Marketing Principles Assignment Essay

IntroductionFor this coursework assignment I exit demonstrate that I required a good intimacy and viewing of the conceits and process of sell by carrying step forward the task decl atomic number 18n. This for crap be in hunt downed with examples of theory applicable to a phoner of my choosing.For this task examples go out be associate to apple Inc. organization.Incorporated in January 1977 as apple Computer, Inc. todays orchard apple tree Inc. designs, produces and trades media and mobile communication devices, personal computers, portable media players and sells a pattern of cogitate softw be. apples fruits and improvements include the iPad tablet computer, iPh unrivall(a)(a)ed hand baffle, macintosh computer and iPod music mp3 player, the iOS and OS X operating systems.The company a handle sells and delivers music, movies, books and applications apply the iTunes Store and Mac App Store. The company headquarters atomic number 18 fit(p) in Cupertino, Cali fornia, USA. Worldwide there be 390 apple sell stores with inform revenue in 2012 of $36.0 billion. trade wise the company is been voted many propagation as the winner of CMO Survey Award for Marketing Excellence. apples three points merchandising philosophy namely Empathy, Focus and Impute hold up make it possible for the company to become peerless of the worlds most valuable brands. project 1 assign 1a.According to the Ameri raise Marketing Association (October 2007) merchandising is defined as the activity, crash of institutions, and processes for creating, communicating, delivering, and ex changing offerings that urinate apprise for nodes, clients, partners, and society at large.The CMA Canadian Marketing Association defines market as a set ofbusiness practices designed to devise for and inaugurate an organizations crossroads or helps in ways that frame of reference effective guest relationships.The Chartered Institute of Marketing defines marketing as the management process responsible for identifying, anticipating and remunerateing customer requirements profitably slackly defined, marketing is asocial and managerial process by which companies construct harbor for customers and build strong customer relationships in order to capture value from customers in return (Hasell, 2012)These definitions show the importance of management in marketing and how important is for a business to spot the consumers take and indirect requests. These definitions as well show the importance of communicating a message to create the aw areness that would create monetary value in return.The management process of identifying, anticipating and satisfying the consumers call for and wants its called a marketing process. This process is made of four step 1. Analyze the company situation2. Develop a marketing dodging3. Make decisions in terms of marketing aggregate4. And how to implement and adjudge the marketing scheme.Examples of apple Inc. marke ting process-Apple is exploitation SWOT and curse word models to analyze the company situation. -Apple is tail ending more the middle upper income professionals. -Apple builds up presentiment before launching a output.-Apple included a customer armed service phone number in the iPhone phone book for customer reign over contact with Apple in case of technical problems. tax 1b. on that point are a few marketing concepts that an organizations can adapt. Each one of these concepts has vantages and disfavours. These marketing concepts are Product related is when a company could snap on perfecting a fruitand its eccentric. The prejudice for be harvest-festival orientated is that a company can lose site of what consumer may want and need when cogitateing on creating one perfect ingathering. Production related a company could focus on the mass returnion of a return.The proceeds for being production-orientated is that a production line in pose could bring more profi t because of the low woo on producing the comparable product. Although low monetary value are possible because customers brace unalike needs, changing the line for a contrary product its costly. Sales related a company could try to focus on selling what it produces. The impairment is that the company does not k like a shot what the customers needs are.Market related a company could focus on customer needs before growth a product. The disadvantage is that information could be obtained from customers who do not know what they need. With so much interest on what the customer needs, the product festering can be overlooked. Societal related a company could focus on the natural and social environment and the customer needs The disadvantage of being societal orientated is that it is rarely possible to satisfy all customers needs and stakeholders.The first three marketing concepts, product, production and sales, are focalization on the product. The last two concepts, market and sales, focus on the consumer. Although they all are focus differentiated, all cardinal concepts be in possession of one single(a) goal in common and that is to make profit.Market orientation is astir(predicate) collecting and dissemination of information from customers. Apple Inc. has adopted the market concept together with product orientation. Having adopted both orientation with emphasis on quality and future customers needs it beared the organization to anticipate the need for a modernistic product, set mellowed(prenominal) impairments and make more profit. But being marketing orientated it is costly. A company has to invest in the maturation of the product, market research, in surveys, databases, analysts and product changes.Although it is costly to be marketing orientated there are benefits for adopting this concept. For example The Apples iPhone is at his one-fifth generation. Introduced in 2007, it was a product of innovation and market research. The development of the product took three years and with the collaboration between Apple and Cingular Wireless isestimated to have cost $150 millions.According to Forbes magazine (08/2012) something that didnt exist quint years ago, has higher(prenominal) sales than everything Microsoft has to offer. More than Windows, Office, Xbox, Bing, Windows Phone, and every