International Marketing

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TASK A INTRODUCTION The product name Apple was originated from two mutual interests friends Steve Jobs and Steve Wozniak. The development of the company in the 1070s Apple was a step ahead of most computers of the time featuring a use of television as a display system of watching and a cassette interface for listening and recording programs. Apple Inc. is mainly a special design, a market mobile for media and communication device personal hands computer, digital music

player, and the production and sells of variety of software, networking, service and maintenance and other digital applications. However, The Company also sells and delivers kinds of digital applications such as iPhone, iPad, Mac, iPod, Apple TV and a portfolio of consumer and professional software applications. The Apple Company also sells its products worldwide through its retail stores, direct online stores, and direct sales force, as well as through the third-party cellular network, wholesalers and retailers. Apple Company offer a variety of mobile devices, personal computers (Desktop and Laptop), modern digital music players and others variety of different software, networking and general services. In addition, the company has its own company software products including, the company mobile operating system, and the Companys proprietary Operating system software for the Mac; server software and application software for consumer, together with education, initiative and government customers. The value of Apples brand increased by 129% in the past year, from about $33 billion in 2011 to $76 billion this year, according to iInterbrands Global brand Rankings 2012. The company is everyday increasing year by year and the high record among companys grade.

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Figure: 1 (Source: IDC Worldwide Quarterly Tablet Tracker, Nov. 5, 201

Basically, the market expanded by as much as 49% and a major portion of the new market of the products Samsung. Annually, Samsungs have surged by a whopping 325%, up from 1.2 million units in 2011 to 5.1 million units in the newly concluded area. This $199 worth 7-inch tablets were hot sellers and forced Apple to consider the idea of launching a smaller tablet. Compared to 2012, the shipment volume of Kindle almost reached twice to 2.5 million units.

APPLE Inc. MARKETING MIX Marketing Mix is the combination of four elements, called the 4Ps (Price, Products, Place and Promotion), that all company has the choice of weather to add, subtract or to modify in a way to generate a desired marketing strategy. (Philip Kotler). Marketing Mix are the set of tactical marketing tools which comprise of Price, Products, Place and Promotion that the firm blends to produce the response it wants in the target market. (Principles of Marketing, Kotler and Armstrong, 2012)

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The four (4) classifications are as follows: product, place, price and promotion are commonly called the four ps. Note are also that the client is not part of, but rather are the main target of the marketing mix (Perreault, Jr. & McCarthy, 2009).

PRODUCT Armstrong and Kotler define product as anything that can be offered to a market for the attention, acquisition or consumption that might satisfy a want or need (Armstrong & Kotler, 2005, p. 223). Apple Inc. Company is utilizing the iPod ecosystem to leverage the iPhone thereby supporting its online music system. The main display of PC based websites with the same display made this product different from one another. (Ogrady, 2007). The company is utilizing the iPod ecosystem to leverage the iPhone thereby supporting its online music system. The display of PC created websites with same display made this product different from others. (Ogrady, 2007). Many companies fail to remember what the client is really searching for. In the words of famous marketer Jay Abraham, give them your solution or somebody else will (Abraham, 2005

PLACE Apple Inc. is said to be an American Multi-national Corporation Company which the Headquarter is located in 1 Infinite loop, Cupertino, California State with about 394 different numbers of retail stores that design, develops and sells consumers electronics. (Nov. 2012)

Figure: 2 Sources: Distribution locations (Kiprin, 2009; Apple Annual Reports, 2010). The Company surveyed the means of distribution together with telecommunications services along with stores and connected system of business. In this point of view, the customers were force to enter a contract from 18-24 months. The company is using some certain ways for

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distribution of their products. (Jobber & Fahy, 2009). Around 18million out of 58million people are already with iPod products to which the company done much to provide their customers with its products. The company is clever to use the use the touch points of established networks (Vodaphone, O2, Orange, T-Mobile etc.), (Jobber & Fahy, 2009)

MARKETING MIX UNDER PRICE AND ITS ANALYSIS The internet has changed the way Apple Inc. Company set its prices. The fixed prices for all customers are giving way to dynamic pricing, where customers are charged different prices depending on students, individual customers and situations (Armstrong & Kotler, 2009). The marketing managements have to make sure that the Apple Inc. pricing on customers worth rather than only on cost. The only ways to ensure appropriate Apple Inc. price for customer is by changing the customers perception of value. The price should be suggested by making the service or expertise the value, not the product itself, even commodity driven Apple Inc. products can benefit from this approach. The Apple Inc. main Corporation needs to emphasize the benefits that come with the product.

