Advertising principles assignment essay

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Just for this coursework assignment I will illustrate that I necessary a good know-how and comprehension of the principles and process of marketing by simply carrying out the task given. This will likely be confirmed with samples of theory suitable to a firm of my personal choosing.

Just for this task good examples will be linked to Apple Inc. organization.

Incorporated in January 1977 as Apple Computer, Inc. todays Apple Inc. designs, creates and marketplaces media and mobile interaction devices, pcs, portable media players and sells a variety of related software.

Apple’s services and products include the ipad tablet tablet laptop, iPhone handset, Mac laptop and iPod music mp3 player, the iOS and OPERATING SYSTEM X operating systems.

The company likewise sells and delivers music, movies, books and applications using the iTunes Store and Mac App Store. The company hq are located in Cupertino, A bunch of states, USA. Globally there are 390 Apple stores with reported revenue news of $36. 0 billion dollars.

Marketing wise the company can be been identified many times as a clear winner of CMO Survey Award for Marketing Excellence.

Apple’s three points promoting philosophy particularly Empathy, Target and Impute have made it possible for the company to be one of the planet’s most valuable brands.

Task one particular

Task 1a.

Based on the American Marketing Association (October 2007) marketing is defined as ” the activity, group of institutions, and processes for producing, communicating, delivering, and changing offerings which have value for customers, clients, associates, and society at large.

The CMA ” Canadian Marketing Association identifies marketing because ” a couple of

business practices made to plan for and present an organization’s services or products in ways that build successful customer associations. 

The Chartered Company of Marketing describes marketing since ” the management procedure responsible for figuring out, anticipating and satisfying client requirements profitably

“Broadly identified, marketing is definitely asocial and managerial process by which corporations create value for customers and build strong client relationships to be able to capture worth from clients in return (Hasell, 2012)

These meanings show the need for management in marketing and how important is for an enterprise to know the consumers demands and desires. These explanations also demonstrate importance of connecting a message to develop the understanding that would produce monetary value in return.

The supervision process of discovering, anticipating and satisfying the consumers’ needs and would like it’s known as marketing procedure. This process is constructed of four methods: 1 . Analyze the company condition

2 . Develop a marketing strategy

3. Produce decisions regarding marketing blend

5. And how to put into practice and control the web marketing strategy.

Examples of Apple. marketing method:

-Apple is applying SWOT and PEST versions to analyze the company situation. -Apple is targeting more the center upper profits professionals. -Apple builds up concern before starting a product.

-Apple included a customer support phone number in the iPhone cellphone book pertaining to customer direct contact with Apple in case of technological problems.

Task 1b.

There are a few promoting concepts that an organizations can easily adapt. Every one of these concepts offers advantages and disadvantages. These marketing concepts are: Merchandise related ” is when a company could focus on perfecting a productand its top quality. The disadvantage to be product orientated is that a business can reduce site of what buyer may want and need when focusing on creating one perfect product. Creation related ” a company may focus on the mass production of a merchandise.

The advantage for being production-orientated is that a production line in place could deliver more income because of the affordable on producing the same item. Although low costs happen to be possible because customers have different needs, changing the line for the different merchandise it’s high priced. Sales related ” an organization could try to focus on providing what it creates. The disadvantage is usually that the company does not know what the customers’ needs are.

Market related ” a company may focus on customer needs before developing a merchandise. The disadvantage is that information could be obtained from customers who are not aware of what they require. With so much interest on what the consumer needs, the item development may be overlooked. Societal related ” a company could focus on the natural and social environment and the buyer needs Drawback of being societal orientated is that it is seldom possible to meet all customers’ needs and stakeholders.

The first three marketing concepts, product, production and revenue, are focusing on the product. The final two principles, market and sales, focus on the consumer. Although they all are target differentiated, all five concepts have one sole goal in keeping and that is to create profit.

Market orientation is approximately collecting and dissemination details from buyers. Apple Inc. offers adopted the industry concept as well as product alignment. Having used both orientation with focus on quality and future customers needs this allowed the organization to predict the need for a fresh product, arranged higher prices and generate more earnings. But getting marketing directed it is expensive. A company must invest in the progress the product, market research, in surveys, databases, experts and product changes.

Although it is costly to be promoting orientated you will discover benefits intended for adopting this concept. For example: ” The Apple’s iPhone are at his sixth generation. Released in 2007, it was a product of development and researching the market. The development of the item took 36 months and with the effort between Apple and Cingular Wireless isestimated to have cost $150 large numbers.

According to Forbes mag (08/2012) “¦something that failed to exist five years ago, features higher product sales than anything Microsoft can give. More than Windows, Office, Xbox 360, Bing, Windows Phone, and every different product that Microsoft has created since 1975. In the one fourth ended 03 31, 2012, iPhone experienced sales of $22. 7 billion; Microsoft company Corporation, $17. 4 billion. 

