BANKING ACADEMY, HANOI

BTEC HND IN BUSINESS (ACCOUNTING)

ASSIGNMENT COVER SHEET
NAME OF GROUP
UNIT TITLE
ASSIGNMENT TITLE
ASSIGNMENT NO
NAME OF ASSESSOR
SUBMISSION DEADLINE

V Quang T (Cark)
Unit 4: Marketing Principles

Apples Product - Marketing Mix Programme

1 of 1
Ms. Doti Chee
13 June 2014

I, ___V Quang T (Cark)___ hereby confirm that this assignment is my own work and not copied or
plagiarised from any source. I have referenced the sources from which information is obtained by me
for this assignment.

________________________________

_________________________

Signature

Serial Group member

No
(Vietnamese Name)
Leader: V Quang T

Date

Group member
(English Name)
Cark

Class
SO7

Student
no
F04182

Signature

---------------------------------------------------------------------------------------------------------------FOR OFFICIAL USE (Course Administrator)

Assignment Received By:

Date:

Unit Outcomes

Outcome

Evidence for the

criteria

Feedback

Assessors
decision

First

Understa
nd the
individu
al
elements
of the

Explain how
products are
developed to
sustain
competitive
advantage

3.1

Re-

Intern
al
Verific
ation

Outcome

extende
d

Evidence for the

criteria

Feedback

Assessors
decision

Explain how
distribution is
arranged to
provide customer
convenience

3.2

Explain how
prices are set to
reflect an
organisations
objectives and
market
conditions

3.3

Illustrate how
promotional
activity is
integrated to
achieve
marketing
objectives

3.4

Analyse the
additional
elements of the
extended
marketing mix

3.5

marketin
g mix

LO3

Be able
to use
the
marketin
g
mix in
different
contexts

Plan marketing
mixes for two
different
segments in
consumer
markets

4.1

Intern
al
Verific
ation

Outcome

Evidence for the

criteria

Assessors
decision

Feedback

Illustrate
differences in
marketing
products and
services to
businesses
rather than
consumers

4.2

Show how and

why international
marketing differs
from domestic
marketing.

4.3

LO4

Merit grades awarded

M1

M2

Distinction grades awarded

D1

D2

Group Assignment
Well-structured
Not Well-structured

Reference is:
done properly
is not done properly
should be done (if any)

Overall, youve:
passed:

M
3
D
3

Intern
al
Verific
ation

Outcome

Evidence for the

criteria

Feedback

Assessors
decision

Intern
al
Verific
ation

all outcomes
3.1 / 3.2 / 3.3 / 3.4 / 3.5 / 4.1 / 4.2 / 4.3

referral:
all outcomes
3.1 / 3.2 / 3.3 / 3.4 / 3.5 / 4.1 / 4.2 / 4.3

Areas for improvement:

To achieve a pass / merit / distinction, you need to meet all the requirements set in
the assessment criteria
more relevant answer
better knowledge
more and better explanation
more organization specific examples
more analysis
more critical thinking
improve in your class attendance
put in more effort in your studies
do not plagiarize
need to pass oral exam to achieve a pass and above grade as per universitys rule

ASSESSOR SIGNATURE

NAME: Doti Chee

(Oral feedback was also provided)

DATE 18 / 6 / 2014

Outcome

Evidence for the

criteria

Assessors
decision

Feedback

STUDENT SIGNATURE

DATE

NAME :..............................................................................

FOR INTERNAL USE ONLY

VERIFIED

YES

NO

DATE
: ...........................................................
VERIFIED BY : ...........................................................
NAME
: ...........................................................

SCENARIO

ABOUT APPLE, INC

Apple started in 1976 as a computer company. In the last decade, however, Apple
has expanded into a very intricate company that specializes in much more than just
computers. In 2001, Apple broke the barrier with the iPod, eventually becoming the
dominant market leader in music players. As well, Apple joined the phone industry in
2007 with the iPhone, which has also been widely successful.
Apple is a consumer goods company, and therefore evaluating its value requires
understanding its products and consumers. This can be very difficult because Apple
competes with many different companies throughout the different industries it takes

Intern
al
Verific
ation

part in. Some describes Apple as: "For reasons varying from its philosophy of
comprehensive aesthetic design to its distinctive advertising campaigns, Apple has
established a unique reputation in the consumer electronics industry." One of the
most unique things about Apple is that it has a very strong customer base. This is
extremely important in understanding Apple!
Apples Product
- iPhone
Apple has recently joined the mobile phone market and has been extremely
successful, selling almost 7 million iPhone 3G's in the fiscal year fourth quarter of
2008. This is higher than the number of Blackberry's sold by RIMM (the market
leader) in the same period! Apple has already sold more than 13 million iPhone's,
easily surpassing their goal of 10 million.

