This is one of the preliminary knowledge every marketer must have and is considered to be the basics of every marketing theory, which emerged henceforth. The basic major marketing management decisions can be classified in one of the following four categories, namely Product, Price, Place distribution and Promotion. It is the tangible object or an intangible service that is getting marketed through the program.
However, most companies are known for their marketing strategies used in the marketing mix. The marketing mix is a powerful strategy that contributes to the success of Apple Inc.
The headquarters of the company can be found in Cupertino, California while there are retail stores located 10 different countries. They carry a variety of products such as iPhones, iPods, iMacs, and the list goes on.
However, the most successful products of Apple is in the mobile phone industry. This includes the iPhones. Apple has released eight generations of iPhones since when the 1st generation was released. Price is explained as the amount consumers are charged for a product, indicating the value customers perceive the product to have.
There are many pricing strategies within the marketing mix which is very important when it comes to selling the product. They are cost plus pricing, hour based pricing, penetration how to write a marketing mix and skimming.
Cost plus pricing is when the price of a particular product is determined by calculating how much it costs to do the job and adding on a given percentage as a return for the job. Hour based pricing is when the business determines the price for every hour of work they complete, typically seen in small businesses.
Penetration pricing is when a business starts off by offering the product or service for a low cost and when market penetration is achieved, the costs are raised.
Last but not least, skimming is when you offer a product for a high price because many customers are interested in it due to the brand of prestige it has. The pricing mix of Apple iPhones includes costs, competition, mark-ups, discounts and geographical area. The company reduce prices after the initial launch of products, usually using the skimming strategy.
The benefits of the skimming strategy is that it allows the company to reach its target market, products are perceived as high-quality products so consumers will be attracted to it and consumers who are status conscious may purchase higher priced goods for prestige which allows the company to get more recognition.
This strategy is very successful with Apple because, generally, the products of Apple are purchased at by high class people who can afford it so no matter how high the price is, it would be sold in large amounts. However, the disadvantages of the skimming strategy is that it limits its sales which means that it cannot lower costs by building sales volume, if the price of the particular product remains very high for too long, it may delay or entirely prevent acceptance of the product by the general market and early customers of the product may be highly annoyed when the company later drops its price for the product, and as a result, generate bad publicity and cause a very low level of customer loyalty.
It is usually used to maximize profit in areas where customers are happy to pay more, where there are no substitutes for the product, where there are barriers to entering the market or when the seller cannot save on costs by producing at a high volume.
However, the disadvantages of premium pricing is that the costs required to establish and maintain a premium pricing strategy are massive, and must be maintained for as long as this pricing strategy is followed or the premium brand recognition by consumers will falter, and the company will have difficulty maintaining its price points, there will be a continual stream of competitors challenging the top tier pricing category with lower-priced offerings and since the company using this strategy is restricting itself to low sales volume, it can never generate the cost reductions that a high-volume producer would be able to achieve.
However, the product was the most innovative on the market which gave Apple the freedom and ability to price their phone at whatever cost they chose.
Also, since the iPhones are usually aimed towards business people and younger customers, they have a higher chance of the product being bought due to the income of their customers and brand loyalty.
Product The most important area of the marketing mix is the product itself. The marketing mix of Apple is mainly product driven.
For example, Apple has released the iPhone 3, 3GS and 4 which are all considered to be of the same product line because they all derived from the same product with similar physical characteristics, customer segments, distribution channels, pricing methods and promotional campaigns.
However, what makes the versions different is the innovations added to the features of the phone to make it up to date and trendy. There are four major distinctions about the Apple iPhone that makes product so important in the marketing mix. As android and Windows operating systems came later on smart phones, Apple was able to spellbind its customers with its mobile operating system.
Secondly, the operating system was not enough to keep customers attracted because it required processing speed as well.
Therefore, the high quality processing speed also contributed the popularity of the product. Thirdly, iPhone does not compare itself with other companies. When promotions are given from Apple, they are independent from competition.The Marketing Plan is a highly detailed, heavily researched and, hopefully, well-written report that many inside and possibly outside an organization will evaluate.
To make sure your effort and marketing dollars are invested wisely into the right marketing mix, you have to think strategically. Align with Stakeholders and Customers.
Your competitors are on Facebook, Twitter and three other platforms – and pressure is on to do the same thing. What to Do When You Have a Difficult Marketing Paper to Write.
Do you study marketing? If so, you know that this discipline involves constantly writing academic papers on many different topics: from small-scale market research to projects about digital business on a global scale.
The Marketing Mix: Product. Products come in several forms. Consumer products can be categorized as convenience goods, for which consumers are willing to invest very limited shopping yunusemremert.com, it is essential to have these products readily available and have the brand name well known.
The following form the marketing mix for services marketing, the first 4 P’s being the core and the next 3 P’s being the extended marketing mix. Product is your core yunusemremert.com is “the thing” that will fulfill the needs of your customer.
Digital Library > Defining and Serving a Market > Market strategy"How to Establish a Promotional Mix". You drive sales by promoting the benefits of your company's goods or services to pools of potential buyers. The ways you promote your organization will largely determine whether you successfully plant the right messages in the minds of your target audience.