Marketing mix of Apple – Apple marketing mix
This detailed analysis of the marketing mix of Apple aims to examine the 4Ps (Product, Price, Place, and Promotion) of Apple Inc. and explain its marketing strategies. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976. It is the largest tech giant in the world.
Products in the marketing mix of Apple
Apple has a number of excellent products in its portfolio. MacBook, MacBook Air, MacBook Pro, iMac, iMac Pro, Mac mini, iPad, iPod, iPad mini 4, iPad Pro, iPhone SE, iPhone X, iPhone 8, iPhone 7, iPhone 6s, iPhone SE, Apple Watch Series 3, Apple Watch Edition, Apple Watch Series 1, Apple TV, Apple TV 4k, Apple Music, and iTunes are some of the top Apple products. Apple also has accessories for many of its products (Apple Inc, 2020).
One of the reasons why Apple has been so successful is the company’s capabilities of brilliant product design. The company maintains extreme secrecy in the design of its products, and carries out a lot of research in pursuit of creative designs. In addition to the design aspect, all of the Apple products have some outstanding features. For example, iPhone 8 has world’s most popular camera and the most powerful and smartest chip ever in a smart phone (Apple, 2020).
Users can track their activities, measure their workouts, and monitor their health with Apple Watch Series 1. Let’s take another example. The new iPad has far more power than most PC laptops and is simple to use. It is also very light to carry. These few examples demonstrate excellent features and functionality of Apple products, some of which have market leader positions.
Price in the marketing mix of Apple
Apple has adopted a premium pricing policy. For example, the price of iPhone 8 (4.7-inch display) in the UK starts from £699, while iPhone 8 plus (5.5-inch display) starts from £799. Apple offers innovative products which are often different from those offered by the competitors. In addition to high profits, this premium pricing helps Apple maintain its high-end image of the company.
Apple offers big retailers a minimal wholesale discount. According to some analysts, this discount is not enough for retailers to offer final customers any big discount on Apple products. Therefore, customers buy Apple products with a price which is thought to be very close to the manufacturer suggested retail price (MSRP). However, a retailer may decide to reduce their profit margin a bit and offer a particular product at a discount with a view to attracting new customers.
Place in the marketing mix of Apple
Apple has adopted a selective place/distribution strategy. The company’s products are available in Apple stores, authorized premium retailers, telecommunications companies, and some selected online platforms. According to Statista (2017) there were 463 Apple stores worldwide in 2015. Currently, Apple has 510 stores in the world. The total number of stores in the USA is over 270, and 29 in Canada (Tankovska, 2020). These are Apple’s exclusive stores from where the company sells its products directly to the customers.
Customers can order apple products form online Apple store (www.apple.com) and get them delivered direct to their doors. In the UK, customers can also buy iPhone from the shops and stores of telecommunications companies such as BT, 3, EE, Vodafone and O2. Retailers such as Carphone Warehouse, Curry’s PC World and Argos also sell Apple products.
Promotion in the marketing of Apple
There are a number of promotional mix elements available to business marketers. Advertising, personal selling, direct marketing, public relations, word of mouth, sponsorship, and social media are the most talked about ones. Let’s now look at how Apple uses some of them.
Apple carries out some absolutely smart and elegant promotional campaigns. It invests a huge amount of money in advertising. For example, Apple spent $691 million on advertising in 2010. The advertising expenses continued to rise and reached $933 million in 2011 and $1 billion in 2012 (Sherman, 2013). However, it is worth noting its digital advertising spending decreased in 2019.
Apple has moved into sports sponsorship as well. Famous German football club Bayern Munich has signed an exclusive partnership with Apple Music. Apple also uses public relations techniques to optimise its corporate image.
We hope the article has helped you explore the marketing mix of Apple. You may also like reading SWOT analysis of Apple. Other relevant articles for you are:
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Last update: 12 September 2020
Apple Inc (2020) iPhone X, available from https://www.apple.com/uk/ (Accessed 12 September 2020)
Statista (2017) Number of Apple stores worldwide from 2005 to 2015, available at: https://www.statista.com/statistics/273480/number-of-apple-stores-worldwide-since-2005/ (Accessed 05 December 2016)
Sherman, E. (2013) Apple’s ad budget hits $1 billion, available at: https://www.cbsnews.com/news/apples-ad-budget-hits-1-billion/ (Accessed 10 December 2017)
Tankovska, H. (2020) Number of Apple stores in U.S. and Canada 2020, available at: https://www.statista.com/statistics/1041565/number-of-apple-stores-north-america/ (accessed 12 September 2020)
Photo credit: www.pixabay.com
Author: M Rahman
M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.