Research Paper on Global Marketing Mix

Introduction

Marketing mix variables are a group of controllable marketing tools used by a firm to attain its marketing goals in the target market. This paper researches the main elements of marketing activity that include the price, the products, the promotion strategies, and the distribution place. The product is something provided in the market for attention, attainment use or buying with the aim of satisfying a want. Price is the value offered in exchange for a product by buyers at a particular time. Promotion is delivering product information to the targeted audience through communication instruments ("The Evaluation of Marketing Mix Elements: A Case Study", 2018). The tools include sales marketing, advertisement, publication, and personal selling. Distribution is the means of transferring the products or services from the supplier to the consumer.

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Product

Apple iPhones are cheap versions with less sophisticated features attracting professional users because of consisting of advanced features. Apple iPhone offers a warranty of one year and an option of three years Apple care warranty. Apple iPhone contains advanced features like large disk storage volume, lighter, 4G wireless access, Global positioning system, HD video recorder, and its thinner. These features distinguish them from the opponent's products. Apple iPhone builds their brand by spending the significant amount of research for producing innovative goods in the market hence differentiating their products from their challengers. Because of innovations, Apple iPhone has available opportunities like expanding to a new section through technological developments including attraction of iPod customers in upgrading to iPhone. Apple produces the hardware and software of the iPhone hence having the capability to control the design desired by its consumers.

Price

Apple iPhone pricing is among the highest in the market though buyers still have the interest in buying the phone. Pricing depends on the version, or the network person wants to buy. The primary competitive advantage of Apple Inc. is controlling the hardware and software of its products. This means that its products are operated through similar OS and run the same software. Apple Inc. has adopted non-cash payment methods. Consumers use debit cards, credit cards, phones and mobile payments, bank transfers, and online bank transfer such as the PayPal.

Merits of Standardization versus Customization

Apple Inc. is facing significant challenges of competition from its rival companies including Samsung and some other manufacturers in China and India. Recently, Apple iPhone 5c that was manufactured using a plastic backing rather than its usual metal failed to penetrate to the emerging market, which is a big concern as consumers thought that the product was cheaply made. Therefore, Apple Inc. uses some of its primary thoughts such as standardization of goods and distribution. Through this technique, it keeps the costs of its products low by standardizing its products (Ding & Keh, 2016). This approach is one of its globalization plans that requires coordination by its traders. Apple regulates their products to the entire worldwide markets and suppliers internationally. Standardization minimizes costs and ensures limited customization outside of varying power sources in each country's rules.

Driving Forces for Marketing Pricing

Apple maintains its brand by delivering high-quality products at a premium cost, focusing primarily on providing quality products, maintenances, and experienced advice to the consumers, and Apple's passion and dedication consumer foundation hence charging premium prices. The driving forces include:

Short or long-term firm growth rate.

Apple's growth rate has been slow for the past several years because of the weak economy and lesser disposable income due to dismissals. Advancement of technology has not been upgraded for constant change hence customers wait for a few upgrading before buying.

Changes in society.

Many individuals buying computers are now using Windows OS, and many are lacking the knowledge of Apple OS (Zaribaf, 2017). Apple should create awareness to the upcoming generation on the simplicity of using Apple OS and the excellent quality of Apple products.

Product innovation and technological variation.

Apple should improve as the technology advances as consumers have the desire to acquire the latest and most significant models. The strength innovation among products is directed to areas of miniaturization.

Increased globalization of industry.

Many firms are being driven by the urge to acquire a significant market share globally by appearing in the global markets.

Variations in cost and efficiency.

Because of technology advancement, firms are spending a considerable amount on innovation research. Costs increase more if rival competitors reduce their value in the market. Apple should provide buyers with highly valuable products to justify the high cost of their products.

Distribution

Apple iPhones are available in major retail shops in countries such as the United States, Canada and Germany. They are also available Apple websites and stores internationally devote themselves to the Apple iPhone. Apple Inc. carries out research to select appropriate and convenient locations and has more than four hundred and fifty retail stores globally. Apple has found an alliance with Sony and Ericsson aiming to capitalize the broadband wireless forthcoming market.

Multinational Diffusion Theory

Diffusion of innovation theory explains the method, reason and the rate of spreading new technological ideas through a marketplace. The main elements of diffusion of innovation are the innovation or new ideas, adopters; communication means to transfer the information acquired, the time required for adoption of the change, and social system for influencing the potential adopters. Apple Inc. is one of the multinational companies that has taken the risk of innovating new ideas. Apple has changed processors and OS fundamentally, requiring the earlier consumers in purchasing new computers, instead of a slow continuing transition observed in Windows servers.

Importance and Challenges of Logistics

Logistics is managing the flow of products from the point of manufacture to the consuming point to fulfil the needs of the consumers. Apple Company has one of the best supply chains in the world, as it is the first growing and most profitable firm worldwide (Dempsey, (2016). To manage the new product launch, the procedure of designing, producing and launching takes approximately ten months. The process is to the source, test, legal approvals, and factory dry runs. Apple uses logistics to track distributions using satellite technology hence logistics managers refer to this information in the optimization process and avoid possible troubles. Nevertheless, Apple faces challenges influencing logistics include cutting the transport prices such as high fuel prices, cost-friendly innovative and technological advancement, compliance rules set by national and local authorities, and maintenance of the environment.

Promotions

Apple iPhone was launched internationally in 2010 in the United States, Germany, Canada, and other countries worldwide. There was a much TV marketing for Apple iPhone to promote and create a competitive favor in the market for a successful worldwide launch of the Apple iPhone 5. The new feature of iPhone is also advertised on the billboards, social media, displaying in Apple stores, and through their official websites. The Apple Inc. advertises its brands regularly for maintenance of public awareness. Apple iPhone is different from other phones concerning screen functionality (Giachetti, 2017).

Global Branding Strategies

Apple Inc. uses the Apple brand for competing through various considerably competitive markets. The branding personality of Apple is focusing on emotions, simplicity, innovation, lifestyle, and passion of the users. Through these qualities, Apple is regarded to help people striving to accomplish their goals. The brand architectural display helps the company to maintain a substantial brand identity by linking every product with the Apple logo. The inventions in the music firm are connected with Apple's brand name and its valued goods and services.

Constraints on Global Integrated Marketing Communication Strategies

The first constraint is lacking awareness and understanding of the level of organizational administration. Managers fail to understand the purpose, of IMC in the growth of their firms. Another constraint is that purchasing power is not enough and economic collapse caused by decreasing business incomes leading to a few marketing activities.

Advantages and disadvantages of IMC.

Apple has used the features of IMC for achievement and maintenance of long-lasting consumer relationship. Apple uses promotion and advertisement equipment for capturing the desire and attentiveness of the buyer. IMC enhances consumers trust due to consistent reliability. It also makes the products to be recognized hence increasing the business's income. However, IMC it is not easy to implement IMC, as the process requires critical thinking on the knowledge of the methods to be used, it is costly, requires the team to work together, and measurements of success can be challenging.

Conclusion

In conclusion, marketing mix, variables are a group of controllable marketing tools used by a firm to attain its marketing goals in the target market. Product, promotion, place and pricing are the elements of the marketing mix. Diffusion of innovation theory explains the method, reason and the rate of spreading new technological ideas through a marketplace. The driving forces for marketing pricing are short or long-term firm growth rate, changes in society, and variations in cost and efficacy.

Reference

Dempsey, P. (2016). The Teardown: Apple iPhone 7 smartphone. Engineering & Technology, 11(11), 80-81. doi:10.1049/et.2016.1126

Ding, Y., & Keh, H. (2016). A re-examination of service standardization versus customization from the consumer's perspective. Journal Of Services Marketing, 30(1), 16-28. doi: 10.1108/jsm-02-2015-0088

Giachetti, C. (2017). Explaining Apple's iPhone Success in the Mobile Phone Industry: The Creation of a New Market Space. Smartphone Start-ups, 9-48. doi:10.1007/978-3-319-67973-0_2

The Evaluation of Marketing Mix Elements: A Case Study. (2018). International Journal Of Social Sciences & Educational Studies, 4(4). doi: 10.23918/ijsses.v4i4p100

Zaribaf, M. (2017). Pricing Challenges in Global Marketing: A Model for Export Pricing. SSRN Electronic Journal. doi: 10.2139/ssrn.988627