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Principle of Marketing Assignment 3 BTEC Nguyen Huu Phong 2017

ASSIGNMENT 3 FRONT SHEET
Qualification

BTEC Level 5 HND Diploma in Business

Unit number and title

Unit 4: Marketing Principles

Assignment due
Learner’s name

Nguyễn Hữu Phong

Assignment submitted

21/12/2016

Assessor name

Nguyễn Quốc Cường


Learner declaration:
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.
Learner signature

Date

21/12/2016

Grading grid
P3.1 P3.2 P3.3 P3.4 P3.5 P4.1 P4.2

Assignment title

P4.3 M1

M2

M3

D1

D2

D3

Marketing Program Proposal

1


In this assignment, you will have opportunities to provide evidence against the following criteria.
Indicate the page numbers where the evidence can be found.

Assessment criteria

Expected evidence

Task
no.


Assessor’s Feedback

LO 3. Understand individual elements of the extended marketing mix

3.1 explain how products
are developed to sustain
competitive advantage

Explain what is product and
explain how product is developed
to sustain company’s competitive
advantages.

1.1

3.2 explain how distribution
is arranged to provide
customer convenience

Explain distribution and explain
how the distribution strategy is
arranged to provide customer
convenience.

1.2

3.3 explain how prices are
set to reflect an
organisation’s objectives and
market conditions

Explain what pricing strategy is
and how pricing strategy reflect
the company’s objectives and
market conditions.

1.3

2


3.4 illustrate how
promotional activity is
integrated to achieve
marketing objectives

Explain what is promotion and
illustrate how promotional
activities help the product to
achieve the company’s marketing
communication objectives

3.5 analyse the additional
elements of the extended
marketing mix

explain the additional elements
of the extended marketing mix
including: People, process and
physical evidence.

1.4

2

LO4 Be able to use the marketing mix in different contexts

4.1 plan marketing mixes
for two different segments
in consumer markets

4.2 illustrate differences in
marketing products and
services to businesses rather
than consumers

Identify 2 different consumer
market segments for your product
and plan your marketing mixes
(4Ps) for these consumer market
segments

3.1

Illustrate differences in marketing
products and services to
businesses rather than
consumers

3.2

3


4.3 show how and why
international marketing
differs from domestic
marketing.

Assessment criteria
Merit descriptor No.1 (M1)

Show the differences between the
product’s international marketing
activities and domestic marketing
activities

Expected Evidence

3.3

Feedback
(note on Merit/Distinction if applicable)

- Explain how your product
is developed to sustain your
company’s competitive
advantages
- Describe your product’s
distribution strategy.
Effectively evaluate how
your product distribution
strategy provides customer
convenience
- Explain your product’s
current pricing strategies.
Evaluate how your
product’s pricing strategy
reflect the company’s
objectives and market
conditions

4


- Describe current
promotional activities of
your product. Evaluate how
these activities help your
company to achieve its
marketing communication
objectives
- Illustrate the additional
elements of the extended
marketing mix with
examples from your
company’s customer
service
- Consider company’s
complex marketing
situation (consumer
characteristics,
competitors, company’s
competitive advantages,…)
when choosing segments
and proposing the
marketing mixes
- Illustrate differences with
examples from marketing
your product to business
and consumer markets

5


- Illustrate the differences
with appropriate examples
from your company
Merit descriptor No.2 (M2)

- Relevant marketing
theories and techniques
have been effectively
applied analyze the
marketing mixes ( product,
price, place, promotion)
- Relevant marketing
theories and techniques
have been applied to plan
marketing mixes for your
product in different
consumer segments.
- Relevant marketing
theories and techniques
have been applied to
analyze marketing activities
in business and
international market.
- A wide range of
information related to the
company’s marketing
mixes, the consumer
market, the business
market and the
international market is
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effectively used in the
assignment.
Merit descriptor No.3 (M3)

Distinction descriptor No.1 (D1)