Activity 2

Job 2a.

A business business marketing decisions are inspired by macro and the tiny environmental factors. Businesses may cover the inside factors having a SWOT model analysis as well as the external elements can be evaluated by doing a INFESTATION model research. The advantage of doing these analyses is a identification of opportunities and knowing where organization is at that second.

Apple Inc. 2013 SWOT examination:

” Strengths: manufacturer reputation and own retail stores. Combined with a solid financial performance and innovative capabilities Apple can be 1st on the market satisfying new client’s needs. ” Weaknesses. Apple products possess higher rates. Conscious people my see them to costly and opponents can take benefit of this factor. Recent changes in management could lead to misunderstandings among Apple In. departments and may slow down the means of making promoting mix decisions for the 4 Ps (product, price, place and promotion). ” Opportunities.

High demand for the iPhone 5 plus the iPad products and the growth of tablet and smartphone marketplaces. Competition errors like the Microsoft introduction of Vista software. Apple took full advantages of how bad was the Vis program having PC users downgrading returning to XP and migrating to Apple. This could best be seen in the “I am a Mac I am a PC advertising (2006-2008). ” Threats. New competitors just like the Huawei in the UK phone marketplace. Strong dollars will affect exports.

Apple. macro environment is examined using the INFESTATION model (political, economical, social and technological). These are factors that the firm has little if any control over these people and can both support orhinder Apple’s advertising decisions. For instance , in the case of the political elements a tax increase results in a price maximize.

This will reduce the purchasing benefits of the consumer and subsequently reduce profits. Economic downturn is a cost-effective factor. The buyer buying confidence is usually low and high priced Apple items are seen even more as a commodity than a necessity.

Task 2b.

Fulfilling customers by simply treating all of them alike can be rarely likely because they may have different requires. Segmentation is about understanding and satisfying these needs simply by separating consumers in organizations with the same needs. One of the advantages of segmentation is that the corporation can position the product better within a chosen segment. Poorly done segmentation can group customers inside the wrong segment.

The basics for segmentation are demographic, geographic, psychographic, behavioristic and geo-demographic. A number of the characteristics pertaining to demographic segmentation are sexual, age, cash flow, and education. Geographic segmentation is based on the place of prospective customers. Psychographic is based on customers’ persona and lifestyles. Behavioral segmentation is based on the consumers’ actions. Geo-demographic is known as a combination of the geographical and demographical segments.

There are three types of targeting methods and they are:

Undifferentiated ” for all those publics

Concentrated ” focus on a particular group

Differentiated ” for different group types

To recommend segmentation criteria and targeting methods for two diverse products I chose Apple’s ipod touch and the iPhone. For both equally products Apple. should pursue the demographic and psychographic segmentation criteria. This will allow the business to separate and target consumers based on the money they have to spend and on what they would like to dedicate. ” Pertaining to the ipod device (mp3 music player) Apple should pursue the focused method.

This permits them to give attention to those customers who choose to listen to musicon the get, organize tracks and ultimately buy music for the iPod by using additional music platform like the iTunes. ” For the iPhone, Apple should follow the undifferentiated method. With so many different features the i phone can be used by anyone for personal and business use.

Job 2c.

Buyer behavior affects just how organizations marketplace their products. Social, Social, Personal and Mental are the four major factors influencing buyers’ behavior. To appeal consumers’ preferences, promoting mix tactics are produced by the companies for the prospective market. Positioning is a strategy with what a company can influence the buyer behavior. The technique could contain product employ, product consumer, price, top quality, product features, product course, competitors, rewards and ethnical symbol.

Apple Inc. products will be perceived as costly products which includes buyers’ notion of them since over priced products. To combat this belief Apple will need to reposition the iPod plus the iPhone items using a strategy emphasizing products use, quality, performance and features.

Task 3

Task 3a.

To have lasting competitive advantages Apple Inc. products development begin with generating concepts. For example , the development of the iPhone product started with the idea of reaching a computer with out a keyboard. Generally a company may have many ideas for a product and screening all of them is necessary. Apple Inc. screens them through assessments on the bases like the market needs, costs and methods. Apple researching the market concluded that the iPhone could have no competition for its features and the advantage will out way the price of development.

The next thing of the product development was the physical transformation from the concept. Assessment of the Apple products is done within the business using the personnel. Normally businesses test all their new products with consumers but Apple favors this type of testing because of the require of keeping the product features a secret from the competitors. After the evaluation of new concepts from the staff the

iPhone was produced for the market.

Activity 3b.

