Running head: RESEARCHING MARKETING QUESTIONS Researching Marketing Questions MKT/571 Week 1 1 RESEARCHING MARKETING QUESTIONS Researching Marketing Questions Part 1 To: Senior Vice President From: Date: Re: Insights and Commentary Areas of Increase and Decrease in Revenue or Type and/or Category of Business In analyzing the company’s revenue from the year to date (YTD) category, the primary areas of revenue increase were in the domestic and international markets where the company’s revenue per day increased between 2015 and 2016 from $85, 181 to $93,638. The increase could also be observed in customer ranks and class. For instance, among commercial customers, the revenue/day increased between 2015 and 2016 from $50,772 to $55,780. The company’s primary customer is ABC Corp and the revenue also increased from $4,208 to $4,662. Increases were also observed in quarter to date (QTD) and month to date (MTD) categories. When analyzing the company’s top customer ABC Corp, there was a 5% total revenue increase between QTD months of April, May and June. 2 RESEARCHING MARKETING QUESTIONS 3 Trends of Revenue or Type and/or Category of Business There is a general increase in the trend of revenue in the company. Between 2015 and 2016, there was an increase in revenue across all the company’s top customers. For instance, ABC Corp, Fish Limited, ALPS Company all recorded increases in revenue per day between 2015 and 2016. Moreover, the trend in the domestic and international category of business also demonstrated an increase. When ranking customers, the company’s revenue per day also increased between 2015 and 2016. Insights That Would Help Formulate Marketing Strategies to either Continue Growth or Reverse Decline When analyzing the company’s marketing report, the insights gleaned would be useful in continuing the trend in growth being experienced. From the report, the company could take a more aggressive approach in international market to make up for the small changes seen in the YTD analysis. From the report, the company experienced a slightly less change in revenue/day in international market compared to the international market. Moreover, when analyzing the customer class, it is clear that there are various types of organizational buyers that the company caters to. Marketing strategies could be formulated depending on the commercial customer class considering they are the most profitable. To increase the commercial customer, the company would have to be more aggressive, for instance, finding out what commercial customers are buying the most and offering discounted pricing or promotional services. Moreover, municipal customers comprise a significant component of the company’s revenue. Marketing for government agencies could entail using data-driven RESEARCHING MARKETING QUESTIONS solutions and a multi-channel approach to reach the numerous purchasers in government agencies. Top customers like ABC Corp and Fish Limited comprise a significant part of the company’s revenue. To market to the company’s top customers, the objective is to retain the customer and increase sales to them. Companies like Fish Limited and ABC Corp are different and hence customized marketing experiences that fits their individual needs would be appropriate. Additional Analysis As a senior vice president, the marketing goal and strategy would entail retaining existing customers and expanding, especially on an international scale. For instance, the objective of marketing to top customers like ABC Corp would be to nurture a strong sense of brand loyalty which could be accomplished through promotions and discounts for bulk purchases. For government agencies where numerous decision makers influence the purchase process, the goal would be to use a multi-channel approach to reach all the influencers. Part 2 • Name of Company: Apple Inc. • Location of Company Headquarters: Cupertino California • Name of Product or Service selected: iPhone • General description of company 4 RESEARCHING MARKETING QUESTIONS 5 Apple Inc. is a global company that designs, makes, and sells devices ranging from smartphones, PCs, tablets, accessories, and other related services. The company’s products and services include the iPhone, Mac, iPods, iPads, Watch, TV, iCloud, streaming and licensing. Apple Inc. was founded by Steve Jobs in 1976 and has grown to achieve a market capitalization of over trillion dollars. The iPhone is the company’s most prominent product and has generated the bulk of the company’s revenue and profit (Apple Inc.: Company Profile. 2019). As a global company, Apple has over 100,000 employees across its markets and over 500 retail stores. The company’s products are sold through retail stores, on its website at https://www.apple.com/newsroom/, direct sales force, indirect channels, and third parties like Best Buy, and carriers like AT&T. apple’s financial performance has been strong in the past decade which has been due to the strategy of popularizing the iPhone and creating innovative products. • General description of product or service The analysis will focus on the iPhone, which is Apple’s most prominent product. The company released the iPhone 11 series in 2019 and the product accounts for 60% of the company’s revenue (Apple Inc.: Company Profile. 2019). The iPhone is priced at a premium and with aspects like machine learning to enhance augmented reality, photos, and gaming, the company’s products retail for over $1,000. RESEARCHING MARKETING QUESTIONS References Apple Inc.: Company Profile. (2019). Retrieved from https://www.vault.com/companyprofiles/computer-hardware/apple-inc 6 1 Running head: APPLE INC. Apple Inc. Week 2 APPLE INC. 2 Introduction Apple Inc. is an international company that deals with electronic products such as iPhones. It uses excellent marketing strategies to sell its products and attract potential clients. In the establishment of a productive marketing relationship, understanding the targeted client's purchasing characters and influences is crucial. Secondary research, environmental scanning, PESTEL analysis, understanding client profile, segmentation, and selling of sweater products contribute highly to Apple Inc.'s marketing strategy and maintenance of its position. Primary and secondary research Primary analysis entails acquiring of information from primary sources such as observation while secondary research is obtained from primary data. Apple Inc. uses secondary exploration, such as details of previous marketing, to increase its products. It entails an analysis of old data and information for innovation purposes and the introduction of novel products. Secondary analysis has allowed Apple Organization to keep potential clients and strengthen their relationship, hence competitive advantage. Customer profile Apple Inc. clients involve people that value fairness and a great lifestyle. Likewise, it pertains