Their release of the iPhone in June 2007 received massive amounts of hype all
around the U.S., as for weeks the news was bombarded with iPhone news.
Currently, Apple is working exclusively with the AT&T network.

The iPhone is a multi-media phone that utilizes a multi-touch screen instead of a

physical keyboard. The iPhone has a camera, a music player (just like an iPod), text
messaging, and Internet services, such as checking your email and web browsing.

The iPhone offers many other applications on the home page, such as: Maps,
Calendar, YouTube, iTunes store, and others. The iPhone also runs its own
operating system, called the iPhone OS, which has a similar foundation as Mac OS
X. What makes the iPhone so extraordinary is that it manages to incorporate all of
these features into an easy-to-use handheld device. The homepage, which is shown
in the image below, is organized very well and is very user-friendly (it allows for the
user to arrange the items however they like).
Apple is constantly working on upgrading its iPhone to provide the best service. For
instance, they announced the second version, the iPhone 3G, this past summer.
Apple sold 1 million iPhone 3G's in its first three days on sale. Many competitors
have recently tried to imitate the iPhone, through products such as the Samsung
F700, LG KE850, OpenMoko Neo1973, and many others.
The iPhone was named Time magazine's Invention of the Year in 2007.

Software

Apple develops its own operating system to run on Macs, Mac OS X, and the latest
version being Mac OS X v10.5 Leopard. Apple also independently develops
computer software titles for its Mac OS X operating system. Much of the software
Apple develops is bundled with its computers. An example of this is the consumeroriented iLife software package which bundles iDVD, iMovie, iPhoto, iTunes,
GarageBand, and iWeb. For presentation, page layout and word processing, iWork
is available, which includes Keynote, Pages, and Numbers. iTunes, QuickTime
media player, and Safari web browser are available as free downloads for both Mac
OS X and Windows.
With the struggles of Window's newest operating system, Vista, many PC users are
switching to Macs. Apple's operating system, Mac OS X, has certainly outperformed
Window's Vista. In April 2006, Apple announced a cool feature called Boot Camp,
which allows Apple users to run OS X and Windows on their Intel-based machine at
the same time. This gives an advantage to many Mac users who need to use
common Windows features.

Apple Retail Store (Get iPhone from the people who really get it)
iPhone 5s and iPhone 5c are now available for walk-in purchase on a first-come,
first-served basis at your favorite Apple Retail Store. Or choose in-store pickup when
you buy online, and well have one waiting for you. When you come in, well help
you pick the right rate plan, transfer your contacts, set up your email, and more.
Apples iPhone Marketing Strategy Exposed
Apple does not have a marketing budget. They never advertise their mobile phone
products anywhere. That means no SEO, PPC, Social media, TV, Radio or print ads
of any kind. They simply do not promote their iPhones what so ever.
If you think you have seen Apple advertising their iPhone products you are mistaken.
What you have actually seen is some other company advertising Apples products
for them. Apple are so clever that they have actually managed to get other
companies (mainly mobile phone operators) to pay for, and execute advertising for
them. Apple iPhone ads are in fact paid for by network operators who want to
advertise that they sell the iPhone. When operators want to tell the world that they
sell the iPhones, not only do they pay the bill but Apple slaps a fat stack of strict
branding restrictions on the operators that dictated how the ad must look and what
information it can contain. Hence, why all ads for Apple products look the same.

