4.0) Marketing Mix - An Overview of Apple's Implementation of Marketing Strategies

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4.

0) Marketing Mix – An Overview of Apple’s


Implementation of Marketing Strategies
Marketing mix consist of four major elements: Product, Price, Promotional
and Place (4-Ps), which serves as the key decision areas that marketers
must manage so that they satisfy or exceed customers needs better than
the competition (Jobber, 2007). The key decision areas may refer to the
marketing strategies used by the company to fulfil their customers’ needs.
The marketing mix helps to provide a “picture” of the organization’s
marketing strategies employed. It deals with the way in which a business
uses the 4-Ps to sell its products. It is known as ‘mix’ because each
ingredient affects the other and the ‘mix’ must overall be suitable to the
target customer (Tutor2u.net, 2011). By identifying Apple Inc.’s marketing
mix, we can find out how its marketing strategies are put in action, which
would also provide an evaluation and analysis of the effectiveness of its
marketing strategies.
PROMOTION
PLACE
PRICE
PRODUCT
TARGET
MARKET
Figure 1: Marketing Mix
(Adapted source: Kotler & Armstrong, 2010)
4.1) Product
The product decision involves deciding what goods or services should be
offered to a group of customers. These product decisions also involve
differentiations, product lines, branding and image positioning (Jobber,
2007).
4.2) New Product Development
As technology and customers taste change rapidly, Apple is active in
developing new products, which plays a very important role in replacing
those out of date and inferior products with features that customers value
(Jobber, 2007). Numerous product ranges that provide product lines to
attract customers have been introduced throughout the years since 1983,
for example, portable computers, servers, accessories, wi-fi based stations,
developer, iPod, iPhone, iPad, iTunes, peripheral products and more.
Consequently, the Company has come up with newer versions of its
product lines (product line length) with similar characteristics (product line
width) that are also updated from time to time. For instance, in the iPhone
portfolio range, Apple initially came out with the iPhone 3G, then iPhone
3GS and iPhone4 (Apple Inc., 2011). These three versions of the iPhone
are considered as the product line of the iPhone range, as they are a group
of products derived from a common product, having similar physical
characteristics, customer segments, distribution channels, pricing methods,
promotional campaigns, and other elements of the marketing mix (For
more, see Appendix 1).
4.3) Product Differentiation
Apple is proud of its innovations. Reviewing Apple’s production history, this
attitude has permeated the company during its peaks of success. For
instance, Apple pioneered the PDA market by introducing the Newton in
1993, easy-to-use iMac in 1998, high stable operating system (OS) in
1999, and iTunes in 2001 (Linzmayer, 2004).
Launching the iTumes marked the beginning of Apple’s new strategy of
making the Max the hub for the “digital lifestyle” and also launched the
iTunes Music Store online in 2003. Slowly, Apple opened its own stores
and expanded internationally. The iPod was then introduced and it
“changed the way people listen to music”. Apple continued their innovative
streak with advancements in flat-panel LCDs for desktops and improved
notebooks in years 2002 and 2003. In addition, the Company offers its own
In order to satisfy consumers’ favour, Apple Inc. has their product line for
the iPod: iPod Shuffle, iPod Nano, iPod Classic, and iPod Touch. The
different storage capacity of iPod with difference price make it affordable for
the consumers from different level of wealth.
When the iPod was first introduced, Apple made sure that it also had its
iTunes store in place.
As the competition from Sony’s new Walkman, Apple Inc. started to
interested in learning more about how consumers view on iPod about the
ownership and usage patterns of different iPod models, the features that
consumers value, and consumers, attitude towards the iPod. Apple Inc.
draft a questionnaire to the existing consumers and setting up an online
questionnaire on the iTunes website.
AppleCare offers a range of support options for the Company’s customers.
These options include assistance thatis built into software products, printed
and electronic product manuals, online support including
comprehensiveproduct information as well as technical assistance, and the
AppleCare Protection Plan (“APP”).
Net sales of iPhone and related products and services accounted for 39%
of the Company’s total net sales for the year. Net sales of iPad and related
products and services accounted for 8% of the Company’s total net sales
for 2010. Net sales of the Company’s Macs accounted for 27% of the
Company’s total net sales in 2010. Net sales of other music related
products and services accounted for 8% of the Company’s total net sales
for 2010. Net sales of iPods accounted for 13% of the Company’s total net
sales for the year.
