Apple Marketing Mix (Apple 7Ps of Marketing)

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

Product Element in Apple Marketing Mix (Apple 7Ps of Marketing)

In 2010, before he became chief executive officer, Tim Cook claimed that Apple’s all products could fit on a single table. At that time the multinational technology company produced only 14 products.[1] It is different now. It has been noted that “no longer do the barista and the corporate executive use the same iPhone — today, there are high-end models, consumer models, and a long line of old products the company keeps around to fill every niche and price point.”[2]

Today, Apple designs, manufactures and sells technological devices such as IPhone 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[3]. 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®.

Table 1 below illustrates the full range of Apple products, their brief descriptions and additions in 2023:

Table 1 Apple products and descriptions

Categories of services offered by the company, their brief descriptions and additions in 2023 are illustrated in Table 2 below.

Table 2 Apple services and their descriptions

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.  Apple products usually integrate innovative features and capabilities. Although the product range is limited, the products come in different sizes and colours. Moreover, the multinational technology company regularly upgrades its products and services. On the negative side, Apple’s unique hardware and system can only be used with company’s own products.

Place Element in Apple Marketing Mix (Apple 7Ps of Marketing)

Place element of Apple marketing mix integrates the following sales channels:

1. Apple Stores. The world’s largest IT company by revenue operates more than 518 retail stores in 25 countries and regions. Apple retail stores are typically located at high-traffic locations in quality shopping malls and urban shopping districts. The retail stores are spacious and creatively designed place where consumers can use products and get friendly assistance from customer service representatives.

2. Online stores. Customers can purchase Apple products from its official website https://www.apple.com/

3. Direct sales force. The multinational technology company also uses direct sales force in certain markets to promote and sell certain products. For example, Apple relied on direct sales support for its advertising business, iAd in 2016.[4] In 2022, the company’s net sales through its direct and indirect distribution channels accounted for 38% and 62%, respectively, of total net sales.[5]

4. Third party cellular network carriers. Major cellular network carriers such as AT&T Inc., Verizon Communications Inc, Vodafone Group plc and others also sell Apple products and services as part of their own packages.

5. Wholesalers. Apple partners with many wholesalers to distribute the substantial part of its products and services.

6. Retailers. There are many local Authorised Retailers such as Carphone Warehouse and Argos in London and Mobile Guru and T-Mobile in New York.

7. Value-added resellers. These refer to professionals authorized by Apple to deliver customized, market-specific solutions to customers.

Price Element in Apple Marketing Mix (Apple 7Ps of Marketing)

Apple pricing strategy integrates the following:

Premium pricing. Apple uses premium pricing strategy putting the highest price tags on its products and services. For example, the price for iPhone 14 Pro starts as much as USD 999.00. The world’s largest IT company by revenue has a long-held belief that “consumers will pay more for products that are so well designed they can’t fathom living without them.”[6]

Price skimming. Apple uses price skimming strategy frequently. Opposite to penetration pricing, in price skimming companies set very high prices for new products, consequently lowering prices at a later time after competitors introduce similar products. This has been the case with IPhones, iPads and other products belonging to Apple portfolio, as well as specific models of Apple products.

Geographical pricing. The use of geographical pricing strategy by Apple Inc. involves setting different prices for products in different parts of the world. The need for geographical pricing for the global IT company is justified due to differences in exchange rates between local currencies and USD.

Minimum advertising price (MAP). Apple pricing strategy also integrates MAP strategy. Accordingly, the multinational technology company does not allow resellers or dealers from advertising a manufacturer’s products below a certain minimum price.

Apple Inc. Report contains a full analysis of Apple marketing mix (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, Ansoff Matrix 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, ecosystem and addresses issues of corporate social responsibility.

[1] Webb, A. (2017) “Does Apple now make too many products?” Financial Review, Available at: https://www.afr.com/technology/technology-companies/apple/does-apple-now-make-too-many-products-20170512-gw34rz

[2] Marx, P. (2019) “Apple’s Product Line Is a Mess” Medium, Available at: https://medium.com/s/story/apples-product-line-is-a-mess-5a9a5730cafa

[3] Annual Report (2022) Apple Inc.

[4] O’Reilly, L. (2016) “Execs tell us the writing had been on the wall for Apple’s big advertising experiment iAd for some time” Business Insider, Available at: http://www.businessinsider.com/why-apple-is-pulling-direct-sales-support-for-iad-2016-1

[5] Annual Report (2022) Apple Inc.

[6] Billboard (2017) Available at: https://www.billboard.com/articles/business/7964782/iphone-x-apple-pricing-strategy-analysis