Apple Inc.'s marketing strategy and competitive positioning in the United States market

¶ … Apple iPhone Company)

In the achievement of competitive advantages, desired financial resources, and satisfaction of the consumers and employees, business entities need to focus on enhancing effectiveness and efficiency of their marketing strategy. This is because of the role and importance of marketing strategy in the achievement of market share while addressing the needs and preferences of the consumers. There are various marketing strategies adopted and implemented by unique organization in relation to their market segmentation, location, and size of the target market. Effective and efficient marketing strategy should enable an organization to meet the goals and objectives of its stakeholders and shareholders. This is through increasing the volume of revenues and profits following the implementation of the marketing strategy. In this research exercise, the focus will be on the examination of the marketing strategy implemented by Apple iPhone Company (Apple Company/Inc.) with reference to the United States market. This is through examination of the components of the marketing strategy of the company, its implications with reference to profitability, market share, and sales, and provision of appropriate recommendation for the transformation of the company to greater levels.

Background Information on Apple iPhone

Apple Company was founded in 1970 through a partnership between Steve Jobs and Steve Wozniak. In 1977, the organization was integrated into the state of California. Apple Company/Inc. is an organization in the context of the United States with its headquarters in Cupertino, California. Apple Inc. focuses and commits to the development of personal interaction experience to the students, educators, creative professionals, and consumers across the globe through implementation of its internet, hardware, and software provisions. According to the famous quote by one of its founders, "man is the creator of change in this world," the organization has the mission of transforming the globe through its undisputed technological developments and innovations. The organization has the opportunity of enhancing its resources for the current generation without compromising the needs and preferences of the future generations thus realization of continuous development.

Investigate and evaluate the marketing strategy of the producer/owner using contemporary marketing tools and techniques

Apple Company adopts and implements unique marketing strategies for the purposes of achieving maximum utilization of the available space and competitive advantage in the context of the United States and international markets (How the Companies Stack Up 2012, p. 29). This is vital for the realization of the goals and objectives of the organization in relation to increase in the level of profits and revenues at the end of the financial year. The secret to the marketing strategies of Apple Company lies beyond the design standards and product line. The marketing strategy of the organization is also beyond the philosophical value or core of the organization by Steve Jobs, which is a reflection of the concept that consumers have minimal idea on what they want. In relation to its recent product lines and revenues models of the organization, Apple Company adopts numerous names: design firm, software powerhouse, computer builder, movement, and publishing company. This diversity is an essential component in the marketing strategies by Apple Company (Guglielmo 2012, p. 147). Apple Company adopts and implements numerous tactics in relation to the promotion of its products and services across the globe.

One of the essential components of marketing strategy by Apple Company towards the realization of the goals and objectives is the concept of ignoring your critics. In the context of business interactions, it is essential to note that there would be various limitations in relation to criticism. Some encounters would focus on discouraging entities towards the achievement of the goals and objectives. Apple adopts and integrates an effective and efficient marketing strategy with reference to eliminating criticism from other entities. This relates to the launch of iPad and iPhone, which was vital to eliminate the essence of criticism thus, achievement of quality market share. It is essential to note that innovative and technological advancements have prevailed despite vital opposition from the majority of the public. This relates to the notion that great ideas are often challenged through extensive opposition from mediocre minds (Helft 2011 p. 64).

Another essential component in relation to an effective and efficient marketing strategy by Apple Company is the ability to transform ordinary concepts into something beautiful. This relates to the ability of the organization to adopt and integrate valuable concepts thus reinventing design standards for the industry across the globe. This ability enables the organization to become a leader within the industry thus an opportunity to enjoy massive market share translating into maximum revenues and profits at the end of the financial year. Apple Company enjoys implementation of beautiful products and services to counteract competition from other players within the industry such as Samsung. The ability to transform ordinary concepts into creative applications for communication purposes such as iPhone and iPad is essential towards the growing image and reputation of Apple Company within the industry (Karlgaard 2012, p. 34).

