Marketing strategies and distribution channels of Apple and HTC

MARKETING STRATEGY, PLANNING & Management PROCESS: APPLE & HTC

Analysis of the Marketing Strategy, Planning and Management Process

Apple Inc. is a multinational company incorporated in America and headquartered in Cupertino. The firm designs, sells, and develops consumer electronics, online services, personal computers, and computer software. The company is widely known for its hardware products such as the iPod media player, iPhone Smartphone, Mac computers, and iPad tablet computer. The company offers online services such as iCloud, App Store, and iTunes Store. The consumer software of Apple includes iOS and OS X operating systems, Safari web browser, the iTunes, and the iWork and iLife productivity and creativity suites.

In contrast, HTC Corporation was previously known as High-Tech Computer Corporation based in Taiwan and manufactures tablets and Smartphones. The headquarters is in Taiwan at New Taipei City. The company started in 1997, had the initial original equipment and design manufacturer focused on developing, and designing devices like mobile phones, PDAs, and touch screen phones running on Brew MP and Windows Mobile OS. The systems allow for the marketing of mobile network operators with a willingness to pay contract manufacturers to develop customized products. Through the creation of smart-phones running on Windows Mobile, the company has expanded the focus to devices that operate on Android. HTC primarily released and marketed its Smartphones through the HTC brand name and ranked as one of the top 100 Global Brands in 2011.

Channels and Logistics Review

The broader export markets play extensive roles in developing future sales of domestic markets' saturation. The distribution ratio between points and population in the globe is growing at 3.1% annually. Both companies hold a distribution network across international borders addressing the needs of global masses. The firms consistently have distribution channels availing affordable technology and value for money (Perreault, 2010, p.6). For international business, Apple shifts its focus towards becoming recognized quality product dealer. HTC makes a mark on international markets through holding innovative and competitive communications products based on competitive prices. Apple exports products to a network of over 50 countries globally. The markets include continental European auctions and the United Kingdom (McDonald & Wilson, 2011, p.25). The unswerving mission to government agencies, customers, shareholders, employees, and business associates enable Apple to realize its marketing goals and organizational success (Wong, 2010 p.32). The company achieves this based on customer orientation as well as production of innovative products attached to competitive prices.

On the other hand, HTC has a broad product line that creates both expectations and anxiousness among prospective customers. The approach changes the focus and scope of communications technologies created to address the hype. HTC makes the marketing marking through diversification of product offerings and innovative designs (Estelami, 2009, p.15). Irrespective of the market shakes, HTC is ready to identify flaws and negative product aspects for instant corrections. The fact that HTC offers modern and sophisticated communications devices has come with many problems. The industry is popular for the quick measures and solutions leading to the instant remedy of the problems.

Marketing Mix Models

Apple has established ways and offices to enhance customer's values. The objective of the strategic focuses on allowing customers to build confidence on its products. Releasing of new Apple products initiates comprehensive discussion topic among global societies. In the end, engraved action plans are used in recommending solutions that relate to the 4Ps' strategies (Wong, 2010 p.22). The company has a comprehensive composition of marketing mix models. The increment of sales and promotions levels based on the emphasis on continued research and development enables the company meets varying preferences of customers. It is significant for the Apple Company to increase the impact range of electronic media and internet prescience through social media networks. Both companies monitor the success of marketing initiatives through measuring campaigns outcomes. Departments can take requisite corrective actions in improving effectiveness and efficiency of procedural campaigns (Perreault, 2010, p.34).

Market Description

User identification process within Apple targets significant consumer interests while developing varied knowledge structures. In the end, the company has different perceptions on various services or products offered (Wong, 2010, p.67). Both companies have successfully identified respective target markets. The criterion used refers to the segmentation approach of demographic, behavioral, and psychographic factors. The companies use marketing variables such as behavioral, demographic, and geographical differences to segment markets.

Behavioral segmentation approaches emphasize on the preferences of customers. Findings of such exercises formulate viability of reactions including purchasing necessary products. The industry's demographic segmentation involves a comprehensive analysis for potential customers (Estelami, 2009, p.42). With strategic goals, marketing activities focus on higher-class customers and demographic segmentation strategies s applicable within company products. The geographical segmentation of HTC is attained through dividing markets into essential locations. The targets markets of each company differ from one country to another based on the innovation levels (Perreault, 2010, p.120).

Competitive Review

All industries face macro-environment variables that affect the approaches to marketing. The two organizations have marketing strategies that are influenced by such changes. The level to which each organization takes advantage of diversity of developments differs in substantial ways (McDonald & Wilson, 2011, p.62). HTC has a department dedicated to planning and addresses such factors that could potentially influence corporate performance of industry trends. On the other hand, Apple identifies and anticipates such macro-developments to develop and assess potential impacts against industry expectations.

