Apple’s iPhone for the 5-year period 2016 — 2020. Essay Example

  • Category:
  • Document type:
  • Level:
  • Page:
  • Words:

Apple Marketing Management

Apple Marketing Management

Marketing Strategies

Price is one of the factors that consumers consider when making buying decisions (Ferrell & Hartline 2013, p. 32). As such, for Apple to succeed in the smartphone market, it must ensure that its new iPhone is competitively priced considering that smartphone market is highly competitive. Considering the nature of the smartphone market and the target market for Apple, the company will adopts a skimming pricing strategy for its new iPhone. Under this strategy, Apple will charge relatively higher prices of it iPhone during launch but the prices will be lowered overtime to counter the competition expected from major competitors, such as Samsung, Microsoft and LG among others. Additionally, considering the image that Apple has built over the years, the company will not give discounts for its new iPhone, but will instead maintain a standard price across the market. However, Apple will ensure that discounts are only given by exchange offers or in the form of sales promotion.


Apple understands that its success does not only depend on its ability to produce quality iPhone, but also how easy the iPhone are made accessible to customers. The smartphone market is highly competitive as there are many smartphones that customers can buy in the market as alternatives to Apple iPhone. Therefore, Apple must ensure that its iPhones are easily accessible to customers to ensure competitiveness and success. In this respect, Apple will make its iPhones easily accessible to customers by establishing Apple retail stores/showrooms in different countries across the globe. The stores will be situated in all the major cities across the globe. Apple will also partner with major supermarkets, such as Tesco, Woolworth, Wal-Mart among others across the globe to act as retail centers for the iPhones. The choice of major supermarkets is appropriate considering that they are frequented by Apple’s targeted customers as noted by Shankar et al. (2012, p. 47). Additionally, Apple will create an online platform, where customers from all parts of the world can buy the iPhones and get them delivered within 48 hours depending on the distance and part of the world where a customer is located. Creating an online sales platform is important for the future success of Apple considering that customers are increasingly embracing online shopping across the globe.


Apple understands that promotion is key to its future success. Ferrell and Hartline (2013, p. 56) argue that promotion is an important marketing mix element as it helps create product awareness besides telling the targeted customers why they need to choose the brand instead of those of the competitors. As such, Apple will invest heavily in promotional campaign that will involve the use of integrated marketing communication (IMC). First, the company will promote the iPhone using media advertising. Social media is one of the communication tools that Apple will use to promote its new iPhone product. Social media has emerged as one of the most effective tools that companies use to reach their targeted customers. Currently, more than 2 billion people are active social media users with Facebook taking the lion share having about 1.59 billion active users, followed by WhatsApp 1 billion, Facebook messenger 900 million, Instagram 400 million and Twitter 320 million active users (fig. 1) (Statista 2016). As such, using social media as a promotional tool help Apple reach a large number of social media users thus resulting in increased brand awareness.

Apple’s iPhone for the 5-year period 2016 - 2020.

Source: Statista (2016)

Apple will also use television to reach its targeted customers across the globe. The Business Reporter (2015) indicates that more than 80% of the world’s population has television sets. This makes television a good communication tool for Apple to promote its iPhone going forward. Additionally, Apple will use its official website, newspapers and magazines to promote the new iPhones that it launches in the next coming years. In addition to the media advertising, Apple will use sales promotion, billboards, loyalty programs and sponsorships to promote its new iPhone brand.


Apple iPhone has been performing well in the smartphone market despite the stiff competition it faces from rival companies, such as Samsung (Team 2015). However, iPhone performance in the market has been dwindling in the recent years as iPhone currently controls only about 11.8% of the smartphone market share, which accounts for about 12% decline compared to the last quarter of 2012 when iPhone controlled about 23% of the market share (fig. 2) (Statista 2016). However, the performance of the iPhone in the market is expected to improve in the coming years with the introduction of the best smartphone in the market that has exceptional performance in terms of camera system, battery life, immersive stereo speakers, exceptional color display, and splash and water resistance iPhone.

Apple’s iPhone for the 5-year period 2016 - 2020.  1

Source: Statista (2016)


Business Reporter 2015, Global television viewing figures to drop for first time ever, viewed 30 September 2016

Ferrell, O. C., & Hartline, M 2013, Marketing strategy, text and cases. Cengage Learning, London.

Shankar, V., Carpenter, G. S., Farley, J., & Hamilton, B. A 2012, Handbook of marketing strategy. Edward Elgar Publishing, New York.

Statista 2016, Apple iPhone’s market share of new smartphone sales worldwide from 2007 to 2016, by quarter, viewed 30 September 2016

Team, T 2015, Apple earnings: Analyzing iPhone performance and estimating Q3 watch numbers. Forbes 22 July, viewed 30 September 2016