Price The Apple Inc. Pricing mix in Business Analysis includes Cost, Competition, Discounts, and geographical Area. The marketing plan must include consideration on how Apple Inc. prices are pricing and including discounts, (Perreault, Jr. & McCarthy, 2004). Apple Inc. marketing plans must include price considerations. The pricing includes costs, competition, markups, discounts, and geographical area. Even if all the other aspects are perfect, with the wrong price, the customer will not buy the product. Apple Inc. Company started selling its product at the price of $599 (8GB), $499 (4GB) and later it reduced the price of 8GB to $399. Still it also wanted to target the mainstream users and cant reply on the first adopters (young techno savvy, professionals) for future growth. They tried skimming and versioning strategy. (Apple Annual Reports, 2010) With the introduction of technology today, the price Apple Inc. goods are been displayed and change by the company through internet. The days of unchanging prices for all clients are giving way to active pricing, where clients are charged different prices depending on individual customers and situations (Armstrong & Kotler, 2009)..

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Promotion Apple has been most aggressive in terms of promotion on their product. Promotion as the name implies is the fourth of the Marketing mix and not necessarily more important than any of the marketing mix. Formally defined by Armstrong & Kotler, promotion is concerned with telling the target market or others in the channel of distribution about the right product (2004).

Figure: 3 Sources: Strategy of promotions (Kiprin, 2009; Apple Annual Reports, 2010)

During the lunch to flaunt the innovative device (iPhone), the company started with 4TV to which can provide the needs of entertainment and sharing of information about the device and by focusing a new ways to advertise the present 4TV ads in July 2010 (Chris 2010). The company made successful relations with media firms and Steve (CEO) shares new ideas with public during occasions. (Williams, Mullin. 2008).

Company Strategy Apple is expanding and improving its distribution capabilities by opening its own retail stores in key cities around the world in a market of good quality shopping venues. Apple provides expert retail floor staff to selected sellers' stores (such as Australian department store David Jones); it has entered into strategic alliances with other companies to brand and distribute Apple's products and services (for example, HP who was selling a branded form of iPod and pre-loading iTunes onto consumer PCs and laptops). Apple Inc. recently increased the accessibility of iPods through various sellers that do not currently carry Apple operating systems, and this increased

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the reach of its online stores. There have been few studies about Companys Strategy of Apple Inc. such as Marketing Fundamental Project (Christine, 2010). The successful Apple retail stores give away customers direct experience of Apple's brand products. Apple Store visitors experience an interesting good care, know pressure environment where they can discover more about the Apple products in general, they try the company's products, and get every help and assistance from staffs of Apple Inc. products at the shops nationwide.

Figure: 4 Source: Apple Inc. 2010 SWOT Analysis Apple Inc., the manufacturers of iPhones , iPads ,Macs, iPods , and specialized operating software, the company has achieved great success since it begin in the year 197os. It's complicated to predict what will happen to the Apple Inc. company in the coming future, but a SWOT analysis (The Strengths, Weaknesses, Opportunities, and Threats) be able to help to understand the company's current position and again what will happen to the company business in the future. For years, a SWOT analysis was the primary way to analyze how a company was doing financially.

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Figure: 5 (SWOT) Sources: Dallas Business Journal (2012) SWOT stands for Strengths, Weaknesses, Opportunities and Threats. It is a way of Summarizing the current state of a company and helping to devise a plan for the future, One that employs the existing strengths redresses existing weaknesses, exploits Opportunities and defends against threats.

