Marketing Principles Assignment Essay Example

and controlling the marketing strategy.

Apple Inc. serves as an example of this marketing process by using SWOT and PEST models to analyze their company situation, targeting middle-upper income professionals, building anticipation before product launches, and providing a customer service phone number for direct contact with Apple in case of technical issues.

There are advantages and disadvantages associated with these concepts. Different marketing concepts exist including product-oriented which focuses on perfecting a product's quality but may overlook consumer wants; production-oriented which emphasizes mass production for higher profit but can be costly when changing products; sales-oriented where the company sells what it produces without considering customer needs.The text discusses market-oriented and societal-oriented approaches to product development, highlighting their drawbacks and benefits. It also mentions the five concepts related to customer needs and profitability. The example of Apple Inc. adopting both market and product orientations is given, showcasing the advantages of being marketing oriented despite the associated costs.

Market orientation prioritizes customer needs over product development but may gather information from customers who are unaware of their own needs. This focus on customer needs can sometimes overlook product development. On the other hand, societal orientation considers the natural and social environment along with customer needs but rarely satisfies all customers' needs and stakeholders.

The first three concepts (product, production, sales) revolve around the product while the last two concepts (market, sales) concentrate on consumers. Despite having different focuses, all five concepts aim for profitability.

Market orientation involves gathering and spreading customer information. Apple Inc., as an example, has adopted both market and product orientations by emphasizing quality and future customer needs. This approach has allowed them to anticipate new product demands, set

higher prices, and generate more profit.

However, being marketing oriented comes at a cost as it requires investment in various areas such as product development, market research, surveys, databases analysis,and making necessary changes to products. Nevertheless,the benefits outweigh the costs.Apple's phone is a prime example where three years of development collaboration with Cingular Wireless costing approximately $150 million resulted in its introduction in 2007.This endeavor surpassed sales of all Microsoft products since 1975In the first quarter of 2012, the phone generated sales of $22.7 billion while Microsoft Corporation achieved $17.4 billion in sales. A business organization's marketing decisions are influenced by macro and micro environmental factors. The SOOT model (Strengths, Weaknesses, Opportunities, and Threats) can be used to analyze internal factors. Conversely, the PEST model (Political, Economic, Social, and Technological) is employed to assess external factors. These analyses aid in identifying opportunities and gaining insight into the organization's current position.

The 2013 SOOT analysis of Apple Inc. revealed strengths such as brand reputation and ownership of retail stores which allowed them to meet new customer needs by being a market leader through strong financial performance and innovative capabilities. However, a weakness was that their products had higher prices compared to competitors' offerings which made them unaffordable for price-conscious individuals.

Furthermore, recent management changes could potentially hinder decision-making for the marketing mix of product, price, place, and promotion due to potential misunderstandings between different departments within Apple Inc.

On the other hand, there were opportunities stemming from high demand for iPhone 5 and iPad products as well as growth in tablet and smartphone markets.Apple also took advantage of competitor mistakes, such as Microsoft's release of Vista software. This led to

PC users either downgrading to Windows XP or switching to Apple products. The "I am a Mac I am a PC" ads from 2006 to 2008 showcased this advantage. Additionally, Apple faced threats from new competitors like Hawaii in the UK phone market and the impact of a strong dollar on exports.

To analyze the macro environment, Apple uses the PEST model which considers political, economic, social, and technological factors. These factors are beyond the control of the organization and can either support or hinder Apple's marketing efforts. For example, political factors like tax increases can result in higher prices and lower consumer purchasing power, ultimately reducing profits. Economic factors such as recessions can lead to decreased consumer confidence and make high-priced Apple products seem more like luxuries than necessities.

In Task b: It is challenging to satisfy all customers by treating them uniformly due to their diverse needs. Segmentation helps address these varying needs by grouping consumers with similar preferences together. Proper segmentation allows for better product positioning within chosen segments; however, incorrect segmentation can result in misgrouping customers into the wrong segment. Demographic, geographic, cryptographic, behaviorist's (psychographic), and gee-demographic (generational demographic) factors serve as bases for segmentation purposes.Demographic segmentation considers characteristics such as sex, age, income, and education. Geographic segmentation is based on the potential customers' location. Cryptographic segmentation focuses on customers' personality and lifestyles. Behavioral segmentation considers consumers' segments as the basis.

There are three types of targeting methods in marketing: undifferentiated, concentrated, and differentiated. To recommend segmentation criteria and targeting methods for two different products - Apple's iPod and phone - demographic and cryptographic segmentation criteria are suggested. This allows Apple Inc. to separate

and target consumers based on their spending capability and preferences.

For the iPod, the concentrated method is recommended to target customers who enjoy listening to music on-the-go and purchasing music through additional platforms like iTunes. On the other hand, the undifferentiated method is suggested for the phone due to its versatility for both personal and business use.

Buyer behavior is influenced by cultural, social, personal, and psychological factors that affect how organizations market their products. In order to appeal to consumer preferences, organizations develop marketing mix strategies including positioning as a means to influence buyer behavior.

The text highlights Apple Inc.'s strategy and approach in developing its products with a specific focus on the iPhone.The company addresses the issue of high prices and overpricing by repositioning its products to highlight their use, quality, performance, and features. Apple Inc. also prioritizes generating ideas for sustainable competitive advantages by reducing development start and evaluating ideas based on market needs, costs, and resources. To maintain product secrecy from competitors, internal testing is conducted using employees. Ultimately, Apple Inc. ensures availability of the phone in the market.

