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Principles of Marketing

CIA-I (A)

Apple Inc. Marketing Strategies Analysis

Submitted to:
Dr. Malika Sankar M.
Submitted by:
R. Karthik
Reg No. : 1823270
Introduction of Apple Inc.
Apple Inc. was founded by two renowned people that is Steve Jobs and Steve Woznaik in
April, 1976. This company was mainly started with the motive of designing and making
desktop computers, but today they are not only in the computers and software’s, but also in
mobile phones, accessories and online service for Apple Customers. In today’s world, Apple
is consider to gain the position in Big Four that includes Amazon, Google and Facebook. The
first product that they launched was Apple I, then in 1980 they came up with the new user
graphical interface, named the Macintosh, which created a hype in the US market. Apple Inc.
was the one, who create the concentrate on the needs of customers.

The list of the products made by Apple, along with the time when they came into existence:

a. Apple I & II- 1976 to 1979


b. Macintosh- 1980-1985
c. iPod(1st Generation to 6th Generation )- 3rd January, 2001- Present
d. iTunes ( First online music service)- In the year 2002
e. MacBook Pro –2006( Also MacBook pro come up with new things from 2007 to
present)
f. iPhone (1st Generation – 10th Generation )- From 2007 to 2019
g. iPad (First Tablet Computer )- Started in April 3, 2010

Well, these were the main products which was made by Apple, as I mentioned in the above
list, well these products were famous as their marketing was also good.
4P’s of Marketing in Apple Inc.

As we know there are 4P’s of marketing that is product, place, price and promotion. As , we
will see that how apple applied these 4P’s in the market , and enable to get maximum number
of customers:

 Product- In Apple, there are list of all the product on one side MacBook along with
their accessories like Mouse, Keyboard, etc. , for Desktop on the other side there are
iPhone, iPad, iPod, iTunes, etc., includes in Mobiles and online services. Thus, Apple
mainly focus on designing of their product like iPad which provide the best quality
camera, also thinnest tablet to hold it easily, also they make it compactible, thus it shows
that Apple always focus on the product development strategy, which means that Apple
always brings new things in their new product, and in this way they were able to attract
the customers, we can say that Apple focus on the Product Development Strategy, thus
whenever Apple comes with new product , it gives us the new thing. Also Apple also
aims at selling the things together, like in the US market, Apple offer to all the school
and university students that if they take MacBook then they will get iPad Air at the
discount.
 Price- Talking about the price in the Apple, they sell their products at a very high price,
so it shows that they follow the premium pricing strategy, as Apple focus on the
creativity and innovation. The reason for keeping this strategy as they always offered
high-end products to the customers, which makes the different perspective among the
buyers and thus it makes the products, which will be delightful for customers. Apple
will first launched their products in US for 2-3 months, than they later sold their
products in foreign countries , so in this way the people will able to get rebate. Lastly,
I understand that Apple thinks that high price builds a luxury brand.
 Place- In today’s world , Apple has their own stores, also even their products are
available in online stores like Amazon, Flipkart and also Apple has provided the online
services of buying the products in discount. Now, Apple has around 506 retail stores in
25 different countries around the world. Even Walmart, also sell the Apple products.
Apple has their own distribution channel that is Manufacturer-to-Wholesaler-to-
Retailer-to- Consumers, also they follow Manufacturer-to-Retailer-to-Consumers.
 Promotion- Mainly in Apple, you will observe that they do promotion through public
relations, like when there was an incident of World Trade Center in which lots of people
has lost their lives, so Apple launched iPod 1st generation, it was the first portable MP3
Player, which is compactible and can be taken anywhere, it started with the motive that
it is for those people , who lost their ones at World Trade Center incident , so if they
have the product , they will listen the music anywhere , so that they were able to reduce
their sadness and sorrow. It tells that Apple do their promotions, by seeing the human
emotions, in this way they able to attract a lot number of customers. We can take the
case of the iPad Air and iPhone in, in which they give the advertisement of showing
the best cameras , they tells that to save the memories of your life, than capture it. Again,
it shows that in this way they were able to create the hope among customers. Apple
focus that what the customers need, so according to their needs they able to made that
product, and they keep their advertisements simple.

