Establish And Adjust The Marketing Mix - Case Study Example

Marketing Mix xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Instructor xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date Contents 1.0 Introduction 3 2.0 Product Analysis 4 3.0 Pricing policy 4 4.0 Importance and impact of; 5 4.1 Promotional methods 5 4.2 Customer base 6 4.3 Channel of distribution 6 4.4 Customer Service 7 5.0 Marketing Mix 7 5.1 Products 8 5.2 Price 8 5.3 Place 9 5.4 Promotion 9 5.5 Physical Evidence 10 5.6 Process 10 6.0 Relation between Apple Marketing Mix elements 10 7.0 Environmental factors and effect to marketing mix 11 8.0 New Products or services against marketing objective, positioning and characteristics 11 9.0 Marketing mix in relation to the organisational, strategic and operational marketing objectives 12 1.0 Introduction Apple Inc is one of the leading companies in the Personal computer and mobile gadgets industry. The company begun in 1976 and was founded by Steve Jobs. Over the years, the company has had an exceptional reputational in the electronic sector and is constantly looking forward to enhancing its reputation through developing innovative products for all its customers across the globe. This paper aims at analyzing the company products and services through identifying key characteristics of the products and their significant to the market. Additionally, the paper will review Apple Inc pricing policy analyzing their price variables. The paper wills analysis the company marketing mix and their relation to operational, strategic and marketing objectives. 2.0 Product Analysis For their different products and services, Apple believes that innovation largely begins with an epiphany which they considered to be a sudden vision for the company future. The company is renowned for its recent innovation of iPad. Apple in 2010 introduced their much expected media tablet. The iPad offer various multi touch interaction offering a competitive edge over their competitors (Blythe 2008). The iPad have a fast processes which guarantees effective business operations. It is quite evident that the company has been working effortlessly to ensure that it enhances its technologies so as to meet its client satisfaction. The new iPad launched in 2012 has a lot of features compared to the ipad introduced in 2010 showing how the company is committed to ensure innovation in its products (Blythe 2008). 3.0 Pricing policy Apple Pricing policy is one that ensures that its brand is not diminished. It is quite evident that Apple is quality brand of computer. Evidently, this company does not compete with other PCs company on price. They believe that throat cutting pricing leads to diminished profits not forgetting losing shareholder value. For them creating pricing policy over their competitors diminishes the firm hard won reputation on their brand image (Chandy et al 2001). The company has had an experienced in the price elasticity of their products. Price elasticity is defined as the response of apple product demand as their prices decreases. For example, if Apple were to drop the prices of the Mac mini, the demand would increase thus reducing Apple earning. Apple Inc is committed to ensure it provides its customers with the best price. There are various pricing variables that are known to affect the company demand and it is for this reason that the company is involved in understanding price elasticity. The prices variables define the intended demand as the relationship between price and quality (Chandy et al 2001). 4.0 Importance and impact of; 4.1 Promotional methods Promotional method entails having a well established promotional marketing. Promotional marketing can be defined as a tool that is largely defined to pull customers to purchase products of Apple Inc. For Apple Inc, promotional methods are considered to be efficient and crucial marketing strategies (Churchill and Peter 1998). While Apple Inc considers that it spent a lot of money in advertising methods, it boasts that its desired promotional methods are less expensive and are significantly effective. The company has been involved in using promotional methods when launching iPad products so as to attract potential customers. Their success in using promotional marketing is due to the fact that the company allocate budget to promotional methods whereby they set targets that give them increased returns (Churchill and Peter 1998). 4.2 Customer base Apple Inc has defined a new customer base whereby it incorporates all its potential and existing customers. The company customer base mainly comprises of individuals who like having fun with technology. It adopts a more digital hub concept (Fisher 2008). Teenagers are the company customer base since this target audience uses iPods for many reasons such as socializing with friends, gaming thus making Apple Inc products a trend with this customer trend. Students also use Ipad to record notes and due to their ultra thin nature they are portable. Business people are so connected to Apple products since the company products have a business quality that is very critical. These products ensure effective communication, storage and sending of information within an organization (Fisher 2008). 