other product that Microsoft has created since 1975. In the quarter ended March 31, 2012, iPhone had sales of $22.7 billion Microsoft Corporation, $17.4 billion. job 2 depute 2a.A business organization marketing decisions are influenced by macro and the micro environmental particularors. Businesses can cover the within factors with a SWOT model analysis and the external factors can be assessed by doing a PEST model analysis. The advantage of doing these analyses is the identification of opportunities and versed where the organization is at that moment.Apple Inc. 2013 SWOT analysis Strengths brand report and own retail stores. Combine d with a strong pecuniary action and innovative capabilities Apple can be first on the market satisfying new customers needs. Weaknesses. Apple products have higher expenditures. Conscious quite a little my attend them to expensive and competitors can take advantage of this factor. Recent changes in management could lead to mis discernments between Apple In. departments and could slow up down the process of making marketing unite decisions for the 4 Ps (product, damage, place and promotion). Opportunities.High demand for the iPhone 5 and the iPad products and the growth of tablet and smartphone markets. contender mistakes like the Microsoft introduction of fit software. Apple took full advantages of how bad was the Vista program having PC users downgrading back to XP and migrating to Apple. This can best be seen in the I am a Mac I am a PC ads (2006-2008). Threats. New competitors like the Huawei in the UK phone market. Strong dollar sign pull up stakes affect exports .Apple Inc. macro environment is analyzed using the PEST model ( governmental, economical, social and technological). These are factors that the organization has little or no control over them and can either support orhinder Apples marketing decisions. For example, in the case of the political factors a tax increase usually means a toll increase.This will reduce the purchasing power of the consumer and subsequently reduce profits. time out is an economical factor. The consumer debauching confidence is usually low and high priced Apple products are seen more as a commodity than a necessity.Task 2b.Satisfying customers by treating them alike is rarely possible because they have different needs. Segmentation is about understanding and satisfying these needs by separating consumers in throngs with the comparable needs. One of the advantages of naval division is that the organization can position the product bust within a chosen segment. Poorly done segmentation can group customer s in the wrong segment.The bases for segmentation are demographic, geographic, psychographic, behaviouristic and geo-demographic. Some of the characteristics for demographic segmentation are sex, age, income, and education. Geographic segmentation is found on the location of potential customers. Psychographic is establish on customers personality and lifestyles. behavioural segmentation is base on the consumers actions. Geo-demographic is a combination of the geographical and demographical segments. there are three types of targeting methods and these areUndifferentiated for all publicsConcentrated focus on a specific groupDifferentiated for different group typesTo recommend segmentation criteria and targeting methods for two different products I chose Apples iPod and the iPhone. For both products Apple Inc. should affiance the demographic and psychographic segmentation criteria. This will allow the organization to separate and target consumers based on the amount of bills th ey have to spend and on what they would like to spend. For the iPod (mp3 music player) Apple should pursue the concentrated method.This will allow them to focus on those customers who like to get word to musicon the go, organize songs and ultimately buy music for the iPod with the service of supplemental music platform like the iTunes. For the iPhone, Apple should pursue the undifferentiated method. With so many different features the iPhone can be used by anyone for personal and business use.Task 2c.Buyer behavior affects how organizations market their products. Cultural, Social, in-person and psychological are the four major factors influencing buyers behavior. To appeal consumers preferences, marketing mix strategies are developed by the organizations for the target market. Positioning is a strategy with what an organization can influence the buyer behavior. The strategy could include product use, product user, price, quality, product features, product class, competitors, benefits and cultural symbol.Apple Inc. products are perceive as high priced products with some buyers perception of them as over priced products. To antagonise this perception Apple should reposition the iPod and the iPhone products using a strategy accent products use, quality, performance and features.Task 3Task 3a.To have sustainable competitive advantages Apple Inc. products development start with generating ideas. For example, the development of the iPhone product started with the idea of interacting with a computer without a keyboard. Usually a company can have many ideas for a product and screening them is necessary. Apple Inc. screens them with valuations on the bases like the market needs, costs and resources. Apple market research cogitate that the iPhone will have no competition for its features and the benefit will out way the cost of development.The attached step of the product development was the fleshly transformation of the concept. Testing of the Apple pro ducts is done within the company using the employees. Normally companies test their new products with consumers but Apple prefers this type of scrutiny because of the need of keeping the product features a secret from the competitors. After the evaluation of new ideas from the employees theiPhone was produced for the market.Task 3b.To make products available to the consumers Apple Inc. has three choices of distributions 1) exchange directly to consumers. This channel of distribution is advantageous and a preference for Apple In. for the opportunities arising from interacting directly with the customer. Apple has their own retail stores with knowledgeable sales people who can make it very convenient for a customer to buy Apple products. Another way is selling directly through their website. some(prenominal) options can be advantageously used for market research for better anticipation of new customer needs. 