Business strategies of apple

The capacity for a business to make it through in the production is one measure of the business. Therefore to having the ability to continue to exist on the market and the power of any business to remain competitive. Since 1980s, Marketing Strategies have performed a significant role in likely to overcome business issues and is thought that this will continue steadily to direct the performance of business into the 21st century (Paley 1999). In product, it is also thought that good managers be capable of devise and use competitive strategies. The corporate strategy and the marketing plan of the business organisation are extremely directly inter-related. With an inappropriate online marketing strategy the decisive goal of income maximization and progress of business would be an complex task.

This report will discuss the alignment of the business strategies and the marketing planning of Apple which is a highly innovative consumer electronics market leaders providing different range products from such as the iPod, Mac Book, PC's and Apple TV's digital music circulation through its iTunes Music Store, and more recently in the years of smartphone market with the Apple iPhone at fair price and excellent quality customer support. Apple is focused on delivering the best personal computing experience to its students, professors, creative professionals and consumers round the world through its high tech ground breaking hardware, software and Internet offerings almost everywhere to every customer atlanta divorce attorneys possible way.

The assignment subject is appeared to be very critical one under the speedy growth and invention in consumer's electronics goods. Apple has been one of the marketplace leaders in being truly a generation forward in providing high-tech electric gizmos and has been keeping its existing market talk about and looking for even more growth. The positioning between your business strategy and the marketing strategy has proved to be successful and helped apple in maintaining their brand value and market talk about.

This report has got three distinctive section Learning Benefits. It begins with a brief introduction accompanied by Learning result 1 which recognizes and justifies the aims of the marketing and business strategies and also shows weather the marketing plan is helping the strategic targets or not. Learning results 2 represents about the structure of your marketing plan and the level of importance of each element of the plan, mitigation approaches for the risky components and producing a market plan. Finally learning result 3 stresses on the marketing plan benefits contract and then evaluates and reviews the steps for the agreed plan.

1. 1 Explain how the strategy of the business influences on the marketing plan

Apple's mission statement is talked about below (from the state website)

'The tactical business goal is described by its quest statement which is based on creating impressive, high-quality products and services and on demonstrating integrity in every business connections. Apple's guidelines of business carry out define just how we do business worldwide. These rules are:

Honesty-Demonstrate integrity and high honest standards in every business dealings.

Respect-Treat customers, suppliers, employees, yet others with value and courtesy.

Confidentiality-Protect the confidentiality of Apple's information and the information of our own customers, suppliers, and employees.

Compliance-Ensure business decisions comply with applicable laws and regulations

So its marketing plan is totally aligned with the mission of Apple. Apple focused on providing the best individual experiences on earth and spent some time working hard on making its products to cover up the complexness of the software used underneath with a view to produce an easy looking electronic device. Their deep focus on their consumer experience has given them the desire to do a very important factor better than everybody else and that started out with target.

Jobber's six planning questions can be quite suitable to be able to assimilate the construction of strategic goals and marketing plan.

Fig: Key Questions and the procedure of marketing planning

Apple has used the systematic examination of their business marketing environment targets, strategies and activities with a view to recognize the key tactical issues, problems and opportunities. Marketing audits are:

Internal- on micro level and

External- on macro level

Apple has been following a formula of taking care of its customers and is also wanting to 'shock and delight' them with their products. They love their customer and want to make almost all their users happy. Apple guarantees it will not stop until everyone is satisfied in case not they are prepared to refund them.

1. 2 Identify the component parts of a marketing plan

SWOT examination for Apple:

Strength Weaknesses

-Huge brand name/ Brand personality

-Financial vitality

-Smart cellphone: Highly advanced features,

-Unique look and beautiful design

-Innovation

-First to provide computer phones

-Expensive

-Limited circulation channel

-Over-pressure in the management to deliver hi-tech devices in affordable price.

-Increasing demand for better mobile computing experience

-Internet protocol-based network

-Increasing no. of applications

-Very higher level of competition (Microsoft, Yahoo, Samsung, HTC, Nokia, Sony etc)

-Changing technologies

-High product substitution effect

- Legal risks

-Imitation

Opportunities Threats

Apple apple iphone 4 4 is the most successful smartphone launched so far. It is highly ergonomics device: attractively designed and technology leading product with great brand value. Because of these distinctive characteristics it's been successful to take the hearts of its consumers and has generated strong brand collateral and customer franchise.

The Apple brand personality is the strategy used to concentrate on the life style of people. Apple affiliates the iPhone with the feelings of its consumers which is focused on simplicity.

