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School of Foundation & Continuing Studies Business Management 061

Assessment 2

Name Student ID Tutorial Group Number Date

: SITI SARAH SYED IBRAHIM : 7E1B8961 : 1C1 : 23 SEPTEMBER 2011

Table of Contents
Introduction .........................................................................................................................................3 Product Information .............................................................................................................................4 Pricing Information ..............................................................................................................................6 Place Information..................................................................................................................................7 Promotion Information .........................................................................................................................8 Conclusion .............................................................................................................................................9 Reference List .................................................................................................................................... 10

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Introduction
In this modern era, I feel that computers, especially the highly technological ones, have a significant level of importance. I prefer to choose MacBook Pro with 13-inch because Apple product is the most significant product of the decade. I would like to analyze this product base on its marketing mix element, which is known, as Four Ps (4Ps). 4Ps are product, price, place and promotion. In 1970s, Apple ignited the personal computer revolution with Apple II, and reinvented the personal computer with Macintosh in 1980s. 13-inch MacBook Pro is one of the products produced by Apple Inc. MacBook Pro has many features such as basic, keyboard, trackpad and other features. Most of the people brought this 13-inch MacBook Pro use for general purpose to do their work and run their application software by operating system. However, all companies have an external environment such as competitive environment that might affect to this product. For Apple Inc., they are seeking to make the most attractive of Apple products from the past years until now. Besides, Apple Inc. states different prices with different types of MacBook Pro configurations. If people need a service, they can contact Apple or take our MacBook Pro to an Apple Authorized Service Provider. They also promote their products effectively at many places to sell their products but they also faced with many competitors outside this company such as ASUSTeKComputer Inc., Sony Corporation, Hewlett-Packard Development Companyand others. Apple Inc. and other companies market their products and give efforts on customers needs and wants by using this marketing mix strategy.

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Product Information
MacBook Pro is tangible goods, which it applies to two types of goods: The customer may buy this MacBook Pro at any Apple retail stores for their personal use by running many types of application software that is available on MacBook Pro. They can do their work activities through the application software such as Safari, iWork, iTunes, iChat, Time Machine, iLife11 and other applications. When some of customers get what their needs and wants in the demand, this will be involved in consumer marketing. Besides, it also applies toindustrial goods in their company. For example, MacBook Pro is produced and it meets with Energy Star qualifications where Apple Company involves in United States Environmental Protection Agency (Apple and the Environment 2011). Mostly MacBook Pro is used for teenagers and young adults around the world with the high quality personal computing of Apple products. For them, it can count as a luxury item to have a Mac up to the Apple standard of excellence. Besides, Apple Inc. sells three types of MacBook Pro. There are 13-inch MacBook Pro, 15-inch MacBook Pro and 17-inch MacBook Pro (Why youll love a Mac 2011). For 13inch MacBook Pro, Apple has produced this notebook with the high of performance use for everyone. The 15-inch MacBook is use for mobile computing powerhouse. While for 17-inch MacBook Pro, this product is use in ultimate for mobile studio. Apple Inc. also sells another products such as iPad 2, iPod shuffle, iPhone, iPod touch, iPod nano, iPod classic, Apple TV, MacBook Air, Mac mini, iMac and Mac Pro. There are also many accessories for Mac such as Apple Magic Mouse, case for MacBook, AirPort Express Base Station and others (Apple Store 2011). The brand of this product is a MacBook Pro. It is under Apple Inc. products. Generally, Apple is a licensed brand where MacBook is manufactured under license from Dolby Laboratories. Its packaging displays the brand name: MacBook Pro and at the top of the box, it displays the features of the MacBook Pro. Besides, it is in a fully colour printed image of the MacBook Pro on the box and has an Apple logo at one of the side box which this can attract people to buy it. They will try to look at the products even though they are not interesting in Apple products. The packagings for the MacBook are smaller, lighter and more protective than for the first-generation MacBook. This kind of packaging design helps reduce the emissions produces from transportation in shipment.

