer sales and market share. Apple's aspirations for the iPod halo effect waswas highlighted most strongly when it used the slogan "from the creators of iPod" in its promotion of iMac G5computers. In this instance, the Apple brand came full-circle - having been built into a branding system that originates in the personal computer market, then leveraged into the consumer electronics market, and then back into the consumer personal computer market.This halo effect is extended with the hugely successfulApple iPad tablet computer. Great customer experience with iPhone (and familiarity with Apple's touch screen gesture controls), combined with a great product in itsown right, has made iPod a huge success that in turn isdrawing even more people to Apple's Mac computer products. (marketing minds)ReputationApple’s Principles of Business ConductApple’s success is based on creating innovative, high-quality products and service sand on demonstrating integrity in every business interaction. Apple’s principles of business conduct define the way we do business worldwide. These principles are:• Honesty. Demonstrate honesty and high ethical standards in all business dealings.• Respect. Treat customers, suppliers, employees, and others with respect and courtesy.• Confidentiality. Protect the confidentiality of Apple’s information and their information of our customers, suppliers, and employees.

• Compliance. Ensure that business decisions comply with all applicable laws and regulations.(Annual report)Customer FocusEvery product we make and every service we provide is for our customers. Focus on providing innovative, high-quality products and services and on demonstrating integrity in every business interaction. Always apply Apple’s principles of business conduct. (Annual report)This will gain good reputation for the firm as they arepublishing this online showing that they are producing products that customers focused.“Win-win” marketing. In some cases, it may actually be profitable for companies to do good deeds. This may be the case, for example, when a firm receives a large amount of favorable publicity for its contributions, resulting in customer goodwill and an enhanced brand value. A pharmacy chain, for example, might pay for charitable good to develop information about treating diabetes. The chain could then make this information onits web site, paying for bandwidth and other hosting expenses that may be considerably less than the value of the positive publicity received.Charitable DonationsEmployees are encouraged to support charitable causes of their choice, as long as that support is provided without the use or furnishing of Apple assets (including employee work time, or use of Apple premises, equipment, or funds). Any charitable donations involving Apple assets require the approval of the Chief Executive Officer or Chief Financial Officer. For additional information, see Finance Policy1.10. (annual report)The latest round of Apple MacBook Pro computers are billed as “The World’s Greenest Lineup of Notebooks.” For a company that expects its best clientsto upgrade their hardware annually, they’d better

produce something that’s easily recycled. (Posted by Steve on Jun 15, 2010)PricePrice setting is an important element of marketing mix in the purchase decision of customers as price affects the value that customers perceive they get from buying a product (Jobber, 2007). However, Apple is a premium brand computer that does not attempt to compete on price. The company has reduced prices after some initial product launches. It uses skimming and premium pricing strategies. (Premium price strategy – Pricing rarely fluctuates, products benefit from low depreciation value iPhones from £349, iPods (shuffle, nano, classic, touch), starting prices £46, £118, £193,£152, respectively. Apple TV, £223. – Apple Online Store, http://store.apple.com/uk. )Some commentators questioned Apple’s strategy and the iPod’s high unit price, while others saw the launch as a nice PR exercise for the firm. Both skeptical analysts and the firm itself could not, however, have envisaged the speculator ensuing success of the device.Almost instantly, the iPod were highly sought after andbecame a ‘must buy’ gadget for any self-respecting technophile. But the subsequent enormous sales, companyprofits and increased capacity and capabilities of later models with only relatively smaller price increases seems to have vindicated Apple’s pricing decisions.The retail pricing control by Apple is somewhat limitedand, like many other products, the iPod has been subject to considerable discounting particularly in theone intermediary channel of distribution.From Apple’s perspective, discounting usually only eatsinto the margin of the retailer, not the company itself. Apple’s market skimming pricing on the iPod seems to be successful. Indeed several of the iPods major competitors have either closed down (Rio) or are

struggling, especially the cheap, generic MP3 players from China.The iTunes music store launched by Apple Inc., creatinga digital download powerhouse. This success due to a simplt and uniform pricing strategy, which become an industry standard of 99cents per track.Another pricing strategy used by Apple Inc. was launching a low-price version of an existing product targeted at price-sensitive consumers. Mac mini, a basic version of Macintosh computer launched by Apple Inc. is believed it can tempt people who have bought aniPod to ditch their Windows-based PCs and switch to theMac mini.Apple Inc. unveiled significant pricing and copyright changes to its iTunes Store, moves by the dominant online musicseller that could spur similar action across the industry. Some of Apple's moves appear to be a response in part to shifts in the digital-music market. Growth in paid downloads slowed significantly in 2008, rising 27%, compared with a 45% increase a year earlier, according to Nielsen Co.'s SoundScan service. New online-music rivals have also emerged, including Amazon.com Inc., which sells many songs at a cheaper price than iTunesand without copy protection, giving usersmore freedom with the songs they have purchased. The moves by Apple could