To make items available to the consumers Apple. has 3 choices of distributions: 1) Selling directly to buyers. This channel of circulation is advantageous and a preference to get Apple In. for the opportunities as a result of interacting immediately with the consumer. Apple has their own own retailers with experienced sales people who are able to make it very practical for a client to buy Apple products. Another way is offering directly through their website. The two options may be advantageously employed for market research for better anticipations of new customer needs. 2) The second channel of distribution is advertising the products through retailers.

The advantage this route provides may be the promotion getting through retail advertising. Many retailers will place Apple items separately from the competitors in plain perspective for a buyer to see that first and also use Apple products more for retail outlet advertisements. 3) This route is offering through the bulk suppliers and retailers and is minimal advantageous. For the last two programs (2 and 3) the disadvantage for Apple is that in both instances if the string is interrupted, Apple products will not reach the customers.

Task 3c.

One of the most important elements of the marketing mix is Charges. Pricing creates turnover for the agencies. The various other 3P’s components in the marketing mix are costs to get the businesses. A number of charges strategies can be adopted by simply an organization. In this task I use chosen to discuss three of those for their advantages and disadvantages. 1 . Cost based cost strategy can be when a organization sets rates based on the cost of the other 3P’s. The benefit of choosing this strategy is that because it’s the most realistic as well as the mark up its simpler to set prior to the final pricing decision..

Drawback is that in a volatile sector where costs are always changing no collection price could be set plus the mark up is the last pricing decision. 2 . Competition based price strategy is definitely where a business can arranged a lower, a similar or a larger price in comparison with competitors. The benefit is that a competitive low cost can be set to attract potentialcustomers.

This strategy drawback is that it truly is unknown the availability cost of the competitors and the company may possibly operate confused. 3. Client based pricing strategy is employed when a company determines the purchase price based on precisely what is believed people are prepared to spend. The advantage of this plan is that the selling price satisfies the client price choice. The cons with this tactic are that customers may well give false impressions plus the cost of creation is knot known by simply them hence the company may run at a loss.

Customer based pricing approaches are: Penetration Pricing ” launching a minimal price merchandise to increase market share Price Skimming ” recharging a higher price to optimize profits Damage leaders ” a price arranged low to attract and encourage customers getting other products Predatory Costs ” setting a low cost deliberately to restrict or stop competition (in UK this type of price placing is illegal) Psychological Pricing ” making the product thought to be cheaper than it really is. (Instead of 1. 00 it set by 0. 99)

Apple Inc. uses the price skimming strategy. This plan works to them because the organization segments and target customers more effectively. The benefits with value skimming will be that it produces the impression of reputation around Apple products and as well in case of establishing the price to high it can be lower very easily. It also provides an insight on what the buyers are willing to pay out. Although this strategy has its advantages, in the computing and smartphone industry Apple has many competitors today and price skimming might be risky with all the next product introduction.

Customers have many alternatives now and price preference is lower. Because of changes in customers price preferences Apple Inc. ought to pursue the utilization of penetration costs strategy in to attract new clients and raise the market share. Although the market share increases the risk is the fact it is possible to still help to make lower profits.

Task three dimensional.

Advertising is one of the 4P’s and comprises of sales special offers, advertising, direct marketing, personal selling and public relations. These types of five components make the promotion mix and are generally known as the advertising communication components. The usage of almost all five components at one time is recognized as Integrated

Marketing Interaction (IMC).

To achieve and maintain long-term customer relationships Apple uses components through the IMC and the AIDA (attention, interest, desire, action) ideas. Advertisements and promotions are used to capture the consumer attention, his interest and desire to very own an Apple item. Public relation is used to deal straight with consumers about item issues. Apple uses immediate marketing by simply emailing promoting messages in Valentines Day or Xmas to authorized customers.

Personal selling is utilized in Apple retail stores. Staff can also notify customers about the products that they inquiring regarding. One of the Apple sales marketing promotions is inch Buy a Mac and get a free iPod Touch.

Apple Inc. interest is to take full advantage of the company impact on the consumer to get maximum earnings and the IMC concept is an extremely important application in the organization marketing strategy.

Task 4

Task 4a.

Known as the Four P’s, the standard marketing blend basic elements are Merchandise, Price, Place and Promo. The mix of the four components done right will result in getting together with its advertising objectives for any company and satisfy the customers. Elements like marketing is far more clients orientated right now and in designed countries the service sector dominates the economic activity have contributed to the addition of fresh Ps for the traditional advertising mix. The additional three Playstation are Physical Evidence, Procedure and People and together with the 4 basic components make the 7Ps of the Extended Marketing Mixture.

To understand the relevance with the extended marketing mix to service advertising first one need to understand the attributes of service. There are five characteristics of service marketing and these are: 1 . Intangibility ” services can not be seen, flavor and think before they may be bought. 2 . Inseparability ” a service is usually produced and consumed simultaneously. 3. Perishability ” a product or service can be kept for upcoming use while a service cannot. 4. Variability ” assistance standardwill differ because of persons. 5. Title ” compared to a product something can only be applied and not owned or operated.

