Marketing Management (BUSS 0001)

Apple Computer, INC

Name: Iman Abdullah Juma Al. Alawi ID: 06f2555

Nuwaira A.Rasool Ahmed Al.Buali 07s2943
Sheikha Juma Salim Al. Farsi 06f2309
Zamzam Salim Khalfan Al.Hashli 06f2423
Tutor: Mr. Saju Jose Session: A

Table of Contents

1. Apple Marketing Strategy …………………………………. Page

1.1 Promotion
1.2 Product
1.3 Place

2. Apple Marketing Strategy in Oman

3. Marketing functions of Apple
3.1 Research
3.2 Production
3.3 Development.

4. Marketing Extension Grid

4.1 Market Penetration
4.2 Market Development
4.3 Product Development

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 1. Apple Marketing Strategy
Apple is an American international corporation that markets electronics, computer’s
software and different personal computers. The company provide different hardware
products, the IPod , the IPhone and the IPad. And the software is; the Apple especial
operations system, ITunes for media and the iLife specialized for multimedia
professionals and more of other software

Apple company established on April 1, 1976 in California and built in on January 3,1977.
At beginning it was names with Apple Computer, Inc for first 30 years but it was
removed later on to reflect the company growth on into electronics market and the on
personal computers as well.

The Apple marketing strategy focus on lifestyle, imagination, liberty and other emotions
and aspiration that power to the people through the technology. Moreover, it aims in
being simple in which removing the complexity in from people lives with being
humanistic company that communicate with its customers.

Apple successful goes to its imaginative way in doing the business that meant in
combination of it products which are; IPod and to the iPad and ITunes software. The
products are unique with their great style, software and performance and user friendly
interface.

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 1.1 Promotion

IPod is the most popular device in the company and had huge success between 2004 to
2008. As always known, Apple’s shares values has increased during IPod developing as a
spectacular 2500%.

In the first 3 years wasn’t a successful product and it ended up as a failure. Originally, it
was launched in October 2001. More, between 2001 and 2004, the sales were between
100-200 thousand units per quarter and nowadays its 10-20 million units per quarter.
And, it wasn’t covering and product development.

IPod’s sales began to grow quickly and strongly during Jun – Aug 2004, and have been
remarkable.

1.2 Place

IPod is available in more countries in years of 2004 and more, in Austria, Belgium, Hong
Kong, Ireland, Luxembourg, Mexico, Netherland, New Zealand and Singapore.

Before, it was only been in United State and Canada.

1.3 Product

As growth of IPod product, it began to be suitable for all ages and genders by making
various models as following:

• iPod Classic is portable media player that started in 2001 and it’s available in
different storage sizes; 16 GB, 32 GB and now it’s available in 160 GB.

• iPod Nano began in 2005 with 8 GB or 16 GB models. The last generations has
FM Radio, a pedometer, and a new multi-touch interface.

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 • iPod Shuffle is a model with simple functions without screens and it’s digital
audio player that available in 2 and 4 GB models.

• “iPod Touch, portable media player that runs iOS, first introduced in September
2007 after the “iPhone” went on sale. Currently available in 8, 32, and 64 GB
models. The latest generation features the Apple A4 processor, a Retina Display,
and dual cameras on the front and back. The back camera allows video recording
at 720p”1

2. Apple Marketing Strategy in Oman

Oman began with effective improvement on investment climate to attract both local and
foreign industries. The new trade and laws has been provided better degrees in vitality
and flexibility to contain international developments to serve the interest of Oman’s
economy in region and international.
Apple has increased its stores around the world and mostly in Asia where there’s a labor
men power labor in cheaper and those countries are near the sea areas and oceans where
the shipment is easy for products.

Although the number of original Apple electronic devices in the Sultanate of Oman are
not existing where majority of people are buying Apple products from the neighbor
countries, it is suggested to open original branch here in Oman and those branches can be
kept in the shopping malls where most of people are always visiting then on daily basis.

In Oman, promotion strategy of the Apple products can be done by opening new
attractive stores or branches. Also, we can use most technology education institutions to
be main sponsors that attract people who have interests in technology. Even, the musical
stations or radio station can promote the musical especial products such as iPod.

Apple can join famous Omani electronics exhibitions because most Omani people like
visiting and buying from it. Moreover, many popular stores and companies join the
exhibition to promote their products or offers; by that, they can be attracted by the
products and join in sponsoring of Apple products.

