Mushtaqali Ami

Role

Marketing Role:
Strategic Role Of Marketing with Goods and Services: (SROMWG/S)
Business goal = Profit Maximization and then turn into reality.
SROMWG/S Processes of planning and executing in order to satisfy the
customer needs/wants
Includes relationship marketing, conquest marketing and marketing plans.

Interdependence with other key business functions:

Operations:
Marketing Price Operations
Marketing Design and Develop Operations
Finance:
Marketing Product Design and Development Finance
Marketing Financial Information Finance
Human Resources:
Marketing Product to Customer Human Resources
Marketing Best Staff Human Resources

Production, Selling, Marketing Approaches:

Production Approach: Aims to attract customers to an existing product.
Mass production increased output and reduced production costs.
Therefore increases market share for the business.
Selling Approach: Emphasized persuasive sales techniques.
E.g. Door to door salesman and advertising.
Marketing Approach: Focuses on customers needs/ wants.
Market research products are designed.
Types of markets:
Resource: Individuals or groups that are engaged in all forms of primary
production, e.g. mining, agriculture
Industrial: Industries and businesses that purchase products to use in the
production of other products or daily operations. E.g. Tiptop Bakery.
Intermediate: Wholesalers and retailers who purchase finished products and
sell them again to make a profit.
Customer: Consist of members of households that use or consume the
products they buy.
Mass: The seller mass-produces, mass distributes and mass promotes one
product to all buyers. E.g. Electricity and water
Niche: A Niche market, also known as a concentrated or micro market, is a
narrowly selected market segment

Case Study:
Strategic Role Of Marketing with Goods and Services: (SROMWG/S)
Apple is proficient at coordinating and integrating marketing strategies for optimum
effectiveness.
Advantages:
Platform control for a better user experience and increase market share.
Better design for ease of use and superior aesthetics.
Vertical integration of production processes to insure quality and meet demand.
Fastidious attention to detail to exceed customer expectations.
Ability to mass-produce a superior quality product and increase profit
maximization.
E.g. Apple changed its name to Apple Inc. due to the success of the iPod.
Interdependence with other key business functions:
Marketing- Operations: Primary and Secondary research is the step for Apple in
innovating and developing new products.
Marketing- Finance: Publicity scrutinizes Apples Financial transaction. However
they have a team of public relations who provide a plausible message.
Marketing- Human Resources: The image of Apple, determines the type of skills
and employees that are required due to continual change of markets.

Production, Selling, Marketing Approaches:

Marketing Approach:
Primary and secondary research is integral to Apples innovation.
E.g. Apple needs to understand the needs/ wants of customers to be
successful.

Types of markets:
Apple uses a segmented approach to marketing. Apple sells mainly to consumer
markets but also have other intermediaries such as JB HiFi selling apple products.

Mushtaqali Ami

Influence
s

Marketing Influence:
Factors influencing customer choice:
Psychological: Perception, Motives, Attitudes and Personality
Sociocultural: Social Status and Cultural Features.
Economic: General Economic outlook, Domestic and International
Government: Supporting or Banning certain products. E.GCigarettes

Consumer Laws: Government, Federal and state laws to improve the

protection and rights of consumers and to clarify the rights and responsibilities
of businesses. (CCA = Competition & Consumer Act)
Deceptive and misleading advertising:
False impressions of products or service.
Offering discounts/ special offers that dont exist.
Bait n Switch (Advertising a product of low stock at a reduced level, in order
to attract customers into the store. Motive is to direct customers to items of
higher prices)
Price Discrimination:
Different prices for same product in different markets.
Discrimination against competitors. (Forced to pay more for a product.)
Implied conditions:
Unspoken and unwritten terms of the contract.
Merchantable quality/ Product is of a standard.
Fitness of purpose/ Product is suitable.