prompt others in the online music industry to also explore new ways to sellmusic. Apple last year surpassed Wal-MartStores Inc. as the world's largest music retailer. Digital-music retailers in the U.S. sold more than one billion songs in 2008. Apple said it has sold six billion songs since the iTunes Store launched in 2003. Under Apple's new pricing plan thatwill take effect in April, Mr. Schiller said songs will cost 69 cents, 99 cents or $1.29. He said the "vast majority" of the songs will cost 69 cents, though people familiar with the matter said the most sought-after songs -- which generatemost of the sales on the service -- will likely cost $1.29 as both Apple and the major record labels try to boost revenue growth. (ETHAN SMITH and YUKARI IWATANI KANE, 2009)They have a one-day Black Friday sale that saves 5-10% off certain products. But that’s it. One day. They set their prices high and back them up with a stellar reputation for providing excellence in their products and in customer satisfaction. You can find a decent PC notebook at Best Buy for about $600, but Apple has no problem charging $999 for its least expensive . (Postedby Steve on Jun 15, 2010)In terms of price to the consumer, Apple's computer products have an additional cost advantage: the company

does not have to pay another company for operating system licences. (marketing minds)Market skimming strategy (charging a relatively high price for a short time where a new, innovative, or much-improved product is launched onto a market) (tutor2u).When the iPhone was initially released, it was priced at a hefty $599. Still, hundreds of thousands of peoplerushed out to get the new phone, forking over a third as much as they would have had they waited an extra 3 months. 3 months after the initial release, Apple reduced the price of the iPhone to $399. This enraged Apple's loyal customers and consumers who purchased thenew phone just months earlier. One year later, Apple again reduced the price of the iPhone to $199, 66% lessthan the original price (articlebase, 2010).In July, 2007, the Apple iPhone was all the hype. I believe that Apple's decision to release the phone at $599 was slightly based on greed. However, their product was the most innovative out in the market place, giving Apple the freedom to price the iPhone at whatever they wanted. Many believed that Apple had cut the price after discovering lower than expected iPhone sales. Apple, however, states that the price cut was made "to spur holiday sales and predicted that Apple would meet its stated goal of selling its 1 millionth iPhone by the end of September." (Dalrymple, 2007)As with the product life cycle of any cell phone or Apple product, including Apple's iPod, prices are oftenreduced drastically months after the initially release.Tech products are always competing against "the latest and greatest" while maintaining a relevant price in themarket place. Had Apple not reduced the price of the iPhone, the customer base would have dwindled quickly as many consumers are unwilling to spend $599 on a cellphone, no matter how many useful features the phone maycarry.

As the iPhone remains to be the number one smart phone around, the product continues to grow, increasing size capabilities, increasing the number of applications available, and providing new features that are releasedthrough new iterations of the phone, continue to provide a greater value to the iPhone while the pricingremains relevant.At this time in the product life cycle, Apple continuesto release enhanced iterations of the iPhone. With mostiPhone users un-willing to purchase a newer version of the iPhone because of price, the target audience for the newer generation phones is new iPhone customers. With Apple's installed base continuing to grow, they have found a way bring in reoccurring revenue from their existing customers through the sales of their application downloads. As more and more people purchasethe iPhone, Apple's audience for new customers continues to dwindle. Fortunately for Apple, they have built in another source for revenue that continues throughout the life of the product (articlebase, 2010).Effective marketing mix strategyMatches customer needsAfter carrying out market segmentation and target marketing, marketing management needs to understand howconsumers choose between rival offerings. It is important to note that an analysis of consumer choice criteria will reveal a set of key consumer requirementsthat must be met in order to succeed in the marketplace(Jobber, 2007).By creating a store strictly devoted to Apple products,the company has not only eliminated this problem but has made an excellent customer-loyalty move. Apple stores are a friendly place where Mac and PC users alike are encouraged to play with and explore the technology that the company offers. This is a space where Macheads can not only get service but also hang out with others who enjoy Apple products just as much

