Unit 3. Introduction to marketing. Assignment 4
Marketing Mix. P6 and M3
The Product
I am going to work as the brand Apple offering a brand new product line of more affordable iPhones
with the aim of no longer isolating the lower income market and having Apple products accessible to
everyone no matter their wealth or income because even a company with as loyal a following as
Apple needs to do more than just target the affluent. The iPhone X may be a hit, but globally, Apple
is starting to see its market share erode as more affordable options from the likes of Huawei,
OnePlus and Xiaomi catch people's attention. This leaves Apple with the option to introduce a new
range of more affordable iPhones. These devices will look like a regular iPhone but use cheaper
components, to keep the costs down for Apple and the price down for the public.
The target market
The target market for this new range of iPhones are people of all ages but just with less disposable
income than Apple’s traditional customers. So far Apple has only marketed to the affluent and are
therefore isolating a huge area of market share which is being dominated with the affordable
products from companies like Huawei, OnePlus, Xiaomi and even Samsung offers a cheaper range.
Upon release the iPhone X came with a steep price tag, starting at £999 for the 64GB version and
going up to £1,149 for the 256GB model. This a lot of money for a lot of the population and by doing
this Apple are isolating a lot of people with lower income who are then buying similar but a lot more
affordable smartphones such as Motorola’s Moto G7 Plus which offers many of the same features as
the iPhone X but for just £150. For this new range of iPhone Apple will geodemographically target
the lower income market place and lower income areas while still psychographically targeting tech
enthusiasts.
The target market requirements
This target market requires a product that houses some of the superior technology that Apple can
offer but with a cheaper price tag, this lower income demographic have less disposable income so
they are less likely to shell out a lot of money for a new iPhone but they also don’t want to buy a
cheaper outdated iPhone. Therefore the only real requirement for this target market is having a
cheaper price tag but still having some similar features to the more expensive models. Obviously at
this cheaper price apple couldn’t have all the same high end components as the more expensive
versions but they just need to offer enough modern technology to make it superior than buying an
older model iPhone as an affordable option.
The marketing mix
Product
The product is a brand new Apple iPhone with a cheaper price tag, it houses some of the same
modern technology as the newest most expensive iPhone but with some cheaper components such
as an LCD display instead of a more vibrant OLED screen and aluminium sides instead of stainless
steel. The core product is a smartphone with lots of features such as calling, texting, internet access,
GPS etc. but this is the same with every smartphone on the market. One way this Apple product can
differ from their competitors is the actual product having unique special features such as face ID and
Apple pay. But also the augmented product which includes Apple’s warranty and also their very
good customer service. This will help to meet the needs and aspirations of the target market
because the product will still offer apple’s unique features and excellent customer service that are
desired in smartphones but with a smaller price tag to accommodate the target market of people
with lower income.
Marketing Mix. P6 and M3
The Product
I am going to work as the brand Apple offering a brand new product line of more affordable iPhones
with the aim of no longer isolating the lower income market and having Apple products accessible to
everyone no matter their wealth or income because even a company with as loyal a following as
Apple needs to do more than just target the affluent. The iPhone X may be a hit, but globally, Apple
is starting to see its market share erode as more affordable options from the likes of Huawei,
OnePlus and Xiaomi catch people's attention. This leaves Apple with the option to introduce a new
range of more affordable iPhones. These devices will look like a regular iPhone but use cheaper
components, to keep the costs down for Apple and the price down for the public.
The target market
The target market for this new range of iPhones are people of all ages but just with less disposable
income than Apple’s traditional customers. So far Apple has only marketed to the affluent and are
therefore isolating a huge area of market share which is being dominated with the affordable
products from companies like Huawei, OnePlus, Xiaomi and even Samsung offers a cheaper range.
Upon release the iPhone X came with a steep price tag, starting at £999 for the 64GB version and
going up to £1,149 for the 256GB model. This a lot of money for a lot of the population and by doing
this Apple are isolating a lot of people with lower income who are then buying similar but a lot more
affordable smartphones such as Motorola’s Moto G7 Plus which offers many of the same features as
the iPhone X but for just £150. For this new range of iPhone Apple will geodemographically target
the lower income market place and lower income areas while still psychographically targeting tech
enthusiasts.
The target market requirements
This target market requires a product that houses some of the superior technology that Apple can
offer but with a cheaper price tag, this lower income demographic have less disposable income so
they are less likely to shell out a lot of money for a new iPhone but they also don’t want to buy a
cheaper outdated iPhone. Therefore the only real requirement for this target market is having a
cheaper price tag but still having some similar features to the more expensive models. Obviously at
this cheaper price apple couldn’t have all the same high end components as the more expensive
versions but they just need to offer enough modern technology to make it superior than buying an
older model iPhone as an affordable option.
The marketing mix
Product
The product is a brand new Apple iPhone with a cheaper price tag, it houses some of the same
modern technology as the newest most expensive iPhone but with some cheaper components such
as an LCD display instead of a more vibrant OLED screen and aluminium sides instead of stainless
steel. The core product is a smartphone with lots of features such as calling, texting, internet access,
GPS etc. but this is the same with every smartphone on the market. One way this Apple product can
differ from their competitors is the actual product having unique special features such as face ID and
Apple pay. But also the augmented product which includes Apple’s warranty and also their very
good customer service. This will help to meet the needs and aspirations of the target market
because the product will still offer apple’s unique features and excellent customer service that are
desired in smartphones but with a smaller price tag to accommodate the target market of people
with lower income.
