The iPhone Smartphone is a product offered by the Apple Inc company. This is an American technological company with its headquarters in California. It was founded in 1976 and incorporated as Apple Computer Inc in 1977. Apple Inc is involved in designing and selling consumer electronics, computers, Smartphone’s, tablets, smart watches among other technological devices. By revenue and total assets, Apple is the world’s chief information technology company.

The iPhone target different markets based on segmentation. The market is segmented by demographics, psychographics, and lifestyle (Grewal & Levy, 2008). The iPhone target people aged 18-35 years which mainly include the youth covering the students and working professionals. IPhone users mostly look for features such as stylish appearance, touch screen and multimedia which appeals to one’s senses. There are those people who feel privileged by using an iPhone. These include people who are conscious of their status, fashionable people, tech savvy and attention seekers. The iPhone has 6th generations with each generation having improved features and style. This mainly targets the psychographics market segment.  The target market for the iPhone is the young people. The kind of features and styles in an iPhone are more compatible with the young generation as opposed to the older generation.

The iPhone marketing mix is based on product, price, promotion, and place. Apple uses a premium pricing strategy. The emphasis is on how the company prices represent the company products and brand while satisfying the consumers’ expectations. The prices of Apple are relatively high as part of its premium strategy. This kind of pricing strategy maintains the high image of the company and its products. In addition, the Apple products mainly attract people from the middle and upper classes (Greenspan, 2015). Thus, the price strategy fits the target consumers. With this pricing strategy, the company maintains high profits given that premium prices have higher profit margins.

The company’s marketing mix involves a holistic distribution mix. This is a kind of distribution that utilizes a selective approach. The company strategies in distribution involve some exclusivity thus limiting market reach. The company’s distribution strategy includes the places such as Apple Stores, Authorized retailers, Telecom companies, Online Apple Store and App Store and Fulfillment services (Greenspan, 2015). The highly visible places include the physical Apple stores, online Apple store as well as the App store. Apple Inc operates all over the world. The company does not use subsidiaries both in the domestic and global market.  Its products are the same in all regions and countries.  Apple Inc has retailed stores in 45 states out of the 50 states in the United States of America. It also has stores in more than 18 countries all over the world.

The iPhone sustainable competitive advantage is product development. Apple Inc offers a range of new products to the already existing market now and then. To stay in the forefront, the iPhone has undergone different upgrades from generation 1 to generation 6. Another competitive advantage is market penetration (Grewal & Levy, 2008). The company focuses on the already existing customers as well as attracting new customers. The company makes sure that the existing customers are retained as it attracts new customers. Already existing customers are encouraged to patronize the company.

References

Greenspan, R. (2015, September 09). Apple Inc’s Marketing Mix (4P’s) – Panmore Institute. Retrieved April 15, 2016, from http://panmore.com/apple-inc-marketing-mix-4ps

Grewal, D., & Levy, M. (2008). Marketing. Boston: McGraw-Hill Irwin.

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