Products
Percentage of Apple Inc.’s total sales
iPhone
39%
iPad
8%
Company’s Macs
27%
iPods
13%
Other music related products and services
8%
The strong brand name of Apple
From a brand architecture viewpoint, the company maintains a "monolithic"
brand identity - everything being associated with the Apple name, even
when investing strongly in the Apple iPod and Apple iTunes products.
Apple's current line-up of product families includes not just the iPod and
iTunes, but iMac, iBook, iLife, iWork, and now iPhone. However, even
though marketing investments around iPod are substantial, Apple has not
established an "i" brand. While the "i" prefix is used only for consumer
products, it is not used for a large number of Apple's consumer products
(eg Mac mini, MacBook, Apple TV, Airport Extreme, Safari, QuickTime, and
Mighty Mouse). (marketing minds)
Apple Brand Strength Now Creating Financial Success
So far, Apples' branding strategy is bearing fruit. For example, Apple
reports that half of all computer sales through its retail channel are to
people new to Macintosh, the company's sales and margins have been
growing strongly since 2006, and Apple has achieved several "best ever"
quarterly financial results during the past couple of years. Leveraging the
success of the iPod, Apple launched the iPhone (released in July 07) to
extend the brand even further. Apple's buzz marketing efforts in the first
half of 2007 were truly superb, culminating in the release of one of the most
highly anticipated products for many years - and launching apple into a
completely new market: mobile handsets. By July 2008 the buzz about the
3G iPhone resulted in over 1 million units being sold in the first 3 days of its
release in over 20 countries around the world. This success was repeated
in 2010 with the introduction of the iPad tablet computer, and in March
2011 with the launch of the iPad 2 which sold 1 million units within 24
hours. (marketing minds)
Apple Re-entering the Corporate Market via the iPhone and iPad Halo
Effect
Over the next few years it seems likely that Apple will re-focus on the
Corporate marketplace: In 2009, when Apple announced "Snow Leopard"
(the current version of the Apple Mac operating system) it included features
allowing Mac computers to fully support Microsoft Exchange. This enables
corporate IT departments to support business users who wish to use Apple
Macs for their main email clients. Apple has said the next version, Mac
OSX Lion (due in Summer 2011) includes all the functionality needed to
use a Mac as a business server.
Microsoft continues to bring out advanced versions of Microsoft Office for
Apple Mac, and - very significantly - in mid-2008 Apple announced a
software upgrade for the iPhone which allows iPhones to be fully supported
by Microsoft Exchange email servers. Corporate IT departments can now
include iPhones as email clients.Apple's strategy seems clear: to use the
popularity of the iPhone and iPad to break back into large corporations, sell
lots of those devices, and have Apple Mac back on the desks of large
businesses (or more probably - in the laptop bags of middle and senior
managers in most large businesses).
After Halos - CloudsApple has invested in a 500,000 (soon to be one
million) square footApple data center in rural North Carolina. It is likely data
centre this will be used as the core of a data repository for its MobileMe
and other online services, and that Apple will seek to leverage it's customer
franchise into an even broader market space. This is one of many ways in
which Apple and Google are fast becoming arch rivals. (marketing mix)
Nike + iPod
In fact, Apple's CEO Steve Jobs has been noted long time that 5,000
people have iPod, half of the people use it while exercising. Thus, Steve
seize the opportunity to bring these people who like sports into iPod
platform .
Not only that, iPod is also trying to sell holster, small accessories , only the
sales of these accessories reach to one billion. Because people want to
buy an average of three to four to make them look more cool.
Nike looks very relevant to the positioning . In parker's opinion, why not let
people have this association, that is, with iPod, jogging should be put on a
complete set of Nike shoes; while wearing Nike running and bringing the
iPod ,it is so wonderful. Thus, Parker and Jobs hit it off. Nike and Apple are
calling their technology team and the brand team to develop a new lifestyle
program, combine the two products together perfectly, for those core
consumers who love the sport, build a series of shoes, data, music,
matching clothing.
