Marketing Principles (Ron)

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Table of Contents

Introduction......................................................................................................................................4

Task 1(LO1) Understand the concept and process of marketing....................................................4

1.1 Explain the various elements of marketing process (P1).......................................................4

1.2 Evaluate the benefits and costs of a marketing orientation for a selected Organization (P2)5

Task 2 (LO2) Be able to use the concepts of segmentation, targeting and positioning..................5

2.1 Show macro and micro-environmental factors, which influence marketing decisions (P3). 5

2.2 Propose segmentation criteria to be used for products in different markets (P4)..................6

2.3 Choose a targeting strategy for a selected product/service (P5)............................................7

2.4 Demonstrate how buyer behavior affects marketing activities in different buying situations

(P6)...............................................................................................................................................7

2.5 Propose new positioning for a selected product/service........................................................8

Task 3 (LO3) Understand the individual elements of the extended marketing mix........................8

3.1 Explain how products are developed to sustain competitive advantage................................8

3.2 Explain how distribution is arranged to provide customer convenience (P9).......................9

3.3 Explain how prices are set to reflect an organizations objectives and marketing conditions

(P10).............................................................................................................................................9

3.4 Illustrate how promotional activity is integrated to achieve marketing objectives (P11)....10

3.5 Analyze the additional elements of the extended marketing mix (P12)..............................10

Task 4 (LO4) Be able to use the marketing mix in different contexts..........................................11

4.1 Plan marketing mixes for two different segments in consumer market (P13).....................11

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4.2 Illustrate differences in marketing products and services to businesses rather than

consumers (P14).........................................................................................................................11

4.3 Show how and why international marketing differs from domestic marketing (.............P15)

12

Conclusion.....................................................................................................................................12

Bibliography..................................................................................................................................14

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Introduction

Apple Inc is a well established American company that develops, designs and sells

computer software, electronics, personal computers and online services. Apple is the second

largest information and Technology Company and mobile phone maker. The company has 425

shops in fourteen countries and an online store, which is the largest music retailer in the world.

The company is one of the most successful firms due to its culture of innovation as well as its

creative marketing strategies. The products of the company are unique and are always improved

with time to keep them technologically updated. Its brand particularly appeals to a majority of

mobile phone users and other machines (AppleInsider, 2012).

Task 1(LO1) Understand the concept and process of marketing

1.1 Explain the various elements of marketing process (P1)

The elements of a marketing process are the tools that a company incorporates to produce

the kind of reaction it intends to in the target market. It comprises of each and everything the

company can do to have an impact on the demand of its goods. A company such as Apple Inc

for instance has various strategies that it applies to ensure that it attracts as many customers as

possible. The elements of marketing process are therefore as follows (Bowman & Gatignon,

2010):

Product: Apple Inc has a range of products such as iPhone, iPad and iPod. Considering

the fact that it is very expensive to come up with a new product in the market, the company

ensures that it introduces new products that are very different from the others in the market. The

company ensures that the products are of high quality and do not face competition from the other

products in the market.

Price: price is the value of money that the organization requires in exchange of its goods.

Apple Inc puts up a price level that will ensure there is satisfactory return on the investment. The

products are usually highly priced compared to the products from the other companies, which

enables the company to profit. The high prices as well offer Apple Inc with a prestigious image.

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Customers buy the product not only because of its good quality but also for the sense of class; it

offers (Marketing-Schools.org, 2012).

Place: place includes the activities of the company that ensure that the products reaches

the target market. It is the aim of Apple Inc to serve as many people as possible. The company

distributes the products to the buyers through retailers. The company as well has an online store

where the customers can purchase the products from any place (Onkvisit & Shaw, 2008).

1.2 Evaluate the benefits and costs of a marketing orientation for a selected Organization

(P2)

Marketing orientation is the company tries to understand the known as well as the

unknown needs of the consumers within the market and attempts to satisfy them. Apple Inc tries

to serve the needs of the customers by taking in suggestions from them and trying to incorporate

them in producing new products such as the introduction of new features. This has made it

possible for the company to stay ahead of the curve in responsiveness within the market. This

has as well enabled the company to produce products that satisfy the needs of the customers.

Relying on the analysis, which is data-driven, has as well helped the company in understanding

the market. This has therefore been significant in bringing constant improvement in the systems

and processes of the company (Ryan & Jones, 2012).