2) The second channel of distribution is selling the products through reta ilers.The advantage this channel provides is the promotion getting through retail advertisements. Many retail stores will place Apple products separately from the competitors in plain view for a customer to see it first and alike use Apple products more for store advertisements. 3) This channel is selling through the wholesalers and retailers and is the least advantageous. For the last two channels (2 and 3) the disadvantage for Apple is that in both cases if the chain is disrupted, Apple products will not reach the customers.Task 3c.One of the most important elements of the marketing mix is Pricing. Pricing generates derangement for the organizations. The other 3Ps elements in the marketing mix are costs for the organizations. A number of pricing strategies can be adopted by an organization. For this task I have chosen to discuss three of them for their advantages and disadvantages. 1. hail based price strategy is when a company sets prices based on the cost of the other 3Ps. Th e advantage of choosing this strategy is that because its the most pragmatic and the mark up its easier to set before the final pricing decision..The disadvantage is that in a volatile industry where costs are always changing no set price can be set and the mark up is the final pricing decision. 2. Competition based price strategy is where a company can set a lower, the comparable or a higher price in comparison with competitors. The advantage is that a competitive lower price can be set to attract potentialcustomers.This strategy disadvantage is that it is unknown the production cost of the competitors and the company may operate at a loss. 3. Customer based pricing strategy is used when a company determines the price based on what is believed consumers are prepared to even off. The advantage of this strategy is that the price satisfies the customer price preference. The disadvantages with this strategy are that customers tycoon give false impressions and the cost of productio n is knot known by them hence the company might run at a loss.Customer based pricing strategies are Penetration Pricing launching a low price product to increase market share Price Skimming charging a higher price to maximize profits Loss leaders a price set low to attract and encourage customers purchasing other products wolfish Pricing setting a low price deliberately to keep back or prevent competition (in UK this type of price setting is illegal) Psychological Pricing making the product believed to be cheaper than it really is. (Instead of 1.00 it set at 0.99)Apple Inc. uses the price skimming strategy. This strategy works for them because the company segments and target customers more effectively. The advantages with price skimming are that it creates the impression of prestige somewhat Apple products and also in case of setting the price to high it could be lower easily. It also offers an insight on what the customers are salve to pay. Although this strategy has its advantages, in the computing and smartphone industry Apple has many competitors now and price skimming might be risky with the next product introduction.Consumers have many choices now and price preference is lower. Because of changes in consumers price preferences Apple Inc. should pursue the use of penetration pricing strategy in to attract new customers and increase the market share. Although the market share will increase the risk is that it is possible to still make lower profits.Task 3d.Promotion is one of the 4Ps and comprises of sales promotions, advertising, direct marketing, personal selling and public relations. These five elements make the promotion mix and are also known as the marketing communication elements. The usage of all five elements at one time is known as IntegratedMarketing Communication (IMC).To achieve and maintain long-term customer relationships Apple uses components from the IMC and the AIDA (attention, interest, desire, action) concepts. Advertisements and promotions are used to capture the consumer attention, his interest and desire to own an Apple product. familiar relation is used to muddle directly with customers about product issues. Apple uses direct marketing by emailing marketing messages on Valentines Day or Christmas to registered customers.Personal selling is used in Apple retail stores. force play can also inform customers about the products they inquiring about. One of the Apple sales promotions is Buy a Mac and get a free iPod Touch.Apple Inc. interest is to maximize the company trespass on the consumer for maximum profits and the IMC concept is a very important bill in the company marketing strategy.Task 4Task 4a. cognise as the Four Ps, the conventional marketing mix basal elements are Product, Price, Place and Promotion. The mix of these four elements done right will result in meeting its marketing objectives for a company and satisfy its customers. Factors like marketing is far more customers orientated no w and in developed countries the service sector dominates the economic activity have contributed to the addition of new Ps to the traditional marketing mix. The additive three Ps are Physical Evidence, Process and People and together with the four staple fiber elements make the 7Ps of the Extended Marketing Mix.To understand the relevance of the extended marketing mix to service marketing first one must understand the characteristics of service. There are five characteristics of service marketing and these are 1. intangibleness services cannot be seen, taste and feel before they are bought. 2. Inseparability a service is produced and consumed at the same time. 3. Perishability a product can be stored for future use whereas a service cannot. 4. Variability service samplewill vary because of people. 