Marketing Case Study Flashcards
1
Q
Strategic Role of marketing goods and services
A
- Generating sales, contributing to strategic goals (profit maximisation and growth)
- Brand awareness and customer loyalty
2
Q
Interdependence with other key business functions - marketing and finance
A
Altering the marketing mix e.g. changing
promotional activities, altering prices
3
Q
Interdependence with other key business functions - marketing and operations
A
need to collaborate in the design and
development of a new product
4
Q
Interdependence with other key business functions - marketing and HR
A
Required training for staff and promotional offers
5
Q
Selling approach
A
- Focus on the design and development of new technologies
- Marketing strategies aimed at educating customers on the improved features
6
Q
Marketing Approach - customer orientation and satisfaction
A
- Regular surveys of existing iPhone customers
- Provides valuable information for future models
7
Q
Marketing Approach - CSR
A
- Conducts audits of suppliers and ensuring that suppliers work ethically
8
Q
Marketing Approach - Relationship marketing
A
- Apple fosters a healthy relationship with consumers
- Helps to establish a sustained customer-company relationship
9
Q
Types of markets - Resource, Industrial,
Intermediate, Consumer, Mass, Niche
A
- Apple is currently in the consumer market as it sells products to household consumers
- It also is in the mass market as the promotional efforts are focused to the
majority of the population
10
Q
Factors affecting consumer choice -
Psychological
A
- Apple released iPhone 5c with different colours to adhere to consumer
wants and desires - Failed as consumers perceived the product to be of poor quality
11
Q
Factors affecting consumer choice - sociocultural
A
Increased social media usage has led to a strong focus on design features
12
Q
Factors affecting consumer choice - economic
A
- In 2020, COVID reduced the wages of individuals in the recession
∴ Apple implemented iPhone SE to target price conscious consumers who can’t afford higher products - During the bust cycle, Apple reduced the price of products to still ensure a flow of revenue
13
Q
Factors affecting consumer choice - government
A
- In 2020, COVID restrictions imposed by national governments impacted
Apple’s ability to generate revenue
∴ Apple had to shift efforts in an online marketplace
14
Q
Consumer laws - deceptive and misleading
A
- In 2015, over 100 iPhone 6 and 6 Plus users in the US filed a class action against Apple, claiming the phones were of poor quality
15
Q
Consumer laws - price discrimination
A
Apple must sell the iPhone at the same price to all consumers in
Australia
16
Q
Consumer laws - implied conditions
A
ACL requires goods to be of acceptable quality
17
Q
Consumer laws - warranties
A
- Apple must grant warranties for 1 year as per its conditions
- If damage is done in an acceptable manner, then the warranty will be
granted
18
Q
4 key ethical concerns
A
- The decline in TV advertising value has led to a rise in product placement within digital entertainment
- Contribution to e-waste → apple aggressively markets each new model
of iPhone - Exposes users to microwave radiation
- Impact of social media on young users
19
Q
SWOT Analysis - strength
A
Strong global brand and consumer loyalty
20
Q
SWOT Analysis - weakness
A
High prices
21
Q
SWOT Analysis - Opportunities
A
Expansion to adapt to newer technology to sell products
22
Q
SWOT Analysis - Threats
A
Increased competition from Android IOS
23
Q
Product lifecycle of iPhone 13 - introduction
A
- Apple introduces the iPhone 13
- A lot of hype and advertising regarding the new product
24
Q
Product lifecycle of iPhone 13 - growth
A
Sales and acceptance of the new product begins to gain traction
25
Product lifecycle of iPhone 13 - maturity
Sales for Apple’s iPhone 13 begins to slow down
26
Product lifecycle of iPhone 13 - decline
Sales for the iPhone 13 will decline as new models are released
27
Product - Introduction
Newly introduced product with innovative
features
28
Product - growth
Proven product gaining popularity; minor updates may emerge
29
Product - maturity
Well-established product with widespread
adoption
30
Product - decline
Dated product compared to new releases
31
Price - introduction
Likely high, skimming strategy to maximise profits early
32
Price - growth
Premium pricing maintained, but competitive discounts may appear
33
Price - maturity
Stable pricing with potential for occasional
promotions
34
Price - decline
Discounted pricing to clear inventory before discontinuation
35
Place - introduction
Limited availability in select markets
36
Place - growth
Expanded distribution to meet growing demands
37
Place - maturity
Widely available through multiple retail and online channels
38
