THE MARKETING ENVIRONMENT

Although managers can control the marketing mix, they cannot control elements in the external environment.

      As we read chapter 4, we were introduced to the important decisions a company takes to have a unique impression on their buyers. Apple Inc. has always been producing innovative and ingenious products, which maintains their position in the external environment. Apple Inc. uses all forms of advertising like television, Internet, and social networking websites to attract the customers. Apple Company’s target market consists of all men and women of ages 13 and above.

            Mostly Apple Company targets:

1     Teenagers- to socialize with one another

2     College and universities students- to research for their studies

3   Business people – for dealing purpose and presentations for the business

4   Adults- fro everyday’s needs to contact others.

5    Kids- to enjoy the spare time playing games.

            Where, the Apple Company is advancing the products. The features of new technology like iPhone 5 and iPhone 5C develops the great interest for consumers and provides them with component lifestyles.

  Component Lifestyle is the practice of choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle. Component lifestyles have evolved because consumers can choose from a variety of goods like iphones, ipod, macbook, ipad and many more and many consumers have money to exercise more options.

            The increase in available technology and the proliferation of screen-based technological devices is having an impact on how Americans spend their time. Apple Company has taken advantage of this increase. They produce the laptops that are much easier to carry around and also save time. The iphones are advanced and have a lot new features as compared to the old ones.

             Demography is the study of people’s vital statistics, such as age, race, and ethnicity, and location.  These factors are significant because the basis of all market is people.  For Apple Company consumer buyer’s behavior is very much important because if the products and services provided by them is not satisfying the buyers then there is no point of the strategic planning of the company.

    Population is divided into different groups that are called Tweens, teens, generation Y, generation X, and baby boomers. 

      Apple Company has been successful in introducing the products in each and all of these groups. All groups are attracted to the new-featured products. Apple company designs and focuses on the desires and needs that all population will be attracted to regardless to their ages.  This is the only reason why Apple is considered as the top innovative company. 

ETHICS AND SOCIAL RESPONSIBILTY.

The chapter 3 exhibits the concept of ethics and the ethical behavior in business. Ethics are the moral principles or value that generally govern the conduct of an individual or a group. Ethics can be viewed as the standard of behavior by which conduct is judged. Ethics, then, consists of personal moral principles. Apple Inc.  is one of the well-known technology companies in the world. A company like Apple Inc has strong moral values, principles, and standards for the business.

            The basic moral principles that Apple employees follow in the business are as follows:

·      Apple Company expects total honesty and is perform in ethical behavior while making business dealings.        

·      Apple expects its employees to avoid situations where a conflict of interest might occur or appear to occur. If something really serious occurs then should react calmly.

·      Apple expects all the partners, employees to respect the confidentiality of Apple information not only people in company, but also the customers.

·      Apple expects its employees, including parties whom Apple does business with worldwide to maintain the highest standards of business conduct.

·      Apple expects and claims to deal all partnerships, dealing the same way, regardless to the social difference in different countries.

·      Apple conducts its business so that the communities in which we operate are benefited by our presence.

A model that suggests corporate social responsibility is composed of economic responsibility, legal , ethical, and philanthropic responsibilities and that the firm’s economic performance supports the entire structure is called Pyramid of Corporate Social Responsibilty.

      Social responsibility of Apple Inc business is growing around the world. According to recent surveys and magazine articles it can concluded that Apple id following all four components of Corporate Social Responsibility.  Apple has done a good job with their social and ethical responsibilities this year. Where in 2006, Apple Company conducted a thorough audit of one of Fox Conn’s manufacturing plants (Apple’s partners in manufacturing) that created iPods.

    News reporters suggested in one magazine that workers at the factory were being treated unfairly and forced to operate under sweatshop-like conditions for little pay. After the ten suicides at Chinese manufacturer fox Conn in 2006.

Apple has investigated and reported child labor violation, toxic conditions, and other violations of their code of ethics. They became more concerned and a better, societal, and responsible company.  

