7/13/2017 Apple Incs Marketing Mix (4Ps) - Panmore Institute

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BUSINESS, MANAGEMENT

Apple Incs Marketing Mix (4Ps)

UPDATEDJAN 29, 2017 | ROBERTA GREENSPAN

Apple Incs marketing mix indicates how

the company matches its business
activities to market conditions. This
analysis of the rms marketing mix
provides insights about how to
effectively address market conditions
and the competitive landscape through
appropriate products, distribution,
promotion and pricing. Apple continues
The entrance to the Apple Store on Fifth Avenue, New York to use its marketing mix in globally
City. Apple Incs marketing mix (4Ps) takes advantage of
different product lines, distribution channels and promotion, expanding the business through various
while keeping high-end price points. (Photo: Public Domain) channels and with a growing product mix,
along with an array of promotion
strategies. As one of the most admired companies in the world, Apple Inc. serves as an
example of how the marketing mix can support business success.

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7/13/2017 Apple Incs Marketing Mix (4Ps) - Panmore Institute

Apple Incs marketing mix involves a variety of premium-priced products that are successfully
promoted and sold through a variety of distribution channels.

Apples Products (Product Mix)

Apple Inc. has continued to expand its product mix. This component of the marketing
mix determines the outputs of the business organization. In Apples case, the following
are the main product lines:

1. Mac
2. iPad
3. iPod
4. iPhone
5. Apple TV
6. Apple Watch
7. Software

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7/13/2017 Apple Incs Marketing Mix (4Ps) - Panmore Institute

These Apple products currently available in the market show the rms diversi cation in
this component of the marketing mix. However, as part of its product development
intensive growth strategy, the company continues to develop new products, such as the
Apple electric vehicle, which is under development through collaboration with rms like
Tesla Motors. This product mix shows that Apples marketing mix is extensive in terms of
product variety to address customers needs in different areas of their lives.

Distribution or Place in Apple Incs Marketing Mix

Apples marketing mix involves a holistic approach to distribution, taking advantage of
different distribution channels. In general, the company uses a selective distribution
strategy, which involves some degree of exclusivity that could limit market reach. Apple
authorizes sellers to ensure control over this component of the marketing mix. The
following places are included in Apples distribution strategy:

1. Apple Stores
2. Online Apple Store and App Store
3. Authorized retailers
4. Telecom companies
5. Ful llment services

Apple Stores are the most visible places that sell the companys products. The online
Apple Store and App Store are also highly visible. However, these stores are not the only
places in the rms marketing mix. For instance, Apple also uses authorized retailers,
such as Walmart, Target and Best Buy. The company also includes telecom companies
like AT&T, Verizon, and Sprint, which sell iPhone units. In addition, Apple uses ful llment
services from companies like Amazon.com and eBay, through which third parties sell
Apple products online. Thus, Apples marketing mix is comprehensive in exploiting
different types of online and non-online distribution channels.

Apples Promotions (Promotional Mix)

Apples marketing mix includes promotion activities that emphasize the premium image
and quality of the rms products. The promotional or marketing communications mix
supports business position in reaching more target buyers. In Apples case, this
component of the marketing mix includes the following elements:

1. Advertising
2. Personal Selling
3. Sales Promotion

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4. Public Relations

Apples marketing mix includes advertising through the companys website and Apple
Stores, as well as advertising through other rms, such as technology news sites. The
company also uses personal selling in the form of Apple Store employees who provide
product-speci c information in the aim of convincing store visitors to make a purchase.
In addition, the companys marketing mix involves sales promotion, which usually
happens at the Apple Stores. For example, some Apple Stores offer old models at
discounted prices when bundled with larger and more expensive products. Moreover,
the company uses public relations to optimize its corporate image. For instance, Apple
Events, leaks of new product features, press releases, and exclusive interviews are
carefully implemented to maximize positive publicity. Thus, Apple has mastered the
promotion component of its marketing mix.

Apples Prices and Pricing Strategy

Apple uses a premium pricing strategy. In this component of the marketing mix, the
emphasis is on how prices represent the company and its products, while meeting
consumer expectations. In Apples case, the premium pricing strategy involves relatively
high prices. This pricing strategy helps maintain the high-end image of the company and
its products. Another effect of this pricing strategy is that Apple products attract a
smaller market share composed of people from the middle and upper classes.
Nonetheless, the company maintains pro tability because premium prices entail higher
pro t margins. Thus, Apples marketing mix is aligned to the companys premium product
development strategy.

References

Apple Inc. Form 10-K, 2014.

Apple Info.
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TAGS:
APPLE INC.,CASE STUDY & CASE ANALYSIS,MARKETING,MARKETING MIX (4PS)

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