iPhone Marketing Mix

Product

The iPhone is renowned for its superior quality. Moreover, Apple leveraged the success and market penetration of other products like the MacBook by making a phone that run on a similar operating system (iOS). Other than that, the iPhone was not only the first smart phone to hit the market, but also run on what was at the time the most powerful mobile phone operating system in the industry. Apart from running on the iOS, the iPhone also has a remarkable processor speed, which enhances customer experience. Another accessory that cames with iPhone is the iTunes apple store, which provides customers with access to exclusive applications and media content. Finally, Apple portrays the device as being in a class of its own. This is evidenced by the fact that the company’s advertising campaigns compare new iPhone releases to previous versions of the device as opposed to other competing brands in the market.

Price

Like all other apple products, the iPhone is targeted towards the high end market. For this reason, apart the price of the phone being significantly higher than the average price in the market, the company does not offer any discounts. Customers are only able to get new iPhones at reduced prices through sales promotions and exchange offers.

Place

The iPhone is readily available in all regions across the globe, where it is backed by excellent customer services. However, because it is mainly targeted at the high end market, most suppliers are situated in A-grade cities. Moreover, iStores are located in shopping malls and other premium locations that are patronized by high end consumers.

Promotion

Apple invests heavily on product promotion and as such, iPhone advertisements have over the years been known to be fantastic ranging from full front page ads on newspapers to elaborate radio and television commercials. When Apple launches a new iPhone, ‘above the line’ (ATL) platforms are often dominated by the latter. The company also uses out of home advertising for the ‘below the line’ (BTL) market.

Market Reaction

Despite exhibiting strong sales after the recent release of the iPhone 6, it is evident from appendix 1that Apple’s market share has been dwindling over the years. This can be attributed to the fact that other mobile phone manufacturers such as Samsung have also been producing innovative products that have more or less similar features to the iPhone and are sold at a cheaper price. While Apple still offers the most superior quality mobile phones on the market, consumers are increasingly opting for cheaper devices due to their innovative functionalities.

Recommendations

In light of the above findings, Apple should consider revising its pricing strategy. Because the iPhone is very popular in the high end market, the company should continue charging premium prices for new product launches. Nonetheless, it should consider rolling out a new brand for the low end market, which should not be in any way associated with the iPhone. Additionally, Apple should invest heavily in research and development to ensure that the quality of its products continues to be superior to that of competing brands in the market. This will afford the company a sustainable competitive advantage over other key players such as Samsung.

Reference

Frank, B. H. (2015, February 24). Apple takes smartphone market share from Android thanks to strong iPhone sales. Retrieved from geekwire.com: http://www.geekwire.com/2015/apple-takes-smartphone-market-share-from-android-thanks-to-strong-iphone-sales/

Appendix 1: Worldwide smartphone shipment market share by OS, 2010 – 2014 (Frank, 2015)

iPhone Marketing Mix Sample Essay