Case study:
Factors Influencing Customer Choice:
Psychological: iPhone 5c was released in 5 colors, with matching coloured
protective cases. Its not just for the lovers of colours, its for the colourful. Vibrant
colours are generally preferred by younger consumers. Market research indicates a
preference for the colourful products in emerging economies such as China and
India. 5s was targeted to consumers with psychological preference for quality,
leading technology and innovation.
Sociocultural: Apple has developed a range of applications such as ping to create
social bonds between iPhone users. Price skimming in the market for Smartphones
creates an association between the product and the social class of its users. Use of
promotional messages is also aimed at the sociocultural influences on the
consumer choice. A TV commercial for iPhone 4 in 2011 contained the message: If
you dont have an iPhone, then you dont have iBooks, then you dont have The
focus was on viewers who dont own a iPhone.
Economic: Global Financial Crisis in recent years led to declining sales of iPhone
in Europe and the USA. Apples strategy has been to develop the low cost iPhone
5c to target emerging economies such as China and India who are experiencing the
highest growth in demand for Smartphones. Earlier 4s models is also being
promoted in the low cost Smartphone market, enabling Apple to maintain a
competitive position. Apples 2013 financial reports indicate that the highest sales of
iPhones are amongst these older models.
Government: Laws regulate a range of marketing concerns, such as:
The nature of products
Pricing strategies
The availability of certain products
Ethical considerations in the promotion of products
Consumer Laws:
Deceptive and Misleading advertising:
Dishonest advertising: The use of advertisements that claim a product does
something which it doesnt in attempt to create false impression of the product.
Apples iPhone 6 plus with 16Gb can only hold 12.7GB of Photos, songs, apps and
other user data, which 21 per cent less than advertised.
Bait and Switch: Apple has decreased the storage in their latest iPhones to
promote their new innovation, iCloud, which is a virtual storage system. Apples
customers are forced to purchase iCloud storage cause of the insignificant user
data provided in the iPhone 6 and 6 Plus.
Price Discrimination: Apple must sell the iPhone at the same price to all
customers in Australia. However this doesnt prevent other retailers of the iPhone
from determining their own price for the same product.
Implied conditions:
The Smartphone are fit for purpose
They correspond with their description
Apple will make available spare parts, repairs and comply with express

Mushtaqali Ami

warranties.
On the Apple website: some Apple products use wireless services that may
incur extra costs and governed by the terms of a separate agreement between you
and your selected wireless service provider.

Warranty: A promise to repair/ replace product if faulty.

Ethical: The values which consumers consider right and wrong in terms on
how the business conducts its practices.
Truth and Accuracy and Good Taste in advertising:
Claims made in advertising are honest and accurate.
Ensure they dont cross the line of good taste.
Products that damage health:
Restrictions on tobacco sponsorship entries into casinos.
Restricted opening hours for gambling clubs.
Packets contain health warning for cigarettes.
Engaging in fair competition:
Price fixing between major competitors.
Long term loss leader.
Misleading ads.
Sugging: Selling under the disguise of a survey.

Warranties:
For Australian consumer, the Apple iPhone warranty must be compliant with the
Competition and Consumer Act and other applicable Australian laws and regulation.
On the Apple website: free to visit an Apple Retail Store to request for returns to
an Apple retail store for cash, cash equivalent and cheque transactions over A$870.
Apple will arrange a bank transfer to you within 10 business days.
Ethical:
Truth, accuracy and good taste in advertising: When Apple released an
advertisement for iPhone 5S, to gain more customer attraction, they compared it
with Googles, Nexus 5. This advertisement was ethical because Apple had not
edited or enhanced any photos taken from both devices to prove the iPhone 5Ss
camera is truly better than other competitive Smartphones camera.
Products that may Damage Health: The new IOS 8 which is in iPhone 6 comes
with a Health app. Apple has also added a feature called Medical ID. This enables
Apple to improve their customers health and to encourage customers to buy their
new iPhone 6.
Engaging in fair competition: Apple has been ethical by reserving the right to
change quantities available for purchase at any time. If Apple cannot supply a
product a consumer orders, Apple will cancel the order and refund the purchase
price in full.
Sugging: Apple doesn't practice this in their marketing; therefore it is more ethical
and successful.

