The 7 P’s of Apple’s Marketing Mix
In the Marketing Mix , the product itself means the physical element that Apple is providing to its customers.
Price, is something that involves the amount of money one needs to pay in order to acquire the product of interest.
Apple’s pricing strategy has been evolving throughout the year adapting different approaches when stipulating pricing for Apple products such as :
- Premium Pricing
Apple approaches premium pricing as by putting their prices as the highest in their products & services.
Believing that customers will pay a higher price for products that are better designed and with better and more advance features then the rest of the market.
- Price skimming
Apple keeps loyal to their price skimming strategy as they stipulate high prices in the market before a similar competitor product enters the market.
- Geographical pricing
The use of geographical pricing at Apple is important as they need to keep in mind the different currency exchanges in the world , as the product is sold worldwide
Place is where in this case Apple is offering and selling their products & service.
In Apple’s case, we can find their products and services available at:
- Apple retail stores ( the famous Apple Stores)
- Online stores (e.g. www.apple.com)
- Retailer stores (e.g Argos, Carphone Warehouse)
- Third party network resellers (e.g. Vodafone, O2, EE)
Promotion involves the situation where customers are given the opportunity to know about the merits of the products & services.
This means working through these promotional channels:
- Advertising ( e.g Media ads , Print ads)
- Personal Selling (e.g Apple store employees – Geniuses)
- Sales Promotion (e.g. offering discounted prices at their stores for people to purchase a older model, also they tend to add services to a product sales creating a bundle)
- Public relations (e.g releasing new products on Apple Events, tech expos are great for exposure of new products as well as engaging with influencers which then pass the message to their audience)
The people in the marketing mix are really an important part as they are the ones who are buying, selling and creating the products.
The product wouldn’t be available without the people.
The process in the marketing mix , means how the product is going to be manufactured and delivered to the end consumer.
This meaning that there is a whole travel time from the creation of the product itself to the delivery of it to a customer who purchases it and uses it.
It is important to inform customers and the audience how clear and safe is the process from creation to final product and delivery. Protecting both Company and Consumer in the market.
Consumers tend to rely on physical and visible cues before purchasing a product. This meaning, getting familiarised with the product and it’s packaging.
Product as an element of Apple’s Marketing Mix
The product in a company it’s what will dictate its success or failure. It is the item that satisfies a need in society. The product can be a physical item or a service.
It’s created and offered to a target audience within a stipulated price.
Products have lifecycles , this meaning that some point they will no longer be of demand and a further update needs to be done in order to remain relevant to the fast market we live in. A product lifecycle tends to dictate on its competitiveness in the market against similar products.
Products tend to have its own features and benefits in order to differentiate themselves from competitors.
Upon its features and benefits , products are then stipulated with its pricing and its promotion or communication strategy in order to be successful with their target market.
Products can be split into 3 different types:
- Tangible – meaning these are physical products that the consumer can feel the product, have a direct contact with the product
- Intangible – meaning these aren’t physical but the consumer has some feel with it (e.g. protection plans, insurance policies, applications, music, videos)
- Services – meaning they are intangible products that originate from economic activity, however will never end in ownership.
Apple is 42 years old and they have been the company behind technology revolution.
In Apple’s product history we can highlight the following products Ipod, Macintosh Computer which evolved to become the Macbooks and the iPhones.
To date , Apple has a variety of 27 products in more than 200 different versions.
Since Apple has been in the market it has released a huge variety of products with different functionalities. As the years go by these products have evolved and some discontinued as they no longer fit into the market and just become outdated as technology has progressed and competition emerged.
Apple products have evolved over time as people tend to find a new way to make their daily tasks simple and effective.
Nowadays people want something simple, small and easy to use. Something that no longer takes an instruction manual to operate and this has been one of Apple’s focus, simplicity at the same time as meeting customers needs.
Apple products since the beginning have had a huge impact not only from it’s technology but also it’s signature design.
From a iPhones all the way to personal computers , mostly known as Macbook, there is every year a strive for better and faster performance.
Competition has emerged with the likes of Samsung, Microsoft creating devices that operate in similar systems to Apple products such as the Samsung Note, Galaxy and Microsoft Surface. It is important to note that Apple products have its own operative system know as iOs while the rest of the market is operated on a system called Android.
Having these competitors in the market has led to a great choice of products to the consumers.
But Apple not only offers tangible products, there is a variety of intangible products such as :
- Apple Care – this consists of an insurance plan that will cover your Apple product for any technical support or hardware cover for 3 years.
- App Store – this consists of a online shop where you can purchase software for your Apple products
- Apple Music – this consists of a application/online store that customers can purchase Music & Films on the go
Finally , Apple has its Services such as the Apple Support, where customers can get in contact and receive assistance in relation to their Apple product.
With these 3 elements covered ( tangible products, intangible products, services) , Apple has achieved a market share of 24% while Samsung is top of the chart with 27% due to a larger range of budget mobiles available.
The world of technology moves at a very fast pace and market shares float constantly, we can only wait and see what the future will hold in regards to new products erupting in the market.
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