You might think that mobile operators are stupid for what is effectively paying for
Apples advertising but what choice do the networks have? Apple is the bestselling
smartphone year after year. If an operator wants to get a bigger slice of the Apple
pie, they need to advertise that they have it. And they cant advertise Apples
trademark without conforming to Apples branding guidelines.
If an operator breaks the rules, they pay the price. Operators that dont play by the
rules are not prioritized when it comes to stock distribution.
So while you are splashing your businesses cash on promotion why is it that Apple
doesnt have to? After all, weve all been told that you have to spend money to make
money.
Its not because the iPhone is the best phone on the market. The iPhone is a good
product but in terms of spec most iterations of the iPhone have really struggled to
match those of the equivalent high end devices by HTC or Samsung.
The secret to their success is in Apples marketing strategy. They use what is known
as the Exclusivity Technique. You would have seen this technique used, or maybe
even used it yourself before.
Source:
http://dpnick330.wikidot.com/background
http://www.apple.com/retail/iphone/
http://smallbusiness.yahoo.com/advisor/apple-iphone-marketing-strategy-exposed032350605.html

Visit Apples website:

http://store.apple.com/vn

Role

With the above information of Apple smart phones, you have been asked to assist
and present to your Product Manager a report on the following:

TASKS

Explain how products are developed to sustain competitive advantage

(3.1)

Explain how distribution is arranged to provide customer convenience

(3.2)

Explain how prices are set to reflect an organisations objectives and market
conditions
(3.3)

Illustrate how promotional activity is integrated to achieve marketing objectives

(3.4)

Analyse the additional elements of the extended marketing mix

Plan marketing mixes for two different segments in consumer markets for Apple
smart phone
(4.1)

Illustrate differences in marketing products and services to businesses rather

than consumers
(4.2)

Show how and why international marketing differs from domestic marketing (4.3)

(3.5)

GRADING

Pass

is achieved by meeting all the requirements defined in the assessment

criteria.

Merit

Identify and apply strategies to find appropriate solutions

(M1)

Characteristics / Possible Evidence Relevant theories and

techniques have been applied to marketing mix, marketing segments
and contexts to arrive effective judgments for the given products.

Select and apply appropriate techniques

(M2)

Characteristics / Possible Evidence Appropriate methods selected

and applied to justify marketing mix plan for different market segments
and contexts using of various sources of information for the given
products.

Present and communicate appropriate findings

(M3)

Characteristics / Possible Evidence An appropriate structure and

approach have been used to prepare product market reports to your
Product Manager. Present data using a range of methods e.g. tables or
charts etc.

Distinction Use critical reflection to evaluate own work and justify valid
conclusions
(D1)

Characteristics / Possible Evidence creation has been used to

generate and justify valid comments related to various elements of
marketing mix for Apples smart phones.

Take responsibility for managing and organizing activities

(D2)

Characteristics / Possible Evidence Evaluate the importance and

impact of each element of Apples smart phones marketing mix to the
marketing strategy and / or organize activities to any one or more
segments and contexts.

Demonstrate convergent, lateral and creative thinking

(D3)

Characteristics / Possible Evidence Innovation and creative thought

have been applied to the creation of a product marketing programme
for Apple smart phones and market segments, including all marketing
mix decisions.

PRESENTATION

1. The assignment should have a cover page that includes the assignment title,
assignment number, course title, module title, Lecturer/tutor name and
students name. Attach all the pages of assignment brief/cover sheet with
your report and leave them blank for official use.
2. Ensure that authenticity declaration has been signed.
3. This is a group assignment.
4. Content sheet with a list of all headings and page numbers.
5. A fully typed up professionally presented report document. Use 12 point Arial
or Times New Roman script.
6. Your assignment should be word-processed and should not exceed from
3,000 words in length. A CD should be included with references and
accompanying notes.
7. Use the Harvard referencing system.
8. Exhibits/appendices are outside this limit.
9. The assignment should contain a list of any references used in the report.

NOTES TO STUDENTS FOR SUMMISSION

Check carefully the submission date and the instructions given with the
assignment. Late assignments will not be accepted.

Ensure that you give yourself enough time to complete the assignment by the
due date.

Do not leave things such as printing to the last minute excuses of this
nature will not be accepted for failure to hand-in the work on time.

You must take responsibility for managing your own time effectively.

If you are unable to hand in your assignment on time and have valid reasons
such as illness, you may apply (in writing) for an extension.

Failure to achieve a PASS grade will results in a REFERRAL grade being

given.

Take great care that if you use other peoples work or ideas in your
assignment, you properly reference them in your text and any bibliography.

NOTE: If you are caught plagiarising, the University policy and

procedures will apply.

