How Apple Inc Implemented

Questions

1. Find an example of a company that launched a new consumer product within the past five years. How the company implemented the four Ps in launching the product and report on the product’s success since the launch. students need to research the product, its price, and how it is promoted and distributed.

2. Farah is a self-employed hairstylist who owns her salon. She has asked you to consult with her on how to generate more revenue. Using the price adjustment strategies, advise Farah on her options to increase overall sales.

3. Select an advertisement that appropriately addresses each aspect of the communication process Illustrate how each element is represented in the company’s advertisement. Discuss how the advertisement, by itself, does or does not constitute effective marketing communication for the product.

Hint and Approach

Question 1

Apple Inc. launched the iPhone 11 in September 2019. The company is known for product differentiation, particularly on its iPhone, iPods, and MacBook. The introduction of iPhone 11 resulted from additional features to previously launched products such as iPhone X.

Apple Inc. conducts market research to identify customer needs to produce a product that meets the needs of the consumers.  Apple Inc. applied the four Ps of launching a product to ensure that the new iPhone 11 meets the needs of consumers and enabling the company to generate revenue.

Product

Apple Inc. launched the iPhone 11, intending to reach a wide range of consumers. Therefore, the main focus aimed at ensuring that the product met the needs of the consumer. With additional features such as screen resolution, iPhone 11 was developed to give users a pleasant experience.

The price of the iPhone 11 started at $999 due to its features. One of the distinguishing features of the iPhone 11 from other models of iPhone is that it has a triple camera mounted on its back.

The technology also improved its software development to come up with new products. The company’s primary focus is to produce quality products that meet customers’ needs. Another feature of the iPhone 11 is the high processing speed as compared to other brands.

Apple Inc. also used its cloud technology to develop iPhone 11, hence allowing users to access additional online services. Also, the improvements of the Apple Store was an added advantage for the iPhone 11 users.

The technology giant focuses on innovative and creative ideas to develop new products. In regards to the launch of the iPhone 11, the technology giant demonstrated that its products are of high quality. With the high resolution, iPhone 11 attracted many customers despite the relatively high price.

Place

Apple Inc. targets the global market for its products. The launching of the iPhone 11 also focused on internal markets,  UK, Africa, the Middle East, and the United States of America. The technology giant used various distribution channels to ensure that iPhone 11 reached the target market. Some of the channels include the Apple website.

According to Apple Inc., a significant number of consumers purchased iPhone 11 and other products at apple.com (“iPhone 11 Pro, iPhone 11 Pro Max, iPhone 11 and Apple Watch Series 5 arrive in stores,” n.d.). Following the rise in online market shopping, Apple Inc. has experienced an increase in sales volume.

Apple Inc. products are also sold in other online retail platforms such as eBay and Amazon. In regards to the place, iPhone 11 is also selling in local electronic retail stores. Corporate resellers have also helped in distributing iPhone 11 to different customers in the United States.

Price

Apple Inc. applies a premium pricing strategy on its products to target specific consumers. Over the years, the technology giant has not reported low-cost products in its portfolio.

Even though some consumers perceive that Apple’s products are expensive, the premium pricing strategy has enabled the company to generate significant revenue from its operations.

Mainly, Apple Inc. targets high-end consumers. Due to the use of advanced technology in the production of iPhone 111, Apple Inc. set the price at approximately $999, which some consumers may not afford. The premium pricing tag on Apple products promotes the image of the company.

Since the technology giant has been using a premium pricing strategy, there was need to maintain the company’s image by continuing the pricing strategy for iPhone 11. Studies show that many consumers perceive that relatively expensive products are of good quality.

Ideally, the cost of production varies for different products. Expensive products are likely to have a high cost of production than low-quality products.

Promotion

Apple’s digital marketing strategy makes use of both controversial and noncontroversial techniques to reach many customers.

Apple uses its technological advancement for marketing its products before and after launching the product. Before the launch of the iPhone 11, Apple had informed customers of the following product, hence making them anxious to buy the product.