May 23, 2006, after 18 months of cooperative development, the Nike and
Apple announced in New York, for the first time sports and music were
combine together, introduced the innovative "Nike + iPod" products. the
first product is a set of wireless system let Nike sports shoes "dialogue"
with iPod nano.
The campaign components include in-shoe sensor and receiver connected
with iPod, so that, iPod can store and display time, distance, calories
burned and pace of the movement, the user can also know these real-time
data by headphones .
In addition, online music bookstore of iTunes Music Store added a new
Nike Sport Music section on the new nike plus Web site , offers personal
service which can help users to feel sports experience from the "Nike +
iPod" . ( Shaw Cook, 2010)
Place
Place involves decisions concerning the distribution channels to be used
and their management, the location of outlets, method of transportation and
inventory levels to be held. Its objective is to ensure that good quality
products and services are available at the right time and place. It is
important in managing good customer relationship by providing cost-
effective access to the marketplace. (Jobber, 2007)
Firstly, there is direct distribution though Apple stores located in many
countries and accessed on line. Apple, Inc Headquarters are located at is
located at 1 Infinite Loop, Cupertino, California. The Apple Consultants
Network includes independent professional service providers and
technology consulting firms that specialize in Apple and third-party
solutions. Certified on Apple technologies, these providers deliver on-site
technology services and support to home users and businesses of all sizes.
Apple Inc. has a number of largely Apple exclusive and company-
authorised retailers. Mainly selling the range of Apple hardware products
(iMacs, iPods and so on) and some other peripheral, complimentary
products and software, these include such businesses as AppleCentres
and FirstByte stores in Australia.
Secondly, there is one intermediary channel of distribution. This is where
there is a retailer between the manufacturer, Apple, and the consumer.
This involves mainstream, general retailers such as Harvey Norman, who
stock iPods as one of many like products.
Not seen, not sold. The hypermarket's rules applies to the AppleStore.
The Apple Store (80 000 references) is a large hypermarket. With shelves
and products inside. The consumer comes through the door of the App
Store, and then visits the various departments: Games, Business, Comics,
Books, Education .... At the entrance of each department, at the head of
the shelves, the Best Sellers. In the department, we find first the good
sellers. And after, the low sellers. The more sales declines, the more they
go to the bottom of the shelves.
Apple has expanded and improved its distribution capabilities by opening
its own retail stores in key cities around the world in up-market, quality
shopping venues. it has entered into strategic alliances with other
companies to co-brand or distribute Apple's products and services (for
example, HP who was selling a co-branded form of iPod and pre-loading
iTunes onto consumer PCs and laptops though in retrospect this may now
just have been a stepping-stone). Apple has also increased the
accessibility of iPods through various resellers that do not currently carry
Apple Macintosh systems (such as Harvey Norman), and has increased the
reach of its online stores (marketing minds). Apple retail stores give
prospective customers direct experience of Apple's brand values. Apple
Store visitors experience a stimulating, no-pressure environment where
they can discover more about the Apple family, try out the company's
products, and get practical help on Apple products at the shops' Guru
Bars (marketing minds).
Promotion
Promotional mix is to gain awareness of target audience on the existence
of a product or services, and the benefit it confers to customers.
Advertising, personal selling, sales promotion, public relations, direct
marketing, and online promotion are tools of promotion that a company
may use to target their customers (Jobber, 2007). Apple Inc. also has their
principal promotional tools such as:
Personal selling
This form of promotion is most relevant to the Apple exclusive and
authorised retailers. Staff are trained to have a high level of product
knowledge and are completely focused on the sale of Apple’s range. These
sales people are in the best position to provide immediate and hands on
promotion of a product that they clearly support.
Advertising
Apple has used a range of media advertising to promote the iPod.
Electronic, print, the Internet and alternative media (such as billboards and
bus shelters) have all been used.
Advertising costs are expensed as incurred. Advertising expense was $691
million, $501 million and $486 million for 2010, 2009 and 2008,
respectively. (increasing indicating that advertising is an important tools for
the firm in gaining new customers or sales. )
Cross promotion
This involves the use of one product to support another and vice versa.