Another valuable component of marketing strategy by Apple Company is the ability to justify its pricing mechanism. Pricing mechanism is an essential component in the modern marketing field because of its role in determining the cost of procurement and distribution of products within the market or industry of operation. It is ideal for the organization to adopt a critical concept in the justification of the pricing mechanism. This is because consumers in the modern society focus on the pricing system and quality/standard in making informed decision on the purchase of the product or service. Apple Company integrates an essential component in which it has the ability to charge more than twice what its competitors in the market or industry charge while presenting its products to the market. This justification is possible in the case Apple Company because of two critical factors. One of the reasons for the justification of the pricing system by Apple Company is the development of beautiful products for an audience with passion. The second possible factor is the justification of prices through integration of features and benefits unmatched in the market or industry of operation.

This makes impossible to compare iPhone's technology and design to other smartphones by Apple's competitors within the context of the United States' market. Despite an argument by critics that the features are similar, it is ideal to note that Apple Company rolls the dice in relation to leading technological and design attributes within the industry. Consumers of these products are willing and able to pay premium for the quality products thus an opportunity to justify its pricing mechanism. This is also vital for the purposes of development of an effective image and reputation (Leading Companies 2012, p. 18).

Another vital aspect of the marketing strategy by Apple Company in the advertisement and promotion of its products is adoption and implementation of a familiar language to the target audience. The organization has the ability to communicate to the consumers through a familiar language, which they can comprehend appropriately and effectively. It is ridiculous to discuss concepts such as processing power and megabytes to consumers with minimal knowledge on the technical jargon. Examination of the website of the organization reveals communication through familiar language. Even though the organization discusses product specifications and technical information, this attribute is hidden behind the benefits in relation to the needs of the consumers. Presentation of the information on the website incorporates technical jargon despite the fact that it raises curiosity for an opportunity to learn.

It is also essential to extend the experience as applicable in the marketing strategy of Apple Company. This is vital in the development of a name or image thus an opportunity for the organization to increase its consumer base. The organization is note contented with just being the leader of the industry or United States market. This is evident on the constant attempts to adopt and implement valuable tools such as iTunes and iPhones thus becoming the name within the industry. Everything within the market or industry is compared to the products of the organization such as iPad, iPod, iPhone, and iTunes thus becoming the role model within the market or industry.

Apple Company focuses on the consumers in the development of its products and services within the context of the United States. The Apple Company designs its products with consumers as the bulls-eye thus addressing specific needs and preferences of its consumers within the context of the United States. This is an indication of tuning of the products by Apple Company to appeal to the loyal and prospective consumers thus the achievement of competitive advantage within the market or industry of operation. Another marketing criterion for the organization is encompassing its design in relation to user-centric point view with the aim of bridging gaps unseen or unaddressed by competitors. The development of an iPhone is an illustration of focusing user-centric point-of-view thus facilitating the needs and preferences of the consumers. Apple Company also limits its innovation with reference to the development of new product generation.

This relates to focusing on few innovations that sparkle with the aim of reusing much of the original product design. This is an expression and illustration of differentiation of innovations thus effective and efficient control of the cost, resources, and stability. Apple Company applies familiar engineering design and disciplines for the purposes of reviewing and schedules. This is vital for the realization of competitive advantage within the market without compromising the experience of the consumer for time and cost. Apple Company also aligns its marketing strategies to their consumers rather than Wall Street or stakeholders within the market or industry of operation. In normal circumstances, organizations, at the heart of their size and success usually focus on the needs of stakeholders needs that might prove harmful to their needs and objectives. Apple Company focuses on the realization of the goals and objectives without compromising the requirements of the consumers. This differentiation is vital for the achievement of competitive advantage within the market and industry with reference to the United States. Apple Company focuses on the integration of classic Macintosh marketing strategy thus realization of success in their new products within the context of the United States market.

