Competitive Marketing Strategy Adopted By Apple Inc. - 825 Words

Analysing The Competitive Marketing Strategy Adopted By Apple Inc. (Essay Sample) Content: TITLE:COURSE:COURSE CODE:STUDENTS NAME:INSTRUCTORS NAME:The technological market especially when it comes to consumer electronic products has a wide range of competitors. The competition does intensify with new innovations that are being created that appeal to the end customer. The Apple electronics product does operate in Monopolistic competitive market. The market reflects an imperfect competitive environment. The monopolistic competitive market refers to a market where there are large numbers of seller but the products that are being offered are not identical.The market is most suitable for the Apple electronic products because of the following reasons. Firstly, there are large numbers of sellers in the electronic consumer products. They include LG electronics, Samsung, Lenovo, Compaq, Acer, IBM, and Microsoft among others. Secondly, the products of different sellers are different in quality. The companies offer products that are within the same price range. In ord er to penetrate the market it is pertinent for the firms to invest in quality to ensure they draw customers to their product (Mankiw, 2015). There is a notion that quality is expensive it is true when applied to selling the product to the end customer. In order for the firm not to incur the high cost of producing high cost products it is pertinent that they need to outsource their services.In the production of Apple electronics the company has to outsource their production activities to China and India. The reason for selecting these two countries is that there are many experts who offer their services at reduced cost hence saving the company its finances. The third characteristic is that advertisement plays an integral role in the case of monopolistic competition. Through propaganda, a seller can charge higher price for their product (Mankiw, 2015). Based on this characteristic the company needs to invest in quality advertisements. The advertisement should focus more on the feature s their products offer when compared to their competitors. Additionally, they should incorporate music and artistic art to imprint the advert in the minds of the end customer.According to the research conducted by Buvik 2001, the customers in the technological electronic market are impulse buyers who are drawn by the inclusion of new features to a product. The customers especially those purchasing mobile phones and laptops are willing to spend more to purchase a diverse that reflects class, style and is efficient. Based on this aspect selecting a suitable target market is important for the company since it will enable them to satisfy the needs of their customers. Apple Company does focus on the high end customers who are more concerned about the features of the product rather that cost.In the international frontier Apple Company is renowned for producing quality products for their customers. Building on this brand name the company has an opportunity of selling their electronic produ cts massively to their select customer market. With the introduction of international trade and the efforts to reduce trade barriers the entire globe is opening up to trade. The aspect has resulted in the growth of economies in various parts of the continent. The growth of economies is an indication that the people have disposable income to invest in the purchase of electronic products (Mankiw, 2015) .The Apple electronic products can take advantage of this new market.Additionally, in order to achieve a comparative advantage the Apple Company focuses on exclusive marketing. The company has set up their own stores that sell their products. The aspect of exclusivity guarantees the customers that they are purchasing quality and original products from the retail stores (Buvik, 2001).Factors that will affect the demand and supply of the Apple electronic products include: change in economic conditions when there is economic prosperity in the country demand for products increase while duri ng depression it decreases. Secondly, successful advertisement does increase its demand. Thirdly, rate of taxes when the taxes levied are high the supply falls because the cost of production increases making the prices of the products to increase. Fourthly, improvements in production methods tend to decrease the production cost leading to the decline in the prices of the products. Lastly, change in customer tastes and cost of production. The demand for new features on the electronic products will tend to increase the demand for the new materials which increases the cost of production that leads to high prices of the products (Kontratenko, 2013).Total revenue refers to the amount that is obtained by a firm when selling a specific commodity in the market. The total revenue is affected by increase in competition that divides the market, change in government policy, increase in inflation that affects the prices of raw materials, employee strikes halting the production, and price elastic ity of demand among other reasons (Gilblin and Rooney, 2015).When measuring cost to be precise cost of production a number of factors are taken into consideration. They include: cost of raw materials, labor, interest on capital, publicity expenses, replacement and repair charges of machinery, and finally the existence of sufficient profits to induce production. The above costs often lead to the concept of opportunity cost where the company has to decide what aspects to forego in order for them to achieve their target profit margins (Inglenbleek, and Van der Lans, 2013).The external environment and government policy has a major impact on the firms engaged ...