Mushtaqali Ami

Process

Marketing Process
Situational Analysis: Shows business present state in its industry and gives a
clear picture on where the business is heading.
S.W.O.T (Strength, Weakness, Opportunity, Threat):
Internal strengths and weaknesses of the business.
External threats and opportunities.
Product Life Cycle: A graphical interpretation that shows the four stages a
business goes through.
Establishment: New product is launched. Sales are grow slowly, negative
profits and reliability, pricing is lower then competitors, heavy promotion us
used and distribution is selective allowing customers to gradually form an
acceptance of the product.
Growth: Profitability will grow as sales expand. Quality is maintained and
improvements and support services can be made, price is slightly increased
due to demand, promote the product to wider audience and distribution
channels are increased due to popularity.
Maturity: Steady Income. Differentiate product features and packaging from
competitors, may need to lower prices to maintain market share, occasional
promotion is needed to retain customers and distribution incentives may be
implemented.
Post-Maturity: Increased competition/ Sales fall.
Decline: Begins to lose market share.
Renewal: Another product is introduced or the older product is
improved.
Cessation: Business shuts down.

Market Research: Market research is the process of systematically collecting,

recording and analyzing information that is needed for decision making in terms
of marketing.
Primary Data: Facts and figures collected by the business prior or recently.
Advantage: Tailored to solving the business issue.
Disadvantage: Can be time consuming and expensive.
Surveying: Gathering data through interviewing people.
Observation: Behaviors of customers are systematically monitored.
Experimental: Gathering data by altering factors under tightly controlled
conditions.
Secondary Data: Facts and figures that have already been collected by other
sources for other purposes.
Internal Data: Information already collected by the business, such as
customer feedback and research reports.
External Data: Data published outside the business, such as magazines,
internet sources and ABS.

Case Study:
Situational Analysis:
S.W.O.T (Strength, Weakness, Opportunity, Threat):
Strength:

Strong global brand and customer loyalty

Own operating system (iOS)

Apps and Appstore

History as a leading innovator

Low production costs due to outsourcing

High profitability

Broad range of distribution channels

Large budget for marketing as well as research and

development
Weakness:

High price relative to competitors

Incompatibility with different OS

Smaller screen than competitors

Death of co-founder Steve Jobs in 2011 has changed Apples

management style

Quality concerns with outsourcing

Exposure to bad publicity due to actions of its outsourcing

partners

Dependence on a limited number of suppliers

Opportunities:

Development of products for high growth markets

Partnerships with mobile network companies

Development of future models to differentiate

Expansion of Apple retail stores in the global market

Threats

Increased competition and loss of market share in

Smartphones

Rapid technological change leads to shorter life cycles,

expensive Research and development and ongoing changes to
market strategies

Tax increases in USA

Rising pay levels and greater regulation of labor

Breaches in patents may result in legal restrictions on future

designs

An appreciation of the US dollar

Growth in Android OS

Competition in online music market

Market Research:
A growth in net sales of the iPhone during 2013 increased globally due to launch
of iPhone 5 and ongoing demand of 4 and 4s.

Mushtaqali Ami

Establishing Market objectives: Marketing objectives are the realistic goals a

business aims to achieve through the implementation of their marketing plan.
Increasing Market Share: Business increases its dominance in the market,
market share reflects upon the effectiveness of the business marketing
strategies.
Expanding the Product Mix: Business increases their potential to improve
their profits in long-term.
Maximize Customer Service: Assists in the retention of customers, giving
reasons for them to keep on purchasing the business products. Thus business
can increase their sales.
Indentifying Target Market: A group of customers the business indents to sell its
product to.
Mass Marketing: Seeking a large range of customers. The business develops
a single set of marketing strategies for the whole market.
Market Segmentation: The division of the total market into groups of people
where each group shares one or more common characteristics. This allows the
business to satisfy the wants and needs of a relatively uniform group.
Niche Marketing: Marketing the business products to a narrowly selected
target market segment.
Developing Marketing Strategies: Actions undertaken by the business to
achieve the business marketing objectives.
Product: Not only deciding which product to make, also determining features
like quality, packaging/labeling, design, brand name and guarantee.
Price: The selection of the correct price- the amount of money a customer is
prepared to offer for the product. Decision to whether set the price above,
below or equal to competitors prices.
Promotion: Methods used to persuade and remind customers about the
business products.
Place/Distribution: This deals with the channel of distribution, the way which
the product gets to the customer.