APPLE, INC

Prepared for:
Lecturer: Ms. Doti Chee
Subject: Marketing
Banking Academy, Hanoi
BTEC HND in Business (Finance)
Prepared by:
Student: V Quang T (Cark)
Class: S07
Word number: 3139 words

Submission date: 13 June 2014

Executive summary
Apple is now being the symbol of innovation, which is able to
inspire people all around the world. The Apples secrets of success and
making the dreams come true have been the main topic of many
discussion, as those are not truly revealed yet. In any way, the usage of
Apple in classical marketing theories are undeniable. One part of those
huge treasury secrets will be told in this short and modest report. From
the basic 4Ps (Products, Price, Place, Promotion) to additional 3Ps
(People, Process, Physical Evidence) and also how Apple have, or should
have conquered every each local market comes along with the
international market, everything will be mentioned and analyzed. The
author hopes the whole report will be fully read for the aim of creating
further debates, which is so meaningful for all of us in the way of finding
out about and manipulating Apples secrets.

Table of Contents
Table of Contents......................................................................................................................1
Introduction..............................................................................................................................3
3.1

Explain how products are developed to sustain competitive advantage.................4

3.1.1.

Definition of competitive advantage...................................................................4

3.1.2.

Branding................................................................................................................4

3.1.3.

Packaging..............................................................................................................4

3.1.4.

Product Life Cycle (PLC)....................................................................................4

3.2.

Explain how distribution is arranged to provide customer convenience................4

3.2.1.

Definition of distribution.....................................................................................4

3.2.2.

The 5 rights of distribution..............................................................................5

3.2.3.

The 5 basic functions of distribution..................................................................5

3.2.4.

Transportation......................................................................................................6

3.3.
Explain how prices are set to reflect an organisations objectives and market
conditions..................................................................................................................................6
3.3.1.

Costs and profits involved to Apples objectives...............................................6

3.3.2.

Psychological pricing...........................................................................................6

3.3.3.

Demand based approaches to Pricing................................................................6

3.4.

Illustrate how promotional activity is integrated to achieve marketing objectives ...........7

3.4.1.

Marketing objectives............................................................................................7

3.4.2.

Push and pull........................................................................................................7

3.4.2.1.

Push strategy.................................................................................................7

3.4.2.2.

Pull strategy..................................................................................................7

3.4.3.
3.4.3.1.

Abovetheline (ATL)..................................................................................8

3.4.3.2.

Belowtheline (BTL)..................................................................................8

3.4.4.
3.5.

Above the line and below the line.......................................................................8

AIDA model..........................................................................................................8

Analyse the additional elements of the extended marketing mix............................9

3.5.1.

People....................................................................................................................9

3.5.2.

Process...................................................................................................................9

3.5.3.

Physical evidence..................................................................................................9

4.1
Plan marketing mixes for two different segments in consumer markets for Apple
smart phone............................................................................................................................10
4.1.1.

Segment 1............................................................................................................10

4.1.2.

Segment 2............................................................................................................10
1

4.2.
Illustrate differences in marketing products and services to businesses rather
than consumers.......................................................................................................................11
4.2.1.

Define differences between industrial (B2B) and consumer (B2C) markets 11

4.2.2.

Set how 4Ps focus on industrial market...........................................................11

4.3.

Show how and why international marketing differs from domestic marketing. .12

4.3.1.

The differences between international and domestic marketing...................12

4.3.2.

Marketing mix for international market.........................................................12

Conclusion...............................................................................................................................14
Appendix.................................................................................................................................15
References...............................................................................................................................17

Introduction
Mentioning Apple means we are talking about the richest, the most creative, and also
the most famous enterprise, in worldwide range. From a small garage of his dad, Steve Jobs
has made the magical things, he changed this world forever, as he has claimed in Think
Different campaigns TVC To the crazy ones: the people who are crazy enough to think
they can change the world, are the ones who do. Steve Jobss craziness may raise lots of
debates, but one thing no one dares deny is that Apples marketing strategies, in every each
details, are so invincible.

3.1

Explain how products are developed to sustain competitive advantage

3.1.1. Definition of competitive advantage
According to Investopedia, competitive advantage is
an advantage that a firm has over its competitors, allowing it to generate
greater sales or margins and/or retain more customers than its
competition. There can be many types of competitive advantages including
the firm's cost structure, product offerings, distribution network and
customer support.