- clear assignment structure
with appropriate academic
writing
- marketing terminologies
are correctly used (for non
marketing audience)
- the assignment is written
with consistency and
coherence
- Propose suitable solutions
for your company on to
improve its product
development
- Propose suitable solutions
for your company to
improve distribution
strategy for your product
- Propose suitable solutions
for your company to
improve its pricing strategy
- Propose appropriate
solutions to improve your
product’s promotional
activities
- Propose appropriate
solutions for your company
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to improve its customer
service’s people, process
and physical evidence
- Critically evaluate your
own proposed marketing
mixes
- Propose appropriate
solutions for your company
to improve its marketing
the product to business
market
- Propose appropriate
solutions for your
organization to improve its
marketing activities for your
product in international
market(s).
Distinction descriptor No.2 (D2)

- A wide and quality
research on the company,
its marketing situation its
customers has been done
to provide information for
your arguments
- A range of evidence for
the company’s product’s
marketing activities is
collected to support the
assignments

8


- Sources of information
used are correctly cited.
Distinction descriptor No.3 (D3)

- Generate your own ideas
on the marketing mixes, the
consumer market, the
business market and the
international market
though the assignment
- Effectively self-evaluate
your own arguments and
recommendations for the
organization on marketing
mixes in different consumer
market segment, business
market and international
market
- Innovative and creative
thoughts are applied in the
proposed marketing mixes
plan for your product in
different consumer market
segment.

9


Summative feedback

`

Assessor’s Signature
IV Grading Check:

Date
Comments if any:

Agree
Disagree

IV Signature

Modify grade to

Date

10





Contents
Introduction
1. Marketing Mix
1.1 Product

15

15

1.2 Distribution or Place
1.3 Price

13

17

18

1.4 Promotion

20

2. The extended marketing mix
3. Market Development
3.1 The Consumer Market

23
23

3.2 The Business Market

25

3.3 International Market

27

References

22

30
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Introduction
Apple - one of the largest technological corporations in the world. Apple has been
successful as now not only because of changing their product well and breakthroughs but
they also have the proper marketing strategy to put Apple products to the consumers in the
best way. Founded in 1976 in a small garage in California by 3 people are Steve Wozniak,
Ronald Wayne and the legend of the world of technology - Steve Jobs. For more than 40
years of establishment and development, Apple from a garage has risen to become one of
the technology company in the world with the most expensive brand and be priced 586
billion dollars in 2016 according to Forbes.

Source: Internet

From the Apple II to make the world flutter in the 1977, and Macintosh - desire of
graphic design at the time, the next is the iPod with "1000 songs in your Pocket", iPad - the
best tablet that we can buy now or Macbook enthralled millions of people , and finally the
iPhone - the most popular smartphone in the world with more than 1 billion were sold out.
Every product Apple ever brought to the world are very good products with design and

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features ahead of time, however beside that we can't deny the skillful of Marketing
Department helping the Apple products succeeded as now.

Source: Internet

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1. Marketing Mix
According to Economic Time stated that: “The marketing mix refers to the set of
actions, or tactics, that a company uses to promote its brand or product in the market. The
4Ps make up a typical marketing mix - Price, Product, Promotion and Place.”

The Four Ps of the Marketing Mix – Source: Principles of Marketing (2012) – Kotler and Armstrong

1.1 Product
Product is the combination "products and services" that business devoted to the target
markets include: quality, features, variety, brand, packaging, size (size), design, warranty.
Apple always wanted to expand the types of its products. They have so many lines of
products in many different categories to meet the needs of each customer. As we all know,
the Apple with the main products such as iPhone, iPad, iPad, Mac, Apple Watch, AppleTV
and other software services. Many products of Apple are Developing that shows Apple is
diversifying its products on the market. Although Apple still warm but secretly develop more

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products to its product diversity with other advanced technologies. For example, the
electronic car is growing secretly electric cars or smart glass. Although all are just rumors
because Apple always keeps their information secretly but certainly one thing Apple is
cherished a new product for the future to continue to maintain the leading position in the
field of technology.
For Apple, the iPhone will always be the product leader nearly a decade, they are still
based on it. However, the improvements on the iPhone always best for users to people all
over the world have used the iPhone and the Apple iPhone help is always a benchmark in
the world of Smartphone.