There are costs as well that are associated with market orientation in the company. The

company invests highly in marketing research for a powerful market intelligence to respond

accurately. The constant modifications of the products mean investment in new equipment. Any

mistake done in the modifications of the product could greatly affect the image of the company.

Ineffective data tools may also inhibit the ability of the manager to get market intelligence

significant enough to influence the high-cost business decisions (Bowman & Gatignon, 2010).

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Task 2 (LO2) Be able to use the concepts of segmentation, targeting and positioning

2.1 Show macro and micro-environmental factors, which influence marketing decisions

(P3)

It is important for a company to understand the marketing environment in which it is

running, to be able to recognize accurately opportunities. Micro-environmental factors are the

factors that affect the company directly. Customers for instance buy the products from the

company. In making its decisions, Apple Inc has to ensure that at the end of it the customers will

be able to purchase their products. They therefore have to make decisions bearing in mind the

needs of the consumers. Competitors being another factor are the number of contenders a

company has. Apple Inc considers its competitors in making its decision to ensure that it stays

ahead of them. Apple Inc considers other companies that have established brands and comes up

with strategies that will put them ahead of the other companies (Marketing-Schools.org, 2012).

The macro-environment factors are the factors that affect the company indirectly and the

company does not have direct control over them. These factors can be social, economic or

technological. Under the social factors are demographic factors that have to do with the

population of people in a certain place. Decrease in population has negative impacts on the

market whereas increase in population has positive impacts. Apple Inc targets areas with high

population since this would mean that their market is expanded. Economic factors such as

recession affect the ability of buyers to purchase products. In such a case, the consumers of

Apple Inc will not afford the products (Bowman & Gatignon, 2010).

2.2 Propose segmentation criteria to be used for products in different markets (P4)

Market segmentation is the targeting of a specific group of customers in the market who

offer more value to the business. This process will make it possible for Apple Inc to focus on the

different groups of customers who look at the full value of the products and services in a

different perspective from each other. Market segmentation can be categorized into three. It

geographically divides customers according to regional growth, macro economic factors and

customer orientation. Demographically, it divides customers according to their age, occupation,

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education, family status, gender, ethnicity and income. It also psychographic divides individuals

into values as well as attitudes (Hastings, 2007).

The most appropriate segmentation for the new product in Apple Inc would be

demographic. It is very important for Apple Inc to put into consideration that a higher percentage

of the product users are young adults and teenagers. The company should therefore focus on this

category while marketing and selling the products. Only the individuals with high income can as

well purchase the products. The company should therefore ensure that the locations of the stores

are appropriate and in areas where a good number of people have a high income. The level of

education of the buyers will as well dictate whether they would purchase the products. Only the

literate will be in a position to operate most of the products from the company (Bowman &

Gatignon, 2010).

2.3 Choose a targeting strategy for a selected product/service (P5)

Targeting strategy is selecting possible consumers to whom an organization would like to

sell its goods to. It would be important for Apple Inc to select a target after segmenting its

market putting into consideration a range of groups. One can identify a marketing strategy using

three strategies. The concentrated strategy focuses on selecting a certain market niche on which

the organization targets the marketing effort. The undifferentiated strategy considers the target

market as a single component. The multi segment targeting on the other hand focuses on two or

more market segments and aims at establishing a range of strategies for the two (Marketing-

Schools.org, 2012).

The most appropriate strategy for the new product of Apple Inc would be concentrated

targeting. It is important for the company to emphasize on a certain segment of the market.

Considering the fact that the device is new in the market, only a certain part of the buyers would

like to buy it and try it. The device is as well costly and can only be afforded by a specific

section of the population. This would enable the company as well to avoid any losses (Paul &

Kapoor, 2008).

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2.4 Demonstrate how buyer behavior affects marketing activities in different buying

situations (P6)

Buyer behaviors consist of internal and external factors that explain why buyers purchase

and use certain goods. The different types of behaviors can affect the marketing strategy that a

company makes use of in promoting its goods. It is possible for Apple Inc to introduce better

marketing strategies, when it analyses the behaviors of the buyers of its products. After realizing

the power of the social media, Apple Inc uses the social media sites such as Facebook in

advertising its goods. This has a positive impact since majority of the buyers are influenced by

what is trending on the internet on those sites. They would therefore rush to purchase the

products (Bowman & Gatignon, 2010).