Apple Inc. also used television and print advertisements to promote iPhone 11 and other products. Also, a word of mouth marketing strategy has worked for Apple Inc.

Mainly, customers’ views about the product enable the company to acquire publicity. Numerous marketing websites review Apple products. Such sites allow the company’s products to attract many customers.

Question 2

For Farah to increase the overall sales volume, she needs to apply effective strategies that will attract many customers. One of the useful price adjustments strategies that Farah should use if discount and allowance pricing.

By reducing the prices through discounts, she will attract many customers who are willing to pay a lower price. In this case, the allowance would mean giving the customers a chance to spend when at different times.

For instance, installment payment will allow those who may have half of the total price to get the services (Colbert, 2017). In the long run, discounts and allowances will enable Farah to increase the rate of customer retention in her business. Hence, increasing the overall sales volume.

Segmented pricing approach will also allow Farah to increase the overall revenue of her business. Ideally, Farah is likely to get customers from different social and economic classes. Segmented pricing will enable her to adjust priced depending on the social class of the customers.

Ideally, the rich are likely to pay more than the middle-class customers. Furthermore, a hairstylist has an opportunity to charge different prices since there is no defined price of hairdressing.

In most cases, Farah can apply negotiation skills to convince the customers to pay a certain amount for the services. Segmented pricing will not only enable Farah to increase the total revenue but also improve her relationship with the customers (Kumar and Rafi, 2017). Farah may also develop negotiation skills as a result of segmented pricing.

If she applies this strategy, she will have to understand the status of the client, depending on the services needed by the client. In most cases, the high-income earners are likely to go for expensive hairstyles.

Farah may also apply promotional pricing to reduce the prices of hairdressing services temporarily. However, this strategy can be useful when the business experiences a decline in sales volume. In the number of customers has reduced drastically, promotional pricing may help in increasing short-run sales (Kumar, 2019). Promotional pricing not only increases the sales volume but also promotes the image of the business.

With an increased short-run sales volume, Farah can apply customer retention strategies to increase the sales volume in the long run. One of the active customer retention strategies is a good relationship between Farah and her customers.

Question 3

 Communication plays an essential role in the advertisement. If the consumers can understand the ad, the company is likely to benefit from the advert. The customers’ reaction can be purchase or involvement in the promotion of the product (Mahajan, 2017).

The Coca-Cola Company is known for successful commercials that enabled the multinational to control a significant market share. The company’s commercial of February 2020 on ‘Turn up your day with Coca-Cola.’

The advertisement shows how people can drink a coke to express feelings and to release relax after hard work. The primary objective of the advertisement is to convince consumers that the Coca-Cola Company has useful products.

The Coca-Cola Company used a one-many marketing communication approach. Due to the rise in the usage of the internet in many countries, people are likely to use YouTube. Apart from the T.V., the company also uploaded the commercial on YouTube. As of May 2020, the advertisement has more than seven million views on YouTube.

The high number of views within the past two months shows that many people are using YouTube. As a result, the advertisement meets the one-to-many marketing communication strategy. The ad in question is likely to reach many people by the end of the year. As a result, the company will maintain its brand image.

The advertisement in question incorporates the psychology of communication. Based on the commercial, the primary objective is to persuade customers by changing their perception of Coca-Cola products.

Since many customers may want to know when to buy Coca-Cola products, the advertisements illustrate that coke is useful after work. In this regard, the advertisement can change customer’s perception of coke and other Coca-Cola products.

By giving attention to marketing communication, the advertisement seeks to address the customers’ perception of coke. Imagery is an essential aspect of marketing communication. The commercial in question uses images to show customers the main aim of the advertisement. Based on these aspects, the commercial constitute effective marketing communication for the product.

Conclusion

In conclusion, marketing plays an essential role in increasing the overall sales volume of business. The product, price, place, and promotion are the central aspect that companies use to launch products. By focusing on these aspects, the business can realize an increase in sales volume.