Company Internal Analysis- SWOT Analysis

One of the significant strengths of Apple is its reputation. The company has a well-established brand image that is attributed to long years of operations. The global population has become more familiar and developed loyalty to the brand offerings (Clow, & Baack, 2004, p.44). On the other hand, HTC enjoys an international mobile appliances brand across the globe. The mobile phone manufacturer defines significant support through back up from government agencies. The service offerings are categorized as essential to most business environments.

A major weakness at Apple is the unprecedented R&D as well as innovation concepts. This is coupled with the absence of strategic products and a limiting product line. The company is facing challenges in making introductions to requisite models. The outcomes include cannibalizing them narrow product lines. On the other hand, HTC faces human resource issues due to difficulties in retaining and proper cultivation of talent (Wong, 2010, p.81). Based on these weaknesses, the companies face possible challenges in maintaining presence and influence across international operations.

Research indicates that the industry enjoys governments' support, and this is an important opportunity. The reason is that most government agencies categorize telecommunications products as essential partners in development. The two companies provide handled devices within local and national markets satisfying the needs of many people (Hugh, 2012, p.61). Developing strategies to penetrate into more markets will help the companies expand business. The ratios of expansion include the amount of size and gaining turnovers. Growth in global population offers more prospects for the mobile industry. The existing ratio of communication devices ownership stands at 1:4. The ratio signifies that people across the world categorize mobile devices as critical components of daily life (Hugh, 2012, p.12). Individuals settle on purchasing high-value items and expect consumers to put aside their buying behavior due to market uncertainties. The local and global crisis affects the overall organizational, financial standings.

An evident threat that the two companies face is global economic crisis. The adversities of economic performance affect all national economies in the world. It also influences the varied lifestyles and buying behavior among consumers (Fabbi, 2011, p.28). The major reason for such situations is that focus is shifting towards managing tariffs among major nations based on preferential tariff plans. The products sales in a given country may go low each year due to different economic trends. This connects with the impacts of global financial crisis that affect the local financial status of a given country. Countries' governments expecting dragged economic growth will negatively affect the buying behavior of customers. The economic policies continue increasing the competition levels based on performance expectations (Perreault, 2010, p.286).

Objectives and Issues

Apple has developed along extended range's quality and value for money. HTC has embraced better quality products and brand positioning to the attractive markets. For their prosperity, both companies have expanded their potential to venture into exports (Perreault, 2010, p.290). The sustainable scopes of growth in international markets form mainstays for both companies as they seek to expand their market share and sales in diverse export markets. Apple accumulates broader global markets through exploring emerging markets for purposes of exploration (Fabbi, 2011, p.72). HTC group commits to increasing its vibrancy for sales and distribution in the China, India, and Middle East. HTC considers China and Taiwan as essential elements in the booming economy of the globe. HTC continues to expand and enter global communications markets through allowing subsidiaries to attain stronger positions in the communications engineering industry. The company has generated an awareness of the importance of developing operational efficiency based on improving capacity utilization (Estelami, 2009, p.16).

Marketing Objective

The marketing goal of HTC is to expand its market share across the world through formulation of strategies assisting the attainment of increased profitability. Other elements include market command and sales promotion. Currently, the region that HTC works in face free trade policies that affect marketing approaches. Such policies eliminate the existence of tariff barriers in subsequent trading blocs (Hiebing, Cooper & Wehrenberg, 2011, p.33).

HTC plans on working around regions with 5% tariffs reduction in the next decade. This is an interest around different nations refereeing to standard preferential tariffs. The previously high prices of HTC products were attributed to high production costs and minimal vendor efficiency. The extensive possibilities for local markets are ruled through imported communications devices (Wong, 2010, p.16). HTC's prices have been turned into comparatively lower segments as per foreign manufacturers like Apple and Samsung against protectionism policies. Protectionist policies are attributed to Apple's stagnating performance.

During the launch of Apple's products, customer interaction is achieved through the internet. Customers register on the online platform provided by the company through logging on (McDonald & Wilson, 2011, p.41). The platforms offer customers with interactive segments to provide information through question-answer quizzes and chats with public relation representatives. The chat will encompass customers sharing their views. The different customers fill the forms through ordering payments and paying through credit cards (Perreault, 2010 p.44).

