Impact of Marketing on the Organisation's Objectives and Its Position Within a Sector or Market

Introduction

Marketing is integral to the success of any business organization by influencing an organization performance in terms of sales and market presence. Organizations invest immensely in marketing with the aim of creating organization value and position within the market place. Marketing involves communicating an organisation product to potential customers which can generate demand and increases the ability of an organization to meet its core objectives. This paper will assess the role of marketing on an organisation's position in the market and the ability to achieve the set objectives.

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Apple Inc.

Apple Inc. is an American multinational company that specializes in the manufacture of computer accessories, personal computers, and software for the global market (Montgomerie & Roscoe, 2013). In the United Kingdom, Apple Inc. is one of the phenomenal technology brands being the first organization to make a personal computer. Apple Inc. was conceived by Stephen G. Wozniak who dreamed of having his computer (Levy, 2018). In 1976, Wozniak and his friend Steven Jobs while working for Hewlett-Packard Company developed a model that was rejected which forced them to relocate to a garage owned by Jobs family where they began their start-up. In 1984 a low-cost Macintosh was introduced which transformed Apple into a leader in the industry.

The iPhone

Apple's iPhone is a line of smartphones that use Apple's iOS operating system with the first generation being created in 2007 (Montgomerie & Roscoe, 2013). Apple Inc. marketing strategy is product oriented, and the creation of new products with unique and superior features has been able to sustain the organization position as a premium brand. In this case, Apple Inc. incurs a minimal amount in its overall marketing strategy with most of the work being done by network carriers which use Apple's products as bait as a result of advertising them.

Consumer Behaviour and Decision Making

Apple's iPhone market segmentation exists in segments which significantly determine the design orientation and support Apple's product-oriented marketing strategy.

High Loyalty Customers: The first consumer segmentation in Apple's iPhone customers based on behaviour has to do with loyalty with the focus being on their intense commitment to subsequent iPhone products. The first segment is made by people who understand very well Apple's products and are willing to pay extra for the iPhone features which have supported the iPhone series production (Montgomerie & Roscoe, 2013). As a result, Apple has been able to retain its high priced iPhone series of products in the market at a price above those of the competitors.

Technical Oriented Consumers: The second Apple Inc. consumer segment for iPhone products has people who are attracted to the design and functions of the phone. The segment believes that a superior iPhone with new components simplify their daily life and watch out for new products (Montgomerie & Roscoe, 2013).

Social Acceptance Oriented Consumers: The last segment of consumer behaviour is made of iPhone users who are in pursuit of higher social status and believe being fashionable and possessing superior iPhone products can be able to achieve this (Montgomerie & Roscoe, 2013). Apple's iPhone is premium priced and presented as a premium product which makes it easy to appeal to this segment.

Macro-environment Analysis

PESTLE Analysis

A Pestle analysis is a framework which can be used to assess Apple Inc. microenvironment which helps to understand the prevailing external environment and how the organization responds to the threats and opportunities.

Political: The main feature of the political environment today is globalization and Brexit which have a significant impact on Apple Inc. iPhone products (Begg & Mushovel, 2016). Globalization has significantly opened external markets for Apple Inc. with most of its sales coming from outside America. Brexit and the recent trade tensions with China will negatively affect Apple sales due to the rising rates which are going to make already expensive iPhone new series phones more costly for the middle class and young consumers (Zhang, 2018). Apple Inc. is heavily dependent on low-cost manufacturing in China which is being affected by the continued trade tariffs standoff with the United States. In the future, bad political relations and allegiances by the United States will affect Apple Inc. iPhone sales. Therefore, it is critical for the United States to engage the United Kingdom and China to retain good relations which will maintain Apple sales in the UK and low-cost manufacturing privilege and market in China (Zhang, 2018). In France, the Macron government increased taxes for corporations with the aim of reducing the nation's deficit. By taxing 38.3% on the companies with a turnover of 1 billion euros will significantly disrupt the local digital gadgets market which will negatively affect iPhone sales.

Economic: Changes in economic outlook has a significant impact on Apple Inc. products such as the iPhone because they are highly priced. European economic decline and the decline in the value of the pound negatively affect Apple sales. Since the referendum, the United Kingdom economy has gradually slowed down which has adversely affected the sales of iPhone products. In China, the growing cost of living has led to an increase in the cost of labor which has increased the overall cost of Apple products.

