Banking Academy of Vietnam

International School of Business

A report
on
THE ADOPTION OF 4Ps IN APPLE COMPANY
Teacher: Nguyen Thi Ngoc Bich
Student:
Class:
Course: Project 1

Hanoi, 17/12/2023
A report
on
The adoption of 4Ps in Apple company
 by
Class:
Lecturer: Nguyen Thi Ngoc Bich
Course: Academic Writing Course

Hanoi, 17/12/2023
TABLE OF CONTENTS
I. Introduction......................................................................................................................1

II. Profile of Apple Company...............................................................................................1

2.1. History of development.................................................................................................1

2.2. Main business................................................................................................................2

2.3. Organizational structure ..............................................................................................3

2.4. Vision/ Missions/ Objectives ........................................................................................4

III. The adoption of marketing mix strategy 4Ps in Apple company .............................4

1.1. Definitions......................................................................................................................4

3.1.1. Marketing ............................................................................................................4 3.1.2.

Marketing mix strategy .......................................................................................4 3.2.

Analysis..........................................................................................................................5 3.2.1.

Products...............................................................................................................5 3.2.2.

Price.....................................................................................................................5 3.2.2. Place

....................................................................................................................6 3.2.3.

Promotion............................................................................................................7 IV.

Evaluation......................................................................................................................8 V.

Conclusion......................................................................................................................8
 References.................................................................................................................................9

I. Introduction
Marketing serves as the linchpin for a company's seamless integration into the
dynamic landscape of contemporary industry. Apple is a notable illustration of a company
that has triumphantly executed a marketing strategy, particularly by adeptly applying the 4Ps
of the marketing mix. During Mr. Steve Jobs' tenure as leader, Apple experienced a
remarkable market capitalization surge, soaring from $2 billion to an astounding $741 billion.
This represented an extraordinary increase of approximately 37,000% in less than two
decades
(Patel, 2020). Hence, this report shall provide a comprehensive view of its activities, while
also evaluating all the components linked to executing Apple’s marketing mix strategy. II.
Profile of Apple Company
2.1. History of development

• The full name of the company: Apple Inc

• Apple Inc. is a global technology company focused on the design, development, and
sale of consumer electronic devices, software, and online services.

• The company's corporate type is a publicly held corporation, which means that it is
owned by a large number of shareholders who have purchased its stocks through the
open market.

• Big scope: Currently, more than 1.4 billion users, about 1.2 billion iPhones sold
globally, about 400 million iPads sold globally, the amount of money that Apple earns
about 300 thousand USD per minute has been successful making Apple the number
one brand in the world valued at over a trillion dollars.

• Apple is a large corporation, and in 2022, it had a workforce of 164,000 employees,

indicating a 6.49% growth compared to the previous year.

• The year & the place of foundation: 1976, Los Altos, California, United States • 1976:

Established in April 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, Apple was
founded with the purpose of creating and marketing personal computers. The company

was formally incorporated under the name Apple Computer, Inc. • 1977: Apple

experienced substantial momentum and revenue growth in its computer sales, leading to
the expansion of the company. In a short span, they recruited a team of computer
designers and established a production line.
 • 1980: Apple achieved rapid financial success when it went public.

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• 1990: Apple introduced groundbreaking computers with innovative graphical user
interfaces and garnered widespread critical acclaim for its marketing commercials
promoting the products.

• 2001: Apple's success and return to profitability were achieved through the

establishment of its own retail stores, multiple acquisitions of software companies to

build a diverse portfolio of software titles, and modifications to some of the hardware
technologies employed in its computers.

• 2015: Apple achieved the distinction of being the inaugural U.S. company to attain a

valuation exceeding $700 billion.

• 2016-2017: As of October 2016, the company had a workforce of 116,000 full-time

employees and operated 498 retail stores across 22 countries by July 2017. • 2020-2022:

Apple reached $2 trillion and $3 trillion followed in value. (Aljafari, 2016)

- Headquarter of the company: Cupertino, California, United States.
2.2. Main business

• Industry: Consumer devices, Cloud computing, Digital distribution, Fabless silicon

design, Semiconductors, Media, Retail, Financial technology, and Artificial
intelligence.