Effectiveness of the policies by performance data against competitors in the market (market share, sales, and profitability)

Apple Company engages in the development, designing, and marketing of personal computers, portable digital music players, and media systems. This is possible through adoption and implementation of effective and efficient marketing strategies towards the achievement of competitive advantage within the United States' market. The organization integrates both horizontal and vertical communications in the development of integrative model thus an opportunity to build non-replicable and sustainable competition. Quality, focus on the consumers, and pricing mechanisms remain three critical factors determining interaction of the organization within the market thus an opportunity to compete effectively and appropriately. In the examination of the policies and marketing strategies of Apple Company in the context of the United States, it is vital to implement SWOT analysis evaluation tool. This will enhance examination of the strengths, weaknesses, opportunities, and threats in relation to implementation of the marketing strategies.

Strengths

Continuous production of success products

Leading growth rates within the industry

Combination of horizontal and vertical integration for effective competition

Weaknesses

Dependence on iPhone and iPad

Lack of products with different price points limits

Opportunities

Emerging opportunities within the enterprise market

Strong growth opportunities under the influence of emerging or developing nations

Maximization of the opportunities under the influence of Apple TV

Threats

Intense competition

Intensification of price competition under the influence of developing economies or nations

Rapid growth of Android phones or Microsoft launched window phones (nokia)

Weaknesses

One of the weaknesses of the organization in relation to adoption and implementation of its marketing strategies is overreliance on iPhone and iPod. This is an illustration of the dependence of the revenues and growth on the product lines for products such as iPod, iPad, and iPhone. The three products were essential for approximately a third of the revenues generated in 2011. This is an indication that the products have been drivers for growth and development thus the achievement of the massive market share in relation to the case of the United States. Another weakness affecting the realization of the goals and objectives is lack of products at different price points thus limiting maximization of the available opportunities. Lack of products at lower pricing zone is proving to be an obstacle in addressing the sensitive customer base. Price is the main and only effective competitive disadvantage applied by competitors. The organization also has a massive presence in the context of smartphone market rather than other valuable segments (Carr 2013 p. 36).

Opportunities

The organization has various avenues in the processing of enhancing its operations in the United States' market. One of the essential opportunities is the essence of emerging positions or opportunities in the developing market. Apple Company has the ability to maximize available opportunities in the context of enterprise, education, and governmental markets that are largely untapped so far in the United States (Lashinsky 2012 p. 110). This relates to the maximization of the massive market share by iPhone and iPod thus spilling these developments into other sectors such as education and government. Another source of opportunity for the maximization of the revenues and growth is the essence of emerging nations. Technology is one of the main components in the aspect of development of a country or a nation. It is ideal for the organization to adopt and implement various technological developments with the aim of transforming the economy. This is an indication that Apple Company might exploit these developments thus increase in the revenues and market share. This relates to operations outside the context of the United States with the aim of increasing the volume of revenues and profits while transforming the economies and development of the emerging nations. The launch of Apple TV is also an essential component or opportunity for increasing the volume of revenues. The economic revenue will be developed following maximization of the opportunities generated by strong growths.

Threats

One of the threats to the marketing strategies by the organization in the context of the United States and across the globe is the intensification of the price competition. Competitors have the opportunity to maximize this threat in sustaining intensive competition within the industry (Capozzi et al. 2012 p. 38). This has proved to be a challenge in relation to addressing emerging markets which is essential in the attainment of maturity by advanced economies of smartphone markets. Apple Company's pricing strategy will prove to be a challenge with reference to the negative impacts on the average pricing system within the industry ('Apple Inc. 2012, p. 9). This is a problem in the context of emerging and developed nations like the case of the United States. Another threat in the operations of the organization is uncertainty of the economy under the influence of factors such as recessions.

PESTLE Analysis

Political Factors

Currently, Apple Company operates in all regions across the globe. It is essential to note that about half of the sales of the organization emenates from the context of the United States. Several issues are beyond the control of the organization. Such factors include war against terrorism, geoolitical uncertanties, health issues, and sanctions from various nations. Such factors are essential in the determination of the volume of revenues or profits by Apple Organization. In the context of the United States, the organization has the obligation of outsourcing its operations with the aim of reducing its operating cost. Some of the outsourced commodities include transportation, logistics, and manufacturing.