Source: Internet

iPhone 7 has just released are considered products of Apple in 2016 and Apple are
still based very much on this new generation of the iPhone. iPhone 7 is always a guest would
expect product and is widely spoken. That is why Apple has always wanted to bring these
new features for the iPhone generation up on this. iPhone 7 is upgrade very much on camera
to meet the needs of more and more photography and this is the most significant upgrade of
Apple on the iPhone.
The changes though differ significantly but in recent years, the Apple product is still
boring. If Apple want to continue retaining the user, they must have the change the merited
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for their product lines. For example, the latest generation iPhone to be equipped with
fingerprint recognition technology under the screen or curved screen and no border. Improve
the current inconvenient thing and listen to the share of more clients.

1.2 Distribution or Place
Place includes various activities of the business to bring products to consumers that
businesses want to reach, such as determining the distribution channel, selection of
intermediaries, inventory, shipping, storage.
Apple distribute their products through many channels of distribution such to help
users more convenient when there is demand for the product. Besides, many promotional
strategies or payment form variety of distributors also facilitates customers have the
opportunity to experience the product.

Source: Internet

Apple distributed their products through places such as Apple Stores, Online Apple
Store and App Store, Authorized retailers, Telecom companies, Fulfillment services. Apple
Stores are the most visible places that sell the company’s products. The online Apple Store
and App Store are also highly visible. However, these stores are not the only places in the
firm’s marketing mix. For instance, Apple also uses authorized retailers, such as Walmart,
Target and Best Buy. The company also includes telecom companies like AT&T, Verizon,
and Sprint, which sell iPhone units. In addition, Apple uses fulfillment services from
companies like Amazon.com and eBay, through which third parties sell Apple products

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online. Thus, Apple’s marketing mix is comprehensive in exploiting different types of online
and non-online distribution channels.
For example, Apple product for distribution network to reach customers. At that time,
customers will need only minimal upfront to own and will pay monthly installments under
contract. This strategy is very suitable for growing markets like Vietnam when that demand
for Apple products that incomes are limited. Apple can link operators to apply this
distribution strategy.
iPhone 7 and 7 Plus is also being distributed through the channels on the Apple Store
and the Apple authorized resellers. Apple's supply chain has always done well and iPhone 7
and 7Plus always enough goods to meet the needs of customers. As usual in the Apple
product launches, on opening day iPhone sales people always have a huge amount to
purchase and this can be a disaster if Apple does not regulate better their distribution
channels. Despite the huge amount of buyers, but due to a variety of distribution channels
and different forms should buy iPhone 7 is always to hand each person whenever they need.

1.3: Price
Price is the amount that the customers have to spend to get the product. Prices must
correspond to the value of items, otherwise the buyer will be looking to buy the other
manufacturers.
Apple always uses a premium pricing strategy in all of Apple products. In this
component of the marketing mix, the emphasis is on how prices represent the company and
its products, while meeting consumer expectations. The premium pricing strategy involves
relatively high prices. This pricing strategy helps maintain the high-end image of the
company and its products. Another effect of this pricing strategy is that Apple products
attract a smaller market share composed of people from the middle and upper classes.
Nonetheless, the company maintains profitability because premium prices entail higher
profit margins. Apple’s marketing mix is aligned to the company’s premium product
development strategy. We can see it through these prices of Apple product such as its current
iPhone is 6s and 6s plus which are priced at $649 and $749 respectively, iPhone 6 and 6 plus
are priced at $549 and $649, iPhone 5 is at $499, its current iPad is iPad pro which starts
with $799 for 32GB and goes to $1079 for 128GB, iPad air 2 is priced at $629 to $829, iPad
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air is at $579, iPad mini4 is at $529 to $729, iMac starts with price tag of $1099 to $1499,
Macbook is at $1599, Macbook pro is at $1299 to $1799 Macbook air is at $1099. All of
them are over 500$ and it is really expensive to the majority of people.
Although the price of Apple products is very high because Apple always like to keep
their products at a high level. However, the price of Apple also makes consumers feel
disappointed. For example, for Apple's high-end products such as the iPhone, Apple always
keep the capacity of 16GB - 64GB - 128GB, due to high demand for the 16 GB should not
meet but customers need a capacity of 32 GB, Apple pressed users go buy a 64 GB with
higher price 100USD. Apple should have the better price strategy in its products, not just the
iPhone, but also other products. This, need to be changed if Apple want to attract more clients
in the future.

