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 APPLE CORPORATION AND ITS PRACTICES RELEVANT TO
STRATEGIC MARKETING MANAGEMENT

Organizational background:

Apple – is one of the most leading electronic giants in the world and they are in the
process of manufacturing the products which are of high precision and quality. Apple is
the idea of the visionary and the late Steve Jobs who helped in the design of the most
unique products like;
Apple computers – different varieties of Laptop, desk top computers
Apple IPhones – High end mobile phones which are a combination of the portable

APPLE CORPORATION AND ITS PRACTICES RELEVANT TO

STRATEGIC MARKETING MANAGEMENT
Organizational background:

Apple – is one of the most leading electronic giants in the world and they are in the
process of manufacturing the products which are of high precision and quality. Apple is
the idea of the visionary and the late Steve Jobs who helped in the design of the most
unique products like;
Apple computers – different varieties of Laptop, desk top computers
Apple IPhones – High end mobile phones which are a combination of the portable
computers or the PDA’s
I pad – they are the portable hand held mini tablet computers used for all the online
applications
IPod – Purely based on the younger generation and this has all the features like music
player, Facebook, Skype, etc.., and the only difference from the iPhones is that they don’t
have the phone applications in the ipad.
Hence all the products of apple are all focused on the younger generation and their
equipment's are known for the quality and the performance like the computers have high
end graphic applications and all the equipment's are highly reliable. Apple not only
provides good quality but they also maintain good relation with the clients by their after
purchase services all over the world. All the products of Apple comes with international
warranty. Apple follows the differentiated market segment as all of their products are
specifically focused on the Tech savvy’s who are ready to spend higher amount for the
quality they gain. In the recent times apart from the apple IPhones the other products of
Apple have fallen in the sales and they are looking in for the alternative products and
differentiate their products from that of the others. Thus they are looking in for the
strategies which can take their products to higher levels and avoid their dependencies on
the US and UK market alone.

This work is all about the analysis of the current market of Apple and strategically plan
for their future.
1.1 Strategic marketing in Apple Corp.

Business marketing

It is a form of marketing in which the businesses sell the goods to the other businesses in
wholesale who in turn take them to the target customers. Most of the big manufacturing
firms never involve in the direct retailing and they go in for the B 2 B form of selling the
goods and for this they involve in the different marketing strategies to attract the
customers. (Richard, 1998)

This is one of the strategies followed by Apple Corporation where they not only
concentrate on selling to the retail market but they also focus on the wholesale market.
Thus they focus on the profits gained by the retail sector is higher than the wholesale
where they sell their products in bulk quantities to the whole sale market. This is highly
advantageous for Apple mainly because they can gain higher profits without the expense
of their own retail stores and the other operational expenses are completely cut off in this
process. another advantage of this process is that the product gains higher share as the
different retailers like the T mobile, 3, etc.., use the different marketing strategies based
on the deals they make with the service providers, the different kind of the contracts and
the deals they make they thus have more chance of attracting the customers.

Operational marketing

Apple has unique marketing strategies mainly because of the type of the products they
sell, are mainly high end mobiles and electronic devices which are of very high demand
among the younger generations. Thus most of their marketing strategies are highly
focused on the younger generations. Most of their working strategies are based on the
current market and the operations they deal with namely, they differentiate their products
from the quality, applications and the unique features like Apple iPhone is unique
combination of the I pad with that of the phone features.

Thus Apple always focuses on the quality of the product compared to the others. Most of
the products of Apple comes with 2 years replacement warranty and in any case of
damage they will be replaced in case the problems cant be rectified. Thus these customer
centered approach of Apple has created higher attraction among the customers and this
has led to the spread of the Apple products all over the world as Apple has never created
floating customers rather they have only focused on the life time valuable customers
whom they value the most than the others.

Apple has the unique marketing strategy where they initially asses the market analyze the
business environment based on which they decide the type of the products and the pricing
they are about to follow. Once the prices are fixed then they go in for the direct ventures
with the local retailers there in order to spread their products in the local market. Thus
only based on this the they initially test market the products and based on the reviews
they alter the prices and the marketing strategies based on the place they have planned to
market like they focus on the high streets where the sale is higher, alter the prices based
on the demand in the market, go in for the right kind of the offers and the adverts to take
the product to the next higher levels. Thus by effective planning and scheduling they can
focus to gain the higher reach as in some parts of the world there is very less reach
compared to the others. All the marketing strategies of apple are highly customer centric
and they focus on the demands of the customers right from the design of the product. For
example in the recently launched iPhone 4S has a software called as SIRI which is
capable of understanding the voice and can do all the directed tasks. Thus by such
technical features Apple always tries t attract the customers as they can now handle the
product easily compared to the past even on the move.
1.2 Explain the processes involved in developing a marketing plan for Apple

