Chapter 2Company and Marketing

Strategy Partnering to Build Customer Relationships

Case Study : Apple Inc.

Strategic Planning

The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.

Topic Outline

Companywide Strategic Planning: Defining Marketing’s Role

Designing the Business Portfolio

Planning Marketing: Partnering to Build Customer Relationships

Marketing Strategy and the Marketing Mix

Steps in Strategic Planning

Define mission

Set objects and goals

Define the business portfolio

Planning marketing

Define MissionMarket-oriented mission statement Product-oriented mission statement”Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.”

We sell laptops, mobile phones, ipods, ipads along with OS X

Set Objectives and Goals

Business objectives Marketing objectives

• To maximize profit.• To become the world's number one

company.

• To produce hassle free products that provides service and enjoyment for customers.

• To expand their sales to customers who haven’t yet own any Apple’s products.

Define The Business Portfolio

Analyzing The Current Business Portfolio

Analyzing The Current Business PortfolioBCG Matrix

Relative Market share High Low

Hig

hLo

w

Mar

ket G

row

th

Rate

Developing Strategies for Growth and DownsizingProduct/Market Expansion Grid

Exis

ting

Mar

kets

Existing Products New Products

New

Mar

kets

Value chain

Value delivery network

Marketing Strategy

S T PSegmentation

Targeting

Positioning

Segmentation

Demographic segmentationage, gender, education, income, occupation, etc.

Geographic segmentation city, state, region or country.

Psychographic segmentation life style, Social class (Upper class, middle class, and lower class), behavior or ethics.

Segmentation techniques:

Apple: segments customers using Demographic and Psychographic techniques.

Targeting

Demographic segmentationo Age - Young Children and Kids - Teenagers - Adults.o Education - College and University Students.o Occupation - Business People.

Psychographic segmentation o Social Class - Middle and Upper Class o Life Style - A Less Price Sensitive Customer and Quality is a must.

Apple:

Positioning

“ We believe that we're on the face of the earth to make great products and that's not changing. We're constantly focusing on innovating. We believe in the simple, not the complex. ”

Apple:

4 P’s - Marketing Mix

Portable Computers - (Mac Book Pro, Mac Mini)

Servers - (Xserve, Xsan)

Accessories - (Magic Mouse, Keyboard)

iPod , iPhone , iTunes & Peripheral products

Product:

4 P’s - Marketing Mix

Premium price

Reduced over time

Flexibility

Discounts for workers

Price:

4 P’s - Marketing MixPlace:Manufacture

rWholesaler Retailer

Apple Store

Certified Retailer

Online Retailers (Ebay)

4 P’s - Marketing Mix

Through television advertisements, online ads, and on

billboards.

“less-is-more advertising”.

Packaging is modern and promotes higher level of

technology.

Promotion:

SWOT AnalysisStrengths: Hardware producers Loyal customers Strong brand name Eye catching Retailers

Weaknesses: Increasing competition Failure of notability and lack of

promotion of Apple TV and Mac mini. Increasing price of music & iTunes Premium pricing

Opportunities: Demand growth Market gap

Threats: Market completion Shifts in consumers tastes Global recession