iPhone Marketing Strategy & Marketing Mix (4Ps)

Published by MBA Skool Team, Last Updated: August 09, 2021

Marketing Strategy of iPhone analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on iPhone marketing mix, help the brand succeed.

iPhone marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.

Let us start the iPhone Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

iPhone Product Strategy:

The product strategy and mix in iPhone marketing strategy can be explained as follows:

iPhone mostly comes with a new product every year, which supersedes the previous ones. Currently it has iPhone 12 and iPhone 12 Pro, which was preceded by iPhone 11, iPhone X, iPhone8 and other trailing versions. Although each year new products, means cannibalization, but in iPhone’s case, the lesser price of older product attracts a different segment of customers than the newer ones, focus more on tech specifications. Apple iPhone offers a unique operating system, running at better speed than any of its present competitors, promising a flexible working environment and light speed multitasking. Innovative apps in the apple store, are mostly the first movers, copied afterwards by other brands, according to the apple techies and consumers both. Many apps that are available can be linked with a MacBook, and hence, with this strategy, Apple acts as a hook for its all other products, as well. Since the inception of the phone brand, more than 2 billion units have been sold worldwide. iPhone now offers super retina displays, 5G connectivity & sleeker designs.


Image: pixabay


iPhone Price/Pricing Strategy:

Below is the pricing strategy in iPhone marketing strategy:

On account of its uniqueness, quality and status, Apple iPhones follow price skimming strategy.

Skimming price means if a brand wants to stand out, it will invest a lot on R&D for bringing their X Factor with every new launch. This R&D cost and the X-factor, allows the iPhone, to charge more as part of its marketing mix pricing strategy. This price is gladly accepted by the target segment, as these are very loyal consumers. Apple does not provide discounting on any of its product, for it will lead to either brand dilution or loss of focus from premium category. Although selling stores and online stores keep coming with discounted price, once the market value of product decreases with new launches. Also, Apple iPhone follows similar pricing policy across all markets. Although to allow for price effectiveness it follows a cost-effective operation strategy, with minimal cost spent on manufacturing, although maximum on R&D. Apple stores providing an experience to its customers, also price based on the added value of experience over product.


iPhone Place & Distribution Strategy:

Following is the distribution strategy in the iPhone marketing mix:

iPhone has a strong distribution and place strategy as a part of its marketing mix. Some of them are as below:

I-stores: These are apple owned stores with highly knowledgeable service people, giving a lot of time and effort to get the tech specifications across to the customers. These stores with highly trained sales people, with advices to offer, create a great experience, which enhances the experience of buying an iPhone. These exclusive showrooms get the products directly from company at a lesser price.

Independent stores: Few high-class stores, specially in malls, also place iPhones with other mobile phones. Buying from these stores is equally good, as these are premium stores in themselves. They purchase from distributors rather than company itself.

Online: Apple products are available, on many sites, like eBay or mostly Amazon. Company’s website also provides the service of fining nearest locator

Second Hand Market: A huge market is present for Apple’s iPhone second hand mobile sets, for their durability and the status symbol attached to it.

eBay is one of the site dealing largely in this second-hand segment.

After sales: iPhone is very well known for its after sales services.

Tie-ups with Companies: iPhone also does tie ups with corporates for its many services.


iPhone Promotion & Advertising Strategy:

The promotional and advertising strategy in the iPhone marketing strategy is as follows:

iPhone has created a unique position in the market, with its innumerous differentiating factors. Its new models always have a new tagline which positions itself to promotes the brand. Its ads never compete with the competitors, but show how the world is changing with each of iPhone for its tech savvy customers. Launch events are very dramatic for iPhones. The newly launched wireless charging feature, and all such technologies, get people in the awe. Social media, Youtube etc. are some platforms highly utilized by the iPhone, to talk about uniqueness of features, also used by tech gurus for spec comparisons, etc. Biggest ones are second hand sales offer. Other being knowledgeable sales staff and point of sale advertisements. Thus, with its unique value proposition, iPhone, it sets a standard in the product and has no close competitor as of now, reason being a vast loyal customer base. Hence this concludes the iPhone marketing mix.


About iPhone:

Apple presents its iPhone, as the ‘World’s most powerful personal device’. With its unique operating system, also called iOS, it keeps taking leaps and bounds forward its competitors in terms of looks, tech specifications, ease of usage and innovative services. It mostly competes with Google’s Pixel, the android based mobile phone. Although MIUI OS from Xiaomi and oxygen OS from OnePlus, are its another new and strong competitor in innovation and premium segment mobile phones. Samsung is another old competitor of iPhone, since a long time. With mobile phones becoming the most sort after gadget and with advent of ‘internet of things’ and ‘Block Chain’ technology, the market of smart phones is ever expanding. Now becoming a status symbol, even the premium segment mobile market is expanding more than ever. This means Apple must carry forward with its exceptionally innovative products.

Also, expansion in the eastwards, is another strategic focus of iPhone marketers. It targets the tech savvy premium customers.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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The names and other brand information used in the Marketing Strategy & Mix section are properties of their respective companies. The companies are not associated with MBA Skool in any way.

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