*Economic Responsibility- Every corporation economic responsibility is to be profitable. Apple is first in its class in this field. With revenues this year reaching almost double from last year (from 15.70 billion to 28.57 billion) and Iphone 5 (143% growth sales) and Ipads (183% growth sales) sales exceeding over 100% show Apple

as an ideal example of a company fulfilling its economic responsibility.

*Legal Responsibility- Apple has taken action against unethical conduct in its facilities. For this particular responsibility, Apple has stopped the use of underage labor in ten facilities including Fox Conn.

*Ethical Responsibility- Apple has eliminated dangerous working condition in two facilities and bribery in one facility.

*Voluntary Responsibility- Apple has done a tremendous job concerning environmental issues that range from toxic material removal from its products to the recycling and the use greenhouse gas emission.

 Not only is Apple exceeding the environmental impact of its products in a positive way. Apple Company has been always actively involve with its social responsibility, Its shows that not only is Apple an incredibly profitable corporation but a socially responsible too. 

STRATEGIC PLANNING FOR COMPETITIVE ADVANTAGES

“A good strategic plan can help protect and grow the firm’s resources.”

Apple Company is the world’s famous and successful company. It is a multinational company who manufactures electronics and sells computer hardware and computer software. One of the reasons behind the success of such admirable and reputed company is their strategic planning. Strategy planning is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.  Apple Inc.’s goals and objectives are the main reason that has contributed towards the success of this company.

GOAL-

The goals of this company are as follows:

     •     To provide the best and upgraded product.

     •     To maintain investor support.

     •     To ensure that the company has a long-run profitability, production and service.

            OBJECTIVES-

·      To expand the sales of product to whom it is not introduced yet.

·      To produce products that are full of enjoyment and service.

·      To become the best company in the mobile device companies.

·      To expand the production rate and have high demand of the products.

All three objectives are very important to Apple Company. Since, Apple Company is world wide known that explains the it can also considered as Strategic Business Units(SBU). Strategy Business Units means that large companies may manage a number of very different businesses.

        

    Where there is large amount of businesses, demand and success, there also comes the challenges and hard time but other competitive companies. Apple Company takes a lot of advantage over other companies like Nokia, Blackberry, Microsoft and other because of their cost, service and production techniques. Followings are the SWOT analysis of the Apple Inc.

               STRENGTHS:

According to the SWOT analysis 2013 the strengths of Apple Company are that it has been considered as the leading innovator in mobile device technology. It is a branded and reputed company. This year Apple Company has the strong financial performance somewhere like ($10,000,000.000 cash, no debt, and gross profit margin 43.9%). The most important is the strong marketing and advertising teams.

            WEAKNESSES:

“Every story has two sides to it”. Just like that where the company has strengths it also has the weaknesses. Such as the set-up amount or price of the product may not be very affordable to many people. Incompatibility with other different OS can give a disadvantage

to the Apple Company. The other weakness can be the decreasing market shares and most important any defect of new product can result in failure.

             OPPORTUNITY:

                  The best opportunity that Apple Company has is the new products will increase Apple’s market’s share and will strengthen firm’s competitive advantage. As it’s a known fact that Samsung is the main competitor for Apple Company, its also the only provider of application processors for Apple’s products. The growth of sale will give the good opportunity to expand firm’s shares. Apple could expand its range of iCloud services and software as the demand for cloud-based services is expanding.

               THREATS:

Companies cannot get opportunities but it can also get threats. Apple Company’s threats could be the rapid technological change, which means that the interest of buyers can change anytime and result as a failure. Another threat can be the tax increase, price pressure from Samsung over key components, and most important if the competitors move in online music marketing. This can be a threat and loss of companies profit.

COMPETITIVE ADVANTAGE

As I was reading the chapter 2, I realized that Apple Inc plays a major role in our everyday’s life. This satisfaction of buyers gives the company the advantage over other companies. If the product is sold more that means the company is doing a good deal of work and are making the buyers satisfy. Other then that the variety of production techniques, flexibility of prices, and better customer value has been giving Apple Company the advantages.