One of the clearest examples is provided by the iPod cross promotion of
the rock group U2 and its album ‘How to dismantle an atomic bomb’. Apple
designed a special black ‘U2’ iPod for the launch of the album—a strategy
that effectively cross-promotes Apple’s and U2’s products.
Internet
Internet has replaced the traditional promotion media and is proven to be a
powerful communication tool (Jobber, 2007), the Apple Consultants
Network website provides a search tool allowing visitors to locate nearby
certified Mac product consultants in the U.S, Canada, and a number of
international locations. The online Apple Store offers free shipping for
orders over $50 and also offers iTunes gift cards. This may helps Apple
Inc. in attracting online customers to purchase from them as the shipping
fees maybe quite expensive in some areas.
(Ingredients for the success of the Apple iPod: Marketing,By STEVE
BARRILE)
The Company further believes providing direct contact with its targeted
customers is an effective way to demonstrate the advantages of its
products over those of its competitors and providing a high-quality sales
and after-sales support experience is critical to attracting new and retaining
existing customers.
The official iPhone website does more than just provide information about
the product. The website provides top tips and tricks for the use of an
iPhone, as well as a huge focus on apps. Almost the entire iPhone page
displays images of apps, provides the "App of the Week," the website also
contains sections titled "Apps for Everything," and the "Top Apps." Apple's
website is a great marketingtool for current iPhone users and consumers
that have an interest in purchasing the iPhone. The promotion of the apps
will create a stronger source of revenue for Apple. As customers see top
rated applications, they are more likely to download the app, rather than
searching through 25,000+ apps to find one that may be of any value to the
consumer(articlebase, 2010).
The ‘halo effect’
Under the ‘halo effect’, consumers who were buying eht sought after iPods
were now considering other Apple products due to their positive
experiences. Apple is using iPod, iTunes, iPhone, and now iPad to
reinforce and re-invigorate the Apple brand personality. At the same time,
these product initiatives are growing a highly relevant, appealing brand
image in the minds of consumer segments that Apple has not previously
reached.
Apple hoped that the popularity of iPod and iTunes among these new
groups of customers would cause these segments to be interested in
Apple's computer products. Since the take-off of the iPod there has been a
dramatic rise in Apple's computer sales and market share. Apple's
aspirations for the iPod halo effect was was highlighted most strongly when
it used the slogan "from the creators of iPod" in its promotion of iMac G5
computers. In this instance, the Apple brand came full-circle - having been
built into a branding system that originates in the personal computer
market, then leveraged into the consumer electronics market, and then
back into the consumer personal computer market.
This halo effect is extended with the hugely successful Apple iPad tablet
computer. Great customer experience with iPhone (and familiarity with
Apple's touch screen gesture controls), combined with a great product in its
own right, has made iPod a huge success that in turn is drawing even more
people to Apple's Mac computer products. (marketing minds)
Reputation
Apple’s Principles of Business Conduct
Apple’s success is based on creating innovative, high-quality products and
service sand on demonstrating integrity in every business interaction.
Apple’s principles of business conduct define the way we do business
worldwide. These principles are:
• Honesty. Demonstrate honesty and high ethical standards in all business
dealings.
• Respect. Treat customers, suppliers, employees, and others with respect
and courtesy.
• Confidentiality. Protect the confidentiality of Apple’s information and their
information of our customers, suppliers, and employees.
• Compliance. Ensure that business decisions comply with all applicable
laws and regulations.
(Annual report)
Customer Focus
Every product we make and every service we provide is for our customers.
Focus on providing innovative, high-quality products and services and on
demonstrating integrity in every business interaction. Always apply Apple’s
principles of business conduct. (Annual report) This will gain good
reputation for the firm as they are publishing this online showing that they
are producing products that customers focused.
“Win-win” marketing. In some cases, it may actually be profitable for
companies to do good deeds. This may be the case, for example, when a
firm receives a large amount of favorable publicity for its contributions,
resulting in customer goodwill and an enhanced brand value. A pharmacy
chain, for example, might pay for charitable good to develop information
about treating diabetes. The chain could then make this information on its
web site, paying for bandwidth and other hosting expenses that may be
considerably less than the value of the positive publicity received.
