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Apple International Marketing

1. If you’ll be working for Apple (Ipad or Iphone) what strategies would you pursue in order forestall circumstance like what is happening right now to Nokia Apple Inc. has presently had an incredible break-through within the technological race when it firstly launched Iphone in 2007. Considering that when, there was a change in the technology field specifically, within the Personal Computer (PC) trade contains: cell phone and pill pc. If I worked for Apple Inc., so as to retain along with to boost the place of Apple in Today’s market, I would use, deploy and develop the Relationship marketing with “Distinction” techniques based upon 4P consists of: Product-Price-Promotion-Place.

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Item

First of all, people have to admit the reality that the present success of Apple was developed on the incredible gadgets. Compared to Nokia, Apple currently produced an important competitive benefit that raises company to a brand new level. The failure of Nokia was a value lesson for others cell phone producer worldwide.

The main reasons main Nokia to this moment circumstance is business currently missed an essential opportunity in mobile phone revolution along with its gadgets. Despite the truth that, afterward Nokia unveiled mobile phone Lumia nevertheless it did not satisfy the consumers’ demand and expectation. Nokia item’s designs are not enticing and stylish as Iphone. In addition, the objects are outdated consumer interface, absence of applications and out-of-date applied sciences in comparison with Apple’s merchandise.

Consequently, Nokia unfastened its prominent model value in the smart phone industry. Meanwhile, Apple understood and took that opportunity then turned it into substantial success.

Hence, Apple ought to continue the merchandise differentiation strategy. It primarily focuses on investing extra in creating and establishing the brand new and ingenious improvements, which are totally various from competitors’. The products should be usually updated and updated in each its explicit outlook (thinnest, most light-weight, distinctive, modern and outstanding) and capabilities (hassle-free, ease-use, help purposes and repair and so on). This is the one method to make company continue hold its crown as innovator in the intensive technological competition.

Price

Secondly, regardless of the Apple is assessed as “the tech industry’s high-price leader” with Premium worth, people are still willing to buy its products at a specific price. The main level is value set based on the “product Differentiation strategies”. Therefore, so as to exist and develop within the value war, the company not solely retain the identical value strategy but additionally use more the pricing Skimming and Reference methods: launching a similar product line however in several price factors relying on the features and drive capacities. It may be better for Apple than using the penetration pricing methods by suddenly decreasing the value to expand or approach new market.

Promotion

In order to get the large impact from media and society, one key in the Apple’s advertising is its conventional promotion methods by creating hype and excitement earlier than the launch of merchandise. Apple is considered as “Phenomenon” and each advertising communication regarding “Word of mouth” created large impact on client habits. Organizing significant campaigns with special slogan to introduce and get emotional response about the new merchandise, which consider the consumer psychology: the curiousness, shallowness, want and passion in new applied sciences Place

Finally, expanding and opening new multi-distribution channels with excessive gross sales quantity (retail store chain and online sales). Simultaneously, more creating the sturdy relationship with worldwide retail companions. In conclusion, Relationship Marketing based mostly on “Differentiation strategies” focusing on buyer retention and satisfaction, which to be able to enhance, enhance buyer loyalty and sustainable improvement. Apple Inc. has to perceive the market dynamic to maintain its observe as market pushed by inventing the distinctive and creative product lines as well as innovation technology.

2. On the opposite hand, if you could be working for a competitor of Apple (Tablet or mobile), what methods would you adopt to be able to compete against Apple Apple (Iphone and Ipad) is considered as the largest rival in the PC trade of Samsung (Galaxy S), Nokia (Lumia), Google (Nexus), Amazon (Kindle Fire). Even though, Apple has been dominating the PC business however its target market selection is “Market specialization”. The weakness of Apple is the limited market share due to the premium value and most Apple content can only run on its chosen devices. If we are opponents of Apple, we will use the Apple’s methods to compete against it. It means we must also apply the “Differentiation strategies” to offer more perceived value to shopper.