Marketing plan for apple;

1. The environmental analysis which includes the internal and external analysis of
the Apple is performed and this helps in analyzing the current situation of the
organization
2. The target market, price, place, promotion, and the products to be marketed in the
process are assessed. Thus by planning the right marketing mix they can plan for
the appropriate marketing strategy for the target market.
3. By using the appropriate tools to asses the threats and the market forces Apple can
focus on the future of their products.
4. Thus based on the products and the life cycle which is studied using the Boston
matrix, Apple can plan for the right product which can be targeted in the market
5. After the process of planning is done then the study is done to see if they are
practically possible, internal and external audit is performed on the plan. Once
they are approved then the process of implementation is designed based on the
target market. Apple unlike the other organizations never go in for the test
marketing and they go in for the full fledged product launch to ensure they reach
the customers. Before the full product launch happens the products of Apple are
shown in the tech shows and other electronic fairs. A prototype is maintained at
all the leading retailers in order to create a hype among the people. based on the
level of sales and profits made they again alter the plans, price, and promotional
strategies in order to gain the target market.
1.3 Evaluate the links between the strategic marketing and the corporate strategy?

In any of the strategies followed by Apple Corporation they plan for the way they market
their products and this is true with all their operations. In case of the planning done at the
corporate level it is usually done by the top level management and they plan for the type
of the product, cost, the design of the brand image, etc.., these people are in the top level
management and they plan only for the objectives and the top level mission for the
organization based on which all the low level planning is done. In this process all the
people in the low level and the higher level of the management interact and plan for the
process of strategic marketing. Thus the process of planning depends on the corporate
strategy

Strategic corporate planning is based on the overall planning for all the operations of the
management. Thus this process involves all the process of planning where as the
marketing strategies are based on the organization alone.

2.1 Portfolio analysis

BCG matrix portfolio analysis

The products of Apple are in the peek of their sale in the Star state as they are already
international hit in the market. So, now apple is bringing in for the extension of the
product like the applications in apple are extended in the 4S like the voice recognition
based Siri and the new phone to be launched in the next year Apple iPhone 5 is planned
to have automatic projection of the images applications. Apple has been highly strategic
in their products and the future but the only place they had lost phase is in their other
products like the Tablets and the laptops which are all unique in design but the main
problem with apple is that all of their products are over prices compared to their
competitors like Samsung, Dell, etc.., thus in order to stay in the market Apple has to
adopt new strategies like going in for the new product lines, focusing on the other
markets where the competition is less like Africa and Asia. Already they have their
manufacturing divisions fully in China and if they fail to concentrate on the other
products in future they will lose the market to the other competitors who produce more
cost effective goods compared to Apple mainly in times of recession.
2.2 Strategic Marketing plan for apple:

Vision
Apple is one of the Corporate leader which has strong brand reputation and all their main
vision is to launch the product in the market which are completely innovative and path
breaking in that times. Their main focus is on the younger generation. Hence the main
aim of Apple is to be the market leader and satisfy the customers with the high end
products which are completely new.

Mission
The main mission of Apple is to produce the goods which are of high quality to meet the
demands of their customers. All of their products are of high end technology. Thus their
main aim is to produce communication and electronic goods which helps in providing
quick and easy access of the info0rmation and computing services to the world with the
customer satisfaction as the key principle.

Strategies:

In order to reach its goals;

Apple Corp. is highly committed to satisfy the needs of the people and all of their
products comes with all the safety standards and quality standards from the ISO.
Apple products are considered as safe and secure, with no harm of the heat and the
radiations; as batteries in the mobile phones are usually causing adverse effects on the
health of the people. Thus apple products are known for the minimal radiation and from
the accident of the Lithium batteries caused in the Dell laptops in the flight they have
completely avoided the use of such batteries. They have their own collection centers for
recycling their products and they use all the safety measures to take care of the health of
the users.

Implementation:

Most of the research labs in Apple are highly committed to produce the goods at more
safe and energy saving manor as the recent product of Apple iPhone has been
incorporated with the auto energy saving technology which elongates the battery time to
at most 7.5 hour when charged once. More over they are the mobile phones which have
been known to emit very less amount of energy.