to individuals that use computers highly in the completion of their activities. The clients are usually of middle and upper social class, people that value more than cash flow and price of possession value. These customers have an interest in electronics such as iPhones, iPods, iTunes, and iOS operating systems (Alsina et al. 2018). Apple understands its client's buying influences and behaviors, hence uses it to improves its products and brand messages. The most controls of consumers in the purchase of commodities entail design, brand, quality, and satisfaction. APPLE INC. 3 However, Apple Inc. has a reliable brand name and offers quality products of high technological advancement; thus, attracting and maintaining potential customers. Environmental scanning An environmental scan evaluates the internal and external factors that affect an industry, such as Apple Inc. External factors such as opportunities and threats that affect Apple Inc. in diverse strategies. This industry has a high chance of innovation as it recognized for its innovative features, strategy, and technological expansion. The aspect of change has enabled Apple Inc. to gain and maintain its competitive advantage. However, it faces threats such as stiff competition from agencies mobile as Nokia, Motorola, and Samsung (Vasilaki & Tsakalidis, 2019). Likewise, this industry has encountered individual lawsuits due to the involvement of child labor in supplying its products. Apple Inc. may face future threats of censure and lawsuit if it does not tackle this issue effectively. The internal environment, such as strength and weakness distress this industry's growth. Apple Inc. has a reliable brand name, uses high technology, and it is innovative. These aspects have allowed it to acquire a competitive advantage. On the contrary, it faces several weaknesses, such as poor control over its suppliers that cause it to have a bad reputation and lawsuits challenges. It has issues with linking a client's needs, depends on few merchandises, and its products are discordant with third-party software. PESTEL analysis The PESTEL analysis outlines the external factors that affect an organization such as Apple Inc. this industry faces political issues of corruption, bureaucracy level, government stability, and freedom of the press. Corruption cases tend to reduce the industry's sales, hence loss of revenue. Economic factors such as interest charges, money conversation rate, tax rates, APPLE INC. 4 and inflation rate affect Apple Inc.'s marketing and revenues. Social factors such as an increase in mobile usage and digital system reliance create enormous opportunities for this organization to thrive in the market (Zhang, 2017). However, technological factors such as an increase in cloud computing request, mobile market, and innovation create a positive impact on Apple Company as it improves its products and services. On the contrary, the high technological abilities of other industries cause a threat to the Apple Industry due to stiff competition. Ecological features such as senior business sustainability and energy efficiency enlargement have promoted Apple Inc. in the implementation of new and efficient technologies that aid in innovation and design. Legal factors such as a rise in privacy regulation are an advantage as the industry can maintain privacy. Still, it is a threat as it limits the organization in performing certain activities. Legal challenges such as lawsuits are a considerable threat that affects the business operations in this company. Demographics Apple Inc. targets clients of different ages depending on goods and services. On products such as the iPhone and iPad, this organization aims the client between ages 20 to 45. It focuses on clients between 18 to 30 years in the provision of iTunes and App Store services. Likewise, in the operating system and software such as iOS, this industry major on consumers between 20 to 35 years (Alsina et al. 2018). Apple Inc. targets customers between 20 to 45 years in the provision of accessories such as Apple Watch. Likewise, it focuses on both gender (male and female) in the regulation of all products, services, and accessories. Apple Inc. targets consumers with high income in the provision of its products, services, and accessories. In family membership, Apple Inc. targets bachelors and newly married couples to purchase its merchandise and services. APPLE INC. 5 Psychographics Apple Inc. targets clients of middle and upper social class in the product, services, and operating system segments. However, it majors in high class in the accessories sector. Likewise, this industry focuses on consumers with diverse lifestyles. In the services and operating system sector, it majors on voyagers, achievers, and aspirers. In the product segment, Apple Inc. targets on explorers, achievers, resigned, and aspirers. Lastly, it majors of pioneers and aspires in the provision of accessories. Markedly, from the demographics and psychographics, it is clear that Apple Inc. focuses on clients above eighteen years of both genders. Likewise, it targets high social class consumers that are successful in life; thus, maintaining potential clients and increase its profitability rate. Sweaters Apple Inc. has many accessories, such as watches, sleeves, headphones, and cables. However, due to the stiff competition from its competitors such as Samsung, this organization can introduce a new product (sweaters). This industry can design jerseys and place the Apple brand image. Not only will this product increase the industry’s revenue, but also it will aid in marketing this product. The Apple sweaters with the logo can be used for campaign services and develop a unique value position for the industry. This product can be sold through marketing over social media or used in the form of promotions. The introduction of this new product will attract potential clients as not only will they acquire electronics but also clothing. Conclusion Secondary research, environmental scanning, PESTEL analysis, understanding client profile, segmentation, and selling of sweater products contribute highly to Apple Inc.'s marketing APPLE INC. strategy and maintenance of its position. Secondary research, environmental scanning, PESTEL analysis, understanding client profile, and segmentation contribute highly to Apple Inc.'s marketing strategy and support of its location. The selling of Apple sweaters will increase the company's revenue. 6 7 APPLE INC. References Alsina, T., Wilson, D. T., Joshi, S. A., & Sundaresan, S. (2018). U.S. Patent No. 9,881,320. Washington, DC: U.S. Patent and Trademark Office. Zhang, Q. (2017). Research on Apple Inc’s Current Developing Conditions. Open Journal of Business and Management, 6(01), 39. Vasilaki, M., & Tsakalidis Jr, G. (2019). Apple Inc. Equity Valuation.
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