By using connected tactics with owned products, Apple has successfully reached and
stayed at the top positions of the world.
3.1.2. Branding
Steve Jobs has branded Apples products as the multipletask devices with
proportional prices that are able to bring the users better lives (Mourdoukoutas, 2013). That
made the Apples products be separated from all the competitors, which, at that time, were
only made for general use, with affordable prices and nothing seductive (Mourdoukoutas,
2013).
3.1.3. Packaging
Apples products are so attractive that even a fouryearold girl can easily use and fall
in love with that magic device without any manuals (Dilger, 2013). From the design of
cover boxes to the features all make people love at the first sight, they wont easily let
Apples competitors products step in their mind. Thats definitely a real and great
competitive advantage for Apple.
3.1.4. Product Life Cycle (PLC)
Apples products PLC have been reduced by the owners themselves. In 2012, when
the iPhone 5 was firstly performed, the older versions of it was officially abandoned
(Agrawal, 2012), even they were expected to be useful in the future (Hughes, 2012). The
reason for this waste is that Apple has defeated itself, so killing the old gold chicken means
giving Apples throne to the new one. By this way, Apple has always successfully sustained
its competitive position in the market.

3.2.

Explain how distribution is arranged to provide customer convenience

3.2.1. Definition of distribution
By Investopedia, distribution (or distribution network) definition is
An interrelated arrangement of people, storage facilities and
transportation systems that moves goods and services from producers to
consumers.
The Apples distribution is so effective in fulfilling the customers addiction.
3.2.2. The 5 rights of distribution
4

B2B market

B2C market

Right Product

As the closest device to people now and then is the phone, Apple
was right when concentrated on improving iPhone, about both its
design and features for the aim of making end users lives better.

Right Place

Through technological or trade

fairs, both global or national
ones, where the wholesalers and
retailers look for contracts of
innovative products.

Right Time

Seasonal basis. The time to sell products is based on the desire of the
customers, the higher the desire the less products. This makes
customers satisfy much more when they get the iPhone, and also
keeps the scarcity as the next generations of the product are wanted
more.

Right Quantity

Only limited number of iPhone

Big quantities comes along with
can be sold to one customer,
right delivering policies for each
which is served with all the
specific wholesaler.
available warranty.

Right Price

The price policies are based on

the
quantities
that
the
wholesalers buy, whose the
much cheaper prices compared
to end users.

Open Apple Stores in the

shopping malls or crowded areas,
where individuals come for
spending their money. The online
shop and delivery service is also
carried out.

Apple should keep the high price

of $199 and above for each
iPhone (Apple, 2014), for
gaining customers pride and
desire.

3.2.3. The 5 basic functions of distribution

Transport: Apple is affordable for using planes for delivering products to

wholesalers, but the preferred transport is containers, trains and ships, which are much
more flexible and cheaper.

Stockholding and storage: Apple can build and use its own warehouses or rent the
partners, wholesalers ones which will obviously affect the price policies.

Local knowledge: As the iPhone has satisfied worldwide users, Apple should sustain
the core criteria of the products and also in serving customers anywhere, but give the
power of running marketing campaigns to native employees who know the local
culture best.

Promotion: This part should also be given to local employees, with the ratified idea
by and the guide from the headquarter of Apple.

Display: For the effectiveness and risks avoiding, the local employees take this part.
As they will make decisions for choosing the right words, the right images, or even
the right representer, to make Apple be most appropriate to native people.
5

3.2.4. Transportation
B2B

B2C

With the demand of great quantities to

various regions around the world, Apple
should use the combination of road, rail,
water, and air transports. Each type of
transport would carry the products in
various parts which are suitable for them.
With the point of saving money and
reducing the products price, rail and water
transports are preferred.

In this individuals market, where people

usually straightly go to the shop and buy
small number of products, the Apple Store
system comes along with delivery men
(road transports) is the most appropriate
solution.

