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The issue of compatibility and price range on Apples Products and services.
Introduction.
Marketing is a dynamic complex function performed by most organizations in
reaching out to new and existing customers about a product or services being produce
or delivered by organization. Marketing is not just about promoting commodities but
rather it serves as one of the key measurement indicator for the success or failure in a
competitive business atmosphere as accreted by Gronhaug et (2005).
Shelby (cited in Ayuba, 2009) defined marketing as the behavioral Science that
needs to explain exchange relationships, he went further to explain that the study of
marketing needs to understand the behavior of buyers directed at consummation of
exchange, and its associated consequences on society
The concept of marketing is developed under the some certain three key words, which
are needs, wants and products/services. Among the mentioned key words marketing
serves, as a facilitator toward achieving some of the unlimited desired human needs
and wants.
For the transaction to take place the two parties most agree on mutually benefiting
agreement where in most cases buyer pay certain amount of money for the
commodity in need. This is why PRICE is a very important driving factor of every
product.
The Microenvironment:
Ayuba (2009) in marketing, microenvironment signifies means the internal
environment that directly affect either positively or negatively the position/activity of
the company. In which case the internal structural formation and polices governing
the company may be regards to as the micro, this integrate the whole internal
organisation departments.
To analyse the internal organisational environment a well know analysis method is
commonly used. The SWOT analysis, this acronym means Strengths, Weakness,
Opportunities and Threats was developed by Albert Humphrey in the 60s. the SWOT
analysis has been adopted over the years and had been used in various forms of
internal analysis. Using this framework, companys internal factors could be
effectively analysed. The four SWOT factors are usually the decision determinate on
internal basis at the corporate level.
Apple Inc. Is measured to be the most booming electronic company in the world
today, this is so because of its strengths and outstanding products performance,
customer loyalty, strong financial performance, brand reputation leading innovators
and strong marketing/advertising team.
Customer loyalty: When countless number of customers sleeps outside a store to buy
a product its obvious that Apple Inc. has a strong customer and product loyalty.
Apples products are highly user friendly and attractive. This amazing prospect gives
Apple high customer loyalty and high customer satisfactory rate.
Brand reputation: Basically Apple products have the same well design architectural
interface and excellent product performance which makes customers adapt easily, this
function gives customers a pretty good idea of the products they are about to
purchase. In the year 2012, Apple brand is appreciated to $76.5 billion USD and
considered to be the second most valuable brand in the world.
Financial performance: in terms of financial performance, Apple is consider to be
one of the best in the world. At the end of 2012 the company hold $10,000,000,000
liquid cash with a gross profit of 43.9% and zero dept.
Best Innovators in mobile technology: Over the years Apple has been considered the
most innovators in mobile sector; in 2012 it has been chosen to be the best leading
mobile innovator for the third time. Apples strategic innovation motive is aligned
with the need of consumers and to bring something unique to the market.
Strong Marketing and Advertising Teams: Apple has a strong marketing and
advertising team, which help in standing them out among their competitors. Apple use
less-is-better (built to achieve) marketing strategy and advert their products in a more
persuasive and appealing style.
Weakness: Although Apple Inc. Have several strengths but on the other hand it also
has some key weakness within the product and in the market as well which will be
discussed in explicit below.
Price: Apple products are considered to be expensive compared to the service and
quality provided by the products. Taking one of their products into consideration,
iPhone, one has to put into concern about the price compare to other competitive
products by other companies. Take Sony for instance, they provide almost the same
service and quality of product but Apples is relatively more expensive. This can
easily make some of their customers to go for other alternatives at lower price.
Furthermore, looking at the profitability ratio analysis its clear that apple products and
services prices is relatively higher that the production cost with more than 40% which
is very rare in other competitive companies, this is becoming alarming and customers
are gradually realizing the to the potentials in other relevant products of the
competitors.