Complex decision-making is as well a type of buyer behavior. The buyers relate this with

delicate and expensive goods. The customer therefore ensures that he researches on the product

in depth before making a purchase. The customers would as well go to the extent of finding out

about the product from other people who possess the same product just to ensure that they

purchase the right kind of product that is worth the amount of money they are paying for

(Chernev, 2009).

2.5 Propose new positioning for a selected product/service

Positioning refers to the development of a product and the brand image in the minds of

the buyers. It involves improving the perception of buyers on the subject of the experience they

will have if they choose to buy goods from the company. Apple Inc has influenced the

perceptions of its buyers positively though a number of ways. One way is through carefully

defining the marketing mix of the company and through strategic promotional activities. Apple

Inc can efficiently create the positioning strategy o its products by having a clear understanding

of the manner in which its competitors carry themselves as well as the benefits that the target

market of the company is after (Ryan & Jones, 2012).

Apple Inc can come up with a display on different event whereby it displays its products

and people can be able to see the range of features that the products have to offer. The company

can as well come up with different ways of purchasing the product such as through Hire

Purchase. The company can as well offer other products as Give-Away-Gifts for the purchasers 8

of its products. This would attract more people and help in marketing the product to other people

elsewhere. Creating awareness of the product is as well as important aspect. This could be done

through the media or on billboards (Hastings, 2007).

Task 3 (LO3) Understand the individual elements of the extended marketing mix

3.1 Explain how products are developed to sustain competitive advantage

Apple products users consider Apple Inc as the best company because of its benefits from

competitive advantage, from the ways in which they produce their products as well as the quality

of their products. Apple Inc has mastered the concept of products differentiation. Its technology

as well as user-friendly interface offers a consumer perception of a very new product. The

company ensures that the features of the products are different from those of the others in the

market. The company makes sure that the products are of high quality and not lacking in any

component that may be of use to the user. The company as well ensures that it maintains a good

brand name since cultural branding leads to buyers exhibiting almost cut-like loyalty to the

goods. The goods become part of the self-concept and image while interacting with others. With

time, the buyers become less sensitive to the amount of money they have to pay for the good

with and adopt the new products that the company has to offer (Marketing-Schools.org, 2012).

3.2 Explain how distribution is arranged to provide customer convenience (P9)

Companies such as Apple Inc offer their product and services to customers in a channel.

Distribution is therefore a very important part of marketing strategy. The main purpose of

distribution is promotion. Apple Inc makes use of several ways to ensure that its products reach

the buyers effectively. Apple Inc as a company has stores in most parts of the world that offer

people with information about the products as well as selling the products to them. Buyers can

therefore purchase the products from the stores near them (Paul & Kapoor, 2008).

The company distributes its products also through online stores. This makes it possible

for the buyers to purchase the products online through the internet and the products can be

delivered to them. Through the online stores, the buyers are able to see a variety of products with

their features and make comparisons to decide the products that best suits them. Apple Inc also

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distributes its products via retailers. This makes it easy for the products to reach a wide range of

people in different regions (Onkvisit & Shaw, 2008).

3.3 Explain how prices are set to reflect an organizations objectives and marketing

conditions (P10)

Companies consider a number of factors before setting the prices of their products. Apple

Inc lays down the amount of money it expects the buyers to pay for its products on the market

situation at that particular time. In setting the prices of the products, the company has to consider

the quality, quantity as well as the demands of the products. It is also important for the company

to consider the market and the trend at which the products are performing. The products of Apple

Inc for instance are of high quality and performing well in the markets, the prices therefore ought

to be high for the company to benefit. The products are as well on high demand in places where

buyers can afford them. The prices are thus made high in these areas. The brand name as well

determines the prices of the products. Apple Inc for instance has a very well established brand

name. Any products associated with them would therefore be costly since they are known to be

of high quality and durable (Onkvisit & Shaw, 2008).

3.4 Illustrate how promotional activity is integrated to achieve marketing objectives (P11)

It is important for a company to incorporate different strategies to be in a position to

achieve a marketing objective. Many companies therefore use promotional activities to attain

this. The promotional activities that different companies incorporate consist of advertisements,

sales promotions, public relations and making personal sales. Public relations is whereby the

company markets its particular goods and services informally. An example is making a

company’s reputation better for customer service so that many people start and continue using

the products of that company. Sales promotion is s chronological incentive that makes a product

appealing to the customers (Marketing-Schools.org, 2012). Making personal sales on the other

hand involves sales individuals using their particular skills to persuade the buyers to purchase

their goods.