Similarly Apple has been working on retaining its image and it is working hard on transforming its weaknesses to strength and risks to opportunities by using its official website, stores, websites and the advertising to connect to its users.

Apple has an enormous market share and it has been developing services every six months to be able to wthhold the existing consumers and to broaden their market share. The first iPhone had become on Jan 2007. After that there were lots of improvements in the software, programmers and the design of the iPhone till it came to the fourth technology today in the form of apple iphone 4 4 (launched on 7 June 2010). Apple consistently done the weaknesses and used its invention magic as it developed further. And the actual fact they are generations before anyone of mobile phone tech has been demonstrated right again. Apple has been working hard equally in terms of market penetration, market development, product development and product diversification whereas talking specifically about apple iphone 4 4 these are focusing on product development theory in relation to Ansoff matrix in conditions of proper thrust.

IPhone 4 is focusing on building and retaining the marketplace in terms proper objectives. Since apple iphone 4 4 is the fourth technology of Apple's iPhone, they are working on increasing the technical functions in order to make their consumers happy. Apple is constantly taking the feedbacks from its consumers and it is changing its products increasingly more merely to make it easy for its consumers. This is helping those to take control over it existing market share and at the same time its huge and excellent brand is appealing more consumers to be a part of Apple's consumer franchise for example Macintosh personal computer community, iTunes etc.

Complementing Ansoff's point of view of growth options, the profile examination offers a perspective for the effective analysis and management of the prevailing portfolio. Both of these frames are being used in parallel and alongside one another they create a suggestion as to the right corporate technique for Apple. The profile analysis has considered all of the group proper business sections and subsidiaries from the organization perspective evaluates them and take this as a basis of plan allocation of resources and with it, the organization strategy. The essential goal of the collection analysis is to realize as high come back as it can be while incurring only a small amount risk as it can be and also to operate or establish such tactical business segment as are essential to achieve it. Profile matrix contrasts the advantages and weaknesses with opportunities and threats. (Philip Kotler, 2010. The Quintessence of Strategic Management: What You Should know to make it through in business)

Portfolio matrix for Apple:

Fig1. 2 (b): BCG matrix [1]

STARS: Actors are market leaders in high market growths. They have a tendency to generate large amounts of cash and development market conditions. Apple computer has a sizable share in quickly growing market for portable digital music players. (Cantrell 2006) E. g. iPhone

CASH COWS: Cash cows have high profitability, requires low quality and will be the market market leaders. They finance their progress. E. g. iPods

QUESTION Markings: Question markings never have achieved a dominant market position and don't create much cash. Instead they use lots of money in growing the market share. E. g. Macbook pro

DOGS: Dogs tend to be the failures and also have little future. They make less money and their market shares are incredibly low. Since a good company should have no pups, Apple has no DOGS.

Apple's center strategy is its competitive advantages i. e. their particular and highly ground breaking technology with flash memory. And to bring these features in the sight of its costumers it has been using its website very efficiently. The state iPhone website does more than simply provide information about its products. It provides top tips and tricks for the use of your iPhone and focuses greatly on apps: shows images of apps, provides the "App of the Week, " the web site also has sections entitled "Apps for Everything" and the "Top Apps. " Apple's website is a great marketing tool for current iPhone consumers and to those who have an interest in purchasing it. The campaign of the programs is building a stronger cause of earnings for Apple. When customers see best applications, they are more likely to download the app, somewhat than looking through millions of apps to discover one which may be of any price for them.

1. 3 Identify issues of risk in just a marketing plan

There a wide range of live examples of inability of the marketing plan of the organisations because of conflicts in general management team, reward system, information system, ethnical clashes, personalities, politics behaviour, ineffective communication and skills difference. These components are enough to produce risk within the marketing plan of Apple iPhone 4 4.

However, there are numerous methods of turmoil dissolve a few of them are:

Match the marketing planning process with business culture: - the corporate aim of the iPhone 4 4 must be aligned with the marketplace plan and both of these should support each other. Some examples are launching the phone in a totally different market- Asia; top-down/bottom-up management etc. These cultures can bring conflict in business.

Senior management support: - The Older management should be determined in the program and require in the plan as the connection and support it.

The incentive system:-this should encourage the achievements of long-term objective rather then exclusively focus on short-term end result. Short-term reward rather erases the commitment from the professionals and demotivates them.

Communication:-The plan should be communicated within the team who are immediately or indirectly mixed up in planning process.

Training and development:-Training should be provided if possible. It enhances the team engagement and motivates the team to achieve good performance.

