From one juggernaut to another, now we will describe Apple’s marketing mix according to product, price, promotion, and place.
Apple’s product mix is mostly confined to consumer electronics and online services. As is the case with Amazon, however, Apple is expanding into other industries.
The current product mix consists of:
- Wearables, Home, and Accessories – such as Apple TV and Apple Watch.
- Digital Content.
- Payment Services, and
- Cloud Services.
Most of these products form part of the Apple ecosystem that supports the company’s competitive advantage and makes each product more attractive to consumers.
In other words, Apple products sync with each other so consumers can easily copy media and other preferences across multiple devices.
Apple’s pricing strategy relies on product differentiation. With a proven track record of innovation and stable consumer demand, the company has power over its pricing.
New product launches are invariably hyped, which means Apple can focus on selling its products for a premium price instead of increasing unit volume.
The company also designates a minimum advertised price (MAP) to prevent retailers from selling its products below a certain amount.
This protects profits and, to some extent, increases the brand’s prestige and the desirability.
Apple also utilizes price skimming.
This involves setting a much higher price for new model releases before gradually lowering it over time as each model is superseded.
Apple’s ability to market and promote its products is almost as legendary as its ability to innovate. Its marketing strategies focus on the power of simplicity in product form and function.
Simplicity can also be seen in the way that Apple structures the ads themselves.
They tend to be “to the point” and do not contain irrelevant information while still making an emotional connection with the target audience.
The company also loves to mention its superior user experience, whether that be its immersive product ecosystem or the professional customer service and visual layout of an Apple store.
In terms of building its brand organically, Apple relies on positive review building and subtle product placement in movies.
The company also markets its new products via traditional channels such as television, billboards, and print media.
But in line with its pricing strategy, Apple products are never promoted on sale or as part of a limited-time offer.
Apple utilizes multiple avenues to reach customers and make its product more visible on the global stage. These include:
- Apple stores – these stores embody the Apple brand and are placed in strategic locations with high foot traffic. Stores are designed in such a way that consumers can freely interact with demo products and Apple support staff. There are now approximately 518 stores in 25 countries around the world.
- Online stores – for those who prefer to order their products online or do not have access to an Apple store nearby.
- Retailers – countless retail businesses are also authorized to sell Apple products and services. These include many consumer electronics retailers, telecommunications companies, and department stores.
- Authorized enterprise resellers – these entities provide procurement, deployment, app development, and other services that help enterprises incorporate Apple products within their organizations.
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