International Marketing - Apple - Case Study Example

International Marketing: Apple Name: Tutor: Course; Date: Introduction The aim of diffusing products to an overseas market is to increase the share of product market and increase returns on the balance sheet. International marketing engross the recognition of the fact that people across the globe have different needs and preferences. Apple Company has brands that are recognized across the globe just like Gillette, BIC, Coca-Cola, and Cadbury Schweppes. It is important to indentify the global audience of products the business intends to sell through a consistent marketing mix while understanding regional differences (McGuire & Baker, 2010). The differences in values, languages, customs, and currencies will infer that some products will only suit specific countries despite being global markets. For instance, iPad and Gillette razors advertising in India and China requires a focus on local languages due to important regional differences. The global marketing environment must be assessed at an international scale by carefully scrutinizing overseas potential of markets. It may take longer to obtain relevant information because some locations may be unfamiliar. Also analyzed are the potential market size, type and degree of competition, price, product and promotional differences, alongside barriers to trade and the cost-effectiveness of various transport types. Apple should evaluate the scale of the investment and make consideration to long-term and short-term targets for any sufficient returns (Popper, 2010). For the company to start exporting, it must establish a market for the product and the extent at which it needs to be adapted for markets overseas. Direct Marketing Risk Management Direct marketers in local and international context take large financial risks depending on their judgment. Direct marketing is yet to recognize risk management as a crucial component in campaign development. Campaign managers do not want to be enslaved by chance but can confidently reduce and manage risk in product campaigns. Addressing risk requires exploring avenues that help create risk in direct marketing. To start with, Apple marketers must select target audience through greater insight and messaging based on qualitative judgment (Schept, 2010). The risk is amplified by the source and analysis of data. Research at every stage has academic and classic response in risk management but it becomes an unviable option when constrained by time and money. A ‘test-evaluate-scale’ could be more robust risk management strategy hence ‘new to tested’ ratio in campaigns can help balance security with innovation as it develops a budget supported innovation agenda.  Apple in order to sell iTunes, iPad and iPhone, will have to adopt a longer horizon marketing planning which is a favorable price for a de-risked campaign (Smart phones, 2010). It can also apply pure chance since this are improbable events driving response down such as data modeling errors, the good weather or the recent Australian fires. Such events are difficult to be identified at any point in time but the risk gallops if at a few points in time, the activity is concentrated. Management strategy for such risk demands spreading the activity throughout time. Direct marketing campaign demands a risk management strategy. International Manufacturers Representative Legal/Ethics themes An international manufacturers' representatives (IMR) could be any individual, company or sales agency selling Apple products to retail and  wholesale  customers. When the company procures the services of a manufacturer’s representative firm, a binding contract is made between the two firms empowering the representative to solicit sales for or sell the Apple products as an agent in a specified territory. The conditions of the agreement encompass commissions, payments and legal or ethical practices meeting the rules and regulations of Apple (Harari, Mellows-Facer, & Allen, 2012). Ethics govern individual or group behavior critical in personal selling as many businesses commit themselves to creation of mutually beneficial and long-term customer relationships. Apple sales representatives are tasked with the responsibility of creating and maintaining customer relationships. The contract demands a straightforward regulations governing selling and buying since well defined terms and conditions can be ingrained in the traditional contract form. Sales representatives should avoid the unethical tactic of low baling. They should know that the company, Apple, respects the confidence of its customers as well as customs, laws and traditions of all the countries it operates (Srivastava & Thomas, 2010). It will not engage in course or act that will violate the business ethics or laws of the country or state. It is unethical for employees or sales representatives of Apple to offer gifts, deceive, divulge confidential information, offer or receive bribes and entertainment, backdoor selling or infringe on customer rights to privacy. The activities of sales representatives must be governed by statutory laws based on national or regional legislations (Hoovers, 2010). For instance, Apple can apply the US laws governing salespeople on antitrust laws and uniform commercial code. Administrative laws as established by provinces for the case of China and States in the case of India must be adhered to by the sales representatives. International legal and ethical issues prohibit lubrication or through gifts and small sums offered by government officials or low ranking managers even in countries where such payments may not be illegal (Manning et al, 2007). It should also prohibit subordination requiring huge payments to high ranking officials of the government so as to ignore or commit illegal activities. International Consumer Buying Preferences Communication In international selling, customer-centric communications is vital. The company needs to transform by creating highly-personalized messages. This can be done by bridging all the company’s data sources using a single communications management system to obtain a deeper and precise understanding of every customer. This knowledge is applied to high-value and targeted communications with positive impact and measureable on the top line. The overall satisfaction is increased by Apple demonstrating to its customers that it values their time and understands their needs (Driver & Valdes, 2010). Apple should enable processes that can be managed by business users. It should endear to empower business users by giving them hands-on customer communications through control over all media used, from marketing email to account statements. The important goal of the sales and marketing executives must be addressed as well as the ability of delivering timely communications (Bulik, 2010). The company should quickly respond to changing business imperatives and trends. Therefore, Apple products should possess characteristics making them acceptable for the market such as shape, size, design, colour and performance (Schept, 2010). For instance, Chinese consumers prefer red color. Multichannel delivery should be optimized to satisfy customer preferences. This can be eased trough simplification and streamlining the ways in which documents are optimized, created, delivered and ultimately re-purposed. The demands on IT staff need