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I Phone 5 Essay

2219 words - 9 pages

The Marketing Environment for Apple, the Producer of the iPhone 5.

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Executive Summary:

This report will analyse and discuss the most important elements of the Marketing Environment: Macroenvironment, Microenvironment and the Internal Environment; in relation to Apple Ltd and the iPhone 5 Smartphone.

The aim is to demonstrate that the iPhone 5 will be a success in the UK, with discussion of Apple’s achievement as a company and the iPhone 5 product in particular.

There will be a range of methods used including academic journals and reports, newspaper articles, the ...view middle of the document...

Like all organisation’s, Apple needs to be aware of its Marketing Environment in order to stay competitive in the market. By focussing on these dynamic areas it helps Apple build and maintain successful relationships with its UK target market in order to be profitable. (Armstrong and Kotler, 2012)

i. Macro-environment

The Macro-environment consists of the major external and uncontrollable factors that influence an organisation's decision making, and affect its performance and strategies (Businessdictionary). Focus will be on the Macro-environment within the UK, and how these forces affect Apple as a company and the iPhone 5. The Macro-environment consists of 6 major forces illustrated in the model below:

http://www.google.co.uk/imgres?q=macro-environment&num=10&hl=en&tbo=d&biw=1192&bih=522&tbm=isch&tbnid=-NAuZ4Yfmf7IVM:&imgrefurl=http://www.dr-fdtc.com/mkt101/core/core6.html&docid=jUeEK9C8O0vjmM&imgurl=http://www.dr-fdtc.com/mkt101/core/macro-

There will be a critical analysis of the Economic Forces and Demographic Forces.

Economic

The Economic market effects Apple as a company greatly, as it determines consumer buying power and willingness to spend a relatively large proportion of their income on the new iPhone 5.
The British economy grew by 1% in the third quarter this year, which was on the 26th October 2012, pulling the UK out of the longest double dip recession since the second world war.(Guardian, 25/08/12) This will result in even bigger sales for Apple with the launch of its new Smartphone, the iPhone 5 on 21st September 2012. During 2011, in the midst of the recession, Apples’ performance was an immense success. The companies’ revenue was $28.57 billion experiencing profits of $7.31bn. This profit was a 124% increase from Apples previous figures in 2010. (Guardian, 20/07/11)
This demonstrates that Apple sales were not negatively affected during this financial crisis, where the unemployment and inflation rate between 2007 and 2011 was 1.53 million and 5.2% respectively (MINTEL,DATE) Now that the economy is out of recession individuals buying power will increase which can only result in great prospects for Apple. The iPhone 5 has a new design consisting of 200 new features, which is 18 percent thinner and 20 percent lighter than the iPhone 4s (Apple, 21/11/2012). Sales for the iPhone 5 in the first week reached $ 5 million that illustrates Apple dominance in the market, which indicates it will be a success in the UK market. (Guardian, 20/07/11)

Demographic

Critical analyse will now focus on Demography, which is the study of human populations in terms of size, density, location, age, gender and race. (Armstrong and Kotler, 2012)

At the end of 2011, the UK had a population of 62.7 million people, an increase of 2.9% on the 61 million present in 2007. ( Key Note, May 1012 )This shows that the population in the UK is continually rising which results in their being a wider market for Apple.

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