These activities if used in the right way helps to minimise the chance of marketing plan in implementing procedure for iPhone 4 4.

2. 1 Identify the levels of need for each element of the plan

4Cs marketing combination construction suits Apple the most which is an effective process of managing marketing combine decisions. The 4Cs are explained below:

Consumer wants and needs

Developing a new product and offering it to the mass market is not possible. Companies should first examine the needs and needs of men and women and then produce the merchandise which will be able to draw in consumers. As the quest statement says, Thinks in advance: Apple found how the consumer market was and thought of doing something was a generation forward and yes it actually attracted everyone.

Cost to satisfy

Costing of the nice is one more important issue. No matter how good the product is, if it's not priced relating to its potential consumer's budget than the product will definitely fail. And cost will not mean only the cost of iPhone; it will also consider the factors with it. Apple invests a lot in innovation, high-technology, highly talented manpower, great brand image, consumer commitment etc so the price tag on phone should be up to the marked standard.

Convenience

Whatever a consumer purchases should be a subject of convenience. When a consumer thinks of shopping for an iPhone 4 4, there must be a convenience place to buy it through Apple store, Apple website, Service providers/Mobile systems, online etc. and which ever way they choose should best fit them.

Communication

Communication is a term used rather than promotion. Communication is to provide and take between your buyer and owner. Apple is employing this most effectively and CEO himself directly answers the concerns of the consumers through sites, websites and press conferences. This has been the ultimate way to maintain their brand value in the eyes of the consumers whenever there are so many issues occurring with the new iPhone 4 4 and the misunderstanding with the press.

2. 2 Identify mitigation approaches for high risk the different parts of the plan

Budget for the action plan may be considered a cost income or profit-oriented budget which should be accurate. Action plan and program need a encouraging market budget (which the Apple gets from the Director) projected income affirmation for the release of a new product. Apple always should check is the budget enough in order for taking the marketing combination decisions made and the activities planned.

Kotler proposed the idea that marketing strategies transforms to specific action programs when it right answers Kotler's four questions:

What will be done?

When will it be done?

Who is accountable for carrying it out?

How much does it cost?

These are the most important elements that will help in judging what Apple can do and exactly how things have to be done. These are appropriate to the marketing blend as well (7ps or 4cs). Wilson and Gilligan have come up with a shape work to evaluate action programme effects.

Financial measures- This is a traditional method which targets the consequence of applying marketing plan.

Non financial options- This technique concentrate on monitoring, looking at and analyzing marketing mix aspects executed with the program.

Action programme final results: Wilson and Gilligan's platform:

Financial criteria

Non-financial criteria

Liquidity

Sales Volume

Cash generation

Market share

Value added

Growth rate

Earnings per share

Competitive position

Share holders value

Consumer franchise

Profit

Reliance on new products

Profitability

Customer satisfaction

Cost leadership

Sustainable competitive advantage

Fig2. 2: Action program outcomes

To judge the management of action programme's budget and allocate the right amount of resources financial reports, annual records, and income statements needs to be reviewed. And only the proposed action designs can be totally developed to mirror when activities will start. This activity should then be supervised, reviewed and become completed for Apple.

2. 3 Create a marketing plan

The reason for the Marketing plan is to translate the positioning statement into known and brands. The role of market planning ensure that the marketing blend for the product and services matches changing customers needs as well as creating more opportunities to market new product in new market.

For Apple iPhone 4 4, 4Cs marketing combination theory suits the most to make an effective marketing plan. This marketing combine focuses the marketing from the consumer's perspective. It understands consumer's needs, wants and behavior and helps the business to produce whatever is desired by the consumer or innovates different things the actual consumers may have been fantasizing about. Similarly, in order to fix the price tag on apple iphone 4 4, it has to add up all the development cost as well. So that it is the work of marketing department of Apple to focus on which market to go and which target audience to focus depending after the purchasing power of the purchasers.

Market planning process provided a well-defined route from generating a company mission to utilizing and controlling the resultant designs for Apple. The normal marketing plan structure is listed below:

Stages in marketing planning process:

Business Quest/ Executive summary

Apple's mission assertion in 'Thinks ahead ' therefore the marketing department helps to keep its full focus on the innovative, unique and differentiated features iPhone 4 4 while marketing the product to its potential consumers.

Marketing audit/ MARKET situation

After making certain the mission is clear Apple have a marketing audit. It scanned the marketplace and its macro and micro factors and discovered the tendency of the market, total available market and the competitors list. They also made an email of the changing environment this is the swiftly changing technology and competitors activities.

