Marketing Report On Apple Inc Marketing Essay

I have chosen to compose a selling study on Apple because I have studied this administration before so I am cognizant of its in deepness selling activities. This study aims to place and analyze the selling environment of Apple and how it responds to alterations in the environment itself by accommodating to its selling channels. I will besides look at the administrations internal and external Marketing environment.

Established in April 1976, Apple, develops, sells, and supports a series of personal computing machines, portable media participants, nomadic phones, computing machine package, and computing machine hardware and hardware accoutrements. Rather than let go ofing multiples of small merchandises to seek and win over consumers through market impregnation, Apple releases higher terminal, high quality, and user friendly merchandises. They believe in conveying in simpleness and invention to the mass market and for that ground have been highly successful.

As of September 2007, the company operates about 200 retail shops in five states and an online shop where hardware and package merchandises are sold. Its merchandises include the Macintosh line of desktop and notebook computing machines, the Mac OS X runing system, the iPod music participant and a portfolio of package and peripheral merchandises for instruction, originative, consumer and concern clients.

Apple introduced its first iPod portable digital music participant. The merchandise has proven incredibly successful ; over 100 million units have been sold in the six old ages since its debut. In 2003, Apple ‘s iTunes Store was introduced, offering on-line music downloads in integrating with the iPod. The service rapidly became the market leader in on-line music services, with over 3 billion downloads by August 2007. Steve Jobs announced that iTunes had reached 4 billion downloads during his keynote reference at the 2008 Macworld Conference & A ; Expo.

Apple is recognized as an unparallel in computing machine designing and compatibility. The sleek and province of the art design of the Apple ‘s merchandises snatch off the consumers mind rather easy than the remainder.

Micro-Environment Porter ‘s Five Forces

The microenvironment consists of those factors that affect the house straight. This theoretical account helps to contrast the micro environment of a firm.What we know is that competition in the market is really intense A incorrect move could hold a harmful affect with your rivals traveling in front of you due to the strength of the competition in the market. In relation to that, clients are in a strong place as they have more bargaining power and due to the fact there are many replacements. With the Microsoft Zune 8 it makes it truly hard for new consumers to do a determination between the two. Often clients will pay due to the iPod repute and its of import Apple maintain this high.


Naming the degree competiton in the mp3 industry as intense is an understatement. The this instance we have the like of Sony, Samsung and Creative, with many more in the whole market. Apple commands 70 per centum of the MP3 participant market. However with concerns of the MP3 market being saturated, its puts more force per unit area on concerns to win. With the advanced designs like the iPod touch and the iPhone it shows why apple are taking the market.

Menace of Substitutes

Countless replacement merchandises are available for the iPod whether they are really better or even appeal more is a different affair, but the menace is still really high. The more distinction the less like a switch to a replacement will happen. To day of the month no company have come near to run into the popularity of the Apple merchandises. Reason being the advanced designs and easiness of usage have convinced most clients to lodge with Apple. Higher monetary values need to be justified by the distinction of the merchandise. Substitutes such as the Sony NW- ( A806 ) , Microsoft Zune 8 and many others, can still pull many clients but with inventive designs like the iPod Touch leaves many companies playing catch up.

Menaces of new entrants

Although it is possible, its improbable. Get down up costs would be really high so small opportunity new entrants would come in a really competitory market unless they have a really differentiated and advanced merchandise. Existing houses have established themselves in the market and have created strong trade name consciousness.

Dickering Power of Customers

The bargaining power of clients is high due to the fact it is easy to exchange to a replacement where quality or monetary value, even both is better elsewhere. With so many replacements of similar quality, its down to the concern to do their merchandises more appealing. Apple have done this with their strong vision to construct advanced, alone merchandises and have made their merchandises easy to utilize.

Dickering Power of providers

Suppliers do n’t hold much power over larger corporations like Apple. With the dining Chinese economic system, Apple can alter providers without any major effects, if they are in dissension over monetary value and quality. However Apple have built a strong relationship with their providers, with rigorous processs and this in bend helps Apple achieve it targets.

Macro-environment Pest analysis

To further analyze the external selling environment, the macro environment we conduct a PEST analysis. Such external factors normally are beyond the house ‘s control and sometimes present themselves as menaces. Plague is the abbreviation for political, economic, societal and technological.


Governments with stricter Torahs on right of first publication

An anti-American docket may be brought against them. Some people may take non to utilize American merchandises


Inflation presently has increased in UK and the US and may impact current gross revenues of iPods which have already slowed.

Global economic system in a down bend

The exchange rate will besides impact Apple as they are importing or exporting goods within the international market.


Again Anti-american docket may do possible clients to but from another company.

A by and large aging British population, so many may be put off by the engineering

Equally much as it is a iPod civilization, it can travel away every bit rapidly as it came. Peoples may happen something else which is better and more value for money.


Many replacements available from iRiver, Samsung and sony

Competition traveling off from transcript protection on vocals. Such as virago.

Peer-to-peer file sharing applications like Limewire and Kazaa are still highly popular. Although this is a job with the music industry on a whole. This still nevertheless affects iTunes.

Marketing Mix

The selling mix consists of four elements: Merchandises, Price, Place and Promotion, better known as the 4p ‘s.


