Apple Marketing Mix (Apple 7Ps of Marketing)

Apple Marketing Mix (Apple 7Ps of Marketing)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

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]

However, since then Apple has consistently increased its product range and models. 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®.

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

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

1. Apple Stores. The world’s largest IT company by revenue operates 499 retail stores in 22 countries worldwide. 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] During 2018, the company’s net sales through its direct and indirect distribution channels accounted for 29% and 71%, 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 pricing strategy integrates the following:

Premium pricing. Apple uses premium pricing strategy putting the highest price tags on its products and services. Accordingly, “Apple has a firm grip on wealthy countries where the majority of citizens can afford to spend over USD750 on a smartphone each year.”[6] 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.”[7]

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.

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.

Apple-Inc.-Report-1

[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 (2018) Apple Corporation

[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 (2018) Apple Corporation

[6] Brown, S. (2018) “Apple’s new pricing strategy: Is it good news or bad news for Android?” Android Authority, Available at: https://www.androidauthority.com/apple-pricing-strategy-android-904248/

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

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