APPLE IPHONE enters new markets by entering into joint venture and partnership agreements with operators and service providers in the market as well as through exportation and direct foreign investment in countries hosting its satellite production operations. The company is known worldwide which makes it easier for the company to choose and gain efficient business partners.
APPLE IPHONE positions its products based on the tagline ‘We call this human technology’ and ‘Only Apple IPhone Human Technology allows you to get more out of life’ (Temporal and Lee, 2001) creating the impression on the minds of consumers that APPLE IPHONE is a company in touch with humanity because it seeks to enhance interpersonal relations through affordable, accessible, functional and creative mobile phone devices and applications.
Through these taglines viewed in its different advertisements, the company successfully differentiates its products relative to its competitors because it was able to provide a human face to the company and the APPLE IPHONE brand that its strongest competitors were not able to do. The company was able to move the market to consider their choice of APPLE IPHONE phones as an expression of their personality and their lifestyle. APPLE IPHONE considered the market environment in its product
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By linking personality and lifestyle with its mobile phone devices and applications, the company has created a market for its different phone models differing in features and price. This means that the company has a sure market for its wide range of products from its basic functional phones to its high-end fashionable mobile devices. The product customization implemented by APPLE IPHONE ensures that there is a phone fit for everyone. Tactical Marketing Issues APPLE IPHONE products and applications are competitive in the market.
This is due to the efforts of the company to build a brand name and influence customer perceptions. According to Temporal and Lee (2001), APPLE IPHONE has established a single corporate brand name that represents its products in the market and it has succeeded in introducing its brand name to the extent that it can market different mobile phone models with just a combination of numbers as specific model names attached to the APPLE IPHONE brand. The same authors also state that APPLE IPHONE uses three strategies in creating a brand name.
First is brand personality or giving every mobile phone a distinct personality that coincides with different human personalities. Second is product positioning by differentiating its products and applications from its competitors through its human technology. Third is product design with colorful themes for fun-loving individuals and corporate themes for business demands. The price of APPLE IPHONE mobile devices is based on the market factors (Schewe and Hiam, 2000).
APPLE IPHONE, like any other business set its price at a level that provides the greatest possible profit relative to costs. However, the company also considers market factors such as the changing price of technology as innovations are made, the price of its competitors and the price that people are willing to pay for its mobile phones. In terms of technology, APPLE IPHONE obtains licenses to use the technology developed by companies such as to incorporate imaging and games into its mobile phone. Accessibility of technology determines the cost of obtaining licenses.
In this case APPLE IPHONE increases production cost by incorporating these software into its phones accounting for a higher selling price. In terms of the price of competitors, APPLE IPHONE and other mobile phone companies keep their prices relatively the same for equivalent models so that people choose in terms of mobile phone features. However, APPLE IPHONE was able to provide basic functional and creative phones at affordable prices unlike its competitors whose affordable phones are functional but bulky or drab.
The price that people are willing to pay is another basis of pricing. The company bases its price on market demand. This is the reason why the price of mobile phones models is high a few months after introduction but decrease as demand wanes and new models are introduced. APPLE IPHONE introduced its mobile phones as fashion items with some models going out of style as new models are introduced. APPLE IPHONE has a competitive pricing strategy because it is flexible and dependent upon important market variables. a. Distribution
APPLE IPHONE has three channels of distribution for its mobile phones. First is through exclusive APPLE IPHONE shops located in malls and in strategic areas in its different markets. These marketing channels provides the best buying experience for customers because the shops are assured to have the different models in different colors and customers are also assured of product quality through service warranties. Second are through operators and service providers that make available network connections for APPLE IPHONE mobile phone users.
These channels of distribution provide convenience to APPLE IPHONE buyers because price discounts are usually given for mobile phone devices and network connections when purchased in a bundle. However, these channels of distribution are not exclusive to APPLE IPHONE since operators and service providers are likely to be providing network connections for other mobile phone manufacturers. APPLE IPHONE has to develop ways of achieving competitive advantage through these channels of distribution. Other marketing channels are independent distributors or retailers.
Retailers are most accessible to large segments of the market but the company has to make sure that it chooses its retailers to protect its brand name. These marketing channels contribute to increasing the value of APPLE IPHONE products because these connect the company with its customers. The different channels of distribution provide different levels of product accessibility (Schewe and Hiam, 2000) that fits the different segments of the market. APPLE IPHONE captures greater market share by supporting strong brand name with various types of marketing channels.
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