SWOT Analysis

Apple did a fair and justified SWOT examination and discovered that it is an extremely strong market innovator on the market of smart phones but at the same time realized that we now have a number of competitors who have been rivalling and imitating the technology. Prices strategies were extremely competitive as well so in order to stay in the marketplace for long haul and to keep up with the market share they had to sacrifice some bits of their margin and fixed the expense of the apple iphone 4 4 which is related to its competition.

Marketing aims and issues

Apple used Ansoff's matrix to determine its marketing goals. Apple has been working hard equally in terms of market penetration, market development, product development and product diversification whereas discussing specifically about apple iphone 4 4 they may be focusing on product development principle. They may have put all their efforts to serve their consumers with the features, facilities and applications which are easily accessible and have a lot of comfort in using.

Core strategy/Marketing structure

After figuring out the marketing objectives they discovered their marketplace and the target audience. Initially it came up as a specialist mobile so its target audience/market were the business enterprise category people and was highly publicized on business areas, sites and high-class population especially in USA and European countries. But soon they understood, niche marketing was not a great option for them to develop their market show. So they made a decision to take over the market by decreasing the price of the phone and so that it is affordable to standard middle income people. Likewise they launched apple iphone 4 4 in Asia, Middle East and much more countries as well.

Action programmes

Action programmes is the planning carried out at the marketing blend decision stage to be able to improve it into actionable programs, strategies and activities. Apple presumed in considering from the consumer's aspect somewhat than producer's area and thought in give and take alternatively than selling and buying. So they choose 4Cs Marketing Mix elements.

Budgets

Budget is the main factor while planning marketing process. Apple acquired a clear notion of its present position and its own revenue in addition to the margin it was making which helped it to forecast the right amount of budget for marketing iPhone 4 4.

Control/ Implementation

So after the successful unveiling of iPhone (June 2010), and making record sales in the first fourteen days, Mr. Steve Careers still centered and checked the evaluating results and on-going planning modifications (Product life circuit), consumer's views and feedbacks about iPhone4. Series of press conferences were launched, and studies were conducted. The sales of iPhone and the market coverage was constantly monitored and assessed. Right after having rumors about reception problem, the business immediately decided to give free conditions to the iPhone 4 4 users to be able to solve the situation.

3. 1 Discuss how the plan support strategic objectives

Jobber advised 5 various ways in which an organisation is organised to use a marketing plan that are:

No marketing department.

A efficient organisation

A product-based organisation

A market-centred organisation

A matrix organisation

Out of the above 5 buildings, Apple as an organization is a product-based organisation as it focuses on individual product responsibility. Professionals are appointed product wise and they can have their own market strategies. Each director targets the marketing strategies and demonstration of these product on the market. This is an expensive way of marketing for Apple as it must spend independently in each product which is more likely to create conflicts between your product lines.

Marketing execution is the process of changing marketing strategies and plan into marketing activities with an objective to accomplish proper marketing goals. Kotler et al advised that for the successful execution of marketing programs, reward system can be an essential factor. Incentive may be formal or casual but it will guide the complete marketing process. Short-term prize results the manager's performance going down and loosing focus on permanent goals. Kotler also described that Successful marketing execution of the marketing plan will depend on the effectiveness of the mixture of five elements: organisation structure, action programmes, decision and praise system, human resources and company culture into a coherent program that fits the business strategies.

Marketing control is the procedure of measuring and analyzing the results of the marketing plan and strategies and taking corrective action to ensure that the wholesome purpose is achieved. Apple got clear picture at heart and had arranged a goal to be the best smart phone on earth. Then they measured their performance through the sale of the telephone, consumer feedbacks and critics. If they saw that there is a problem and its consumers weren't happy they evaluated their performance and got the corrective action immediately.

There has been a significant importance of Jobber's idea of operational control during the implementation of the online marketing strategy. The operational control includes the following methods:

Customer satisfaction dimension:

Sales and market share analysis:

Cost and profitability analysis:

All these procedures have huge value for Apple's iPhone 4 4. By connecting with the consumers through the state websites, studies and questionnaires Apple accumulated lots of effective feedbacks. In the same way, the quarterly sales growth and the revenue generated every quarter was a beneficial to understand the business growth. Looking at the sales with the competition made them find out their market show growth on the market.