STRENGHTS Branding Innovation Retail Strategy Superior Quality

WEAKNESS High Price products Less Penetration Cannibalization

OPPORTUNITY Technology Innovation Strategic Alliance Fast growing Industry

THREATS

Extensive Competition Substitue Products Technical Advancement Economy Downfall

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TASK B INTERNATIONAL PROCESS THEORY (IPT) The knowledge of Internationalization process theory that we have at our disposal has turn out to be among the best theoretical approaches. The main function of phenomenon to which at the beginning is still remain complicated because of different result where investigated to have not always been unplanned, therefore, they are not allow unanimous interpretations of the internationalization phenomenon (Eusobio et al 2007). The internationalization process is seen in terms of increasing experience knowledge, commitment and investment in other markets. Johanson, Vahlne (1977) are among those who provided the internationally most commonly cited theoretical and empirical base of this stepwise approach. They suggested that initial internationalization activities are targeted to close markets, markets sharing similar geographical neighborhood, culture, language, and political systems and trade practices. Critical when you compare with Apple Inc. Company in terms of factors in internationalization are the possession of appropriate knowledge of the recent market, techniques of global operations and the firms financial, personnel and marketing resources, (Luostarinen et al 1994, 189-194).

The Uppsala model of firm internationalization process The Internationalization Process theory (Mode) is mainly focused on the development of individual firm, and particularly on its gradual acquisitions, the use of knowledge and integration about operations, process, and foreign market on its successive increasing more commitments to the foreign market (Johanson, Vahlne, 1977). According to the theory, the main state aspects are resources commitment to the foreign markets, market knowledge about foreign market and its operations. Therefore, the change aspects are decisions to commit resources and performance of current business activities. (Anderson 1993). The gradual acquisition of such knowledge are amplifies of foreign market commitments (Karadeniz, Gocer, 2007).

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The Internationalization Process of the Firm

Figure: 6 Sources: (Johanson, Vahne 1977)

From the figure above, the market knowledge and market commitment are supposed to affects both the Current activities and Commitment decisions as like of Apple Inc. market strategy. From theory, its supposed that the firm strives to increase its long term profit, which is also assumed to be equivalent to growth. Alain (2008) has given some insight about the development and Market Commitment of Apple Inc. Saying, The CEO; Steve Jobs is working hardly with the design team and development team throughout the whole improvement process. With all this, the meeting is been conducted with all management every month, where many issues that are related to marketing decisions, commitment and marketing knowledge and other problems are discussed. This Model describes (2) patterns at the operational level, in the first pattern it describe the firm in a participation in the country market to develop and establish chain (Johanson & Weidersheim, 1975) that indicates an ongoing commitment of resources to the entire market. Apple Inc. also participates in many markets of different countries with the expanding integration of developing countries into global markets.

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The Second describe the firm as entering newly market with successively greater psychic distance to which it imposed by different business planning, norms and values, language, system of education and lastly their industrial development. Apple Inc. is here describe

Marketing Process Apple Inc. Company uses all forms of advertising strategies, marketing knowledge, market commitment, commitment decision and current activities to call the attention of customers through Television, Newspapers, Billboard, Internet and Movies. The best advancement and ways in all Apple Inc. stores customers are freely to touch and see the products. The sales teams are well trained in a good and responsible ways to give awareness, rather than giving a sales pitch. Also the CEO has impressive presence in front of media to market the brand. (Ireland et al, 2009).

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TASK C 3.1 COUNTRY OF ORIGIN

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Apple Inc. is said to be one of the most successful and at the same time the most recognizable companies in the World today. Newly innovations of science and technology have contributed a lot in transforming a modern business today. New technique and creativity have made it less and fewer for skilled workers to manufacture good quality with a little waste of the products. The Apple Company was founded as a partnership on April Day 1976 by three people who originally worked at Atari, Steven Gary Wozniak (1950- ), Steven Paul Jobs (1955-2011), and Ronald Gerald Wayne (1934- ). Apple was incorporated on January 3, 1977. In the history of United State Companies, Apple Inc. Company has created entirely new technology, Ideas, products and new industries by concentrating on creativity and innovation. However, based on a study by Analysis Group in February 2012, Apple Inc. Company has directly and indirectly created about 307,250 U.S. jobs. These jobs spread across all 50 states include thousands of jobs in various industries in the Country, from the people who create components for our products to the people who construct, build and designing of the product Globalization, outsourcing, virtual economy and development in communication standards are external factors that drive companies to approach the global market in a different way as compared to one described by the traditional stage model (Oviatt & McDougall, 1994).