to be reduced while eliminating non-value-added costs (Hague, Hague & Morgan, 2004). This can be done through implementation of ‘make once, use many’ strategy to customer communications. Ensure consistent and effective messaging throughout even the highly sophisticated delivery channels. The appearance attributes of Apple products reflects the perceptions of product design by designers themselves. Electronic gadgets consumers perceive product appearance through identifying function, appearance, reliability and instructiveness attributes (Roger, 2005). Apple consumers differentiate the appearances of durable products through descriptions generated by way of free categorization tasks. These attributes undercut product appearance descriptions used by consumers in describing product appearances. The mode and type of customer communication can be ‘make or break’ to relationships with customers (Harris, 2009). Apple should take advantage of every opportunity and interaction to gain trust and improve loyalty. Relevant communications in delivering personalized messages strengthens relationships and leads to increased revenue and market share for the company. Apple may use Open Text Customer Communications Management which creates more individualized and relevant content at each customer touch-point to high-volume mailed documents from one-on-one mobile messages (Bulik, 2010). Customers are allowed to set preferences of how their preferred mode of receiving information from Apple. The messages should reach them based on their terms. Every appropriate communication is leverage to reinforce Apple brands or promote up-sell and cross-sell offers. International Promotions Management The common promotional tools are numerous tools and can be employed to influence consumer purchases. These are advertising on or in newspapers, television, radio, Internet, or the billboards. The company can also engage in Price promotions where some of its products like iPad mini can be made available momentarily at some premium or at a lower price. Other methods can be sponsorships such as point-of-purchase where Apple can put a coupon right by the product or pay for extra display space at stores in Beijing, Shanghai, New Delhi or Bombay (Bulik, 2010). Promotional objectives should be derived from the expectation of what is to be achieved with an iPad or iTunes sales campaign. Increasing profits may be a vague objective since this has to be attained by way of intermediate outcome. Tangible and more reasonable objectives can be increasing market share achievable through some change in consumers provoking them to purchase more.  Apple can develop more promotional objectives to win the Asian market. Creating awareness in cases where Chinese or Indian consumers may not be aware of the existence of the Gap hence may not decide to go shopping there (David, 2011).  Attaining this objective is only possible by advertising and also through favorable displays at the point-of-purchase.  Promotional stimuli and advertising are given very modest attention by consumers hence prospective buyers should be exposed to the promotional stimulus a number of times before it “clicks.” A trial is possible to be undertaken when consumers have knowledge on the existence of Apple product and could perhaps fulfill some of their desires. This may take time before getting around to attempting on the product. There are so many other competing products that target the same customers and their incomes.  It is crucial to make an attempt on consumer who can try the product more than once, with the anticipation of making repeat purchases.  Apple can use coupons since it is an effective way of attaining trial, though these are illegal in some Asian countries and in India, the infrastructure enthusiastically allows coupons  especially when clearing houses are non-existent (Harris, 2009).  Point-of-purchase displays and continued advertising is effective.  Coca Cola just like Apple is broadly known in China, but a great proportion of the population is yet to try using the product. Mapping customer attitude toward the product Apple products is based on the premise that a high proportion of people in Europe and the U.S. have tried Apple, so a more rational objective should be used to make people in India and China believe positive features about the product such as attractive colors, variety of video displays and simple to operate than other generics or store brands.  Guerilla advertising best is achieved in these countries (Bulik, 2010). Mature products and categories can create temporary sales increases given that attitudes can be favorably well established and not driven by cost-effective changes.  Therefore, it is more practical to work on achieving temporary sales increases likely to be ridden off when the incentives are eliminated.  In Japan and the U.S. for instance, fast food restaurants can engage in temporary price promotions that gets people to switch from competitors or eat out more but upon the end of these promotions, sales are probable to soar back down again (Manning et al, 2007). For Apple in India and China, as a contrast, trial can be a closely appropriate objective in this kind.  Conclusion The exploration of various initiatives of international marketing above has shown that marketing risks have to be taken into consideration to minimize portfolio loss and decrease in the market share of Apple. The company should try conducting a feasibility study to identify the potential risks of moving to newer emerging markets like those of India and China. The use of manufacturers’ representatives is important since they know the profile and segments of overseas markets (Driver & Valdes, 2010). Despite their sufficient knowledge on the potential Apple customers, they must display a deeper understanding of legal issues and ethical practices that will endear the company to host governments’ approval. It is important that Apple understands the preferences of overseas customers through manufacture of standardized as well as customized products that suit the regions to be targeted. Apple customers know the products and will always compare with Sony, Samsung and Philips. Customer preferences and tastes should go alongside people’s tates, preferences and values. Chinese and Indian consumers are particular to values that respect their religious and political aspirations (Bulik, 2010). Promotional and advertising in emerging markets is a daunting task especially when targeting the mass market. It is possible to win these markets if aggressive guerilla advertising is done Reference List Bulik, B S 2010, Marketer of the year 2010, Marketer of the Decade: Apple. Advertising Age. David, F R 2011, Strategic management: concepts and cases (13th ed). Upper Saddle River, NJ: Pearson Prentice-Hall.  Driver, M & Valdes, R 2010, Apple loosens restrictions for iOS developers. Gartner Industry Research Group. Hague, P Hague, N Morgan, C A 2004, Market Research in Practice. Kogan Page Limited. London. Harari D Mellows-Facer A & Allen G 2012, Economic Indicators-March 2012. Research Papers. Commons Library. positioning, execution and experience. Journal of Brand Management, 17(7), 465-471. Harris, A 2009, Design at the very core. Engineering & Technology, 4(16), 60-62. Hoovers, R 2010, Apple Inc. Hoover’s Company Records. 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