Charitable Donations
Employees are encouraged to support charitable causes of their choice, as
long as that support is provided without the use or furnishing of Apple
assets (including employee work time, or use of Apple premises,
equipment, or funds). Any charitable donations involving Apple assets
require the approval of the Chief Executive Officer or Chief Financial
Officer. For additional information, see Finance Policy 1.10. (annual report)
The latest round of Apple MacBook Pro computers are billed as “The
World’s Greenest Lineup of Notebooks.” For a company that expects its
best clients to upgrade their hardware annually, they’d better produce
something that’s easily recycled. (Posted by Steve on Jun 15, 2010)
Price
Price setting is an important element of marketing mix in the purchase
decision of customers as price affects the value that customers perceive
they get from buying a product (Jobber, 2007). However, Apple is a
premium brand computer that does not attempt to compete on price. The
company has reduced prices after some initial product launches. It uses
skimming and premium pricing strategies. (Premium price strategy –
Pricing rarely fluctuates, products benefit from low depreciation value
iPhones from £349, iPods (shuffle, nano, classic, touch), starting prices
£46, £118, £193, £152, respectively. Apple TV, £223. – Apple Online Store,
http://store.apple.com/uk. )
Some commentators questioned Apple’s strategy and the iPod’s high unit
price, while others saw the launch as a nice PR exercise for the firm. Both
skeptical analysts and the firm itself could not, however, have envisaged
the speculator ensuing success of the device. Almost instantly, the iPod
were highly sought after and became a ‘must buy’ gadget for any self-
respecting technophile. But the subsequent enormous sales, company
profits and increased capacity and capabilities of later models with only
relatively smaller price increases seems to have vindicated Apple’s pricing
decisions.
The retail pricing control by Apple is somewhat limited and, like many other
products, the iPod has been subject to considerable discounting particularly
in the one intermediary channel of distribution.
From Apple’s perspective, discounting usually only eats into the margin of
the retailer, not the company itself. Apple’s market skimming pricing on the
iPod seems to be successful. Indeed several of the iPods major
competitors have either closed down (Rio) or are struggling, especially the
cheap, generic MP3 players from China.
The iTunes music store launched by Apple Inc., creating a digital download
powerhouse. This success due to a simplt and uniform pricing strategy,
which become an industry standard of 99cents per track.
Another pricing strategy used by Apple Inc. was launching a low-price
version of an existing product targeted at price-sensitive consumers. Mac
mini, a basic version of Macintosh computer launched by Apple Inc. is
believed it can tempt people who have bought an iPod to ditch their
Windows-based PCs and switch to the Mac mini.
Apple Inc. unveiled significant pricing and
copyright changes to its iTunes Store, moves by
the dominant online music seller that could spur
similar action across the industry. Some of
Apple's moves appear to be a response in part to
shifts in the digital-music market. Growth in
paid downloads slowed significantly in 2008,
rising 27%, compared with a 45% increase a year
earlier, according to Nielsen Co.'s SoundScan
service. New online-music rivals have also
emerged, including Amazon.com Inc., which
sells many songs at a cheaper price than iTunes
and without copy protection, giving users more
freedom with the songs they have purchased.
The moves by Apple could prompt others in the
online music industry to also explore new ways
to sell music. Apple last year surpassed Wal-
Mart Stores Inc. as the world's largest music
retailer. Digital-music retailers in the U.S. sold
more than one billion songs in 2008. Apple said
it has sold six billion songs since the iTunes
Store launched in 2003. Under Apple's new
pricing plan that will take effect in April, Mr.
Schiller said songs will cost 69 cents, 99 cents or
$1.29. He said the "vast majority" of the songs
will cost 69 cents, though people familiar with
the matter said the most sought-after songs --
which generate most of the sales on the service --
will likely cost $1.29 as both Apple and the major
record labels try to boost revenue growth.