Country of Origin affects Apple Inc. products because the company and products are based in united states to which many customers in the World prepare any products made from such country unlike China where many company are assembled there products for final production due to less labour charges and high number of knowledgeable people. China as a technology country with a traditionally risky government to make investment within the country, with many changes that tale place and make entries to the foreign investors and organizations, many companies like Starbucks Coffee have found the same risk of entering and accepting to engage on business because of the positive of the business rewards of high population of over 1.3 billion people (Murphy, 2007) .

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Figure: 7 Sources: International Consumer Behavior (Quorum Books, 1995)

The administrative heritage of a country is historically influenced by the industrialization process, the system of government, dominant philosophies and religions, and geographic and demographic conditions. Calori/Lubatkin/Very/Veiga, (1997)

Internationalization strategies of Emerging Market Firms The Internationalization strategy follows a certain companys characteristic in terms of country of origin, size and its age. Each among the four (4) firms has its best different mode of entry, the multinational challenger most have a surplus of resources that should be able to compete with multinational firms on the global market like Apple Inc. in a way to establish a good and strong brand for the companies. These companies have a certain speed in their internationalization process and focus more on the international market than on their home market. (Tsai, Eisingeich, 2010)

Products Promotion Apple Inc. Company uses promotion method; the company is very active when it comes to promotion promotional activities because it uses some method of promotional plan towards the calling attention of the target market to respond directly at the appropriate time. The Company uses a simple and positive ways to of promoting its products by displaying all their products to the general customers in order to know and experience the products at the same time which is

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lower purchase price and rebates, this allowed the customers to be freely and comfortable with the products. However, Apple Inc. products promotion on the other hand, they target directly to its customers especially present enrolled University or College students. The products promotes is Mac book laptops, a free IPod is given to a students who purchase Mac book laptop and this called the attention of other students to purchase more of Apple Inc. products (Apple Inc. 2008).

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REFEFENCES

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Armstrong, G., & Kotler, P. (2005). Marketing: An introduction (7th ed.). Upper Saddle River, New Jersey: Pearson Prentice-Hall. http://files.shareholder.com/downloads/AAPL/1826229879x0xS1193125-11282113/320193/filing.pdf Scribd.com (2010) Review of Literature for Consumer Analysis and Success Factors of Apple Inc. [online] Available at: http://www.scribd.com/doc/54122584/1/Review-of-Literature Managementparadise.com (n.d.) Distribution Strategy of Apple.Inc - ManagementParadise.com - Worlds Leading Management Portal. Online MBA | Classroom to Boardroom and Beyond. [online] Available at: http://www.managementparadise.com/forums/elements-logistics/216474distribution-strategy-apple-inc.html Managementparadise.com (n.d.) Distribution Strategy of Apple. Inc - ManagementParadise.com - Worlds Leading Management Portal. Online MBA | Classroom to Boardroom and Beyond. [online] Available at: http://www.managementparadise.com/forums/elements-logistics/216474distribution-strategy-apple-inc.html eHow (2006) SWOT Analysis for the Apple Company. [online] Available at.: http://www.ehow.com/facts_6801257_swot-analysis-apple-company.html Slideshare.net (1980) Apple Inc. Marketing And Distribution Strategy. [online] Available at: http://www.slideshare.net/kaushiik10/apple-inc-marketin-and-distribution-strategy#btnNext . http://man-behtarin-khaham-shod.persianblog.ir/tag/international_business Macapplepod.wikispaces.com (2008) Apple - Promotional Strategy. [online] Available at: http://macapplepod.wikispaces.com/Promotional+Strategy Apple.com (1997) Apple - Job Creation. [online] Available at: http://www.apple.com/about/jobcreation/

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