Implementation, Monitoring and Controlling:

Implementation: The process of putting the marketing strategy into operation.
Monitoring: The checking and observing of the actual progress of the
marketing plan.
Controlling: The comparison of the planned performance against the actual
performance of the business, taking corrective action if needed to ensure the
business marketing objectives are achieved.
Developing a Financial Forecast: An estimate of future financial position
based upon anticipated revenues and expenses generated by planned
business activity.

Apple is selling more of the earlier models of iPhone than its latest models 5c
and 5s.
Every month Apple surveys iPhone users, surveys reveal country by country
what is driving people to buy Apples iPhone. Their most used feature and level of
satisfaction.
Establishing Market Objectives:
Apples Marketing Objectives:
Increase market share in China by 10% in next 12 months by securing a
distribution contract with mobile companies.
Increase online sales by 15% by offering discounts.
Identifying Target Market:
Executives through business newspapers and magazines
Teens Music video and TV shows
Youth/Children Placement in movies, ie Toy story 3
Mass Market TV Commercial
Developing Marketing Strategies:
Apples Product mix and related marketing strategy for the iPhone consists of 3
positions:
Position 1: is latest handset/s iPhone 6 and 6 Plus
Position 2: is the previous premium handset iPhone 5s
Position 3: is the previous low-cost handset iPhone 5c
Product:
Focus on innovation and design
Unique operating system iOS.
Multiple apps ie. iTunes, Face time
High Quality and Capacity
Location based software, GPS, Siri searches
Strong brand image and high visible placement of logo
Price:
When model is upgraded, model price reduced to middle range of market.
(Comp Based Pricing)
Comp Based pricing adapted for iPhone 5c to compete with Galaxy 4 that was
released around the same time.
Bundling plans to pay for phone over 2 years make the price somewhat less
especially in Australia.
Promotion: Apple Day: use of media to create highly published event of new
product launches.
TV and mass media advertising innovation
Product placement in The office and Toy story 3.
Business magazines and journals to target exert.
Place/Distribution: Apple has 415 retail stores in 13 countries.
2013 stat: Secure contract with China, Japanese network carriers also
contracted.

Mushtaqali Ami

Strategies

Comparing Actual and Planned results: Three Performance Indicators.

Sales Analysis: Uses sales data to evaluate a businesss current performance
and the effectiveness of the marketing strategy.
Market Analysis: A business is able to evaluate its marketing strategies
compared to those of their competitors.
Marketing Profitability Analysis: The business breaks down the total
marketing cost into specific marketing activities.
Revision of the Marketing Strategy: Business checks weather objectives
have been met and if changes need to be made.
Change in the 4Ps (Marketing Mix): Improvements can be made through
improving the product and its features, readjusting the price, changing the level
of promotion depending on which stage the product is in and deciding to
expand distribution channels as the product success increases.
New Product Development: Develop products in order to stay competitive
within the market and to achieve long term growth.
Product Deletion: Must consider this in order to maximize profitability and to
avoid negativity towards the business brand.
Marketing Strategies:
Market Segmentation: The dividing of the total market into segments then the
marketing manager selects the one to become a target market.
Demographic : Age, Gender and Culture
Geographic: Location and Regions
Psychographic: Personality Characteristics
Behavioral: Consumer Loyalty and Purchase Occasion (customers
relationship with the product)
Product/ Service Differentiation: The process of developing and promoting
differences between the businesss products/ services and those of its
competitors.
The business can differentiate by:
Simple changes in packaging and labeling
Giving better value for money
Offering a high level of customer service
Taking concern to social, environment and ethical issues
By doing this the business gains:
More control over the market
Having the potential to achieve high sales
Market share and profit
Positioning: Refers to the technique in which marketers try to create an image
or identity for a product/ service compared with the image of competing
product/services.
Can be done in terms of:
Price
Quality
Products Goods and/or Services:

In 2013 sales: 30% sales were direct while 70% were indirect.
Sales to educational institutions and government are secured direct selling.
Implementation, Monitoring and Controlling:
Apple monitors the sales figures for the iPhone to identify market saturation. Apple
launches a new model of iPhone and identifies new distribution channels to
increase sales and market share.