4.3 Channel of distribution Apple Channel of distribution is defined by the well structured that allow physical flow of their goods and products. There distribution channel are drawn in a manner that will ensure that their customers are able to access their products across the globe. It is quite evident that Apple in distribution channel plays an essential role in meeting the company marketing, operational and business objectives. Due to well define distribution channel defined below, the company have been able to generate increased profits not forgetting increasing their customer based (Jobber, 2001). 4.4 Customer Service Apple Inc understands that effective customer services add up to maximum customer satisfaction. Apple well established and maintained customer service has had a positive impact in that it’s significantly increases the company sale not forgetting increasing customer loyalty (Jobber, 2001). Apple Inc has linked its customer service with its defined marketing mix so as to create a strong customer loyalty. It is quite evident that customers are not only interested with products only but also various elements of services received when they enter a retail outlet (Jobber, 2001). 5.0 Marketing Mix Apple Inc is considered to be a good example of a successful marketing mix. The four P’s are considered to be the main elements that influence the company performance. 5.1 Products Apple Inc has a variety of products that are of good quality. There constant innovation on its products has enabled the company to develop a strong competitive edge making the company the market leader in the Personal computer industry (Jobs 2011). It products ranges from: Portable computers which includes Mac products namely; MacBook Air, Mac Book Pro, iMac, Xserve and Mac mini Servers; the company offer several servers namely; MobleMe, xserve, MacOS X Ser and Xsan Accessories which including Keyboard, Led Cinema Display and MagicMouse From the above list of products it is quite evident that Apple Inc are well synchronized thus offering the customer with a whole round products. Additionally, the company has a service team that offers the customer with advice on how to maintain their products. If the customer is experiencing a technical difficulty with any of the product is free to locate any apple store and the service team will help out (Jobs 2011). 5.2 Price Compared to its competitors, Apple is a considered to be a premium brand computer that does not necessarily compete over price. The company has been involved in reducing its prices after launching some initial products (Jobs 2011). The company widely uses both premium and skimming price strategies to woe their customers. Some of the prices being offered by Apple Inc are; The Apple iPod Classic is priced starting at $249 The Apple iphone cost begin at $99 The Apple iPad is priced at a minimum of $499 The Apple Mac Book costs $999 The Apple QuickTime Pro for Windows costs $29.99 Apple iPad pricing strategy has a considerable flexibility to low prices if customer responses dictate so. During holidays, the company is involved in offering discount so as to encourage spending (Kotler et al 1999). Additionally, there are other numerous grounds in which a customer is able to enjoy discounts. The grounds are; when a customer does multiple purchases, or when a client pays in full on items that are expensive. 5.3 Place Apple Inc is headquartered in California where customers near California are able to get their products and services. To reach a large number of target audiences, Apple has a network which includes technology consulting firms and independent professional service providers that have widely specialized in Apple as well as third party solution (Kotler et al 1999). Having certified knowledge on Apple technology, these providers support home users as well as business on their various on site technology services. The different apple providers undergo training that is later assessed. The company has considered all its global customers due to the fact that it has established out lets in Africa, Asia, Europe and America. Additionally, in order to serve its growing customers in the Middle East, Apple recently open a retail outlet in Shanghai China (Kotler et al 1999). 5.4 Promotion Apple Inc has invested in various promotion methods to ensure that it reaches all its target audiences. The company is involved in offering special discounts on refurbished Macintosh computers, 8GB iPod and iPod Nanos. For all its products, the company offers one year warranty. Apple Inc has established training centers throughout USA that play a role in providing information in Mac system (Nakashima 2010). These centers offer wide range of exams as well as innovation and information technology courses creating professionalism in their service and product delivery. The company has a well structured website that has a search tool that allows visitors to locate their array of products across the globe. The company has a back to school offers as a way to reach the greater percentage of their target users who are students in institutions of higher learning (Nakashima 2010). 5.5 Physical Evidence The company main website is located at http://www.apple.com. Additionally, the Apple logo evolved from Isaac Newton. Many of the apple users are able to differentiate other products from competitors through the use of the company logo (Tellis 2004). 