3.3. Explain how prices are set to reflect an organisations objectives and market
conditions
3.3.1. Costs and profits involved to Apples objectives
According to Moodys Financial Metrics and the IMFs datas, Apple was holding
$159 billions in cash in 2013 (Ro, 2014). With the capitalists view, that statistic shows that
Apples objective is gaining profits.
To achieve this objective, Apple has used various methods to reduce the costs of
manufacturing the products. One of the methods is that Apple buys materials around the
world for the purpose of getting the cheapest prices, then, to get the lowest costs of hiring
laborers, send all the materials to China for making final products (Apple, 2014). This
method eventually decreases the price of Apples products and bring profits to the companys
shareholders.
3.3.2. Psychological pricing
An easytouse method for attracting customers through products prices is using
psychology. iPhone 5ss price is from $199 (Apple, 2014). Firstly, $199 is not much
cheaper than $200, but its psychologically makes the consumers think that its not $200
yet, so its cheaper. Secondly, the word from makes the customers think that they can own
the product at the price of above $199 a little bit, so they think its affordable for them,
despite there are lots of other editions whose far higher prices. This method makes the
visitors lounging in the website longer, which eventually increases the chance of having the
products sold and gaining more profits.
3.3.3. Demand based approaches to Pricing
As Apples main present competitor is Samsung, iPhone 5ss prices are set no lower
than Samsung Galaxy S5. The S5 is sold in America with the prices of $199.99 on contract,
$599.99 outright (Devine, 2014). The 5s has the prices of from $199 on contract and from
$649 outright (Apple, 2014). This tactic can prove Apples higher position in the market and
also guarantee the shareholders financial benefits.

3.4.

Illustrate how promotional activity is integrated to achieve marketing objectives

3.4.1. Marketing objectives

Based on the S.M.A.R.T criteria of George T. Doran (Appendix 1), the authors
personally set the marketing objectives for Apple:

Maintain the companys image as the most creative worldwide enterprise by

increasing the quantity of articles about iPhone 6s features by 50% in one year.

Keep the loyal customers by upgrading iOS and applications for free every 3 months.

Continuously improving iPhones features and design for 30% increase in sales of the
next generation.

Keep suing Samsung and win in US to sustain competitive advantages.

3.4.2. Push and pull
3.4.2.1.

Push strategy

A push strategy targets members of the distribution channel, such as wholesalers and
retailers, to push the promotion up through the channel to the consumers. This approach is
more common in industrial markets. (QFINANCE, 2014)
What Apple should do:

Find worldwide local resellers, widen the allocating system. Spending more efforts on
external markets is a wise decision, as the US is now suffering a depression, which
would decrease the future purchasing power, when the Asian markets are seeing the
new wave of rich people (Mail Online, 2013).

Create appropriate price policies for local resellers in each region in the world. This
can satisfy the partners and make the supply chain be more efficient, as the worldwide
businesses are more and more important.
3.4.2.2.

Pull strategy

A pull strategy targets the end consumer, using advertising, sales promotions, and
direct response marketing to pull the customer in. This approach is common in consumer
markets. (QFINANCE, 2014)
What Apple should do:

Create more TVC and marketing campaigns aimed to specific local markets,
especially the Asian ones. This makes Apple be more focused and suitable for the
local consumers, who also want to be cared about.

Approach the local journalists for bringing a wider and deeper image to the world.
Local media is the best choice for gaining reliability in new markets.
3.4.3. Above the line and below the line

3.4.3.1.

Abovetheline (ATL)

ATL advertising: press, radio, and television advertising that earns a commission for
the advertising agency, that contracts the advertising space and broadcast time on behalf
of a client. (Business Dictionary, 2014)
What Apple should do:

Connect with local agencies for broadcasting TVC, negotiate with local film directors
and celebrities to bring Apples products into their films and lives, setting prints on
streets and highways sides for bringing the image of Apple to every corners of the
world.

Send the local employees for talking on radio and TV shows, building admirable
image and gaining trust from the local consumers.

Youtube and other social networks are also suitable for bringing Apples TVC to the
public. In Chinas case, Apple can use Weibo.
3.4.3.2.

Belowtheline (BTL)

BTL advertising: promotional methods (such as catalog marketing, direct marketing,

and trade fair marketing) that are under the direct control of the marketer (client)
and earn no commissions for the advertising agency. (Business Dictionary, 2014)
What Apple should do:

Join the national investing fairs is a good way to approach specified markets. As in
those fairs, Apple can create relationships with not only potential resellers, but also
the local governments.

For each specific market, creating free trial using products is efficient. Or Apple can
hire local people for using iPhone in crowded places and try to get as much attention
as possible.
3.4.4. AIDA model

The stages of AIDA model

Promotional Activities

Attention

Abovetheline advertising is the best way to gain

consumers first attention. TVC, films, TV shows, an also
Apples products in the images of celebrities are truly
effective.