Economic Factors

The economy of the world is experiencing growth follwing the essence of the recession in 2007. This growth is evident in the rapid and vibrant economy of the United States. Increase in the prices of oil was essential in the reduction of the spending power of the consumers thus inability to inject more money into the economy. In 2009, there was high rate of unemployement in the context of the United States thus a sharp fall in the volume of profits by Apple. Increase in employement positions in the United States is essential for the rapid growth of the organization after recession of the economy.

Social Factors

environmental protection and health measures are critical issues in the context of the United States following the operation of Apple Company within the smartphone industry. Implemntation of environmental and health regulations affects realization of the goals and objectives thus limiting the amount of revenues and profits at the end of the financial year.

Technology Factors

The oganization operates in a technological field characterized by rapid changes or transformation. The organization is forced to spend on research and development because of the rapid changes in the specifications of its products and other commodities within the market and industry. This results into high cost of operation thus the need to charge high prices to curb the quality or amount invested in research and development. The organisation also has the ability to focus on its own technological advancements for the purposes of the achievement of differentiation thus competitive advantage in the market and industry of operation.

Legal Factors

For an organization to enahnce its image and reputation, it is ideal to attain valubale documents and legal permits. Legality is essential in attracting new consumers while maintaining the loyal ones. Apple Company incurs additional costs in the attainent of licenses and permits thus increase in the operating cost. The organization must also adhere to the regulations and laws by the government of the land. This makes it critical to maximize its opportunities through existence of challenges or legal obstacles.

Environmental Factors

Sustainable development focuses on the maximization of the available opportunities for the current generation without compromising the needs of the future generation. This makes it critical for the relevant authorities in the United States to adopt and implement regulations aiming to govern protection or conservation of the environment. Such factors are critical in limiting the volume of revenues and profits at the end of the financial year.

Part B: Recommendations

Suggestions covering changes in marketing strategy that will improve the future performance of the brand for the benefit of the parent company and its stakeholders

Critical evaluation of the performance of Apple Company is vital in relation to the adoption and implementation of various strategies with the aim of improving its revenues and profits within the market and industry of operation. It is ideal to note that despite the success in the market, quality, and price differentiation by Apple Company, the organization still needs to take into account various recommendations.

Segmentation, Targeting, and Positioning

Target Market

Market segmentation is essential in the idenitification of suitability of a particular product or service for each small group within the market. Apple Company targets rich individuals because of their pricing mechanisms. The organization develops commodities to suit the needs of the rich society members thus ignoring the wants of the poor. Market segmentation should focus on the evaluation of the attractiveness of the market and its capacity in relation to generation of the profits and maximum revenues. This is an indication of the need to focus on competitive factors, external environment, market forces, and size of the segment with the aim of ensuring success of the new market being targeted. It is ideal for the iPhones to target low income earners with the aim of increasing the volume of revenues and profits at the end of the financial year. It is highly recommended for organization to transform its production and marketing mechanisms thus focus on the production of cheaper products in the market thus an opportunity for maximization of the profits through achievement of competitve advantage.

Positioning

Apple Company controls approximately 55% of the market share in the context of the United States. This is an indication that the organization is a leader in the market or industry in the context of the United States. Its main product in the smartphone industry is iPhone which is a mirror for production by other entities. Effective positioning is essential for the realization of the goals and objectives of an organization. The organization has the ability to reposition itself within the market and industry of the United States. This is through development of a new market and audiences thus achievement of competitive advantage.

Segmentation

Segmentation in marketing refers to the process through which an organization divides target audiences into small groups with similar characteristics. This is through application of factors such as age, gender, and income levels for the purposes of effectiveness and efficiency in the production and distribution processes. It is ideal for Apple Company to segment its market through implementation of factors such as profile and behavior of the consumers within the context of the smartphone industry in the United States.