(ETHAN SMITH and YUKARI IWATANI KANE,
2009)
They have a one-day Black Friday sale that saves 5-10% off certain
products. But that’s it. One day. They set their prices high and back them
up with a stellar reputation for providing excellence in their products and in
customer satisfaction. You can find a decent PC notebook at Best Buy for
about $600, but Apple has no problem charging $999 for its least
expensive . (Posted by Steve on Jun 15, 2010)
In terms of price to the consumer, Apple's computer products have an
additional cost advantage: the company does not have to pay another
company for operating system licences. (marketing minds)
Market skimming strategy (charging a relatively high price for a short time
where a new, innovative, or much-improved product is launched onto a
market) (tutor2u).
When the iPhone was initially released, it was priced at a hefty $599. Still,
hundreds of thousands of people rushed out to get the new phone, forking
over a third as much as they would have had they waited an extra 3
months. 3 months after the initial release, Apple reduced the price of the
iPhone to $399. This enraged Apple's loyal customers and consumers who
purchased the new phone just months earlier. One year later, Apple again
reduced the price of the iPhone to $199, 66% less than the original price
(articlebase, 2010).
In July, 2007, the Apple iPhone was all the hype. I believe that Apple's
decision to release the phone at $599 was slightly based on greed.
However, their product was the most innovative out in the market place,
giving Apple the freedom to price the iPhone at whatever they wanted.
Many believed that Apple had cut the price after discovering lower than
expected iPhone sales. Apple, however, states that the price cut was made
"to spur holiday sales and predicted that Apple would meet its stated goal
of selling its 1 millionth iPhone by the end of September." (Dalrymple,
2007)
As with the product life cycle of any cell phone or Apple product, including
Apple's iPod, prices are often reduced drastically months after the initially
release. Tech products are always competing against "the latest and
greatest" while maintaining a relevant price in the market place. Had Apple
not reduced the price of the iPhone, the customer base would have
dwindled quickly as many consumers are unwilling to spend $599 on a cell
phone, no matter how many useful features the phone may carry.
As the iPhone remains to be the number one smart phone around, the
product continues to grow, increasing size capabilities, increasing the
number of applications available, and providing new features that are
released through new iterations of the phone, continue to provide a greater
value to the iPhone while the pricing remains relevant.
At this time in the product life cycle, Apple continues to release enhanced
iterations of the iPhone. With most iPhone users un-willing to purchase a
newer version of the iPhone because of price, the target audience for the
newer generation phones is new iPhone customers. With Apple's installed
base continuing to grow, they have found a way bring in reoccurring
revenue from their existing customers through the sales of their application
downloads. As more and more people purchase the iPhone, Apple's
audience for new customers continues to dwindle. Fortunately for Apple,
they have built in another source for revenue that continues throughout the
life of the product (articlebase, 2010).
Effective marketing mix strategy
Matches customer needs
After carrying out market segmentation and target marketing, marketing
management needs to understand how consumers choose between rival
offerings. It is important to note that an analysis of consumer choice criteria
will reveal a set of key consumer requirements that must be met in order to
succeed in the marketplace(Jobber, 2007).
By creating a store strictly devoted to Apple products, the company has not
only eliminated this problem but has made an excellent customer-loyalty
move. Apple stores are a friendly place where Mac and PC users alike are
encouraged to play with and explore the technology that the company
offers. This is a space where Macheads can not only get service but also
hang out with others who enjoy Apple products just as much as they do. By
creating this space, Apple encourages current and new customers to get
excited about what it has to offer.
By selling its products to schools and universities, Apple turns classrooms
into showrooms. If students go through school using Apple products, they
become comfortable with the interface and familiar with the superior
performance the brand offers. By creating this early exposure, Apple
captures customers before they even know that they are customers.
Apple carefully considers what consumers are looking for, so its products
are a result of both extensive research and strong design. This meticulous
planning is a large contributor to Apple's high customer-satisfaction rates.
It's plain and simple: Robust and easy-to-use products not only make your
customers happy, but also make them want to buy more products from you
in the future. (Inside CRM ,2008)
Well blended
All 4P’s should be well blended to form a consistent theme. All the
promotional mix should be designed with the objective of communicating a
consistent message to the target audience about the benefits, and
distribution decision should be consistent with the overall strategies
position of the product in the marketplace(Jobber, 2007).
Apple is a hip brand. It pushes a strong identification with everything young,
up-to-the-minute and smart. Consider Apple's I'm a Mac campaign. The
Mac guy is smooth and confident, while PC appears uptight and old.