Apple Inc promotes its products in all ways possible. It hires people from the partners

they have joined with as well as customers to market their goods and services not forgetting

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organizing major occasions in the community. The company also advertises its products in

different media and this has been effective in creating awareness about the products of the

company (Onkvisit & Shaw, 2008).

3.5 Analyze the additional elements of the extended marketing mix (P12)

Marketing mix is a combination of marketing activities that a company participates in to

make it possible for it to attain the particular needs of the market that the company is aiming at.

Marketing mix includes product, price, promotion and place. The other additional components

comprise of people, process and physical evidence (Marketing-Schools.org, 2012).

People refer to the individuals who buy the products as well as the ones who make the

products. Apple Inc ensures that it employs workers who are competent in what they do. The

company as well ensures that the products made satisfy the needs of the buyer. Process refers to

the means through which Apple Inc distributes its products. It does this in different ways to

ensure that the products are able to reach several buyers. Physical evidence stands for the place

from where a company runs (Ryan & Jones, 2012). Apple Inc can use this to charge a payment

cost for the products and develop an affirmative experience.

Task 4 (LO4) Be able to use the marketing mix in different contexts

4.1 Plan marketing mixes for two different segments in consumer market (P13)

Marketing mix is a very significant tool that a company makes use of in promoting its

goods and services. Market segmentation makes it possible for a company to introduce

marketing mix for certain markets thus fulfilling the needs of the buyer. Apple Inc has a range of

segments such as:

Geodemographic segmentation. This is whereby marketers focus on the new markets that

are being established in the developing world. Since most of the rich people live in urban areas

and the poor in rural areas, Apple Inc locates most of its stores in the cities due to the high

chances of the products being purchased. In the cities, the company will as well ensure that it

markets the products to the right people (Hastings, 2007).

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Geographic segmentation implies that different regions have various rates of growth,

climate, culture, competitive structure, service needs and sales potential. Based on these factors,

Apple Inc tends to distribute more of its products to the European countries as compared to

Africa (Bowman & Gatignon, 2010).

4.2 Illustrate differences in marketing products and services to businesses rather than

consumers (P14)

There are several differences when it comes to marketing products and services to a

business rather than to a customer. Consumer advertising offers products to the customers that

they will only find pleasure in despite the fact that they do not really require. Organizational

marketing on the other hand enables a company to sell out its products and services at a wider

range to the business that needs the products. Promoting a certain good may not achieve the

expectations of a company when a company such as Apple Inc does to the buyer but they could

maybe achieve these expectations when the company applies in the organization level (Chernev,

2009).

Apple Inc produces a range of products that make it possible for the company to form

partnerships with other companies that are in need of the products and be able to supply the

products to these other companies. In this way, the companies will as well be able to market the

products to the consumers.

4.3 Show how and why international marketing differs from domestic marketing ( P15)

International marketing differs to domestic marketing in various ways. The scope in

domestic marketing is limited and gives fewer chances whereas in the international market it is

unlimited. International marketing also appeal customers from beyond the border whereas

companies apply domestic marketing within a specific political border. Apple Inc for instance

applies international marketing to attract buyers from all over the world and domestic marketing

in a certain specific area such as London to attract only the buyers in that particular region. It

does so by using features that are typical for that particular region. This as well explains why

Domestic marketing does not have any barriers whereas language, culture, difference in currency

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and customs affect international marketing. Political relations also influence international

marketing but do not affect domestic marketing (Marketing-Schools.org, 2012).

Apple Inc has applied international marketing in joint ventures by giving out resources to

other companies and in strategic alliances by collaborating with other companies to distribute its

products and benefit in the end (Ryan & Jones, 2012).

Conclusion

According to the paper, it is therefore evident that marketing has a lot of significance in

the growth and development of a company. For a company to be able to do well within its

market, it should ensure that it applies the appropriate marketing strategies and ensure that it

always stays ahead of its competitors. Apple Inc has been able to establish a good brand name

because of the right marketing strategies it has implemented all along. Despite the fact that the

products are costly, the company continues to benefit due to the right marketing principles as

well as strategies.

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