igcse business studies bst marketing nix in india nishant sir meso rise academy

1. IGCSE BUSINESS STUDIES mesorise mesorise @gmail.com @gmail.com Marketing Apple Products in india Whtsapp No -9810773664 Malviyanagar , South Delhi Prepared by :Tripurari Tripurari Dwivedi Dwivedi Nishant Nishant Copyright © 2015 © 2015 meso rise publishing, a unit of MEI Pvt. Ltd.,business studies , all right reserved.

2. Marketing mix : Apple Products in india Copyright © 2015 © 2015 meso rise publishing, a unit of MEI Pvt. Ltd.,business studies , all right reserved.

3. Marketing is the soul of any business, so is true for famous apple products in india Marketing is the management proces which identifies consumer wants, predict future wants, create wants and find ways to use these wants to the fullest (most profitably). Businesses try to satisfy wants in the most profitable way possible. Marketing covers a wide range of activities such as: advertising,packaging,promotion, etc… Copyright © 2015 © 2015 meso rise publishing, a unit of MEI Pvt. Ltd.,business studies , all right reserved.

4. A successful Marketing department for apple products should be able to achieve these objectives for the business:  To increase sales revenue and profitability in india To increase market share (percentage of sales a product has in a market) . To maintain or improve image of a product or company.  To target a new market or market segment.  To develop new products or improve existing ones. SWOT SWOT analysis analysis It is important for the firm to evaluate its position. .It assess these things:  Strengths (internal)  Weaknesses (internal)  Opportunities (external)  Threats (external) If Apple wants to market its product in India, it has to do SWOT analysis for its products.

5. Market segments Market segments are parts of a market which contains people which have similar preferences for their products. The Marketing department should know which segment their product fits the most, so that they can advertise and sell their products to it. There are two ways to segment markets. By the type of product or the attributes of the customers buying it. Here are two types of markets which are segmented based on the product:  Mass market: Where there is a large number of sales of a product. (e.g. Pepsi can be bought anywhere)  Niche market: A small market for specialised products. (e.g. Ferrari cars) Apple is an elite product and its market is a Niche market. Hence, it has to focus on the rich and highly educated middle class to sell its products. Market Market can be segmented can be segmented depending on peoples’ buying habit of depending on peoples’ buying habit of theproduct   Income Income   Age Age   Region Region   Gender Gender   Use of product The Apple inc. should focus on teenagers and adults belonging to a rich The Apple inc. should focus on teenagers and adults belonging to a rich segment of the Indian society who specially buy lifestyle products for segment of the Indian society who specially buy lifestyle products for distinction. distinction. theproduct Lifestyle Use of product   Lifestyle

6. The marketing mix The marketing mix is a term that describes how products are marketed. Marketing research is optional if product is well- known internationally. However, market research will provide more accuracy and objectivity if it is done in the context of India. The rest is summarized into the four P's. Basic mantras of success lies in 4 P’s of marketing as below :  Product: Design and quality, competitiveness, packaging, etc…  Price: There are different pricing strategies. Businenses need to use them so that they increase sales.  Promotion: Advertising and promotion. Discounts, TV adverts, sales, packaging, etc…  Place: The location of the point of sale (the shop). Channels of distribution. Type of shop (wholesaler or retailer) For a success in Indian market, even Apple has to use all the 4 P’s effectively to maxamize its profit, sales revenue, and market share.

7. The Apple is a highly valued international brand, it can set high price while selling its products in India . In order to improve its brand image further, it has to focus on :  Unique packaging.  Needs advertising to enforce the brand's qualities.  Higher price than unbranded products.  Higher quality than unbranded products.  Creates a brand image (unique image associated with using the product)  Creates brand loyalty.  Consistent quality. Packaging - Getting the packaging right is very important. Packaging performs several tasks:  Protecting the product (also includes preserving foods)  Making it easy to transport.  Allow the product to be used easily. Container must be able to be opened easily. (e.g. juice in a can)  Suitable for the product to fit in. Packaging also helps promote the product:  Make it eye-catching.  Carries information about the product.  Promotes the brand image.