Analysis of the Marketing Strategies Adopted by Apple

When Apple Inc., came up with their products named Apple I and Apple II, which was not
much popular among the consumers, because of which they were unable to get enough
sales. So, in this way they started the new product named Macintosh computer, the
company first decided to know about the market segmentation than they will think about
the strategy, so they know that Macintosh will be used by “Knowledge Workers” (i.e.
College Students, Office Professionals, and Consultants), and small, medium and large-
sized business. They think out of their failure and realized that customers need simple
product, not a complex product so they make Macintosh packaging in one box, so that
customer also thinks that learning Macintosh, is very much simpler as compared to previous
products. It shows that they came up with relationship marketing i.e. more focus on
customer satisfaction rather than on increasing sales. Macintosh comes under the “Product
concept” of marketing.

When Apple came up with iPod 1st generation in the year 2001, they released the product
after 2 months of the World Trade Center incident, so they wanted to reduce the sadness of
their one, who were died in that incident, so they brought iPod in which lots of music can
be stored in one place and can be taken anywhere, their strategy was to connect with the
customer’s emotions and according to them they bring that product, in this way Apple start
maximizing their profits. Now today’s generation iPod is more like phone, which is less
costly, and it can take by middle-level customers. In this case, we can say that Apple uses
societal marketing concept, and the company uses the relationship marketing in this case.
Now, taking the case of iPad, which is considered to be the first tablet computer, they came
up with the quote of “Like a computer, Not a Computer”, thus it means that it has all the
functions of the computer, but doesn’t look a computer, it is small, thin and compact, you
can anywhere around the world, so in this way it will be comfortable for all the students
and business professionals. They promote their product through rock concerts and online
advertisements. The Apple uses the marketing concept to promote this product, as they
understand the needs of the customers.

When Apple release the iPhone 1 st generation , they do a lot of offline marketing and they
also they meet up to the expectations of the customers, because they had brought with the
thinnest and ground-breaking touch screen mobile, not any other company were able to do
it. But in this case, we can say that Apple uses the Product concept, as they focus more on
the product as compared to see the customer expectations.’

One thing that Apple able to get success in today’s world, because of the “Empathy”, it
means to understand one individual, to connect with others deeply, and understand their
emotions. Apple uses this thing, for making products which are useful for customers, it is
easy-to-use, clean and compactible, that’s why they were able to make products with good
creativity and able to sell it easily, it make the Apple to set apart from the other competitors.

Apple uses the premium price strategy, because they think that as to offer high quality
products to the customers, also the current CEO of Apple Tim Cook said that we offer great
product, so that they will get a great experience. They ignore the critics, but they always
said that Apple offer high prices, thus they will lose the market. But the Apple always earn
the profits, as they doesn’t listen to the critics and depends upon the customers’ needs.

In the end, I will say that Apple Inc. is the company, which focus mainly on the customers’
satisfaction, they make the products according to the needs of customers. They keep the
value proposition, without changing any price of the product, also they understand the
values of the customers, and it makes sure that Apple Inc. uses Holistic Marketing
Concept, also they involve relationship marketing and performance marketing. It involves
performance marketing because, year by year Apple comes with the new improved product.
It involves relationship marketing, as Apple able to connect with their customers,
stakeholders and also with their own employees. Thus, we can say that Apple is the best
Marketer in the Mobile Industry in the current scenario, with good public relations.
Gallery
References:

1. Khan, U. A., & Alam, M. N. (2015, June). A CRITICAL ANALYSIS OF INTERNAL AND EXTERNAL
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2. Kotler, P., Keller, K. L., Dubois, B., Manceau, D., Kotler, P., & Kotler, P. (2014). Marketing
management: Pearson Education .
3. Mallin, M. L. (2011). APPLE INC.: PRODUCT PORTFOLIO ANALYSIS. Journal of the International
Academy for Case Studies.
4. https://www.studymarketing.com- Marketing of Apple
5. Apple’s Winning Strategy in India – Rohit Mundra – Medium. (n.d.). Retrieved from
https://medium.com/@Brohit/apples-winning-strategy-in-india-6b0f52233b05
6. Arora, R. (n.d.). Critical Analysis of Marketing Strategy of Apple for the ... Retrieved from
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r_the_iPhone_in_India_A_proposal_submitted_in_partial_fulfillment_of_the_requirements
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https://www.business2community.com/marketing/apples-iphone-marketing-strategy-
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