Regarding distribution options for Apple Inc., three choices are described with their respective advantages and preferences. The first option involves direct selling to consumers through their own retail stores and website. This approach allows Apple to directly interact with customers and anticipate their needs.

The second choice involves selling through retailers, which offers the advantage of promotion through retail advertisements. Retail stores often prioritize Apple products and feature them in store advertisements. However, this channel relies on wholesalers and retailers, making it less advantageous as disruptions in the chain could hinder product delivery to customers.

Pricing is highlighted

as a vital element in the marketing mix that drives turnover for organizations. The text explores three pricing strategies along with their pros and cons. First is the cost-based price strategy where prices are determined based on production expenses or other overheads incurred during manufacturing process.
The advantage of employing a realistic and easy-to-determine mark up is that it simplifies the pricing decision process. However, in an industry with constantly changing costs, setting a fixed price becomes difficult, making the mark-up the final determinant of pricing. On the other hand, adopting a competition-based price strategy gives companies the option to set prices lower, equal to or higher than their competitors. This approach allows for attracting potential customers through competitive pricing but can result in operating at a loss. In contrast, a customer-based pricing strategy bases the price on what consumers are willing to pay. This strategy satisfies customer preferences but comes with drawbacks such as false impressions from customers and uncertainty regarding production costs, potentially leading to losses. Various customer-based pricing strategies include penetration pricing, price skimming, loss leaders, predatory pricing and psychological pricing.

Apple Inc., for example, utilizes the price skimming strategy which effectively segments and targets customers while creating an impression of prestige around their products. This strategy also offers flexibility in lowering prices if needed and provides insights into customer willingness to pay.In the computing and smartphones industry, Apple faces competition and changing consumer preferences. As a result, they should consider using a penetration pricing strategy to attract new customers and gain market share, even if it means lower profits. Marketing communication involves various elements such as sales promotions, advertising, direct marketing, personal selling,

and public relations. These components collectively form the promotion mix and can be utilized to create Integrated Marketing Communication (MIMIC). Apple incorporates elements from MIMIC along with the AID concept (attention, interest, desire, action) to establish and maintain customer relationships. Advertisements and promotions are employed to capture consumer attention and generate interest in Apple products. Public relations is used to address customer concerns directly. Direct marketing is implemented through targeted emails sent on specific occasions like Valentines Day or Christmas to registered customers. Personal selling takes place in Apple retail stores where personnel provide product information. One of Apple's sales promotions includes "Buy a Mac and get a free pod Touch". The MIMIC concept combined with profitability plays vital roles in Apple's marketing strategy.
The traditional marketing mix, also known as the Four AS (Product, Price, Place, and Promotion), is important for achieving marketing objectives and customer satisfaction. However, factors such as customer orientation in marketing and the dominance of the service sector in developed countries have led to the addition of new elements to the traditional marketing mix. These additional elements are known as the three As (Physical Evidence, Process, and People) and when combined with the four basic elements they form the Extended Marketing Mix.

In order to understand the importance of the extended marketing mix in service marketing, it is necessary to understand the characteristics of services. There are five key characteristics: Intangibility, Inseparability, Permissibility, Variability, and Ownership. In service marketing specifically, the service itself is considered as a product and it is intangible. Price and promotion also play a role in service marketing. Price is invisible like the product itself while place refers

to where services are consumed such as hotels or restaurants.

In addition to this, service promotions can be seen as an extension of the original service itself. It is important for marketers to focus on physical evidence during consumption of a service since consumers expect a good standard and presentation.The Process in the service industry, specifically customer service, refers to how the service is carried out or delivered. In the transport industry, carriers may sometimes lack quality due to delays that could be caused by employees. These employees are the People who deliver the service. The extended marketing mix is applicable to businesses that prioritize customer needs, especially in Task b. The text also emphasizes two segments of interest: hotels in the hospitality industry for lodging services and airlines in the transport industry for transportation services.

In the hotel industry, customers are provided with a standard room for accommodation and may have to pay extra for additional services such as using facilities or ordering drinks at the hotel bar. However, besides regular room cleaning, towels, and concierge services, customers do not receive many other amenities as part of their payment towards process.

On the contrary, business customers have a completely different experience. They can choose to reserve either the entire hotel or the best room with an exceptional view. Additionally, they can enjoy 24-hour room service and have complimentary access to luxurious amenities like a spa. Although both regular and business customers purchase a similar product - a room - it is through these additional services and differentiated process that sets them apart and is often reflected in their respective prices.

Similarly, within the airline industry, transportation is offered

in both economy class and business class options.In terms of physical layout, economy class passengers often experience discomfort after a journey, while business class passengers enjoy amenities such as car parking and watching movies with champagne indulgence. Despite these differences, both classes are transported from point A to point B on the same airplane in the same amount of time.

Globalization and international unions have enabled national businesses to enter global markets. However, the challenges faced in these markets are much larger compared to domestic ones. In the last quarter of 2012, Apple Inc. accounted for 40% of revenue domestically while generating 60% from international markets. This shows that Apple dominates in the domestic market with its focus on one set of customers and consistent policies and strategies leading to positive revenue with fewer financial resources required.

However, this becomes relatively small when considering the global market due to greater financial resources needed for international marketing. The text highlights Apple's challenges posed by diverse markets, languages, and consumer preferences.The text highlights the importance of strong dedication to marketing principles in countries with their own laws and regulations. It concludes by stating that the coursework assignment aimed to demonstrate how marketing theory can be applied to Apple Inc., thus confirming the author's comprehension of marketing principles.