The role of information in marketing control is very significant. By the use of IT the marketing mind of the Apple Inc. noticed the way the performance of the iPhone 4 4 was on the market and they flipped in taking the corrective action. With out the use of computer no company can examine their performance and adjust their course of action. Similarly, the city of the Apple users and iTunes gets changes about the new offers of the business's new applications and products. The users have their own bank account with Apple gets to know about the merchandise activities even before the mass media gets it.

Fig: Role of information

3. 2 Outline an approach to gain agreement for the marketing plan

David Jobber identified the four key issues for the successful execution of marketing plan. To apply an effective marketing plan it is the utmost necessity for Apple to get the support and dedication of the next key resources:

1. Gaining support of key decision makers/senior level Management for the suggested plan and overcoming the opposition of others: This may encourage to all or any operating group and it helps to lessen the resistance as well.

2. Gaining the mandatory resources (people and money) to have the ability to put into practice that plan: the business as is an ground breaking and high-tech company, Apple should make sure they have enough fund and RIGHT manpower.

3. Gaining commitment of the individuals and departments in the business who get excited about front-line implementation like marketing, sales, service and distribution staff.

4. Increasing the co-operation of Creation Section and R&D needed to implement the plan: it will make sure they have enough finance to aid the R&D and produce enough iPhone's product to meet the demand.

IPhone 4 got some issues while utilizing the marketing plan in the beginning but Jobber's five phases ladder of support concept model helped it to convert the level of resistance to aid.

Fig: Jobber's 5 level model of ladder of support

According to Tony Proctor's view of thinking of organisation as an interior market for change initiatives, he suggested a thought that communication can help to gain agreement and support for marketing strategies in the following ways:

Involving people along the way even before it starts off and making them ready for the change.

Consulting them well-timed and empowering them with the obligations to help make the change happen smoothly

Understanding the culture of the company, as new strategies that run counter to the traditional values of an organisation. This is actually the one major reason which creates level of resistance and helps it be difficult to add.

These things are carefully demonstrated in the right time by iPhone 4 4 and this helps to gain the arrangement and support to the marketing programs easily.

Apple also used Proctors inside market to apply change strategies. Proctor also considered about the organisation as an interior market for change initiatives and determined the key skills of communication to get over the resistance from within the company for successful execution of marketing plan combined with the means of making people more aware. He suggested communication as a tool for overcoming level of resistance. In order for the communication to work, it will have the following skills:

The potential to get visitors to accept ideas

The ability to handle difficult obstacles

The capacity to plan and take care of time in a powerful manner.

The ability to produce the enthusiasm and motivation to follow through strategies

Implementation strategies

Jobber identified the next potential obstacles to utilizing the marketing plan:

Seen as a high-cost solution

Unquantifiable benefits

Personal ambitions

Inappropriate praise system

'Saying' versus 'doing' (not pursuing up with activities things you decided or were committed to).

Referring to Kanter (1988) and Piercy (2001) Jobber features pursuing as typical kinds of resistance in any organisation:

Criticism of specific details of the plan

Foot dragging

Slow response to requests

Unavailability

Suggestions that despite the merits of the program, resources should be channeled elsewhere.

Arguments that the proposals are too ambitious

Hassle and aggravation created to wear the proposer down.

Attempts to hold off the decision, wishing the proposer will eventually lose interest

Attacks on the credibility of the proposer with rumour and innuendo

Deflation of any exhilaration surrounding the plan by pointing out the risks

Jobber advised four steps organised approach to deal with resistance to the marketing plan.

Fig: Jobber's model of managing resistance

Importance of interior communication by Kotler and Keller and Ballantyne:

(a) Good inside communication- All of the team contributing the program should have gain access to and make the communication even.

(b) Ideal organizational constructions- The composition of the company should be easy and simple to acquire good communication move.

(c) Satisfactory training and resources- Training and development creates desire and boosts performance of the team.

(d) Total commitment from mature management- mature management is the leader the iPhone 4 4, so their engagement in the program and their reviews can help to create better plan and to improving customer service and satisfaction.

(Tony Proctor, Creative Problem Handling for Professionals: Growing Skills for Decision Making, p250-267)

.

3. 3 Identify an evaluation and review measure for the decided plan.

After the plan profits support and arrangement, its implementation needs to be assessed. Kotler and Keller have submit a four stage 'requirements- responsibility-purpose' framework for assessing the success of the implementation of the marketing plan.

Apple has used this platform to plan, accumulate information and present results on the analysis. After the analysis it becomes the basis for the development into the future strategic marketing strategies by giving contribution to the internal and exterior audit.

Fig: Kotler and Keller's Criteria-responsibility-purpose' framework

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