Friday, July 12, 2019

Apple's Marketing Mix.



The marketing mix refers to the 4P’s developed by McCarthy in 1964 providing marketers with a tool that can be used to develop a long term marketing strategy and a short term tactical marketing plan in order to manage a profitable customer relationship. (P. Kotler. et al., 2009)

Traditionally, the marketing mix refers to 4 variables “Price, product, Promotion and Place” that marketers can manipulate, adjust and improve to set up the most suitable mix allowing them to maximize their competitive strengths. (G, J. Tellis, 2006)
  • Price



Source: Inverse (2018)


  • Products




Source: MacRumors (2019) 

  • Promotion


Source: Zdnet (2018) 

  • Place


Source: MacRumors (2018)

Although the marketing Mix resisted great criticism over the years and remained a powerful relevant concept that members of the profession can easily manipulate its components and control them to influence a brand’s competitive position (C, L. Goi, 2009), the holy quadruple has been criticized massively for:

- Considering the consumer as a passive spectator.

- Focusing on Product in singular while most of the marketers deal with much more than one and only product.

- The products involve the element of service as well.

Hence, to cope with the strong, complex and competitive environment, the mix has been reframed to become the 7P’s (E. Constantinidesi, 2008) including “Physical evidence” which refers to the general customer experience through the look and feel when interacting with the business, “Participants” call attention to the service provider’s skills, motivation, and professionalism. Finally, “Process” is about the standards, the coaching, and the practice as well as the supervision of the people based on the data management backed up by the information technologies. (Ahuja, 2016) in other words, Process refers to the overall process of delivering the product and/or service and the demeanor and performance of those who deliver it (CIM, 2015). The new mix puts the customer forward and focuses on providing a meaningful customer journey starting from the awareness stage until the after-sale and beyond. 

Participants:

The participants’ notion refers to the people who are responsible for the service delivery, their expertise, and training, social interaction, behavior, and level of professionalism and performance at service delivery (H. Mohammad, 2015).

It is widely known that retaining a customer cost five times less than acquiring a new one this is why over the last decade service quality has been one of the most attractive areas of investigation. After all, to survive in a highly competitive environment, customer satisfaction should be at the top of any organization’s priorities with bearing in mind that what would help to excel today may not be satisfactory tomorrow.


Source: Apple (2019)

Although, participants are considered one of the “tools” available to the manager to manipulate, alter and deviate to maximize the competitive advantage (H. Mohammad, 2015). The service cannot guarantee the quality before the sale because it cannot be quantified, tested or verified. While assumptions can be made, it is still difficult to forecast clearly how the customer may assess and judge the quality of the service (K. O. siddiqi, 2011). On the other hand, it appears that there is a positive link between service quality, customer satisfaction, and loyalty. According to (K. O. siddiqi, 2011) research, service quality is a primary key to achieve customer satisfaction and this later is the essence of customer loyalty.


Apple’s People:


Public speaker chief executive: Apple started under the leadership of the charismatic and visionary Steve Jobs who have done a great job establishing a brand which slowly became a trusted giant. Unlike Jobs who pushed competition among the teams, Cook after him worked on intensifying the collaborative the aspect between them (J.Swartz, 2019). Cook always took the clients’ side showing his opposition to personal data collection, misuse, and misinformation. He also expressed his willingness to comment and opine on human right and environmentalism (L, Weber, 2019)


Source: Inc (2017) 

Non-Executive Board Directors: monitor and verify the day to day competent and ethical the functioning of the CEO and the key senior management. Their duties encompass also ensuring business success through maintaining the highest ethical and responsible performance as well as making sure that the shareholders' interests are well served (Inverstor. Apple.com, 2019).
Key Senior Management team members:

Deirdre O’Brein is one of the 20 members of the key senior management team members. She is Senior Vice President – Retail + People of the company. She is responsible for over 400 high street stores as well as the online stores. Her main role is to develop and care for the company’s employees and help them to connect with the customers and provide the best retail experience that educates and inspire (Reuters.com).

Certified Apple service providers: Apple offers a program for companies, educational institutions, government organizations to get the necessary expertise to undertake repair services and deliver outstanding customer service to apple customers. This program is designed to get closer to the customer who will still benefit from similar service to the one provided in store (Apple.com, 2019).

AppleCare Protection Plan: Every product sold by Apple comes with complimentary telephone technical support for 90 days. In addition, Customers could opt for a paid service and support via telephone from Apple experts which is distinct from the legal rights provided under the consumer protection laws. These services are additional and offered to those who prefer to have the privilege of having their issues solved faster following a single call (apple.com, 2019).

The AppleCare Professional Video Support: Professional package for high quality and high-performance editing specifically for professionals who work in audio and video production (Apple.com, 2019). 


Working for Apple is Hell or Heaven?


According to Forbes (2012) article, the company’s C-suites are generously compensated while the employees are not fortunate enough to enjoy that wealth. The same source argued that they are offered low paid stressful jobs, exploited until they are burned out then disposed of.


Source: Brandonmlewin (2019)


Despite everything and although Apple’s employees regret the low pay they recognize that it is a fun company to work. In addition to the annual discounts they frequently face opportunities to learn and develop their people skills, train through challenging projects and stretched responsibilities, attend seminars, courses and group meetings. (Inc.com, 2017)

In conclusion and although it is unfair to pay the CEO the highest salary possible and propose the minimum wages to the retail employees, Apple roles are still strongly wanted and the company is still seen as the coolest place to work. In 2016 Angela Ahrendts stated that they ended the year with the highest retention rate they ever had 81% (Hrzone.com, 2016).In 2019, after Deirdre O’Brien took over her position, She explained that the retention rates were always high.


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