Consumer Behaviour and Marketing Psychology

Executive Summary

This assignment is based on a product which is purchased by me in assignment-1 with the help of consumer decision making process. I was obsessed and curious to know that how many people love Apple Products and how many of them don’t and why so I had done a survey by targeting social classes and gender and youngsters and businessman with the help of SurveyMonkey in my assignment -2 from which I came to know that so many of them are switching from Apple to other brands like Xiaomi because its same features and cheap price.

This assignment will be based on Apple Inc’s marketing strategy and marketing communication mix in this era of advancement. It will be targeting the internal and external environmental analysis and the marketing mix factors of the Apple Inc. I will be focusing on the current situation of Apple Inc. by reviewing its sales and competitor (Xiaomi , Samsung etc )growth annually. I will analyse the company through PESTEL methods and with the use of marketing mix (4P’s). After these analysation I will reach to a conclusion where Apple Inc. needs to change its Pricing Strategy so that it can target market share of its competitors. In the end I recommend Apple Inc. that its great if you keep upgrading products and launching innovative products but forget to keep an eye on other rivals market share too.

Everybody knows that Apple don’t make products to be on top , its known by its consistency as it has its own market which differentiate it from its rivals.

Product Overview

The product used in this project is iPhone XS, it is a smart phone designed by Apple Incorporation having an edge to edge screen having an improved version of camera having true depth system which provides support to the face ID. It is having a sensor in it known as touch ID finger print sensor. The iPhone XS is battery efficient having out class speaker system with resistance form water along with splash proof display and many other features.  This phone was launched in the year 2018 and is a blast in the community because of its outclass features and specifications. 

Specifications :-

This iPhone XS work with the help of a powerful processor known as A12, along with better LTE Chips which provides support to the faster LTE connection. It is one among the very much desired cell phones of the year 2018, along with a back face camera having a triple layer lens. This iPhone XS is an example of improved rear zoom capacity and picture quality of iPhone XS camera especially in low light environment.

Its packing is very outclass with a designed curve having a 5.8 LCD display along with greater screen resolution. Now day’s storage is a greatest issue of smart phones. The iPhone XS is designed in a manner which covers all the data as it is having enough space to cover the data consist of greatest resolution pictures, music, HD Videos and other applications as well, etc.

Critical Analysis

The critical analysis of the Apple Incorporation is carried out under following headings:

Internal Analysis

• Marketing Communication Mix (4p’s)
• Strengths
• Weaknesses

External Analysis

• PESTLE Analysis
• Opportunities
• Threats

Overview

Steve Jobs is the one who innovated Apple Incorporation, Apple association actually designs and makes the desktop systems, Mac Laptops, iTunes, iPods, the OS X operating system, the iPad and the iPhone. Apple is in the business for a long time and thus witnessed greater success and is presently counted among one of the leading associations in the technological world and so their items are also growing and becoming the popular one day by day. The success of Apple Incorporation is not automatic but a lot of effort is put into attaining it. Specific actions are being taken for this purpose along with greater quality and effective delivery of all items and facilities is ensured.

Apple’s marketing strategy is determined by a single world “Empathy”. It is a capability to get understanding of the other person in order to get connected with them at a very deep extent by getting very deep in their internal wants in order to give them a product which highly benefit them at a level so that they cannot live without that thing. Apple got their clients an item that is so helpful to them that they would not consider going for its substitute. They picked to go for an item that is anything but difficult to-utilize, spotless and easy to guarantee that their clients were getting what they need without putting a lot of exertion into it. This is the thing that separate Apple from every other organization in the whole world and this is additionally what added to the colossal achievement of their promoting methodologies.

There is actually no denying that Apple is taking care of business. The mystery isn't just in their plan gauges and product offering. The mystery is additionally not just in the severe adherence that Steve Jobs has profoundly theory of Apple. It goes past all that.