8. The product life The product life cycle cycle For the Indian market, Apple products are known. Thus it has crossed the For the Indian market, Apple products are known. Thus it has crossed the introductory level. The Apple for India is in the second stage of its life cycle introductory level. The Apple for India is in the second stage of its life cycle where big growth potential is still untapped. where big growth potential is still untapped. Persuasive and informative Persuasive and informative advertising advertising should be , sales revenue and brand , sales revenue and brand loyalty. should be used to used to increase market share increase market share loyalty.

9. Product Range Apple products are highly priced, that limits its market specially in the case of India. A lot of people do not have so much purchasing power to buy Apple products, even though they dream to buy them. For a success in Indian market, Apple must come up with a varied range of products keeping in mind the purchasing power of middle class as well. In India, 200 million families long for better quality of life and better goods. If Apple introduces products that suit this class also, there will be great increase in sales revenue and profit for Apple.

10. Price and the Marketing Mix Price and the Marketing Mix •Price is a very important part of the marketing mix Price is a very important part of the marketing mix •Price directly influences profits by creating revenue Price directly influences profits by creating revenue •Price helps a business “differentiate” its product or service compared with Price helps a business “differentiate” its product or service compared with other, similar products other, similar products   E.g. High price = better quality? E.g. High price = better quality?   E.g. Low price = better value / lower quality? E.g. Low price = better value / lower quality? The price that is set must be consistent with everything else in the The price that is set must be consistent with everything else in the marketing mix. marketing mix.   E.g. a high E.g. a high- -priced product needs to have features/benefits that priced product needs to have features/benefits that customers feel justify paying more customers feel justify paying more •Main objective of setting the right price is to generate the level of sales that meets the objectives of the business . Possible objectives that influence price-setting:Maximising profits •Maintaining or increasing share of a market, • Entering a new market and • getting a product/service accepted by customers in the new market • Increasing sales volume (e.g. to make more efficient use of production)

11. Factors affecting demand  The popularity of substitute products. (products that can be used instead of the product)  The popularity of complementary products. (products that require each other or are used together)  Changes in income.  Changes in taste and fashion.  Changes in advertising. Factors affecting supply • Costs in supplying goods to the market: Price of raw materials. • Wage rates. • Improvements in technology: Makes it cheaper to produce goods. •Taxes and subsidies: Higher taxes mean higher costs. Market demand for Apple products is quite inelastic, hence apple can charge high prices for its products in Indian market too. Supply condition is also favorable for apple as it is one of the largest MNC’s producing and selling its product in this particular product group. We cant deny the importance of reasonably priced products for India, if Apple has to increase its market share and market demand to boost its sales revenue and profit in India.

12. Suitable pricing for Apple :Price- skimming Apple should charge lesser price in India than what it is charging in international market.It should go for charging the highest price in India in same product group. High prices are used when a new product is introduced into a market, partly because it has a novelty factor, and because of the high development costs. High prices could be charged, because a product is high quality. One last use of it is to improve the brand image of a product, since people usually associate high price with good products. establish a product as being good quality. because of high price. Psychological Psychological pricing Apple is considered to be the best throughout the world hence Apple should also adopt psychological pricing as a well thought strategy because people believe that a costly product is better than others.Psychological pricing involves setting the price that changes consumers perception of a product. This may be by: Using high price to make using the product give the user a status symbol.  Pricing a product at just below a whole number (e.g. $99) which gives it an impression that it is cheaper. ucts Skimming can help It may lose potential customers pricing

13. The role of promotion in the marketing mix Promotion informs consumers about the rest of the marketing mix. Without it, consumers do not know about the product, the price, or the place. Promotion is more than just advertising, and it includes several activities. It is crucial when you are selling in a mass market or you have a brand name. Promotion includes: Advertisements: They can take different forms, e.g. on TV, in newspapers. „h Promotion: e.g. Money off coupons. Personal selling: Sending out sales representatives to talk directly to the consumers. Public relations: Involves making the public aware of the company, e.g. creating publicity in the media. The aims of promotion To inform people about particular issues. To introduce new products to the market. To compete with competitors products. To improve the company/brand image. To increase sales. Copyright © 2015 © 2015 meso rise publishing, a unit of MEI Pvt. Ltd.,business studies , all right reserved.

