Apple 7Ps of Marketing

Apple 7Ps of MarketingApple’s 7Ps of marketing comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence.

Product.

Apple designs, manufactures and sells technological devices such as IPhones smartphones, IPad tablets, Mac desktop and portable personal computers and iPod digital music and media players. Moreover, the company generates revenues via iTunes and the iTunes Store, Mac App Store, iCloud and Apple Pay. Apple also develops iOS and OS X operating system software and a range of application software such as iLife and iWork. Lastly, Apple Corporation designs, manufactures and sells own and third-party Mac-compatible and iOS-compatible accessories, including Apple TV, headphones, cases, displays, storage devices and various other connectivity and computing products and supplies[1]. Apple also sells third-party digital content and applications through iTunes Store®, App Store®, Mac App Store, TV App Store, iBooks Store™ and Apple Music®.

Product element of the marketing mix for Apple is marked with simplicity in design and convenience in usage. Apple products are also known for their durability and high quality in general and the company upgrades its products in a periodical manner.  On the negative side, Apple product portfolio is very limited in range and the Apple’s unique hardware and system can only be used with company’s own products.

Place.

Apple sells its products in the global marketplace via retail stores, online stores and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers and value-added resellers. In 2016, the net sales through its direct and indirect distribution channels accounted for 25 per cent and 75 per cent, respectively, of total net sales. [2] There are more than 475 Apple Retail Stores around the world, where consumers can use products and get friendly assistance from customer service representatives. The unique design and format of Apple Stores have been widely praised as the mark of beginning of a new era for technology retail.

Price.

Apple pricing strategy includes an integrated use of premium pricing, price skimming and geographical pricing strategies. The company’s use of premium pricing results from its differentiation business strategy. As of September 2016, it has been noted that ‘smallest new model of last year’s 6s is now the 32GB USD929 iPhone 6s, with a 128GB model available for USD1079. The 6s Plus will run you USD1079 for 32GB or USD1229 for 128GB”[3]

The company also uses price skimming strategy frequently setting its prices high before competitors offer similar products as it was the case with IPhones and iPads. The use of geographical pricing strategy by Apple Inc. involves setting different prices for products in different parts of the world. Moreover, Apple announces seasonal sales promotions in a regular manner…

Apple Inc. Report contains a full analysis of Apple 7Ps of marketing and Apple marketing strategy in general. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Apple. Moreover, the report contains analyses of Apple leadership, organizational structure and organizational culture. The report also comprises discussions of Apple business strategy and addresses issues of corporate social responsibility.

Apple-Inc.-Report

[1] Annual Report (2015) Apple Corporation

[2] Annual Report (2016) Apple Inc.

[3] Kidman, A. (2016) “Apple’s iPhone 7 pricing strategy is really weird” The Sydney Morning Herald, Available at: http://www.smh.com.au/technology/mobiles/apples-iphone-7-pricing-strategy-is-really-weird-20160908-grbjcg.html