Business Analysis

Apple Marketing Mix (4Ps) Analysis

A detailed analysis of the 4Ps in Apple

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Apple Inc operates in the industrious market of information technology and consumer electronic and online software services. Despite the numerous stiff competitions, Apple still manages to be a global brand. Much of this success comes from Apple's Marketing Mix.

The Marketing Mix is the approach that a company takes to align its business approach with the demands of the market. It is the strategies implemented in a company's marketing plan. Ideally, the marketing Mix is referred to as the 4Ps variable. Namely, Price, Place, Product, and Promotion.

Apple's Marketing Mix is set up to suit the consumer electronic market, the Internet service provision market, and the digital content distribution industry. Apple heavily relies on innovativeness and marketing strategies that emphasize premium branding. Apple ensures that all of its 4Ps support the promotion of this premium brand image. This ensures that Apple keeps momentum with competitors like Microsoft, Google, Amazon, and Samsung.

Apple Marketing Mix: Product

Product is part of the Marketing Mix that focuses on the output that a company gives. Apple has set up quality information technology products. The products are of quality designs, make, trademark company logo, and unique capabilities. These products include Mac, iPhone, iPad, iPod, and Apple software. Mac products include Apple laptops and desktops of different specifications for the various markets. 

Despite this, Apple has also diversified its product portfolio. The company now focuses on producing other subsidiary products. These products are aimed at endearing the public to Apple. They include Apple watches, Apple TV, digital content, and accessories. Digital content involves the videos, e-books, games, and videos produced by Apple.

Apple has diversified into its very own form of cloud technology for its products. This iCloud has become very popular as it enables people to store their information safely. They can access it of their own will. It uses a specific form of software as a service (Saas) like iWork for iCloud. Apple has extensively focused on giving the ultimate experience through premium IT and non-IT products.

The differentiated product line in Apple shows that the company has focused on increasing its number of premium products. The company has evolved from its initial inception as a computer manufacturing company. Apple now has a diversified product portfolio that focuses on multiple information technology products.

Apple Marketing Mix: Price

Apple has diversified its marketing mix by setting multi-segment prices, price ranges, and price points for its products. The company has involved the use of two pricing strategies which are:

A. Freemium pricing strategy

B. Premium pricing strategy

The freemium pricing strategy is coined from the combination of the terms "free" and "premium". In this, Apple offers some of its products for free but then allows customers to pay if they want to access better or more advanced benefits. This is where free meets premium. This freemium case is shown by the example of the iCloud Apple storage feature. At first, Apple offers free 5 gigabytes of storage to users. However, there is additional pricing when someone wants additional storage. The additional premium fee is a recurring amount. This is an example of the freemium pricing strategy.

The premium pricing strategy is where Apple offers its quality products at a premium price. Premium price means that Apple puts a high price tag on its products. A case study of the market shows that Apple phones have a very high price as compared to the phones of its competitors such as Techno. The premium prices mean that Apple attracts much higher profit from the sale of its products. 

Even though high premium prices reduce customers, Apple maintains its image through innovativeness and marketing. The brand itself attracts customers who want to experience the highest rated quality. This maintains Apple's market base and provides a steady stream of profit.

Apple Marketing Mix: Place

Apple has defined the places where it seeks to market and distribute its premium products. This place element of the marketing mix defines where Apple targets to sell its products. Apple uses locations owned by the company together with authorized third parties as distribution channels. These places include

· Authorized third-party retailers

· Apple stores

· The company's website

· Online stores

· Telecommunication firms

Customers can access Apple products from these premium locations selected by the company itself. Apple store is a subsidiary of Apple. Customers can purchase Apple products from the registered Apple website and online stores. The authorized Apple retailers distribute Apple products and help to market the products. They have strategic stores in multiple areas like malls and high-end supermarkets. They include companies like Best Buy and Walmart and seller accounts on Amazon. Telecommunication companies like AT&T also retail Apple products. Apple's marketing mix targets both online and physical places to reach the market. 

Apple Marketing Mix: Promotion

Promotion Marketing Mix is the designing of the communication tactics that Apple uses to market itself and reach its market segment. The company promotes its products by using multiple channels and registered parties. The entire promotion is aimed at marketing the premium brand image and the high quality of the Apple products. 

The promotion techniques used by Apple include

· Public Relations techniques (PR)

· Advertisements

· Sales promotion

Apple advertises its premium products through media networks, technology news channels, and its official website. The company partners with renowned websites to promote the Apple brand and products.

Personal selling happens in the case where Apple stores employees give product-specific information to visitors and customers. This form of sales promotion generally happens within Apple stores and authorized sellers. Some of these outlets even offer old models to customers at relatively discounted prices. 

The Public relations (PR) techniques employed by Apple aim to promote the premium brand image and build customer awareness. Apple uses the strategy of hosting Apple Events and press releases. The company executives also use strategic press interviews and talks to promote a positive customer appearance. These PR strategies promote the company in the eyes of the public.

Apple Marketing Mix (4Ps) Analysis Mind Map

The Marketing Mix used by Apple focuses on the 4Ps, which include Price, Place, Promotion, and Product. These 4Ps are well detailed by Apple's marketing plan. In terms of products, Apple has diversified its portfolio. The portfolio now includes both IT-related and non-IT products. The company has gone from producing computers to producing multiple information technology products. 

In matters of place, Apple has identified distribution channels to disperse its products to the public. They include both online stores and physical stores. In terms of pricing strategy, Apple uses freemium and premium pricing. Premium refers to highly-priced products of high quality. Freemium is for the products that are free but which you have to pay to access the advanced benefits.

The promotion techniques used by Apple involve using communication channels to promote the company image. These communication strategies include sales promotion, Public relations, and advertisements. Promotion makes the company appealing to customers and increases the market share.

Key Takeaways

Apple is a multinational technology company. The company is based in California in the United States. Apple manufactures premium computerized electronics, internet software, and online products. Apple is among the most successful technology companies. Apple's marketing mix 4ps focuses on the product, place, price, and promotional strategies. They form the entire marketing strategy.

The Apple brand has been heavily promoted by this Marketing Mix. This mix focuses on product differentiation, models of pricing products, promotion, and placement. Apple's marketing mix fits into the general vision of making the brand to be of premium quality and service the high-end and affluent clients. You can access the report to learn more about Apple's working plan and marketing culture.

Download the report here

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Apple Inc.'s Marketing Mix or 4Ps (An Analysis) 

Apple Marketing Mix (4Ps) Analysis 

Apple Marketing Strategy & Marketing Mix (4Ps) 

iPhone Marketing Strategy & Marketing Mix (4Ps) 

Apple Marketing Mix – 4 P's and Marketing Strategy 

Apple Marketing Mix: 4P's 

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