All of Apple's products have the same basic architecture. Because of this
consistency, customers who already own Apple products have a good idea
of what they'll be getting before they make a purchase. They know that it
will be easy to adapt to new hardware, and this makes them more open to
making a repeat purchase.
Matches corporate resources
The choice of marketing mix strategy may be constrained by the financial
resources and the internal competences of the company(Jobber, 2007).
For the average user, most Mac programs are produced by Apple. This sort
of control over the entire user process, from hardware to software,
strengthens customer loyalty. Apple users generally don't have to stray to
find products and solutions they want.
With Apple products, the average consumer's interaction with the company
is likely to be low. Unless something goes wrong, you don't have any
reason to speak with an Apple customer-service representative. Of course,
the iPhone presented an opportunity that could have made Apple much
more involved, similar to administering iTunes for the iPod. With a phone,
interaction becomes multifaceted. You have to consider billing errors,
quality of wireless service, contracts and a number of other factors that
often lead to customer frustration. With the iPhone, Apple was wise to stick
with building a good product and letting AT&T handle the service.
Apple retail staff are helpful, informative, and let their enthusiasm show
without being brash or pushy. They understands what good technology
should look and feel like - and how it should fit into people's lives(marketing
minds).
Creates a competitive advantage
A competitive advantages is the achievement to provide superior
performance through differentiation to provide superior consumer value or
by managing to achieve lowest delivered cost. Apple Inc. used iPod to
convey consumer benefits in excess of what the competition is offering.
The iPod’s small size and its capability to download and store music can,
therefore, be regarded as the creation of competitive advantages over
previous market leader in portable music players, the Sony
Walkman(Jobber, 2007).
Many consumers may not be ready to buy an Apple computer, but they're
willing to give gadgets like the iPod or iPhone a try. By selling products with
lower entry costs, it creates an opportunity for new users to be introduced
to Apple. If these users enjoy their gadgets, they're more likely to consider
buying an Apple computer in the future.
Media outlets, especially bloggers, love to write about Apple. Why?
Because Apple makes it so easy. With leaked rumors about new
developments, its very own expo and mysterious shutdowns of its online
store, Apple gift wraps news stories that are just begging for speculation
and hype. By perpetuating this cycle of media frenzy, Apple keeps its
customers excited about buying new Apple products now and in the future.
Although the architecture of Apple products is consistent, its portfolio is not.
The company offers consumers a number of different ways to enjoy its
products. By giving customers an opportunity to employ Apple in their living
rooms, pockets and offices, Apple makes it easy to stay loyal to a brand
they already like.
From packaging to aesthetic design to user-interface experience, Apple
makes its products accessible and attractive. Bright colors, a smiling icon
and slick-looking hardware remind customers every time they use Apple
products that what Apple offers is appealing.
Criticisms of the 4Ps approach to marketing
management
Some critics of the 4Ps approach to the marketing mix argue that it is
oversimplifies the reality of marketing management. Booms and Bitner, for
example, argue for a 4Ps approach to service marketing. 4Ps do not take
sufficient account of people, process, and physical evidence.
In service, people often are the service itself; the process or how the
service is delivered to the customer is usually a key part of the service, and
the physical evidence is the decoration of the restaurant or shop.
Rafiq and Ahmed argue that the criticism of the 4Ps can be extended to
include industrial marketing. the interaction approach to understanding
industrial marketing stresses that success does not come solely from
manipulation of the marketing mix components but long-term relationship
building, whereby the bond between buyer and seller becomes so strong
that it effectively acts as a barrier to entry for out-suppliers. This
phenomenon undoubtedly exists to such an extent that industrial buyers
are now increasingly seeking long-term supply relationship with suppliers.
Despite the fact that marketing mix analysis is used as a synonym for the
4Ps of Marketing, it is criticised on the point that it caters seller's view of
market analysis not customers view(Kotler & Armstrong, 2004).
To tackle this criticism, attempted to match 4 Ps of marketing with 4 Cs of
marketing to address consumer views:
Product – Customer Solution 
Price – Customer Cost
Placement – Convenience
Promotion – Communication (Lauterborn 1990)

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