Every time, Apple releases new product or any software, we would prepare to create and unveil our wonderful totally different merchandise with adding extra worth proposition. Take for situations, to accompany with product, we will provide new innovative or free (or low cost charge) functions, software program, movies, TV shows, video games, e-books, cloudy computing or much more drive capability and so forth. Although, we don’t have as robust customer loyalty as Apple has, our competitive advantage is providing the same product’s high quality with a competitive price which is lower than Apple’s however nonetheless not too low to confirm our position available within the market. In addition, as some Apples’s competitors (eg: Kindle of Amazon) did, they used the bundle pricing strategies mix two or extra merchandise and promote these at a reduced value or supply applications: purchase once but easy to entry content on different units ipad, iphone, tablets . Then little by little getting the expansion worldwide scale with “Full market coverage” (different product traces appropriate for each customers) via different market entries, distribution channels and marketing communication campaigns.

3. Make a SWOT analysis for Apple (Ipad and Iphone)

Apple’s SWOT analysis

a. Define what are the most important threats and alternatives for Apple in the future

Threats

Nowadays, the high know-how business appears to be in the “Saturation” however in the future, people nonetheless believe there could be outstanding modifications. In the long run, essentially the most threats that Apple might face is the intensive and high level in know-how competitors. The threats could be coming from both current and rising rivals. The growing in the market share results in the consequence that there progress in perception and needs/demands of shoppers. In addition, there are increasingly counterfeit and pretend merchandise overflowing market that affect on to the corporate image and gross sales. If Apple can’t find the answer, quickly company is surpassed by others opponents.

Opportunities:

Ranking as a top leading innovator brings many open-opportunities for Apple. The greatest alternative of Apple is modifications in technology provide new and revolutionary merchandise. The company may even get and deploy from the outsourcing for its analysis and development. Creating the expertise revolution and changing desire of information age affecting to most generations. As one of the famous philosophies of strategic advertising pioneer – Regis McKenna: “Markets for new progressive products do not exist, they have to be created, and defined”. Therefore, creating and increasing the product/service lines by Apple may assist them outline its market, increase gross sales and enhance their product portfolio.

b. Define what are the most important strengths and weaknesses of Apple today

Strengths

In 2012, this is the second time when Apple is ranked the world’s most precious brand according to “The 2012 BrandZ Top 100 Most Valuable Global Brands”. It is alleged that the Apple’s brand success is driven by three components confidence, competence and prospects. Might be the explanation why people purchase Apple’s product as a outcome of they simply care about its brand and image. As the David Haigh acknowledged in the annual report on the world’s most precious global brands: “Brands are essentially the most useful assets in enterprise right now.

They drive demand, motivate workers, secure business companions and reassure financial markets. Leading edge organizations recognize the need to perceive model equity and model value when making strategic decisions” – David Haigh, CEO, Brand Finance plc. Apple is successful in creating its id and emotional branding that every one most the entire world can acknowledge. Long term brand constructing will interact shoppers on quite lots of contact points that create the high loyalty.

Weaknesses

Entering the Niche market with the premium worth strategies, which can thought-about as Apple’s weak spot. The price wars between competitors will also affect to Apple’s income. Moreover, the company’s goal market choice is “Market specialization” then it quite limits the market share cause products offered by Apple meet the demand of middle/ higher class and persons are fascinated in innovation expertise.

Reference

Mr. Francois Simon’s lecture and materials
http://www.tutor2u.net/blog/index.php/business-studies/comments/nokia-and-strategic-change-the-essential-a2-business-case http://theapplephenomenon.blogspot.fi/
http://www.brandfinance.com/images/upload/bf_g500_2012_web_dp.pdf http://www-sul.stanford.edu/mac/mckenna.html
http://www.wpp.com/wpp/press/press/default.htm?guid={92b52c53-fc68-45e0-aaea-34fe6fbd769b} http://www.amazon.com/gp/feature.html?ie=UTF8&docId=100071977 http://www.saleschase.com/blog/2012/04/03/little-known-secrets-of-apples-pricing-strategy/ http://www.saleschase.com/blog/2012/03/13/the-best-of-apples-marketing-strategies/ http://blog.openviewpartners.com/apples-marketing-strategy-history-repeats-itself/ http://blogs.gartner.com/eric-knipp/2009/09/28/cost-leadership-and-differentiation/ http://www.slideshare.net/kaushiik10/apple-inc-marketin-and-distribution-strategy

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