Opportunities:Apple Inc. Uses it price weakness in developing a new scope of
opportunity, the company in its recent innovation of iPhone5 produced iPhone5c
along with a lower price, both of this phone have the same futures and functions only
that the c is relatively slower and cheaper. These prices difference make a tremendous
impacts to the sales of this products in the third world countries, this decision is
carried along as part of the late founding wishes to create a brand loyalty in the
developing countries and also among the younger generation.
The Microenvironment:
As accreted by Armstrong (1999) the microenvironment includes the external driving
forces that outside the organisation that also affect the marketing position of the
organisation either positively of negatively. This are mostly considered being above
the organisational control. In handle this aspect, a popular framework known as
PESTLE is usually being used.
The PEST is an acronym meaning Political, Economic, Social, Technology and Legal
which was recently included. Where the political factors signify the government
regulation and legal policies under which the organisation will function, the economic
factors are the economic rules, policies and circumstance, which affect the
organisation in carrying out its function. it include inflation rate, monetary policies,
interest rate to mention few. The other two are the social and technology, the social
factor embarks on the the socio-cultural day to day activities while the technology
signify the rapid growth of technology as to how it affect function of an organisation.
Technology. As we are moving deep into technological age, Apple Inc is investing
heavily on technological research and development on new technological innovations
which is why today the company as being regarded as the ultimate leading innovation
company. This competitive advantage gives the company a strong stand among its
competitors.
its long team future goals and objectives. In the year 2012, Apple was voted to be the
number one marketer by CMO award of marketing excellence and for the proceeding
years Apple maintain its position of being the best marketer. Looking back at 1977
when the company was incorporated one of it investor with the name Mike Markkula
created a three point marketing philosophy, amazingly 35years letter the company still
manage to use it and gain strong marketing position and customer loyalty. The threepoint philosophy includes.
1- Empathy: To understand existing and potential customers better than any other
company.
2- Focus: To eliminate the irrelevant matters and focus on significant
opportunities.
3- Impute: To present its product in a professional and creative manner there by
imputing the great desired quality because people do juge book by its cover.
They company believe that even if they have the best quality product with the
most amazing and useful features but if it is presented in a slipshod way,
customers will perceived it as slipshod.
The company uses this three-point philosophy over the years to become the worlds
most valuable company and one of the world most valuable brand as measured by
market capitalization.
positioning the company in a better and higher level within and outside the electronic
industry.
with one another, accessories and applications could be used on multiple platforms be
it on iphone, ipad, macbook or ipod. By given such avenue a customer enjoy great
brand experience and also allow customers to have brand trust.
Conclusion
This paper is centred on Apple marketing strategy, the study helped in highlighting
more about positioning, branding, segmentation and marketing mix strategies.
However, the internal and eternal analysis where done to recognize opportunities and
threats as well as the strengths and weakness the company is may be facing. The
analysis will also help the company in getting the success factors that will help the
company to be at the edge of it competitors, which will be an added advantage to the
companys profit level, brand power and customer loyalty.
Recommendations
The company should provide high value for the products being offered to customers
since customers have this perception of the products having a premium quality in the
electronic industry. Therefore the company should distinguish its products from its
competitors so as to maintain it premium pricing and quality.
The company should increase promotional programs, this never seems to damage any
firm but on the contrary it proves to be significantly beneficial. Therefore, Apple
should conduct more promotion to attract potential customers and boots customer
traffic and sales. This can be achieved by using TV commercials to educate existing
and potential customers about its new products and services, meanwhile showing how
appealing it is.
The company should constantly make new innovations in their product designs,
specifications and features so as to dominate the market and distinguish their products
and services form competitive brand because technology market is highly competitive
and the issue of clone is very common, a competitor can easily clone your product and
sale. This is why it is of high significant for the company to constantly invest in new
innovations, features and designs.
However, since the company dont want compromise it premium price, gift card, VIP
card and vouchers could be made to customers. This will allow customers to buy the
products more often and at the same time attract more attract more potential
customers with great loyalty.