On the other hand, Apple Company segments the market through variables such as geographical, demographic, and behavioral differences. The addition of "Document" folder as a feature in its mobile phone products, users can store many file formats including PDF. Users are not expected to keep respective files in previous attachment formats along their electronic mail. Further, users do not have to email files to their accounts as a way of storing attachments and reading documents (Fabbi, 2011, p.8). The solution allows users from enjoying internet access even as Wi-Fi access is weak. These are times where consumers have to open electronic mail to share documentation stored within their email accounts. Apple's focus goes past the brand and focuses on the appropriate ways to promote its products. This is inclusive of a focus on various conveniences to having single communication device managing both Internet access and entertainment.

Issues

One of the major competencies of the companies in line developing communications gadgets is the customer satisfaction level. The diverse approaches engaged meet technological updates and sustainable scopes of products to changes in the preferences, needs, and requirements of customers. The marketing strategies encompass production philosophies that develop right devices for markets within appropriate regions and prices (Fabbi, 2011).

The companies get millions of product customization reservations. Such aspects awaken the discovery of new-business concepts that are inspirational to international competition for mobile phone makers (Perreault, 2010, p.84). Apple has developed along the evolution line to develop gadgets that reflect on most notebook functions. Apple identifies those respective markets through expansive marketing and resource allocation to venture into them. Apple develops its products through making sale points based on touch-screen features instead of standard buttons. On the contrary, HTC prepares intelligent music and video playback features on internet web browsers, voice calling, and operating software among others (Hiebing & Cooper & Wehrenberg, 2011).

Promotion Strategies

HTC's promotional strategies vary based on various market segments that they target. Word of mouth methodology is used to most subscribe European market segments. Subsequently, the company does not have a direct action procedure across the approach to incorporate the different advertising activities (McDonald & Wilson, 2011, p.23). Cost effective promotional activities in HTC concentrate on direct marketing, advertising, sites and WebPages, and publicity conducted based on promotional elements. The deliberation on the marketing strategies triggers the concept of Apple's sales promotion conducted through several communications. The attempts focus on availing incentives and added value to Apple's consumers. Lastly, the attributes stimulate increased Apple sales. Efforts of the marketing representatives seek to stimulate Apple product purchases and trials. The primary sales promotion strategies applied by Apple's marketing team include pull, push, and a hybrid of the two.

The push strategy at Apple involves convincing trade intermediary channels to "push" the products through the established distribution channels. Meanwhile, the ultimate consumers outline the promotions' pace based on personal selling efforts (Janko, 2009, p.24). There is an engraved tactic for generating contests, allowances, displays, specialty advertising items, discounts, buy-back guarantees, free trials, and premiums engaged within the company's promotion package. In contrast, the pull strategy at HTC gets the markets to "pull" products from its production points across marketing channels. HTC focuses its marketing communications efforts to markets as a way of stimulating levels of demand and interests for the products from end-user levels (Chen, & Qiu,2012, p.26).

The technique implies that customers can be positioned to obtain different and trending products. In the sale of HTC products, the occurrences of various distribution channels are inclusive of retail stores and online orders. Most customers approach HTC products from stores, and this concept makes it easy for them to order or buy (McDonald & Wilson, 2011, p.29). The strategy at Apple employs cases of distributor development to avert possible reluctance to hold products. The reasons given for this includes insufficient scopes of consumers accessing retail outlets or requesting for Apple's products. Sustainable tactics use provided games, premiums, samples, cash rebates, contests, coupons, and advertising specialties. HTC includes loyalty programs, sweepstakes, patronage rewards, and point-of-purchase as employed through marketing (Hugh, 2012, p.36).

Addition of Apple's software offerings in the portfolio improves on the Integrated Marketing Communications from previous years. The goal of the initiative is to promoting requisite device models. The engagement of contrivance IMCs elicits various tackles used and includes event marketing, promotion, advertising, public relations, sponsorship, and publicity. In the modern day, social networks such as Twitter and Facebook offer essential platforms for advertising. HTC has various approaches to advertising that include radio advertising, print advertising, as well as television commercial advertising. However, most models involve specific subsets of advertising apart from the chosen advertising forms. Both companies have extensive advertising presence on print and social media as well as TV. The management focus is on the specific layout, new features, and the Unique Selling Propositions.

Conclusion

The success of a company in selling its products is largely premised on the marketing strategies and planning process adopted by the management. This study has clearly shown that Apple and HTC have succeeded in marketing their products due to their unique strategies. Even with the different market needs, where Apple has largely focused on the U.S. market while HTC on the global market, success is determined by the ability of the management to adopt appropriate promotional strategies aimed at satisfying the clients' needs. For instance, Apple manages to succeed even by pricing its products highly because it targets the high-end clients. HTC in contrast is focused on the global market where most of its clients prefer lower-priced phones.