5. Ownership in comparison with a product a service can only be used and not owned.In service marketing the service is the Product and is intangible. Marketing Price, like product is also invisible. Place is where the service is consumed and unlike a product where it is found in retail stores, a service is found in accommodation places such as the hotels, restaurants, sheets. Service Promotions can be an addendum of the original service. For example a hotel may offer an extra shadow stay, discount prices for other services found within the hotel or alfresco but the original price offer is still the same. What is seen during the consumption of service is referred to as the Physical Evidence.Consumers expect a good standard and insertion of the environment where the service is consumed and businesses will focus on the quality layout presentation. How the service is carried out or delivered is the Process. In many cases process is associated with customer service. In the transport industry often carriers do lack on the quality of it because of delays that may or may not have to do with the employees. The employees are the People and final element in the ex tended marketing mix and are the ones delivering the service.The extended marketing mix its relevant to all businesses that give priority in meeting the needs of customers and its more particular relevant to the service industry.Task 4b.The seven marketing mix variables are highlighted above. The traditional 4Ps are for product marketing and all 7Ps are for service marketing. twain segments of interest for this task are the hotels in hospitality industry for their lodge services and the airlines in the industry of transport for their transport services.In the hotel industry, in terms of process and physical evidence, a regular elbow room is provided for customer accommodation and the customer may have to pay extra for other services like a massage or a drink at the hotel bar. In terms of process apart from regular room cleaning sheets and towels and concierge services a customer will not get much else for his money. In comparison the business customer willexperience something to tally different.A Business may reserve the entire hotel or the best room with the best view, 24-hour room service, free access to the health club and other things considered luxurious. Although the product sold is the same for both C and B, because of additional services and a differentiated process, it differs and the price is usually the first one to tell which one is which. In the airline industry, businesses provide transportation in the economy class and the business class. In the economy class in terms of physical layout, after the journey some customers wished they left their legs at home and kids never existed.Whereas in the business class, a customer can park his car, watch his favorite movie while drinking champagne. again the product has not changed because customers in the economy and business class are moved from point A to point B with the same airplane in the same amount of time. The understanding is that businesses can afford to pay more when it comes to buying ser vices and airlines will charge more for extra.Task 4c.Globalization and Unions between different countries around the world have made it possible for national businesses to enter international markets. When entering the international markets businesses could find many opportunities but the challenges are different and on a higher scale than the ones faced in a domestic market. Domestic marketing is the production, promotion, distribution and sale of goods and services nationally while international marketing is the same but for customers needs in a global market. In the last quarter of 2012, domestically, Apple Inc. revenue accounted for 40 per cent with 60 per cent revenue from the international markets (Niu, 2013). 40 per cent revenue for Apple means that it dominates in the domestic market.This is possible for Apple because the company has to deal with only one set of customers on which it can concentrate more effectively. Other factors contributing to this positive revenue are t hat Apple uses of the same policies and strategies and requires lesser financial resources. The other sixty per cent revenue for Apple, persuasion in term of global it is small revenue for the company. This has to do with the fact that international marketing is more complex and more risky.It requires more financial resources than domestic marketing. Internationally, AppleInc. has to deal with different markets, different languages and different types of consumers with different tastes. In countries with laws and regulations of their own, for Apple it is more challenging and requires more commitment from the company in applying the marketing principles.ConclusionIn this coursework assignment I seek to my best abilities to demonstrate that I acquired a good knowledge and understanding of marketing principles by applying the theory to Apple Inc. by carrying out the tasks inclined for the assignment.Overall my understanding now is that marketing is with us every day, next to us and e ven in us people. Consciously or subconsciously we are marketing ourselves as individuals every day to others. Marketing has an impact on everything and it cannot be avoided. For businesses, marketing is a strategic war plan for getting peoples attention to maximize profits.In this war business tend to aim at peoples emotions. Marketing is a discipline and is defined by social participation. But the most important thing learned I believe is that consumers needs and wants are always changing and marketing needs to change accordingly.ReferencesAmerican Marketing Association. (2007). Definition of Marketing. Available http//www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx. expiry accessed sixteenth May 2013. Apple. (2013). Apple Info. Available http//www.apple.com/about/. Last accessed 12th Jul 2013. Apple Press. (2012). Apple Reports Fourth Quarter Results. Available http//www.apple.com/pr/library/2012/10/25Apple-Reports-Fourth-Quarter-Results.html. Last accessed 12th Jul 2013 Campbell, M. (2012). Apple to open up to 35 new retail stores in 2013. Available http//appleinsider.com/articles/12/10/31/up-to-35-new-apple-stores-set-to-open-in-2013. Last accessed 11 Jul 2013. Canadian Marketing Association. (n/a). Definition of Marketing. Available