Interest

Belowtheline activities and social networks are the most

suitable. The free trial programs and impressive clips can
excite people.

Desire

The promotion programs suite this stage best. In the case

of Apple, free accessories, free older versions phones and
thoughtful warranty policies are acceptable.

Action

Personal selling can fulfill this stage. Apple must carefully

train the salesmen to guarantee the success of this final
8

stage.

3.5.

Analyse the additional elements of the extended marketing mix

3.5.1. People

Inside Apple, it can be obviously seen that the most important person is the Captain.
Since Steve Jobs has passed away, Captain Tim Cook with his two arms Jony Ive and Craig
Federighi are continuously creating wonderful devices and being so optimistic about the
companys future (Grobart, 2013). No matter who the Captain is, the Genius Training has
given birth to the most effective selling team in the world (Biddle, 2012). By creating
incredible products and perfect genius service, Apple staffs have made Apple be invincible.
3.5.2. Process
Apple is famous for ways of useful process, from how it gathers worldwide materials
(Apple, 2014) for lowest costs of manufacturing, to how the visitors of Apple Store are
seduced in every each detail, which can be summarized in the A.P.P.L.E steps below:

Approach customers with a personalized, warm welcome.

Probe politely to understand the customers needs (ask closed and open-ended
questions).

Present a solution for the customer to take home today.

Listen for and resolve any issues or concerns.

End with a fond farewell and an invitation to return.

(Gallo, 2012)
3.5.3. Physical evidence

Being famous with analyzed designs, Apple succeeded when the whole world loves
its products appearance. Ive been manipulated into liking (i.e. becoming dependent on)
Apple products and curves are only one reason for the iPhones success (Penenberg,
2013). And about the simplicity, Apples focus on simplicity isnt about reducing choices to
make computing idiot-proof; its about focusing on the important bits instead (Wiskus,
2013). All those nice designs of Apple contributed huge parts to the success of the company.

4.1 Plan marketing mixes for two different segments in consumer markets for Apple
smart phone
The criteria of customers in two chosen segments are:

Segment 1: 1322 years old, urban pupils and students.

Segment 2: 2540 years old, financially stable officers and businessmen.

4.1.1. Segment 1
Marketing Mix

Plan

Reasons

Product

iPhone 5c

Colorful products have the ability to

stimulate the desire of teenagers more.

Price

From $99 to $499

The affordable level for people who dont

have independent financial source.

Place

Apple Stores in crowded

shopping malls

Malls are where teenagers come to the most,

stay in for hours for shopping and
considering.

Promotion

TVC on social networks

and real experiencing
program

On a typical tenday holiday, teenagers are

glued to smart phones, laptops or tablets for
a nearly 20 hours (Godhill, 2013), it means
they spend average 2 hours per day in
holidays, 1.6 hours a day (Niemer, 2012)
in the other days. And teenagers are also
curious enough to be willing to join the real
experiencing programs.

4.1.2. Segment 2
Marketing Mix

Plan

Reasons

Product

iPhone 5s

Simple and elegant, especially unique

editions of products attracts adults more
than the younger ones.

Price

From $199 to $649

The sensible price that is low enough to be

affordable and high enough for showing off.

Place

Apple Stores in
luxurious areas and
hotels. Online shop and
delivery service is also
considered.

Those places are where officers and

businessmen usually visit and stay, or they
desire to. Apples appearance in that can
make them want iPhone much more. The
online shop can fulfill their wants more
conveniently.

Promotion

Hire banners on famous

business websites and set
up prints in the luxurious
places.

Thats where the targeted customers usually

visit and trust. Thats also the places they
come for spending.

2.2. Illustrate differences in marketing products and services to businesses rather

than consumers

10

4.2.1. Define differences between industrial (B2B) and consumer (B2C) markets
Criterion
Product

B2B market
B2C market
Huge quantities at one delivering Small quantities at once, usually
time. Needs preservation through directly sold by salesmen to
longway moving.
Differentiated price policies can

customers.

be applied based on the

Price

quantities and other terms in

Only the public listed price, no

contracts (such as the distance of

negotiation needed.

delivering, specific requirements

of buyers, etc.)
Indirect delivering, usually being Personal selling in Apple Stores,

Place

covered by a thirdparty.