Case Study:
Market Segmentation:
Demographic: The high price of iPhones (relative to competitors) is targeted at
higher income customers in developed countries. The iPhone 5c was the first low
cost iPhone to be targeted at customers globally.
Geographic: Apples geographic segments consist of the Americas, Greater
China, Japan, Europe, India and Middle East.
Psychographic: The integration of iTunes in the iPhone is an example of how
Apple identified the interests and habits of consumers based on its success with an
earlier product, the iPod.
Behavioral: In the market for Smartphones, network carriers will segment
customers according to their level of usage. A cheaper plan will cover less phone
and data usage that more expensive ones.
Product/ Service Differentiation: Recently Apple has created a central idea. The
Mac is no longer the hub of all things Apple. Now, Apple offers a harmonized,
synchronized, and integrated user experience across all of its main devices, using
iCloud as the hub.
Positioning: Apple has i-Platform products that are neatly designed. They all begin
with and end with a single syllabic word iPod, iPhone, iPad, iMac, iBook, iTunes
and iCloud. Each product has its own identity with little or no overlap between the
models. Since products are unique to Apple they give the company a huge
positioning advantage.
Products Goods and/or Services: Apple dont try to satisfy needs and wants of all
customers. Apple made tough decisions and focused on: limited number of product
lines and limited offerings within each line. E.G 1997 Steven Jobs cut Apples 15
product lines to only 4. Also Apple dropped its most popular iPod, the Mini, when

Mushtaqali Ami

Branding: A name, logo, symbol or a combination of these that identify a

specific product and distinguishes it from competitors.
It makes the business easily recognizable
Individuals have a perception about, Quality, Successfulness and Pricing
Good reputation with customersIncreased sales and profitability due to
repeat sales.
Design and logos might entice the buying, EgApple Logo
Packaging: Involves the development of the container to hold the product.
Allows differentiation from competitors, through shape and color
Used for promotion via advertising or easy to use packaging
Pricing Including Pricing Methods:
Three Main Pricing Methods: Pricing methods give a business indication on
what they should be charging for their products.
Cost-Based (Cost of producing the product is calculated then a margin of
profit is added to allow for an large profit margin)
Market Based (Business sets its prices according to the level of supply and
demand)
Competition Based (Prices are compared with competitors prices and then
set)
Pricing Strategies: Once the method of pricing is set the business then fine
tunes it by pricing strategy.
Price Skimming: Business charges highest possible price initially and skims
it afterward
Price Penetration: Business charges lowest possible price
Loss Leader: Selling product below cost price, hoping more customers
would buy
Price Point: Selling the product at specific predetermined price
Price and Quality Interaction:
Greater Quality= Greater Price
Prestige pricing strategies are used to give the product quality and prestige.
Promotion: Business uses this to inform, persuade, remind a target market
about its products, aiming to attract new customers and increase brand loyalty,
all leading increases in sales, hence profit.
Elements of the Promotion Mix:
AdvertisingUsed to inform and persuade target market
Personal sellingInvolves activities of sales representatives directed to a
customer in an attempt to make a sale.
Sales PromoIs use of activities as direct inducement to customers.
Relationship PromoDevelopment of long-term and cost-effective
relationships with individual customer.
PublicityAny free news story of a businesss product.
Public RelationsActivities aimed at creating favorable relations between
customers and the business.

they introduced the Nano.

Branding: In 2010, Apples brand progression saw the introduction of the Apple
iCloud, which delivers a seamless experience for using and sharing content across
all your Apple devices (iPhone, iPod, iPad, or Mac). iCloud enabled a common "it
just works" experience for using content across all of Apple's mainstream products.
iCloud enables Apple to extend the brand experience well beyond individual
products.
Packaging: Apples business is designed and packaged to create ongoing
customer value. Generating customer value is defined by hiring customerobsessed employees and opening retail stores.
Pricing Including Pricing Methods:
Three Main Pricing Methods:
Competition Based: Apple Products have better margins than competitors. This
enables Apple to consistently create and maintain higher levels of quality.
Pricing Strategies:
Price Skimming: Apple prices their products more than two times what their
competitors charge. They adjust their price with features and benefits that cant be
matched.
Promotion: ***See

Marketing Process-Developing Strategies***

Place/ Distribution:***See Marketing Process-Developing Strategies***
People: Strong focus on sales and customer service in Apple stores.
In-store, online and phone support for after sales, repairs, complaints and
warranties.
Processes: Online ordering system.
Pre-ordering available prior to new product launches.
Roaming payment system in Apple stores so customers dont need to wait at a
check out.
Physical Evidence: Apple stores are designed to reflect the importance of
innovation and quality.
Encourage hands on approach, allowing customers to test Apple products.