Source: Apple.com

iPhone 7 and 7 Plus also not beyond Apple's pricing strategy when starting with price
$649 and $749. Apple's products always have prices quite high in comparison with other
products because their products are always oriented is the superior product. However,
through many different payment from distributors and operators people can still own the
product via the form as installment contracts, ... The price of Apple products always comes
that is quality and service are very good in the long run.

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1.4 Promotion
Promotion means the communication activities of the value of products and
convince customers of target market to buy products. Promotion includes the activities of
advertising, direct sale, promotion, public relations.
Apple’s promotion includes activities that emphasize the premium image and quality
of the firm’s products. The promotional or marketing communications mix supports business
position in reaching more target buyers. Apple is promoting its products through a variety of
factors such as Advertising, Personal Selling, Sales Promotion, Public Relations.
It includes advertising through the company’s website and Apple Stores, as well as
advertising through other firms, such as technology news sites. The company also uses
personal selling in the form of Apple Store employees who provide product-specific
information in the aim of convincing store visitors to make a purchase. In addition, the
company’s marketing mix involves sales promotion, which usually happens at the Apple
Stores. For example, some Apple Stores offer old models at discounted prices when bundled
with larger and more expensive products. Moreover, the company uses public relations to
optimize its corporate image. For instance, Apple Events, leaks of new product features,
press releases, and exclusive interviews are carefully implemented to maximize positive
publicity. Apple has mastered the promotion component of its marketing mix.

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Source: Internet

Phone 7 of Apple is used many different promotion strategies. They coordinate with
the home network, the distributor promote the iPhone 7 wide everywhere so everyone knows
to products. Then, Apple launched the rumors so people feel curious and interested in the
product. Apple finally organized a huge event to unveil products, help meet the expectations
of the people for a long time. Apple always do so throughout the years and is helping Apple
be known. iPhone 7 when introduced was focused very heavily on the ability to photograph,
so the product advertising should always focus on the Camera and the ability to shoot.
Besides, Apple also has always geared its products fashion style, the style when using the
iPhone. The above helped advance new product is the iPhone 7 and 7 Plus many customers
choose.

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2. The extended marketing mix
In addition to 4 factors: Price, Product, Promotion and Place. Today the Marketing Mix
increasingly includes several other Ps like People, process and physical evidence, 3 elements
are treated as the expandable elements of the Marketing Mix.
1. People
People are an essential ingredient in service provision; recruiting and training
the right staff is required to create a competitive advantage. Customers make
judgments about service provision and delivery based on the people representing your
organisation.
The core strength of a company is the people, the employees of a company is
the soul of that company. Apple too, the staff and people's why Apple is one of the
most innovative companies in the world. Apple has a staff recruitment processes and
corporate culture that make up the wonderful and loyal employees. Apple has the best
corporate executives such as Tim Cook (CEO), Jeff Williams (COO), Phil Schiller
(Mayor), Jonathan Ive (design), ... And thousands of other skilled employees are
helping Apple change the world, bringing the best products to everyone. They are the
face of your company and the way people see on Apple. Because of these things that
Apple must pay a lot of money and stocks to keep their feet as well as attracting more
skilled people.
2. Process
The systems and processes of the organization affect the execution of the
service.
Apple is known for its process and operations. They have many factories across
the world and a very systematic process for all the products and services.
They are known for their simplicity and as they say simplicity is the ultimate
sophistication. Their process is seen from their website architecture to their products
GUI. The simplicity of everything Apple is exactly what helped Apple to differ from
the rest. The processes, products or anything Apple's simple design also for the
convenience and easily to clients as well as ensuring the consistency of all products.
3. Physical evidence
Physical evidence comprises of the elements which are incorporated into a
service to to make it tangible and somewhat measurable.
The Company has a good packaging strategy which makes the product look
attractive and stylish on the shelf. The company has Apple Care service to resolve the
problems and services offered by the company, geniuses’ bars to meet the direct