3. Marketing Functions of Apple

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 Marketing

Production Research Development

“ The marketing environment is changing at on accelerating rate, so the need for a real
time market information is greater than at any time in the past .The shifts are dramatic;
from local to national to global marketing, from buyer needs to buyer wants , from price
to non price competition . As companies expand their geographical market coverage,
their managers need more information more quickly .As incomes improve, buyers
become more selective in their choices of goods. To predict buyers in their choices of
goods. To predict buyers responses to different features styles ,and other attributes
,sellers must turn to marketing research. As sellers increase their use of branding, product
differentiation, advertising, and sales promotion, they require information on the
effectiveness of these marketing tools.”

Each company must have the following important departments to be successful:

3.1 Research

The marketing research defined as the systematic design, collection, analysis, and
reporting of data and findings relevant to a specific marketing situation facing the
company. In addition, they are many ways of research in the marketing .Each way help
the marketers to know any information they need before starting the work such as “what
is important to this person?” and “How does this person want others to view him or
her ?” , ect . This information will help the marketers to be enabled to draw out relevant
information which improve the production as well as the profit. Actually marketing
research shy away from overreliance on any one method .They also recognizes the value
of using two or three methods to increase confidence in the results.

Apple does not do market research:

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Apple team said that no meaning for market research and they scoff at the notion of target
markets, and they don’t focus groups. On the other hand, they think that if they ask
consumers about their wants, they would have told them “A faster horse”. In addition,
Apple design is based on the team’s perceptions of what they think is cool.

3.2 Production

The marketing production is the effective department where the product is become visible
as on the other hand, Actual creation of company’s goods or services.

…………………

3.3 Development:

In this department, the product has existed only as word description, a drawing, or a proto
type .Also the company will determine whether the product idea can be translated into a
technically and commercially feasible product. Successful new-product development
requires the company to establish an effective organization for managing the
development process.

Example of apple development: apple computer assumes the worst for its Power Book
customers and submits the computers to a battery of indignities : It drenches the
computers in Pepsi and other sodas, smears them with mayonnaise, and bakes them in
ovens at temperatures of 140 degrees or more to simulate conditions in a car trunk.

How these departments assist the marketing?

• Allows employees to identify with the product rather than with their particular
job function.

• Develops a sense of common purpose.

• Helps identify which products are profitable.

• Allows for training executive personnel by letting them experience abroad range
of functional activities

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 4. Market Extension Grid

Apple Company is following the Product/Market grid to identify the market growth and
make its product desirable to customers around the world. They are promoting their
product in each and every country to make the maximum profit.

Regarding the Product/Market grid, Apple is using the different strategies to increase the
profit. The strategies are;

4.1 Market Penetration:

This strategy means increasing sales of

current product to existing market
segment without change the product.

It’s not change the product or market

place it's only the company strategy to
increase the product sales of current
market.

Apple in Oman should pay more attention on increasing the sales rate of the existing
product to existing market segment. It can accomplish this by do the following:

• Apple should open and add new shops, electronics stores to sell apple products
exclusively and open social agent in its current market to bring its products closer
to the customer. It should add more stores to its network of stores in order to
reach all customers whenever they are and supply the market in Oman a wider
range of its product.

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 • Encourage current customers to buy more convince non-user to use the product by
advertise for the current products. So, it can help the Apple to encourage more
people within their existing market to choose their products or to use more of it.
Or increase the number of markets that can easy for customers to buy their
products.

Also they can open (in same market) market for repair the products from
destruction or problem. One example to encourage people to buy the product is
make offers of each items that they will buy it.
• It should pay more attention on advertising and promoting its product to make
their product more desirable by using and developing new promoting methods to
attract the youth.

4.2 Market Development:

Market development is the name gives to a growth strategy where the business seeks to
sell its existing product in to new market.

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The company does not change their product but promote their product in new place. The
target is to increase profit and sales of current product to different and new people in new
location.

New Geographical Market:

Geographical Market strategy is in which they would look for new consumers in new
areas around the globe. They have to open new shops in different cities in Oman, but they
should not exist in Muscat and surrounding cities. It should expand the distribution
channel to include all of Oman to reach all regions within the Sultanate that can be easier
for customers to buy the products. Therefore the profit and seals of apple can be
increasing.

New Demographical Market:

Apple should adjust its strategy to include new market segment to its product by
considering and focusing more on the youth teenagers because they like apple product.

4.3 Product Development:

A product development is the name given to a growth strategy where a business aims to
introduce new product in to existing market.

Apple can accomplish this by doing the following;

• Apple should develop new features with its product and provide the market with
new and innovation products because people like the change.

• Apple can also develop a new product to meet the people requirement.

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