14. Promotion Different types of Different types of promotion promotion Promotion Promotion is usually used to support advertising and to encourage new or is usually used to support advertising and to encourage new or existing customers to buy the product. Its main function is to boost sales in the existing customers to buy the product. Its main function is to boost sales in the short short- -term. term. It is used to attract new It is used to attract new customers customers Here Here are some ways in which promotion are some ways in which promotion can be used by Apple in Indian market :   Price reductions: Involves sales or price reduction coupons Price reductions: Involves sales or price reduction coupons. . can be used by Apple in Indian market :   Gifts: Gifts are placed in the packaging of the product to encourage Gifts: Gifts are placed in the packaging of the product to encourage consumers to buy it. (e.g. consumers to buy it. (e.g. some free accessories to Apple buyer). some free accessories to Apple buyer).   Competitions: A card may be put in the packaging allowing the consumer to Competitions: A card may be put in the packaging allowing the consumer to enter contests such as the lottery enter contests such as the lottery. .   Point Point- -of sale displays and demonstrations: Can be put near the window and of sale displays and demonstrations: Can be put near the window and displayed attractively. displayed attractively. Copyright © 2015 © 2015 meso rise publishing, a unit of MEI Pvt. Ltd.,business studies , all right reserved.

15.  After sales service: e.g. warranty services. It reassures the customers that if the product has a problem then they can go and fix it for free. This make the product more attractive than others without warranty. The advantages of promotion  Can boost sales during the year when sales are traditionally low (encourage off-season purchases)  Encourages people to try a product.  Encourages people to buy a product or the product in greater quantities.  Encourages people to buy a product instead of competitors‘ products. Copyright © 2015 © 2015 meso rise publishing, a unit of MEI Pvt. Ltd.,business studies , all right reserved.

16. Marketing mix - place Consumers should be able to get to the product easily, and the product has to be in the right place (e.g. expensive chocolate shouldn't be in a small grocery store) to sell well. Channel 4: Involve selling the product overseas through an agent, who sells them to wholesalers on behalf of the company. This may be because he/she has better knowledge of the local conditions. Copyright © 2015 © 2015 meso rise publishing, a unit of MEI Pvt. Ltd.,business studies , all right reserved.

17. E E- -commerce commerce E E- - commerce is a well known method these days to increase the commerce is a well known method these days to increase the sales in a short period of time because a large segment of the sales in a short period of time because a large segment of the population is always on the web searching economical and good population is always on the web searching economical and good quality products. Apple can make its own commercial site for quality products. Apple can make its own commercial site for display and sale of its products. The display and sale of its products. The use of the internet to carry out business out business transactions is faster and most popular way for transactions is faster and most popular way for effective marketing. effective marketing. Finally, after all the four P's of the marketing mix have been Finally, after all the four P's of the marketing mix have been decided, the Marketing decided, the Marketing department of Apple department of Apple will put them together into one marketing plan. It will also consider how the 4 together into one marketing plan. It will also consider how the 4 P's will be modified or adapted to fit P's will be modified or adapted to fit the overall product. If this is successful, sales and profits will be likely to product. If this is successful, sales and profits will be likely to increase increase Copyright © 2015 use of the internet to carry will put them the overall image of the image of the © 2015 meso rise publishing, a unit of MEI Pvt. Ltd.,business studies , all right reserved.