Apple is:

• A drive
• A design association
• A Computer Developer
• A Media Place
• A Software House
• A Publishing Association

Internal Analysis

Internal analysis is covering all the internal factors of the apple association are:

Marketing Communication Mix

The marketing communication mix of Apple defines the stance towards the single aspects of marketing communication like print and media advertisement, sale promotions, events, PR, direct marketing and direct selling. The basic reason of the Apple marketing communication mix is to end the marketing message to its target market with all the above mentioned aspects.

Print Media Advertising

Since its establishment over 40 years back Apple has been utilizing print and media publicizing broadly to advance the brand when all is said in done and new items specifically. Apple additionally utilizes superstar supports in print and media publicizing widely. In the past Apple's 'Think Different' print and media promoting materials included the pictures of trend-setters and pioneers in various territories, for example, Albert Einstein, Alfred Hitchcock, Charlie Chaplin, Dalai Lama and Jimi Hendrix. Present instances of Apple big name supports incorporate Aubrey Plaza, Neil Patrick Harris, Drake, Taylor Swift and others.

Sales Promotions

These promotions determine the short term incentives to make commitment of purchase and so for this purpose the association utilizes some sort of promotions and marketing tactics like:

Point of sales materials: Apple Stores are structured in an appealing manner and individuals get an opportunity to utilize Apple items. Every Apple Store has innovative and exceptional components. For instance, trees are utilized as allotments inside the primary Apple Store in Thailand and Apple Store in Chicago has MacBook-formed rooftop.

Free Gifts: Apple does not offer unconditional presents as a piece of its advertising technique. Apple used to run 12 Days of Free Gifts giveaway during Christmas period since 2008 from its App Store; anyway the organization stopped this training in 2014.

Loyalty Programs: Strikingly, in contrast to most of premium brands, Apple doesn't have a formal client dedication program. It has been noticed that "the reason Apple doesn't have a devotion program has nothing to do with the potential trouble of starting a faithfulness program for their image. As one of the wealthiest organizations on the planet, they can more than bear the cost of a compelling maintenance system that rewards their best clients for their image reliability. No, the reason Apple doesn't have a dependability program is on the grounds that they as of now have a maintenance methodology – it's simply not marked as one

Seasonal Sales:Apple infrequently utilizes seasonal sales promotions system. Be that as it may, real affiliates routinely declare deals advancements strategies to sell Apple items. There are a couple of different special cases to the Apple no-rebate estimating technique. For instance, when another age of iPad, iPhone, iPod or PCs are going to be discharged, approved Apple items vendors are offered consent to limit their current stock to account for the most up to date discharges.

Strengths  `

Apple Incorporation have many strengths which are:

• A different capability to design and make hardware, software, applications and facilities. The ecosystem at Apple corporation id the outcome of association’s capability to make a huge range of combined hardware, software, applications and facilities.
• Ground-breaking brand bolstered by solid publicizing and advertising abilities. The organization has had the option to accomplish such solid brand acknowledgment and notoriety through its solid publicizing and promoting abilities.
• Solid showcasing and promoting groups. Showcasing is one of the most grounded utilitarian areas Apple has. It can sell pricier items, fabricate unrivalled stores (they are pretty much worked to achieve marketing objectives) and promote their items in a convincing way

Weaknesses

• High price, Apple’s products costs much more than its competitors devices

• In compatibility with different OS
• Decreasing market share
• Patent infringements
• Further changes in management
• Defects of new products
• Long term gross margin decline

Opportunities

• Apples market share will be increment because of extreme interest of iPad and iPad smaller than expected in tablet showcase also, this will help organization to use as upper hand.
• Apple TV deals will be expanded by the dispatch of I TV which will discharge soon.
• Cell phone and tablet markets are developing which is a decent open door for Apple to expand their piece of the pie in these business sectors.
• Gathering harms from contenders since organizations now and then disregarded Apple's patent. So such kinds of variables can be utilized by Apple as to harm the contender's picture on market and gathering harms from them will prompted increment money saves too.
• The development of portable publicizing is a chance and Apple permits promoting on iPod touch, iPhone and iPad by building up the stage named I Ad publicizing.
• The necessity of cloud-based administrations is expanding, so Apple can develop its administrations relate to iCloud and programming too (Key Management Insight, 2013).