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customers and teaching them to make better users. Everything we feel when using
Apple products or step into an Apple Store that is a difference. Each Apple Store are
designed according to the typical culture in that place but retains the elegance and
simplicity of the Apple. Besides, the experience of Apple products is also enhanced
through the layout of the product in a modern way. The Apple products are packed
and giving customers a great feeling when they open box products

3. Market Development
3.1 The Consumer Market
Consumer market refers to a market where in the seller sells the product for a primary
reason of making profits while buyer buys the products for personal use.
Apple brought their products to focus on two types of different market segment. The
distinction of the two markets is increasingly more visible when Apple announced the iPhone
6 and 6 Plus and most recently the distinction more clear than in the two latest generation
iPhone is iPhone and 7 Plus 7. Apple iPhone products oriented to 2 types of segmentation is
to bigger screen lovers and those who like the compact.
The following table distinguishes clearly two segments that Apple user orientation
and direction of their products to customers suitable also as mixed marketing plan that Apple
used.

Product

Bigger screen lovers

Compact lovers

iPhone 7 Plus
Size: 158,2 x 77,9 x 7,3 mm
Screen size: 5.5 inch
Weight: 188g

iPhone 7
Size: 138,3 x 67,1 x 7,1 mm
Screen size: 4.7 inch
Weight: 138g

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Price

Here is a sample of the iPhone screen
size is large and requires two hands to
manipulate. The large screen also
brings many benefits in terms of
entertainment and tasks easier.. Apple
product direction to those wanting an
iPhone is the big screen instead of
choosing other products. This is
considered a change from when Tim
Cook became CEO when before that
Apple does not produce big screen
iPhone. This generation of Plus
products are a listening to users and
integrate new smartphone trends.

This is a product for those who love
the small screen and compact when
regularly carrying. Customers want a
latest generation products and
compact, the iPhone 7 is a product
that Apple towards this customer
segment. These customers accept the
limitations of the iPhone 7 compared
to the iPhone 7 Plus to use products
with smaller screen size.

From 649$ (US)

From 769$ (US)

Place

Regarding product distribution, Apple still keeps its traditions for many years
the product is distributed through the Apple Store, other distributors such as
network operators, the authorization company of the Apple, ecommerce sites,

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... A lot of places to always have products to meet the needs of customers.
Customers can easily buy Apple products around the world.
Promotion

Apple promotion of their latest product is the iPhone and iPhone 7 Plus through
the strategy of advancing the proper product and end up stimulating the curiosity
of customers. Before taking the product for a long time, the Apple for leaking
information about the iPhone 7 and 7 Plus to the newspaper page talking about
their products and make everyone's curiosity. Then, Apple held a major event
in September to invite great journalists and those important to product launches.
These events not only Apple product launch ceremony that also is traditional,
events that cause millions of people around the world wait. Product launch event
of the apple iPhone not only 7 and 7 Plus is always a great attraction and
reputation. Apple very little when falling product prices to stimulate. They share
many of the sales strategy to customers who buy their products, in collaboration
with the home network to change policy reviews help customers can buy
products better.

3.2 The Business Market
According to CareerRide state that business market in simple words is business to
business market where in the products or services of a particular organization are sold to or
purchased by other organization or business. It also happens in support industries where the
products that are manufactured are components required to be assembled into the products
or services offered by some other business organization.

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