• Products: Apple's primary revenue streams come from the substantial sales of flagship
products like the iPhone, iPad, Apple Watch, and MacBook. In addition to these,
Apple's services, encompassing Apple TV, Apple Fitness+, Apple Music, iCloud+,
and Apple Arcade, contribute a smaller share to the overall revenue. Despite their
smaller proportion, these services collectively yield a remarkable average of $13
billion per quarter.
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Major market for business activities: Apple's global presence is showcased through its
meticulously designed retail network, comprising a total of 512 stores strategically
located across 25 countries (Montgomerie, 2013).
2.3. Organizational structure
According to Apple’s Organizational Structure, we have an interactive chart:

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 2.4. Vision/ Missions/ Objectives
• Vision: “We believe that we are on the face of the earth to make great products and
that’s not changing”.

• Mission: “Bringing the best user experience to its customers through its innovative
hardware, software, and services”.

• Objectives: “Our objective is to make great products and services that enrich people’s
lives and to provide an unparalleled customer experience so that our users are highly
satisfied, loyal, and engaged. As we accomplish these objectives, strong financial
results follow.”
(Abbott, 2021)
III. The adoption of marketing mix strategy 4Ps in Apple company
1.1. Definitions
3.1.1. Marketing
According to the American Marketing Association (AMA) Board of Directors,
marketing encompasses the range of activities, institutions, and processes dedicated to
developing, communicating, delivering, and exchanging offerings that provide value for
customers, clients, partners, and society as a whole. Thus, marketing involves all the efforts
related to generating place, time, possession, and awareness utilities, extending beyond these
fundamental aspects.
3.1.2. Marketing mix strategy

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Marketing mix stands out as a foundational concept in marketing. Riaz and Tanveer
(n.d) referring Kotler, Armstrong, Wong, and Saunders (2008) defined the marketing mix as a
collection of manageable marketing tools employed by a company to elicit a desired response
from the designated market. Commonly known as the 4P's, these elements encompass
product, price, place of distribution, and promotion. They serve as the essential components
of a marketing strategy, playing a pivotal role in translating marketing plans into practical
actions.
3.1. Analysis
Apple employs a marketing mix that utilizes strategies and tactics to execute
marketing plans, aiming to attract target customers within the realms of information
technology, consumer electronics, digital content distribution, and online services industries.
3.2.1. Products
Definition: Product pertains to the goods and services offered by an organization, essentially
representing a bundle of benefits that a marketer offers to customers in exchange for a price.
Apply: Apple stands out in providing an extensive array of products and services, including
warranty service, iCloud storage, payment services, and advertising. The company is known
for its thoughtful and user-friendly designs, always prioritizing simplicity and practicality for
customers. Apple's products are characterized by high levels of creativity, which greatly
enhance the overall customer experience.
Evidence:
● Apple Inc. is employing the iPod ecosystem to enhance the functionality of the iPhone,
consequently bolstering its online music system. The distinct presentation of PC-based
websites with identical displays adds a unique characteristic to this product. (O’grady,
2007).
● The iCloud provides a seamless platform for business professionals to sync their
various devices and facilitate effortless communication. With the Keynote feature,
users can consolidate data and documents from all Apple devices into a centralized
location, streamlining accessibility and collaboration. (Apple Inc., 2014)
3.2.2. Price
Definition: Price is the amount charged for a product or service, representing its value.
Apply: Apple adopts a premium pricing strategy, where the focus is on how prices reflect the
company and its products while meeting consumer expectations. In Apple's context, the
premium pricing strategy entails relatively elevated prices, contributing to the upkeep of the
company's high-end image and that of its products. This strategy also results in Apple
products appealing to a narrower market share consisting mainly of individuals from the
middle and

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upper classes. Despite this, the company sustains profitability due to the higher profit margins
associated with premium prices. Hence, Apple's marketing mix is consistent with its
overarching premium product development strategy.
Evidence:
● Apple Inc. initially introduced its product with price points of $599 for the 8GB version
and $499 for the 4GB version. Subsequently, it adjusted the price of the 8GB version
down to $399. Despite this, the company aimed to broaden its customer base beyond
early adopters and recognized the need to attract mainstream users for sustained
growth. To achieve this, Apple employed a combination of skimming and versioning
strategies. (Apple Annual Reports, 2010).
● In the current technological landscape, Apple Inc. has embraced the capability to
showcase and modify the prices of its products online. The traditional approach of
maintaining fixed prices for all customers is evolving into dynamic pricing, a method
that involves charging different prices based on individual customers and specific
situations. (Armstrong & Kotler, 2009).
3.2.2. Place
Definition: The pathway for products from origin to audience is called the distribution
channel in the marketing mix. Place involves distributors, retailers, wholesalers, and
intermediaries. Apply: Apple shop, in partnership with Apple Inc, facilitates the sale of Apple
products in physical retail outlets. Apple Inc. also distributes its products to approved sellers,
who manage stores in strategically chosen locations, including malls in various global
markets. These online and physical distribution channels are integral components of Apple's
marketing strategy, designed to maximize its presence in the global market.
Evidence:

• Apple Inc. is an American multinational corporation headquartered in Cupertino,

California, specifically at 1 Infinite Loop. The company operates approximately 394
retail stores worldwide and is engaged in the design, development, and sale of
consumer electronics. (Nov, 2012)

• Apple's service providers undergo extensive training to specialize in handling authentic

Apple parts and cutting-edge technology, providing repair services to customers.