Promotion

Belowtheline advertising,
commonly in technological fairs.

or direct delivering.
Abovetheline advertising,
using mass media and social
networks power.

Mostly focus on warranty

Customers service

policies and riskovercome

Warranty policies for the main

policies, price policies in

products and accessories are

potential future contracts can

considered.

also be considered.
4.2.2. Set how 4Ps focus on industrial market

Product: The demand of buyers is huge, so what matter are delivering the products in
time and keep them as same as incontract description. In Apples case, security for
products image is strictly important.

Price: Negotiate with the aim of maximize Apples profit and complete the agreed in
contract price policy.

Place: Choose the right thirdparty which can ensure all the terms about delivered
products.

Promotion: Advertising banners on business websites, invitations to technological

fairs and catalogues can be sent through email, fax, or posts.

3.3.

Show how and why international marketing differs from domestic marketing
4.3.1. The differences between international and domestic marketing

11

Criterion
Culture

Standards

Political

Benefits

Risks

International Market
Must be adaptable in each

Domestic Market
Less costs for learning the

specific market, which

culture and easier to conquer

requires learning.
Depend on each nations laws,

customers.
Only based on the national

the products must be flexible

laws, which leads to less

enough for adaptation.

Unstable, as the worldwide

changes in products.
More stable, the government

political information arent

tends to help national

public anytime anywhere.

Much wider market. More

enterprises more.
More stable. Easier to state

chances of gaining money.

Must compete with other

own position.
Have only one market,

international corporation,

harder to develop.

much more complex.

4.3.2. Marketing mix for international market

Product

Because of differentiated national standards and local consumers

needs, the products must be decided to be standardized, which is
suitable for every markets, or to be customized, which is changed
depends on the local markets requirements.

Price

According to each countrys per capita income and the present

status of national economy, the price must be adjusted to fit the local
targeted customers.

Place

The native habitat in specific country would force Apple to redesign

the image (if necessary) and to choose the most appropriate
transports.

Culture of each nation in the world is different, so its easy to

Promotion understand that international market requests differentiated
campaigns which suite each identified nation.

12

Conclusion
Apples distinctive reputation may have made a perfect summary for all the author
wants to say. Based on limited knowledge and time spent for researching, the author has tried
to present the report in the most clear and easy to understand way. Apple should put more
efforts on specific markets, which are out of America, which are potentially profitable to
Apple in the far future. As marketing is an interesting field that excites every each person
knows about it, the author personally recommend farther reports to be conducted, for the aim
of fully discovering Apples success, and also completing a guide for Apple to keep its
throne. The author also hopes to have brought the readers enjoyable time of reading.
Thank you!

13

Appendix:
1. Writing SMART Results Expectations
The expectation is specific if it is clearly
written so that it is easily understood by the
employee.

The employee can define what is to be done,

the rational or benefit related to the meeting
the outcome or goal, and what requirements
are necessary. Since not all tasks are listed,
the employee will also need to know other
steps that may be necessary to meet the goal
and how this expectation fits with the work
of others.

14

The expectation is measurable if it covers at

least one measure of a quality metric,
quantity, time and/or cost effectiveness.
Measurable means not merely meeting a
standard but evaluating how well the standard
needed to reached.
Without a specific
measure, the employee is not able to selfmonitor how they are doing related to their
performance or achieving the work units
results.
Measurement is also important to know how
the work is tracked or monitored and whether
the employee and supervisor need to discuss
adjustments to the expectation or the work
being done.

The expectation is attainable by the

employee if it is appropriate to the
employees job level. It allows for some
stretch so that the employee will neither
exceed the expectation too easily nor not be
able to reach the successful level.
It
encourages the employees to push themselves
to meet the work units goals.
It is within the employees ability and
resources to achieve. It is actionoriented
and shows how the expectation aligns with
the work unit goals.

The expectation is realistic if it is within

reach of the employee to meet the
expectation.
The expectation is time bound if it can be
accomplished within the work cycle.
It can also be tracked and monitored with the
employee during the period of the cycle.

Doran, G. T. (1981). There's a S.M.A.R.T. way to write management's goals and

objectives.
Management Review, Volume 70, Issue 11(AMA FORUM), pp. 35-36.
Downloaded at: http://www.ncdhhs.gov/humanresources/pms/pm/smart.pdf
[Accessed 07 June 2014]

15

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18