This merchandise allows consumer ‘s to download non merely their favorite music but besides books and exposures. Presents with the latest versions of the iPod you can watch pictures and breaker on the cyberspace with one little device. Apple have introduced updated versions of the iPod get downing from the first iPod in 2001 to the iPod touch These are extension stratergies to increase the merchandise life rhythm of the iPod.

The fact that the is merchandise differentiated doing it alone will do merchandise both functional and desirable to possible consumers.

Monetary value

When ab initio launched into the mp3 market, Apple utilised pricing schemes in the signifier of psychological and planing monetary values. Most of the web sites have the iPod touch at ‘?199.00. ‘ This makes consumers believe it is much cheaper than ‘?200.00 ‘ but in world it is merely a lb less. The high monetary value is on the footing of the companies popularity, and the alone design of the ‘touch ‘ . It will besides pull an image of quality with their merchandises.


By advancing the iPod it will fulfill the demands of the clients. Consumers will derive better apprehension of the merchandise and how it works. All in all advertisement and publicities will convey more consciousness to their merchandises and potentially more gross revenues.

Apple ‘s publicity scheme, was the surprise component that it attached merely before they released the iPod. There was a heavy guess and wonder sing the merchandise and everyone was watching out for it. It allowed fans and enthusiastic tech and amusement media to distribute the word of the appliance even before its release. Merely when iPod was launched Apple advertised extensively for the iPod, this is where the ill-famed commercial demoing a adult male listening to the vocals on his iPod and dance. A similar stratergy has been used throught the release as with increasing the popularity of iTunes.

Topographic point

Apple has many distribution channels, from their online Apple Store, to their retail shops and many resellers around the universe. Indirect distribution where 3rd parties are involved in the gross revenues procedure are besides used. These resellers will sell to the smaller houses who can non aford to purchase straight from Apple.

The iPod is available to buy at most major shops within the UK. From specialist electronic shops to supermarkets. Shops from Apple retail merchants to Tesco sell the iPod. They are besides available all over the cyberspace from topographic points like Amazon to ebay. A infinite sum of retail merchants will stock the iPod such is its popularity


A sum-up of Apples SWOT analysis is that Apple are in a really strong place because it has a powerful trade name name and is recognised globally, coupled with its immense fan base of consumers gives them many strengths within the market. The fact that they are so popular in the mp3 market gets them a batch of attending within the media. Merely Microsoft due to being Apples biggest rival will acquire a big sum of media coverage. The iPod itself in footings of easiness of usage and advanced engineering means that it is really hard to fit. Merely the Microsoft Zune 8 can compare to the design and serviceability. Although may hold been released to late in order to do existent challenge against the iPod.

For Apple to get the better of the possible menaces, they must go on to be imaginative and research chances globally. Apple must go on to better and be advanced to stay market leaders, otherwise other companies may capitalize on any sort of bead in criterions. Although one of the largest digital music Sellerss in the universe, iTunes face a spot of competition from Amazon every bit good as Myspace, Apple have a mark on their dorsums and merely takes a company with good resources to dispute them


The merchandises itself entreaties to both males and females

All the iPods get downing from the really foremost hold a great repute amongst it clients for its userability.

Great engineering underpinnings that allow the creative activity of powerful merchandises. Allows them to pull a immense client base due to their invention and engineering

Very user focused and ever committed to a brilliant user experience, in all their merchandises

Limited edition ranges, additions merchandise life rhythm. Limited editions runing from U2 to BMW


High monetary values may force possible clients to rivals with replacements at a better monetary value.

Technology is altering at a faster rate than of all time. For Apple to stay profitable, they must put immense sum of money in their R & A ; D to stay competitory.

Questions over dependability of the iPod


iPod was is radical engineering that has become portion of mainstream civilization, Apple can capitalise on that

To develop themselves in to other markets due to the repute they earned from the iPod.

New designs may be available to hike gross revenues and extend the merchandise life rhythm e.g. the iPod touch.

iPods have besides gained popularity for usage in instruction. Apple offers more information on educational utilizations for iPods on their web site.


Very high degree of competition, a batch of replacements, perchance offering cheaper monetary values i.e. iRiver

Cheap shams being made of the iPod and the iPod shuffling

Concerns of market being highly saturated.

Competition, with the like of Amazon in digital gross revenues


Since the release of the iPod, about half of Apple ‘s grosss come from music and iPods. Interest in the iPod and iPhone has made other apples merchandises popular, like the Mac whose gross revenues have increased. Apple has demonstrated how to make existent, breathtaking growing by woolgathering up merchandises so original and inventive that they have taken industries by storm. To keep control in the mp3 participant market, they need to keep their quality and strategic selling programs if they want to maintain in front. Apple leads the industry in invention and many other things like design characteristics. Sony, Microsoft, Creative are all right behind Apple. The conflict of the MP3 participants will certainly be an first-class illustration of competition that breeds better merchandises, with Apple taking the first measure with the iPod Touch and iPhone.

The iPod was ground-breaking engineering that was absorbed by mainstream civilization, and now has become the prototype of portable sound. Companies such as Apple will necessitate to be self-motivated if they are to remain in front of the game. Differentiation and invention is the key in keeping their laterality.

Apple has a high competitory advantage because of its first-class merchandise image. They use simpleness and bright designs to appeal to clients. The electronic market gets connected more and more with the amusement market. With already the market leader in the digital gross revenues market, it would non be surprising to see Apple move in to Television.

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