as they do. By creating this space, Apple encourages current and new customers to get excited about what it has to offer.By selling its products to schools and universities, Apple turns classrooms into showrooms. If students go through school using Apple products, they become comfortable with the interface and familiar with the superior performance the brand offers. By creating thisearly exposure, Apple captures customers before they even know that they are customers.Apple carefully considers what consumers are looking for, so its products are a result of both extensive research and strong design. This meticulous planning isa large contributor to Apple's high customer-satisfaction rates. It's plain and simple: Robust and easy-to-use products not only make your customers happy, but also make them want to buy more products from you in the future. (Inside CRM ,2008)Well blendedAll 4P’s should be well blended to form a consistent theme. All the promotional mix should be designed with the objective of communicating a consistent message to the target audience about the benefits, and distribution decision should be consistent with the overall strategies position of the product in the marketplace(Jobber, 2007).Apple is a hip brand. It pushes a strong identificationwith everything young, up-to-the-minute and smart. Consider Apple's I'm a Mac campaign. The Mac guy is smooth and confident, while PC appears uptight and old.All of Apple's products have the same basic architecture. Because of this consistency, customers who already own Apple products have a good idea of whatthey'll be getting before they make a purchase. They know that it will be easy to adapt to new hardware, andthis makes them more open to making a repeat purchase.Matches corporate resources

The choice of marketing mix strategy may be constrainedby the financial resources and the internal competencesof the company(Jobber, 2007).For the average user, most Mac programs are produced byApple. This sort of control over the entire user process, from hardware to software, strengthens customer loyalty. Apple users generally don't have to stray to find products and solutions they want.With Apple products, the average consumer's interactionwith the company is likely to be low. Unless something goes wrong, you don't have any reason to speak with an Apple customer-service representative. Of course, the iPhone presented an opportunity that could have made Apple much more involved, similar to administering iTunes for the iPod. With a phone, interaction becomes multifaceted. You have to consider billing errors, quality of wireless service, contracts and a number of other factors that often lead to customer frustration. With the iPhone, Apple was wise to stick with building a good product and letting AT&T handle the service.Apple retail staff are helpful, informative, and let their enthusiasm show without being brash or pushy. They understands what good technology should look and feel like - and how it should fit into people's lives(marketing minds).Creates a competitive advantageA competitive advantages is the achievement to provide superior performance through differentiation to providesuperior consumer value or by managing to achieve lowest delivered cost. Apple Inc. used iPod to convey consumer benefits in excess of what the competition is offering. The iPod’s small size and its capability to download and store music can, therefore, be regarded asthe creation of competitive advantages over previous market leader in portable music players, the Sony Walkman(Jobber, 2007).

Many consumers may not be ready to buy an Apple computer, but they're willing to give gadgets like the iPod or iPhone a try. By selling products with lower entry costs, it creates an opportunity for new users tobe introduced to Apple. If these users enjoy their gadgets, they're more likely to consider buying an Apple computer in the future.Media outlets, especially bloggers, love to write aboutApple. Why? Because Apple makes it so easy. With leakedrumors about new developments, its very own expo and mysterious shutdowns of its online store, Apple gift wraps news stories that are just begging for speculation and hype. By perpetuating this cycle of media frenzy, Apple keeps its customers excited about buying new Apple products now and in the future.Although the architecture of Apple products is consistent, its portfolio is not. The company offers consumers a number of different ways to enjoy its products. By giving customers an opportunity to employ Apple in their living rooms, pockets and offices, Applemakes it easy to stay loyal to a brand they already like.From packaging to aesthetic design to user-interface experience, Apple makes its products accessible and attractive. Bright colors, a smiling icon and slick-looking hardware remind customers every time they use Apple products that what Apple offers is appealing.Criticisms of the 4Ps approach to marketing managementSome critics of the 4Ps approach to the marketing mix argue that it is oversimplifies the reality of marketing management. Booms and Bitner, for example, argue for a 4Ps approach to service marketing. 4Ps do not take sufficient account of people, process, and physical evidence.In service, people often are the service itself; the process or how the service is delivered to the customer

is usually a key part of the service, and the physical evidence is the decoration of the restaurant or shop.Rafiq and Ahmed argue that the criticism of the 4Ps canbe extended to include industrial marketing. the interaction approach to understanding industrial marketing stresses that success does not come solely from manipulation of the marketing mix components but long-term relationship building, whereby the bond between buyer and seller becomes so strong that it effectively acts as a barrier to entry for out-suppliers. This phenomenon undoubtedly exists to such an extent that industrial buyers are now increasingly seeking long-term supply relationship with suppliers.Despite the fact that marketing mix analysis is used asa synonym for the 4Ps of Marketing, it is criticised onthe point that it caters seller's view of market analysis not customers view(Kotler & Armstrong, 2004).To tackle this criticism, attempted to match 4 Ps of marketing with 4 Cs of marketing to address consumer views:Product – Customer Solution Price – Customer CostPlacement – ConveniencePromotion – Communication (Lauterborn 1990)

Read more: http://www.ukessays.com/essays/marketing/marketing-strategy-of-apple-inc-and-its-effectiveness-marketing-essay.php#ixzz2gY0ZQwTs