Place - decline
Reduced availability as focus shifts to newer models
39
Promotion - introduction
Heavy investment in advertising,
events and campaigns
40
Promotion - growth
word-of-mouth and user reviews supplement marketing
41
Promotion - maturity
Advertising tapers off; focus shifts to sustaining awareness
42
Promotion - decline
Minimal promotion; resources shift to marketing newer products
43
Market research - primary data
Apple performs feedback surveys by emailing customers after a purchase
44
Market research - secondary data
Each quarter there is an update on the market share data of each mobile phone industry
45
Establishing marketing objectives
* Improve customer service, satisfaction, and increase market share
* e.g increase sales in India by 25% in 2023
46
Identifying target markets - executive
Advertisement in business magazines and offline
47
Identifying target markets - teenager
Product placement in music videos, movies, TV shows
48
Identifying target markets - mass market
Billboards, internet advertisement
49
Implementation, Monitoring and controlling - implementation
Implementing the approach
50
Implementation, Monitoring and controlling - monitoring
Apple needs to monitor sales data for the iPhone to identify market saturation
51
Implementation, Monitoring and controlling - controlling
Require a new model to be launched or identifying new distribution channels to increase sales and market share
52
Market segmentation - demographic
Apple has introduced low-cost models such as the iPhone SE to target emerging economies, such as India
53
Market segmentation - geographic
largest potential markets for smartphones are in the Asian region, especially in China and India
54
Market segmentation - psychographic
Apple compared its devices to Android, and the differences in behaviour associated with it
55
Market segmentation - behavioural
A cheaper plan will offer less phone and data usage than more
expensive ones
56
Product differentiation
* Allows Apple to charge a premium price for its products (price skimming)
* Achieve higher profit margins
57
Product positioning
Offering superior hardware and design features
58
7 p's - product
* Quality, design, appearance
* Plethora of apps available
* High quality and capacity
* High memory capacity
59
7 p's - price
* Price skimming: new iPhone is released, positioning it as a leading edge, quality product
* Competition-based pricing: When a model is upgraded, the older model’s price is reduced to be more competitive
60
7 p's - place
* Distribution of iPhones by online sales, Apple stores, mobile carriers and retail mobile stores
* 30% of Apple sales are made through direct distribution
* 70% were through indirect channels such as network carriers and other retailers
61
7 p's - promotion
* TV and mass media advertising
* Product placement in TV shows, movies and streaming
* Extensive use of social media and online marketing
62
7 p's - people
* Strong focus on sales and customer service
* Job titles such as “Genius” and “Specialised”
* In-store, online and phone support for after sales, repairs, complaints and warranties
63
7 p's - process
* Online ordering system
* Free upgrades of iOS for existing customers
* Pre-ordering available
* Roaming payment system
64
7 p's - physical evidence
* Designed to reflect the importance of innovation and quality
* Encourage hands-on approach
* Elaborate building entrances
65
e-marketing - product
Well-designed website allows iPhone to display a still image/video, increasing customer awareness of the products
66
e-marketing - price
Apple can increase their profit margins by selling online, reducing the costs associated with operating retail stores
67
e-marketing - place
Apple can tailor websites for different languages and cultural preferences,
allowing flexibility
68
e-marketing - promotion
New product launches are published on their website and digitally issued to
media organisations
69
Global marketing - global branding
Able to use the same strategies in the global market, reducing costs by creating marketing economies of scale
70
Global marketing - standardisation
Many promotional strategies for the iPhone are standardised, using simple
images
71
Global marketing - customisation
In 2015, iPhone 6 Plus was designed for the Asian market, when large screens were popular with competitor phones
72
Global pricing
* Price of iPhone 16 was higher in Singapore and India than in the US in 2024
* Turkey has experienced the highest price increase on iPhones in a 10 yr
period, due to taxes and inflation
73
Competitive positioning
* Apple targets the high-end market with premium quality and design, setting its prices accordingly
* In 2014, a partnership with China Mobile, the largest phone carrier in China, led to a significant boost in iPhone sales