In most of the cases many organizations have failed in the market mainly because they
have failed to plan the strategies for the future. The common phenomenon observed in all
the cases of the failed products are the failure to focus on the target segment, needs of the
people in those market and plan the strategies for them in terms of the products they
produce, price, place, promotion and the physical evidence.
Marketing Environment:

Process of STP

Segmentation
Any process of the marketing begins with the focus on the particular market the
organization has found the opportunity to sell their products. As the taste of the
people, their needs, choices, style, liking for the different products, their thought
on the price and the promotions, culture varies from place to place, nation to
nation it is highly essential for the organization to classify or segment the market
based on the customers, their income, age, choice, demographics, needs, etc..,
which will help in highly focused strategies for the success of the product.
(Christian Homburg, et.al 2004)

Consumer market segmentation for Apple:

Geographic:
In most of the cases the organizations are highly dependent on the specific
market in which they are going to market the product. In this case Apple is
focusing on the specific target markets like Africa, Mexico, Asia other than the
developed parts of the world they are highly dependent.

Psychographic:
Unlike other products they are small, sleek and highly reliable in design to attract
the younger people. they are available in different colors, designs and also they
offer designer based shells which can be fit for the moments.

Business Market Segmentation

The products of Apple are the same all over the world and unlike the other
organizations they don’t differ the quality or the applications they provide doesn’t
differ in the different market segments. Thus they provide the universal products
and services which are of same quality all over the world. In no place the
products / services are specific and hence this universal appeal is used as a
marketing strategy since the people love the products of Apple as they are
unique all over the world. Anywhere around the world they offer the same kind of
the after sales service where the customer can call in the service center and

Targeting
This is one of the unique strategies followed by apple where all of their products
are completely differentiated based on the price, people as the choice of the
different age groups differ according to the age, income level, and culture. Thus
they have different styles and choices given for the customers. In case of the
Apple IMac computers they have completely differentiated the products based on
the configuration, style and the quality.

Positioning: all the products of Apple are of good quality and they follow the
universal design all over the world. Thus the simple product, which is same all
over the world is the key to the success of Apple. Apple has the same logo,
design, touch and even the color of all the products of Apple are unique all over
the world.

PESTEL

Political:
 Apple Corp. strictly sticks to the international trade laws and regulations.
Apple has registered their logos, design, and the universal patent helps in
 maintaining their product the same all over the world as they follow the
international standards.
 Apple is highly influenced by the Taxes in UK and other parts of the world
as a result the price of the Apple products are less in the US market
compared to UK. In China, Korea, India, and other parts of Asia the market
is filled with the fake products which are similar copy of Apple and the
laws and the action of governments are not much strict against such piracy
as a result Apple is highly affected by such stand of the government.
 The policies of the governments differ in the different parts of the world as
a result the minor price differentiation exists in different parts of the world.
Similarly Apple also has the differentiated marketing strategies for the
products. All the products of Apple are mainly manufactured in China as
the production cost, labor and other costs are less

Economical:
 Most of the products of Apple have lost the intensity of the sales mainly
because are overpriced and the current down turn in the market has highly
affected their sales
 The people are highly affected by the cost cuts and all of their salaries and
incentives have come down as a result they consider the investment in the
Apple products as expense
 The demand for labor, increase in the operational cost have pressurized the
operations as they are forced to increase the price of the end products

Social:
 Products of Apple are with the American branding which becomes a barrier
for their sales
 The overpriced products of Apple are not preferred by the people as there
are similar replacements by Dell, HTC, Sony, etc..,
 The amount of the Younger generation have decreased compared to the
other people as a result this affects their sales

Technological:
 Heavy alternatives and replacements in the market for less prices
 Alternative pirated products from Korea and China
 All the products of Apple are purely based on the Imac operating system
and they have no compatibility with the other o/s like windows hence it
cant be used by all the people who are more user friendly to use windows
over the others. Similarly most of the files on the internet are only different
file formats and they will have to be converted to the Apple format
 Most of the application programs of apple have to be purchased for higher
price as a result they are completely hated by the people
 Apple products like Ipad don’t support Flash and other multimedia
applications
Power point presentation:
References

1. Richard P. Bagozzi (1998) Marketing Management (1st edn) Princeton

Hall, USA
2. Geoffrey Lancaster, Lester Massingham (2008) Marketing Management
(2nd edn) Tata McGraw hill, New Delhi
3. Christian Homburg, Sabine Kuester, Harley Krohmer (2008) Marketing
Management (2nd edn) Tata McGraw hill, New Delhi
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(1st edn) Princeton Hall, India
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