In service advertising the support is the Product and is intangible. Marketing Value, like method also invisible. Place is usually where the services is used and unlike a product where it is seen in retail stores, a service is found in holiday accommodation places including the hotels, restaurants, airplanes. Support Promotions is usually an extension of the original service. For example a hotel may well offer an additional night stay, discount prices for other services found within the hotel or exterior but the initial price offer is still the same. What is viewed during the ingestion of service is referred to as the Physical Data.

Consumers anticipate a good standard and display of the environment where the support is consumed and businesses will concentrate on the quality structure presentation. How a service is carried out or delivered may be the Process. Most of the time process is associated with customer care. In the transport industry often carriers perform lack within the quality from it because of delays that may could have to do with the employees. Employees are the Persons and final element in the extended advertising mix and therefore are the ones providing the service.

The extended marketing mix its relevant to all businesses that give goal in getting together with the demands of customers as well as its more particular relevant to the service market.

Task 4b.

The seven marketing mix parameters are outlined above. The conventional 4Ps will be for merchandise marketing and every 7Ps are for services marketing. Two segments appealing for this job are the resorts in food industry because of their lodging providers and the airlines in the industry of transport for transport solutions.

In the hotel industry, in terms of process and physical proof, a regular place is presented to customer lodging and the customer may have to pay out extra intended for other companies like a massage or a beverage at the hotel bar. When it comes to process besides regular place cleaning bedding and towels and assistant services a client will not get much more for his money. When compared to the business consumer will

experience some thing totally different.

A company may reserve the entire motel or the greatest room with the best look at, 24-hour area service, totally free access to the spa and other things regarded as luxurious. Even though the product offered is the same for equally C and B, as a result of additional companies and a differentiated procedure, it is different and the price are usually the first to tell what type is which in turn. In the airline industry, businesses provide transportation in the economy class and the business class. In the economy class regarding physical design, after the journey some buyers wished they will left their particular legs in the home and kids never existed.

Whereas in the industry class, a buyer can park his car, watch his favorite movie while drinking champagne. Again the product not changed because buyers in the economy and business class are moved from point A to point N with the same airplane inside the same amount of time. The understanding is that businesses can afford to pay more when it comes to buying companies and airlines will charge more for extra.

Process 4c.

Globalization and Unions among different countries around the world have made it possible for national businesses to international marketplaces. When getting into the worldwide markets businesses could find many opportunities but the challenges are very different and on a higher scale than the ones confronted in a home-based market. Home-based marketing is the production, campaign, distribution and sale of goods and services nationally when international promoting is the same but for consumers needs within a global industry. In the last 1 / 4 of 2012, domestically, Apple computers. revenue accounted for 40 per cent with 62 per cent revenue from the worldwide markets (Niu, 2013). 45 per cent revenue for Apple means that that dominates in the domestic market.

This is possible for Apple for the reason that company must deal with merely one set of customers on which it could concentrate more effectively. Other factors contributing to this confident revenue happen to be that Apple uses of the identical policies and strategies and lesser money. The additional sixty percent revenue pertaining to Apple, pondering in term of global it truly is small earnings for the business. This has to do with the fact that intercontinental marketing is somewhat more complex and more risky.

It needs more money than household marketing. Internationally, AppleInc. must deal with several markets, diverse languages and different types of shoppers with different likes. In countries with regulations of their own, to get Apple it can be more challenging and requires more dedication from the company in making use of the promoting principles.


In this homework assignment We tried to my personal best abilities to demonstrate that we acquired an excellent knowledge and understanding of marketing principles by utilizing the theory to Apple Inc. by simply carrying out the tasks given pertaining to the task.

Overall my understanding now is that advertising is with all of us every day, subsequent to all of us and even in us people. Consciously or unconsciously we are promoting ourselves since individuals daily to others. Promoting has an influence on everything and it cannot be avoided. For your business, marketing is a strategic conflict plan for having peoples awareness of maximize profits.

In this battle business are likely to aim at people emotions. Marketing is a self-discipline and is defined by social participation. However the most important thing learned In my opinion is that customers’ needs and wants are changing and marketing must change appropriately.


American Marketing Connection. (2007). Definition of Marketing. Readily available: Previous accessed sixteenth May 2013. Apple. (2013). Apple Info. Available: Last utilized 12th Jul 2013. Apple Press. (2012). Apple Studies Fourth One fourth Results. Available: Last accessed twelfth Jul 2013 Campbell, Meters. (2012). Apple to open approximately 35 fresh retail stores in 2013. Available: Previous accessed eleven Jul 2013. Canadian Promoting Association. (n/a). Definition of Promoting. Available:


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