Mushtaqali Ami

Communication Process:
Opinion LeadersPeople who influence others, this can include celebrities
and sportspeople.
Word of MouthPeople influence others during conversations; this has been
accelerated due to the large use of social media.
Place/ Distribution: The activities that the business initiates to ensure that the
product reaches the customer.
Distribution Channels: Channels by which a product is moved from the place
of manufacture to the consumer.
ProducerConsumer
Adv: Allows the producer to maintain control over of the product,
provides producer with direct contact with customers.
ProducerRetailerConsumer
Adv: Allows the Producer to concentrate on manufacturing, greater
distribution and access to goods.
ProducerWholesaleRetailerConsumer
Adv: Allows the produce to hold lesser amounts of idle stock,
marketing and sales are responsibility of the retailer so less costs.
ProducerAgentWholesaleRetailerConsumer
Channel Choice: Channel will influence the type of customers the product
attracts.
Intensive Distribution: When business wishes to saturate the market with its
product.
Selective Distribution: Only a moderate proportion of all possible outlets.
Exclusive Distribution: Only one retailer outlet for a product in a large area.
Physical Distribution Issues: Activities concerned with the moment of
product to consumer.
Transport: Refers to the process of moving goods from one location to
another.
Warehousing: Is a set system of activities involved in receiving, storing, and
dispatching the goods.
Inventory: Is the system that maintains quantities and varieties of products
appropriate for a target market.
People, Processes and Physical Evidence:
People: Refers to the quality interaction between companies and those
businesses who deliver the service.
Processes: Refers to the flow of activities that a business will follow in its
delivery.
Physical Evidence: Refers to the environment in which the service will be
delivered.
E-marketing:
Includes:
Podcasts
SMS

E-Marketing:
Product:
Websites provide detailed information regarding product and specifications,
without cost of printing brochure manual.
Website also displays accessories alongside products increasing customer
awareness of the companys products.
FAQ and technical specification can be provided, reducing the expense of
providing customers service.
Price:
Internet has led to greater transparency in prices to be compared. i.e. Price
comparison website.
Apple increases profit margins by selling online cutting down costs associated
with operating retail stores.
Place:
Websites provide platform for global market without the cost of setting up retail
stores all over the world.
Flexibility of e-shopping is appreciated by customers.
The cost of intermediaries may be reduced by selling directly to customers.
Promotion:
Variety of media available on products on Apples website. New product related
activities published on website.
Extensive use of adverts on social media, online business journals and
newspaper. Short and visually effective adverts.
Apple also uses emails of existing customers to promote products via email.

Mushtaqali Ami

Blogs
Social Media

Global Marketing: Is the marketing plan that must be modified and adapted to
suit overseas market.
Global Branding: This is the worldwide use of a name, symbol, and logo to
identify the seller.
Standardization: This approach assumes the way the product is used and the
needs it satisfies are the same worldwide.
Customization: This approach assumes that the needs of the product are
different worldwide.
Global Pricing: This is how the business coordinates their pricing policy
across different countries.
Customized Pricing: When customers in different countries are charged
different prices for the same product.
Market-customized pricing: The prices are according to the local market in
the overseas market.
Competition Positioning: Relates to how a business will differentiate its
products. It centers on how a business will carve out a place in the competitive
marketing environment.

Global Marketing:
Branding:
Excellent brand recognition. Apple is the number one global brand in the world.
Logo helps Apple be recognized globally and is very simple.
Standardisation: Apple takes standardisation approach in global marketing of
iPhones.
Different price due to currency, but same product found in every country.
Global approach for marketing of iPhone 5c as it is for the colourful people of the
world.
Competitive Positioning:
Competitors such as Android, Huawei, Lenovo and LG are a huge threat to Apple.
As they are more preferred my more and more Chinese manufacturers.
While Apple is increasing its market share of the iPhone in Europe, Samsung is
dominating Chinas market share with 84% share of sales of Android OS. Apple
only has 13% market share.