Marketing is a process used by companies to promote the buying or selling of a product or
service to potential clients / customers1. The process focuses on the management of busi-
nesses reputation, profitability and customer satisfaction. Different companies manage
their marketing department differently to monitor performance such as;
● The Production Concept: Is the concept that a company is focused on the effective-
ness of production and obtaining a high-profit margin. Keeping production costs at a
minimum and selling more products that in return would become a high demand
product.
● The Sales Concept: Using this concept the purpose is to sell products despite need
or desire. Companies would produce products and then focus on advertising and
personal selling.
● The Marketing Concept: The concept is focused on the needs of the customers.
This results in the business conducting market research in order to make a profit
thus the business focuses on selling customers the products they actually need to
ensure their product will be bought.
The aim of the three marketing concepts allows a business to have fundamental research
on the customers and produces products that their audience needs in order to maximise
profits. Two business that will be discussed in this report will be Apple and Sephora, two
separate companies that produce different products.
Apple
Apple is one of the world leading technology providers in the world. Selling on average
over 200 million phones each year with their new releases. Accumulating over $265.6 bil-
lion in revenue in 20182. Apple objectives are to increase profit margins, sustain and
strengthen brand name, increase market share and innovate future technology.
In order to maintain and increase revenue, Apple has to be strategic in marketing their
products. Apple’s marketing strategies are often very precise and effective towards their
target audience and are able to attract attention to their products and gain market interest.
Apple uses different pricing strategies such as premium pricing; as Apple products tend to
be more expensive since the products are expensive to which in return the customer is
getting a high-quality product that does not get viruses and lasts a long time, as well it is
1 https://www.investopedia.com/terms/m/marketing.asp
2 https://www.statista.com/statistics/265125/total-net-sales-of-apple-since-2004/
, the best quality over its competitors. Apple also uses market segmentation as it brings a
group of people to commit to a brand as its products are only compatible with each other
and no other brand. This achieves their objective of market share.
Sephora
Sephora is the world largest make-up, skincare and accessories retailer. A company
where they shorten the gap between products and consumers. In 2013, Sephora had rev-
enue of $5.85 billion3. Sephora's objectives are to increase profit margins, improve online
sales through social media platforms, include more brands of different price ranges and in-
crease market development.
In order for Sephora to achieve objectives, their marketing strategies have to be focused to
achieve set objectives. Sephora often uses price skimming and psychological strategies in
order for customers to feel that it's cheaper than it is. Sephora selling luxurious brands are
also involved in premium pricing, which to customers means that the product is of very
high-quality especially since its makeup and skin care, the products would not agitate the
skin.
There are different marketing techniques that each company can use in order to market
their product and brand.
Ansoff Matrix
Ansoff developed four descriptions for different
strategies to grow a business. Market Penetration; is
conducted by increasing the number of the target
market and those that are possibly interested in buy- ing
the product. Market Development; a change in the market for an existing product, such as
the sales of iPhones in China. Product Development; development of a new product to sell
to an existing market. Diversification; development of a new product in a new market .
Apple
Apple objectives require Apple to conduct research into how they are able to go into prod-
uct and market development. Apple recently partaking in diversification. Apple recently in-
troduced a video subscription service called Apple TV Plus, which has plans to produce
3 https://static1.squarespace.com/static/562661f7e4b078eb0eb8898c/t/56ca85d3746fb93e227cfd8a/
1456113163208/DEVELOPING+a+MARKETING+PLAN-+SEPHORA.pdf
service to potential clients / customers1. The process focuses on the management of busi-
nesses reputation, profitability and customer satisfaction. Different companies manage
their marketing department differently to monitor performance such as;
● The Production Concept: Is the concept that a company is focused on the effective-
ness of production and obtaining a high-profit margin. Keeping production costs at a
minimum and selling more products that in return would become a high demand
product.
● The Sales Concept: Using this concept the purpose is to sell products despite need
or desire. Companies would produce products and then focus on advertising and
personal selling.
● The Marketing Concept: The concept is focused on the needs of the customers.
This results in the business conducting market research in order to make a profit
thus the business focuses on selling customers the products they actually need to
ensure their product will be bought.
The aim of the three marketing concepts allows a business to have fundamental research
on the customers and produces products that their audience needs in order to maximise
profits. Two business that will be discussed in this report will be Apple and Sephora, two
separate companies that produce different products.
Apple
Apple is one of the world leading technology providers in the world. Selling on average
over 200 million phones each year with their new releases. Accumulating over $265.6 bil-
lion in revenue in 20182. Apple objectives are to increase profit margins, sustain and
strengthen brand name, increase market share and innovate future technology.
In order to maintain and increase revenue, Apple has to be strategic in marketing their
products. Apple’s marketing strategies are often very precise and effective towards their
target audience and are able to attract attention to their products and gain market interest.
Apple uses different pricing strategies such as premium pricing; as Apple products tend to
be more expensive since the products are expensive to which in return the customer is
getting a high-quality product that does not get viruses and lasts a long time, as well it is
1 https://www.investopedia.com/terms/m/marketing.asp
2 https://www.statista.com/statistics/265125/total-net-sales-of-apple-since-2004/
, the best quality over its competitors. Apple also uses market segmentation as it brings a
group of people to commit to a brand as its products are only compatible with each other
and no other brand. This achieves their objective of market share.
Sephora
Sephora is the world largest make-up, skincare and accessories retailer. A company
where they shorten the gap between products and consumers. In 2013, Sephora had rev-
enue of $5.85 billion3. Sephora's objectives are to increase profit margins, improve online
sales through social media platforms, include more brands of different price ranges and in-
crease market development.
In order for Sephora to achieve objectives, their marketing strategies have to be focused to
achieve set objectives. Sephora often uses price skimming and psychological strategies in
order for customers to feel that it's cheaper than it is. Sephora selling luxurious brands are
also involved in premium pricing, which to customers means that the product is of very
high-quality especially since its makeup and skin care, the products would not agitate the
skin.
There are different marketing techniques that each company can use in order to market
their product and brand.
Ansoff Matrix
Ansoff developed four descriptions for different
strategies to grow a business. Market Penetration; is
conducted by increasing the number of the target
market and those that are possibly interested in buy- ing
the product. Market Development; a change in the market for an existing product, such as
the sales of iPhones in China. Product Development; development of a new product to sell
to an existing market. Diversification; development of a new product in a new market .
Apple
Apple objectives require Apple to conduct research into how they are able to go into prod-
uct and market development. Apple recently partaking in diversification. Apple recently in-
troduced a video subscription service called Apple TV Plus, which has plans to produce
3 https://static1.squarespace.com/static/562661f7e4b078eb0eb8898c/t/56ca85d3746fb93e227cfd8a/
1456113163208/DEVELOPING+a+MARKETING+PLAN-+SEPHORA.pdf
