December 23, 2013
Without marketing, businesses would have a difficult time succeeding. Without effect marketing, the big businesses would not be as big as they are. Take Apple Inc. for example. Apple Inc. is highly effective at marketing their products in a way that the customer keeps coming back for more and new customers are continually added. What follows is a description of the marketing mix including the four P’s (product, price, place, and promotion) and how the marketing mix applies to Apple Inc.
According to Armstrong and Kotler (2011), the marketing mix consists of tactical marketing tools, blended into an ...view middle of the document...
Since there are very few outlets to legally purchase these types of media, Apple Inc. has essentially cornered the market in selling media and selling the accompanying products required to use this media. It is very effective because when a consumer purchases an iPod for $200, that consumer is not only going to be spending $200 on an individual product when it is all said on done. The consumer will now have to spend money on music, applications and whatever other media they desire through the iTunes store. So in the end, Apple will be making $200 from the consumer plus approximately $1.29 per song and anywhere from $0.99 upwards to approximately $20 for applications.
Price refers to the amount of money that a customer must pay for the tangible good or service. Varying prices throughout products within the same industry are a large part of the marketing tactics used by different organizations. One of the more common techniques that an organization may use involves what is called the manufactures suggested retail price or MSRP. The use of the MSRP works by a retailer paying the manufacturer $250 for a laptop for example. They then sell the laptop with a sticker price of $350 accompanied by a 30% of MSRP sticker (Macworld, 2013). This is a plot to attract a consumer to the product based on the price. Apple Inc. on the other hand has a different strategy for the marketing with their prices. Apple Inc. does not competitively price their products meaning that Apple Inc. will usually not have a lower or matching price compared to a similar product. However, what Apple Inc. does do is to offer a much lower discount to the retailer to sell their product. Where most manufacturers will offer anywhere from a 30 – 55% discount to a retailer, Apple offers a much smaller discount. What this does is not allow retailers to sell their products any cheaper than what they may get them directly from Apple Inc. causing more customers to go directly to Apple Inc. for the purchase of the products. This sounds like it may be bad for retailers due to the fact that they are not making much profit from the sale of Apple products but Apple as well as the retailer knows that selling Apple products increases traffic into their stores so that aspect is a benefit of selling Apple products. This pricing strategy does not seem like the typical way for an organization to use pricing in their marketing mix but it works for Apple due to how well they lead the industry in which they operate.
The next principle of the marketing mix is place. The place is where the organization makes their product or service available to their target consumer (Armstrong & Kotler, 2011, p. 53). The place is self-explanatory. It is anywhere where the company is attempting to sell their product whether it be in a brick and mortar store, an online store, or a shopping network. The three previously mentioned places are broadly categorized and can be broken down further. Apple for instance has their own...