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Written Assignment Week 5

Apple Incorporation

Department of Business Administration, University of the People

BUS 5112-01 Marketing Management

Dr. Pragya Harsha

October 6, 2022
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Company background

The organization chosen was Apple, which was founded in 1976 by Steve Jobs and

Steve Wozniak. (Apple Computer, 2006) Apple is well-known as an electronic brand

kingpin. Its iPhone became the most mainstream cell phone reported in 2007; since then,

Apple has changed the cell phone industry. And because of this success, Apple is famous for

customer-based innovation (Apple Reinvents the Phone With iPhone, 2007).

Apple sold more than 2.2 billion devices throughout 2018, including more than 2.2

million applications on their iOS platform (News About the App Store, n.d.). For commercial

and political reasons, Apple customers are unlikely to leave the company. Apple sells the

most devices in Asian countries like Japan, China and India, as well as New Zealand and

Australia. And of course, the US is also a big market for the company, as are European

countries.

Striking Benefits

People perceive high pricing on this item as a sign of wealth. Additionally, owning

one of these items makes the person feel like a high class and exclusive person. The quality

of the product is exceptional, and so is the value of the brand behind it.

iPhone fans pick Apple machines because of the ecosystem that surrounds them. They

don't buy tens of millions of phones because they like the hardware; instead, they buy Apple

products because of the software that supports them and continues to grow. (Haselton, 2017).

Marketing Strategy

Apple considers several factors in its marketing strategy. The company focuses on

keeping its marketing and product simple. The company is building an ecosystem of

experiences to redirect customers to their services, which customers can benefit from when
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using its ecosystem as it connects all products together. Apple also communicates with

audiences in their language, creating a customer community.

The company's marketing strategy is to get people excited about the launch of new

models. Paid media is more profitable than paid media. Apple also markets its products to

younger generations through social, print and broadcast media. Social media handles are

active to keep people engaged. Apple doesn't have to do much with hype and customer

loyalty. Also, they use a skimming pricing strategy for their products, setting a high price for

the latest model and then dropping the price. Products are available for purchase at online and

offline retail and retail outlets.

Product pricing Strategy

Freemium pricing is a hybrid between a regular cost and a budget option. Fall under

its umbrella are brands that charge more for their products than others of the same genre. This

is because they sell their products at a premium price. Typically, a premium price is added on

top of the usual or standard price. Apple charges higher prices than other brands. For

example, iPhones cost more than Samsung models. Apple supplements their high prices with

premium branding and innovation through the use of their employees. Apple's innovative

organizational culture promotes creative input. Combined with the company's

competitiveness, this is why people consider Apple to be a powerful entity.

Because of its freemium pricing, which uses “free” and “premium” pricing combined

in one approach, the company uses a combination of free and paid versions of its products.

With some Apple products, free users can only perform basic functions; however, users who

paid for a premium version could unlock more advanced features. The brand offers 5

gigabytes of cloud storage for free. However, they require a monthly subscription fee if

customers want to add more storage space. (Ellie, 2022).

Some businesses believe that they need to compete on price. However, comparing

prices can actually damage a company. This is because showing the unique value of Apple

products prevents price wars, which is Apple's primary pricing strategy. Apple never changes

its pricing strategy despite understanding that doing so would result in a price war down the

bottom. They understand that lowering prices would lead to a race to the bottom.

Conclusion

One of the fastest ways to achieve your goals is to learn from people who have

already successfully achieved the same goals. Apple's App Store and retail stores are

becoming the gold standard for any modern business looking to build an adoring and super-

loyal consumer who will refer their friends.

The key is to learn from Apple, not imitate. Each company is a separate entity. You'll

learn from Apple's marketing strategies and build your own campaigns to grow your

business. (Ellie, 2022).

References

Apple Reinvents the Phone with iPhone. (2007, January 9). Apple. Retrieved October 6,

2022, from https://www.apple.com/newsroom/2007/01/09Apple-Reinvents-the-

Phone-with-iPhone/

Ellie. (2022, October 01). Apple Marketing Strategy: 8 Precious Lessons to Learn.

MagePlaza. Retrieved on October 6, 2022, from

https://www.mageplaza.com/blog/apple-marketing-strategy.html#the-bottom-line

Haselton. T. (2017, May 1). Here’s why people keep buying Apple products. CNBC.

Retrieved on October 6, 2022, from https://www.cnbc.com/2017/05/01/why-people-

keep-buying-apple-products.html

News about the App Store. (n.d.). Apple. Retrieved October 6, 2022, from

https://www.apple.com/app-store/

Yoffie, D. B., & Slind, M. (2003). Apple Computer, 2006. Harvard Business School.