Threats

• Fast innovative change is the greatest risk which Apple and its rivals are experiencing now days. As clients are turned out to be more innovation sweetheart and they need more and more new items in extremely brief time because of this, organizations are confronting weight. So competition is exceptionally high and the person who can't remain themselves with contention without further ado be ineffective.
• Augmentation in Tax in USA will influence the Apple's development.
• Samsung is the one in particular who gives application processors to Apple and it has approached to pay more expensive rate for it. It ought to be approached Apple to pay more in light of the fact that there are no practical substitutes who could give Apple to application processors (jung, 2012).
• The fundamental contender of iOS is Android OS in versatile market. The intensity of Apple iOS can be dominated by Android OS.

External Analysis

External analysis of Apple incorporation is highlighting all the extrinsic forces effecting the marketing performance of the association.

PEST Analysis

Political Factors

There are numerous issues which can't be controllable by the organization, for example, geo political vulnerabilities, war against fear based oppression, specialist to work and medical problems which can influence the closeout of Apple's item around the world. As to diminish working cost Apple has re-appropriated in various nations like Ireland, China, Korea, Czech Republic and Cork. In the event that these nations face any political insecurity or any issue which causes to defer in assembling tasks, will prompted ruin the Apple resemblance in the eye of buyers and its vendors (CNetnews 2012).

Economic Factors

Obtaining force depends on the World's financial conditions.

As indicated by past couple of years, unemployment rate is high in numerous nations which cause to diminish the closeout of Apple products. Another reason was increment in oil costs which causes expansion in world's economy.

Because of these economic factors, obtaining intensity of individuals decreased which contrarily influenced the closeout of Apple items because of its more expensive rate. However at this point world's monetary conditions are showing signs of improvement and company has bought itself remote monetary standards, so Apple income has expanded in the worldwide market (Apple Inc2012).

Social Factors

Two factors dependably have been on bleeding edge of Apple item since the commencement, the plan and the quality. The obtaining of extravagance items have gone up in light of the fact that the buying intensity of shoppers has risen in various market over the world and individuals want to purchase iPod, iPhones and most recent technology iPad. As music industry development has expanded which is the greatest social impact on Apple in light of the fact that the main fundamental music store is iTunes. In this way, Apple has picked up such a great amount from social components in light of the fact that it's characterizing a person's cutting edge way of life.

Technological Factors

Apple dependably exploits in view of its inventive and high innovations items. The enormous sum has put resources into innovative work field by Apple that is the reason Apple comes in top of the new imaginative items.

Strategic Recommendations

It is suggested that Apple alongside cost minimization should chip away at value minimization. Searching forward for Blues Ocean methodology would be in support for what it's worth in fixed with benefit expansion objective of organization. Apple can diminish its future risk through increment speculations, right now which is a billion dollar on yearly which is essentially not adequate. It is must for the association to have a compelling correspondence procedure to make a superior effect in the brains of the intended interest group.

One that has had the option to set up successful showcasing and marking procedures that have taken it to the top. It is unquestionably one organization that organizations can gain so much from.

Though Apple Inc don’t need to target marketing but I recommend them to work on it advertising so just like their rivals do to make people aware of its easy to use and privacy feature because its rivals are on same track yet complicated as compared to Apple but people buy rivals products because of its cheap pricing strategy.

References

• https://www.apple.com/lae/iphone-xs/specs/
• Apple Inc., (2013). Form 10-K. Cupertino, CA, United States of America: Apple Inc.
• Apple Inc., (2014). Business Conduct: The way we do business worldwide. Cupertino, CA, United States of America: Apple Inc.
• Appleinsider.com, (2014). Pension giant challenging Apple over corporate governance. [online] Available at: http://appleinsider.com/articles/10/12/22/pension_giant_challenging_apple_over_corporate_governance
• [Accessed 13 Aug. 2014].
• http://tech.fortune.cnn.com/2012/11/14/apple-shares-fallen-wall-street-analysts
• https://www.marketing91.com/swot-analysis-apple/