These skilled technicians are stationed in regions such as Asia, Africa, the Middle
East, and Latin America. (Sophearith, 2014).

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3.2.3. Promotion
Definition: Promotion involves activities such as advertising, public relations, and the
comprehensive media strategy employed to introduce a product.
Apply: Apple strategically advertises its services through television commercials and printed
materials, emphasizing their superiority over competitors. Additionally, their keynote
speeches serve as a crucial aspect of their promotional efforts, captivating customers while
offering insights into forthcoming products.
Evidence:

• To unveil the innovative device (iPhone), the company kicked off a launch event
featuring the introduction of the 4TV, a platform designed for entertainment and
information dissemination about the device. The focus was on pioneering new

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advertising methods, notably highlighted by the debut of 4TV ads in July 2010 (Chris,
2010).

• The company established fruitful partnerships with media organizations, and Steve, the
CEO, disseminates fresh ideas to the public during various events. (Williams, 2008). IV.
Evaluation
The remarkable success of Apple can be attributed in large part to its effective
implementation of the 4Ps marketing strategy, which has distinguished the company from its
competitors. The company has cultivated a large and loyal customer base, a testament to its
emphasis on product innovation and customer satisfaction. According to (Lesjak, 2023),
Apple's continuous production of groundbreaking products has been a key factor in its
expansion. In 2022, Apple had positioned itself as one of the globe's most valuable brands,
achieving an impressive revenue of 394.33 billion USD. The company experienced
substantial growth in its customer base, with over 1.65 billion active devices in use.
Furthermore, Apple received recognition from the United Nations in 2019, earning a place in
the Climate Action Awards for its commitment to utilizing renewable energy sources and
contributing to social intervention initiatives through donations. The GLOMO awards of the
current year also distinguish the Apple iPhone 14 Pro as the ultimate winner in the category
of best smartphone. Despite their premium pricing, Apple products continue to gain
popularity due to their exceptional quality and innovative features. Apple's steadfast
commitment to its brand purpose, vision, and values has greatly enhanced its communication
with customers.
V. Conclusion
To sum up, Apple has effectively employed its marketing mix strategy, leading to
strong sales and a substantial customer base. The consistent use of these marketing strategies
has fostered customer loyalty, despite some technical limitations. Through strategic
partnerships and extensive advertising efforts, the company has sustained impressive sales
figures. Apple's innovative approach has positioned it as a formidable competitor in the
market, employing various sophisticated methods to promote products and reach diverse
customer segments. To enhance its services, allocating more resources to online advertising
could be beneficial, reducing costs while expanding outreach to a larger audience. The
marketing mix aligns seamlessly with Apple's premium product development strategy.

(1904 words)

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References
Abbott, A. (2021, June 8). Apple Mission Statement, Vision, & Core Values (2023). Business

Strategy Hub. Retrieved March 9, 2023, from https://bstrategyhub.com/apple-mission

 statement-vision-core-values

Apple Inc. (1997). Apple - Job Creation. Retrieved from http://www.apple.com/about/job

creation/

Armstrong, G., & Kotler, P. (2005). Marketing: An introduction (7th ed.). Upper Saddle

River, New Jersey: Pearson Prentice-Hall.

Aljafari, A. (2016). Apple Inc. Industry Analysis, Business Policy and Strategy. International

Journal of Scientific & Engineering Research.

Lesjak, Z. (2023, March 6). Apple sales statistics in 2023: Revenue growth outlook. Tridens.

Retrieved March 9, 2023, from https://tridenstechnology.com/apple-sales-statistics/ Patel, P.

(2020). Leadership and Innovation at Apple Inc. (Publication No.

10.13140/RG.2.2.12573.87526)

Montgomerie, J., & S. R. (2013). Owning the consumer—Getting to the core of the Apple

business model. Elsevier.

Sopheairth, Y. K. V. (2014). University of Puthisastra. Retrieved from

https://yseyha.files.wordpress.com/2014/09/apple-inc-s-strategic-marketing.pdf