MARKETING STRATEGY is the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets. Apple Company involves of Target Market Strategy, Marketing Mix and most important 4 P’s.

TARGET MARKETING STRATEGY: When it comes to target market strategy for Apple Company. The first target is always the teenagers because for many reasons like they use the Apple products for socializing, for entertainment and etc. The next target would be a college and universities student, which use these products for their daily homework and assignments. The use of Apple products like laptop, iPad makes their lives flexible. Next comes, the business people, who are very keen to use these products for presentation, business purpose and for dealing reasons. Last are the adults, they use Apple products to stay in touch with each other and have a little enjoyment in live by socializing with others.

FOUR P’S: Apple Inc. uses all four P strategies to accomplish their goals and objectives. The four P’s are Product, place, promotion, and pricing strategy.

         Product Strategy- The products manufactured by Apple Inc. are more flexible, easy of carry, less time consuming, and are well designed and are always better then the last product.

         Place Strategy- When you see a long running line outside of a store that means it’s the Apple store. Apple stores are located at easy and approachable places where people can reach quickly and buy their desired product.

   

   Promotion Strategy- The first promotional tool for Apple Company’s promotion is advertising. Heavily in areas Apple promotes the products, new managing changes at any television network, technology magazine and all over the Internet and apps.

        Pricing Strategy- The last is the pricing strategy of Apple Company. The products are not really cheap and less priced. They are sold in high prices but according to surveys the purchase of products with high prices is worth of spending money and satisfies people. 

BRIEF HISTORY AND MISSION STATEMENT.

“ Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them." Is the famous quote of Apple Company’s chairman Steve Jobs. This quote portrays an idea of what the Apple Company itself is about. According to Steve Jobs a person can innovate the world with its own effort and has a power to make flexible systems for itself and its surroundings. 

      Steve Jobs and Steve Wozniak are the founders of the Apple Company. They have proven the above quote correct through their inventions and thought-provoking products. Apple Company’s manufactures computers, iPad, iPod, iPhone and many more. This company is worldwide famous and has been getting promotion ever since it started. Apple Company’s first computer came to be a company in 1976 when Steve Jobs and Steve Wozniak released the Apple I and was located in Cupertino, California. Steve Jobs and Steve Wozniak knew each other since high school and were college dropouts. Even though they didn’t have high education level but their inventions are distinguished and everybody wants to have it in possession.

Steve Jobs and Steve Wozniak always had an interest in electronics. When they were working for companies of Silicon Valley, Steve Wozniak created an electronic known as Apple 1.

On April 1, 1976 Apple I was sold due to Steve Job’s insistence.. Apple I wasn’t taken very seriously, and Apple did not begin to take off until 1977, when the Apple II debuted at a local computer trade show. The first personal computer came in a plastic case, which included color graphics. The Apple II was an impressive machine sold several times after invention. Furthermore, the demand increased and Apple Company decided to manufacture a better and improved computer named Apple III. As time proceeded the Apple Company became “a real Company” with thousands of employee, chairman, high selling demands of imposing products.

In 1980, time became little difficult for Apple Company and while that time Steve Jobs became the chairman in March 1980. During that time period, saturated market forced the company to give up some employees. On the other side, Steve Wozniak was harmed in a plane crash and leave for absence. In 1980, Steven Jobs took over and became the chairman of The Apple Company. Since Steve Jobs was the chairman, his famous quote was considered as the mission statement of Apple Company.

Where, the official mission statement as stated on the website describes the product, mission and accomplishment of the Apple Company. "Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices."

Mission Statement

Steve Jobs became the chairman in March 1980, when things became little difficult. During that time period, saturated market forced the company to give up some employees. On the other side, Steve Wozniak was harmed in a plane crash and leave for absence. In 1980, Steven Jobs took over and became the chairman of The Apple Company. As a chairman, Steve Jobs famous quote: "Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them” became the mission statement of the Apple Company. 

Where, the official mission statement as stated on the website describes the product, mission and accomplishment of the Apple Company. "Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices."