Describe the benefits and opportunities to Apple of using internet marketing within their marketing mix
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Price
Benefits:
The prices that Apple give to their product reflect their build quality, but not the overall usability of the device. Many people think that their handsets are way too overpriced.
Opportunities:
The opportunities that Apple has, is that there are loads of Apple fans who literally camp outside Apple stores 3 days before the launch of a new device just to be amongst the first few to get it. Now this could also be, so that they can make some money on eBay if they decide to sell it, as there are people who are willing to spend ££££s for a device just because it is brand new, only just came out and barely any people have it. Apple can maintain its prices because people are used to it now, and they always get excellent build quality, and most of the time the usability and the features reflect this as well.
Promotion
Benefits:
The way Apple uses digital marketing to promote their products are very efficient, and it can be perceived that there is a good amount of planning done behind the scenes. For example, when the new Apple iPhone 7 (and 7 Plus) was close to being released, they started Tweeting small sneak peaks of the device to make fans go crazy – and of course, to generate a hype, which leads to the purchase of the device. Now obviously, with this new phone not having the feature of the headphone jack connector, Apple had to think of very strong ways to market their new device, because not all of the Apple fans were intrigued by the removal of this very general - and needed feature. Apple uses social media as a very strong marketing platform, because today it is not only used by teenagers, but elder people as well. Other ways of digital marketing that Apple uses are; billboards, ClearChannel, Google Adwords etc.
Opportunities:
The opportunities of using internet marketing for Apple are unlimited, because they make technology, which is always connected to the internet, therefore they are able to use all the sources of internet marketing to aid them to get the word out to their target audience. They are clever, because I haven't really seen leaflets produced by Apple putting them through letterboxes to advertise their handsets – they use internet marketing, because with technology, marketing is usually only sufficient if you use digital marketing for its promotion.
Physical environment
Benefits:
Since Apple operates their business online – them having an online store as well – they would be reducing the need for customers to come in store using their vehicles and therefore causing pollution and other environmental health issues.
Opportunities:
By Apple selling their products online would be beneficial to the environment, and they would also be increasing sales because there are many customers who find it easier and more convenient to go online and purchase goods within a couple of clicks and touches – and it is also available 24 hours a day (unless there is maintenance going on). Apple also makes more profit by having an online store, as it is basically another platform where they can sell their goods, therefore reaching more customers, therefore generating more profits.
People
Benefits:
Apple has many employees, whom without the business would not function properly. Manufacturing department, shipping department, customer service department, online department, sales advisors, store managers etc. This means that loads of people work for Apple – probably at a really good pay rate too – and those employees are what hold the company together.
Opportunities:
With Apple having to provide high quality customer service – this is obviously a must since their goods are very, very expensive – they are gaining the opportunity to improve the business' efficiency and ensure that satisfactory service is being provided for the customers, as this would ultimately ensure growth of the market, sales and revenue.
Product
Benefits:
With Apple operating online, it has the benefit of appealing to many more customers than it would be in a store. Apple is able to diversify their products by offering a range of different products to suit different type of customers' interest and to provide them with choices – rather than limiting it with certain products. Many customers who shop online prefer to have the advantage of paying online for products, as it is easier and faster than having to go to a store and purchase the same product, when they can buy it without having to leave their house. Therefore, Apple would be gaining more customers and increasing its sales and profits, as they would also have to charge for shipment costs.
Opportunities:
Apple has the opportunity to develop and expand their range of products, as customers who shop online are most likely willing to purchase products that are such high quality and well-known. Apple would also be expanding its marketing share as well as increasing sales from their existing customers by introducing online products and services.
Process
Benefits:
Apple's trade and transaction when operating online has become much more simple and cost effective in oppose to what it's like in one of their stores. The internet enabled the process of customers' purchase at Apple to be easier, as a database mainly does the job rather than having to hire actual employees. Because of this, Apple is saving a lot of money by expanding their business online, rather than opening another Apple store for which they would have to hire a good amount of employees.
Opportunities:
Apple used the opportunity to enhance the payment process online for customers by having them register for an account, which then stores and saves their private information – such as delivery address, contact details and payment information. This makes it easier for customers to check out, and it is also much faster too – which can also encourage them to shop online, as it takes barely 10 seconds to order a new phone, in oppose to having to (possibly) drive to a local Apple Store, stand in the line, wait for an advisor, go through the payment process, then drive back home.
Place
Benefits:
Apple being a retail and an e-commerce business, because they also have an online store it saves them a lot of money not just on renting / leasing costs, but also the hiring of employees and they do not have to pay utility bills such as electricity and water, etc. The only physical place Apple would need for their online business is a warehouse – which they already have multiple numbers of – therefore they probably didn’t have to open a new one; again, saving money.
Opportunities:
Apple has the opportunity and the money to invest in order to improve their website and make it up-to-date in terms of accessibility. This would make the shopping procedure for online customers much more enjoyable, easier and convenient; which would – again – encourage customers to shop online regularly, generating Apple more sales, profits and a wider market share.
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