5.6 Process From the various processes in the company, Apple converts its new consumers and significantly secures their trust and loyalty through a corporate emphasis on customer service. It seeks to attract its target audience by way of establishing bold public relation and increased advertising (Tellis 2004). Finally, Apple has largely expanded its distribution channels which include the addition of Wal-Mart. 6.0 Relation between Apple Marketing Mix elements Successful marketing mix calls for offering right products, sold at the right price, right place, using acceptable process and having a suitable promotion. All the elements defined in the marketing mix affect one another and therefore, Apple have ensure their elements are interconnected. It is quite evident that, customer preferences and needs impact the marketing mix and therefore when marketing mix are linked to customer wants it enhances increased company performance and customer satisfaction. Altering of one marketing mix requires ensuring all the other elements are in line with this alteration to ensure customer response are not affected in any way (Tellis 2004). 7.0 Environmental factors and effect to marketing mix Environmental factors have impacted on Apple ability to meet the needs of their customers. The company has realized the key towards gaining a more competitive advantage is through predicting cultural, political, legal, technological and ecological factors and their effects on the company marketing mix. Based on cultural aspects, customers consume Apple products since they are socially accepted. The increased technological advancement has played a bigger role in the growing interest in Apple products. The company is engaged in green marketing in its quest to ensure that its processes are eco friendly. Improvement in the global economy could shift demand curve in favor of the company causing more customers to have increased income thus ability to purchase a luxury product offered by Apple (Tellis 2004). 8.0 New Products or services against marketing objective, positioning and characteristics Launching of new products should be in accordance to marketing objective, positioning and market characteristics. Apple Inc ensures that they maintain to improve on their new products so as to ensure their have a strong competitive edge. Apple defines its positioning ass the process in which their marketers are engaged in creating identity and image especially in their new products so as to connect with their target audience (Tellis et al 2000). Apple needs to ensure that they are in a position to compare the competitive strengths of their new products against those of their competitors and relate them to the identified marketing objectives. Deposition entails constantly changing the identity of competing products in relation to Apple Own products. 9.0 Marketing mix in relation to the organisational, strategic and operational marketing objectives In order to ensure improved organizational performance, there is need to efficiently assess the elements of marketing mix relative to operational marketing, organizational and strategic objectives. Creation of business strategy is necessary to ensure that targets are achieved and objective met (Tellis et al 2000). Apple Inc has related their marketing mix to their organizational and marketing objective defined in their marketing plan. Furthermore, a strategic planning plays a role in relating the marketing mix elements and the organizational objectives. Market mix stresses the need of mixing various factors in marketing strategies in ways in which organizational, marketing and operational objectives are met in relation to the target audience. Relating operational, strategic and organizational objectives to the marketing mix is critical to any organization Apple not being exceptional in that it largely articulates the necessity of marketing through showing how the organization will benefit (Tellis et al 2000). Additionally, this relation acts as a bench mark that measures progress and assists in determining future marketing efforts. References Blythe, J. 2008. The Official CIM Coursebook: Marketing Essential. UK: Elsevier Chandy, R., Tellis, G. J., MacInnis, D., & Thaivanich, P. 2001. What to say when: Advertising appeals in evolving markets. Journal of Marketing Research, 38, 399–414. Churchill, G. A., and Peter, J. P. 1998. Marketing: Creating Value for Customers, 2d edition. Boston:Irwin/Mcgraw-Hill. Fisher, A. 2008. America's Most Admired Companies. Fortune 157 (5): 65–67. Jobber, D. (2001). Principles & Practice of Marketing, UK, MacGraw-Hill Jobs, S. 2011. Apple’s Keynote, USA: San Francisco. Kotler,P. Armstrong,G. Saunders,J. Wong,P. 1999. Principles of Marketing Second European Ed. New Jersey: Prentice Hall Inc. Nakashima, R. (2010, June 2). Apple's jobs says ipad idea came before iphone. Retrieved from< http://www.abcnews.go.com> Tellis, G. J. 2004. Effective advertising: How, when, and why advertising works. Thousand Oaks, CA: Sage. Tellis, G. J., Chandy, R., & Thaivanich, P. 2000. Decomposing the effects of direct advertising: Which brand works, when, where, and how long? Journal of Marketing Research, 37, 32–46. Read More