Social: Apple products are social status products and as more people seek a higher social class in the society the demand for iPhone series smartphones will appreciate in demand and price. In the United Kingdom, people are shifting to more luxurious products which is a significant opportunity for Apple Inc. to sell its iPhone series products which are premium priced hence being perceived to be associated with people in high social ranking. The social media wave has increased the number of people seeking smartphones, especially in the middle-class level. Therefore, with the growth of people seeking superior camera quality to take captions of moments and share on social media is an opportunity for Apple to grow its sales.

Technology: Technology changes in the external environment has a significant impact on the overall sales and demand for Apple iPhone products. As such, the changing technological trends are very dynamic which makes new iPhone products to lose value and prestige in the market quickly compared to before. Therefore, technological changes are a threat to the overall amount of sales that Apple Inc. makes in the United Kingdom and other global markets.

Legal: The legal factors can, directly and indirectly, influence the use of iPhone products. Brexit will significantly change the legal aspects regulating trade and the standard of digital technologies being sold by Apple Inc (Begg & Mushovel, 2016). In this case, it is essential for Apple to assess the potential changes such as in tariffs and product standards to ensure that the organization meets all the legal requirements to sell iPhone products in the United Kingdom.

Environment: Environmental factors are increasingly becoming a concern in digital products primarily due to climate change which has necessitated the need for strict regulations on emissions as well as an emphasis on recyclable material. In this case, there has been an increase on the call for greater energy efficiency in its products which has the potential of improving its sales if it meets the set energy thresholds in the United Kingdom and other nations.

Micro-environment Analysis

Porter's Five Forces model

Of all the five forces, the main focus should be on competitive rivalry and the organization bargaining power. The two forces are vital in supporting the organization continuous innovation and sustainability of the current market position.

Competitive Rivalry: Competition is a significant threat for Apple Inc. iPhone products due to other organizations that create similar smartphones at even low prices (Zhang, 2018). The influence of Apple's competitive rivalry is the high aggressiveness of competing firms, low differentiation of smartphones, and the low switching cost for the consumers. Companies such as LG and Samsung are very competitive due to their ability to create new products, aggressive marketing and ability to imitate Apple products.

Bargaining Power for Buyers: The buyer bargaining power can significantly affect Apple's iPhone products. The bargaining power analysis is fundamental in understanding buyer's purchase decisions based on preferences and perceptions (Zhang, 2018). The low switching cost has been a source of negative bargaining power for iPhone products because customers can easily obtain competitors' products with similar capabilities. This makes it easy for the customers to change their brands to their competitors. Besides, there is high buyer information regarding prices and functions which makes it easy for organizations to compare across different smartphones available in the market.

Bargaining Power for Suppliers: Apple Inc. has the upper hand in the bargaining power of the suppliers which indicates the inability of the suppliers to dictate demands and influence on both the company and the competitors (Chen & Ann, 2016). There are moderate to a high number of suppliers in the market which exposes Apple to a large supply chain around the world. The top suppliers of the semiconductors in the market is an example of a weak force of the suppliers to make demands. This low power makes it easy for Apple to gain industry leadership through innovation and improved value chain.

The Threat of Substitutes: The threat of substitutes as a force is feeble because a moderate number of substitutes and the low performance of the alternatives. Besides, the buyer propensity towards alternatives is very weak. For instance, there are high definition digital cameras that can easily compete with iPhones, but due to their limited features, the propensity towards such is limited.

The Threat of New Entrants: There is a moderate force in terms of new entrants because the possibility of new competitors in the market is considerably high. However, the high capital requirement and cost of brand development limits the threat of new entrants which exists only on the capacity of the potential entrants such as Google and Samsung which makes them a potential threat (Zhang, 2018).

SWOT Analysis

• Customer loyalty.
• Strong brand image.
• Rapid innovation ability.
• Distribution network limitation.
• High capacity competitors such as Google and Samsung.
• Premium pricing.
• Dependence on high-end segments.
• Potential to expand the distribution network.
• High innovation potential.
• Potential to develop new product lines.
• Imitation.
• High competition.
• Rising labour costs.
• High taxation rates.
• Declining economies.

Situation Analysis

Organization Objectives

Innovative Technology Brand: From the internal analysis, Apple Inc. is a very innovative organization based on its ability to create new products. Since the inception of iPhone series, Apple has provided very competitive and revolutionary products continuously with the new iPhone X being the most recent premium innovation product that offers its customers high-end quality applications and the social class they are seeking.

Brand Image: Apple's primary objective is to maintain its brand image as a premium digital technology company. The company has been able to maintain its brand image especially through its innovative high-end iPhone series pro...