Development of products at different price points

One of the essential components for the maximization of revenues and profits within the United States economy is implementation of high pricing systems in the products by Apple Company. Apple Company tends to focus on rich targets while ignoring the majority of the population who are poor. Critical examination of the performance of the organization by the application of SWOT analysis tool reveals lack of products at different price points as one of the main weaknesses of Apple Company. Pricing mechanism and quality are main factors of competition within the market. Competitors focus on the pricing mechanism and quality as main leveraging components within any industry. It is ideal to note that lack of products at different price points is a challenge to the maximization of the revenues and profits of the organization. It is highly recommendable for the organization to adopt and implement various products at different price points with the aim of increasing the volume and base of the consumers.

This will facilitate the operation of the organization while enhancing its interaction with the masses ('Apple: iOS 2010, p. 56). This is an ethical recommendation thus enhancing the ability of the organization in bridging the gap between the rich and the poor within the society. Development of the products at different price points will enable the organization to increase its volume of revenues while also transforming the economies of the nations of operation. These products will reduce the level of competition within the industry. Apple's main competitors adopt and implement pricing system as the critical concept in sustaining competition within the industry. This is an indication that competitors will be forced to secure other means (likely impossible) to sustain competition within the industry. This is one of the most effective and efficient ways in the achievement of competitive advantage towards the maximization of the goals and opportunities.

Continuous Technological Innovation

Apple Company relies on technological innovation thus an opportunity to focus on the development of new products. This relates integration of valuable skills and committed employees thus increase in the volume of revenues and profits at the end of the financial year. Technological advancements and differentiation will be essential in the maximization of the available opportunities. In order to increase its dominance in the United States' market, it is essential for the organization to execute extensive research and development with the aim of integrating various technological innovations. Research and development will provide the organization with valuable opportunity to minimize cost of production and marketing. This is through addressing the specific needs and preferences of the consumers within the market (Baroto et al. 2012, p. 124). This will also enable the organization to justify its pricing mechanisms within the market in the case of the United States.

Price Differentiation

Apple Company seems to focus on the provision of services and products to the rich society members through charging maximum prices in comparison to the close competitors. High prices seem to limit accessibility of the products and services by poor society members. It is highly recommendable for the organization to reduce its prices within the aim of accommodating other segmentations in the United States. Price differentiation is one of the essential components for the maximization of revenues and profits through increasing the volume consumers. This is one of the most effective aspects in the achievement of competitive advantage within the market coverage (Beech 2012 p. 36).

Increase quantity and quality of promotion/marketing

Promotion or marketing is responsible in wooing consumers towards procuring available products and services at their disposal in the market (Shuv-Ami 2012, p. 32). Effective and efficient promotion or marketing strategies will enhance the achievement of the goals and objectives. This relates to the integration of technological advancements in the promotion of the products and services thus an opportunity for the organization to improve its revenues and profits. Some of the essential promotion mechanisms include search engines, social networking, email marketing, and affiliation (Feinberg 2013, p. 27).

Strategic alliances and mergers

Strategic alliances and mergers are essential in increasing the volume of revenues and profits through enlarging the market share. The organization should focus on the adoption of various ways of initiating efficiency in the manufacturing and distribution of its products. It is ideal to form strategic alliances with the aim of increasing distribution outlets in maximizing available opportunities (Company Spotlight 2009, p. 241). This indicates that Apple Company should form mergers with any competitors for the purposes of distribution and marketing. It is recommended that the organization should integrate this option in the maximization of the internal and international markets (Cusumano 2013 p. 29).

Conclusion

Marketing strategies are essential in the realization of goals and objectives in the market or industry of operation thus an opportunity for the achievement of competitive advantage. Apple Company is one of the greatest organizations in the context of the United States and across the globe. This is because of implementation of quality strategies for the purposes of increasing the revenues and profits. Some of the marketing strategies by Apple Company include product differentiation, effective innovation, quality differentiation, leading pricing mechanism, evasion of criticism, and selective product line production. In order to maximize its revenues, the organization should integrate various recommendations such as adoption of product at different price points, continuous technological developments, and formation of strategic alliances.