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The packaging for the 13-inch MacBook Pro use cardboard from a minimum of 25 percent post-consumer recycled content and molded fiber made totally from post-consumer recycled content. Its retail and shipping box packaging is three times as much post-consumer recycled content as the original 13-inch MacBook Pro (Apple and the Environment 2011). Inside the box consists of display cleaning cloth, printed and electronic documentation, 60W MagSafe Power Adapter, AC wall plug and power cord (MacBook Pro 2011). Apple Inc. also gives one-year limited warranty for apple hardware and up to 90 days complimentary telephone technical support for questions about the hardware and applications. Customers can purchase the AppleCare Protection Plan to extend their coverage to three years. This can be done when people has already register to AppleCare agreements (AppleCare Protection Plan 2011). This plan gives one-stop service and support from Apple experts to resolve or repair Mac by taking our Mac to an Apple Retail Store or Apple Authorized Service Provider.

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Pricing Information
Sometimes when comes to set about the pricing, marketers will consider the higher costs for the shipment and selling products abroad. But in Malaysia, if the customer orders some of Apple products over RM250, they will give free on the shipping orders. Apple introduces the new MacBook Pro with different size of widescreen displays and specifications. The price of two types of 13-inch MacBook Pro is also different from each other. For example, in Malaysia, RM 3699 for 13-inch: 2.3GHz MacBook Pro, RM 4599 for 13-inch: 2.7GHz MacBook Pro, RM 5499 for 15-inch: 2.0GHz, RM6799 for 15-inch: 2.2GHz MacBook Pro and RM 7699 for 17-inch: 2.2GHz MacBook Pro (Apple Store 2011). Apple Inc. use one-price, the prices still the same even though new product is produce. When comes to the new MacBook Pro, most of people think that Apple products is more expensive than other brands of notebooks. However, the pricing for Macs still command over similar models from other competitors such as Dell, HP, Acer and others. Customer generally will make their decision to buy MacBook Pro as it have a high quality and performance based on its configuration. This will force other competitors to either cut prices of their notebook products and other competitors are going to lose their profit from their selling products.Apple managers also set the cost of the MacBook Pro with different amounts so it gives value for their customer. In addition, Apple Companyusesan odd-even pricing in selling their products. For example, in Malaysia, the prices of different types of MacBook Pro are RM 3699, RM5499 and RM7699. Customers will regard in high prices such as RM3700, RM5500 and RM7700 as considerably higher than that prices. Besides, in United States (U.S), Apple Mac shipments developed 9 times faster than the overall U.S PC (Personal Computer) market where they only representing 4.2% only in Q2. Apple distributed their computer products with 1.4 million in the United States during Q2. They have indicates 8.5 % in their market share and 38% year-over-year growth (Blodget 2008). Furthermore, not all of people can afford to buy MacBook Pro because most of Apples product is more expensive rather than other companies products. Like other

notebook products from other company, mostly RM500 and above is already enough for customers to buy the notebooks. But for MacBook Pro, customer should have to pay RM3000 and above to purchase this products.

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Place Information
In marketing strategy also influence with the place where they distribute and selling their products. MacBook is manufactured under license from Dolby Laboratories and directly sold to the industrial buyer. In Apple company, MacBook Pro products are distributes through retailers to sell it. Apple products categorized in large product lines retailers where they handle a wide range of goods and they offering a variety of services, such as shipment and online purchase using credit or debit card. Thus, they sell their MacBook Pro products through Apple resellers such as in Australia, Bangladesh, Brunei, Malaysia and other countries. Besides, customers make an order by online shopping directly from Apple websites for 24-hours a day which shoppers can get information about MacBook Pro products and buying opportunities, and pay for purchases with American express, MasterCard, Visa and others. Apple also have many retail store that have been opened such as in United States, United kingdom, Japan Canada, Italy, Australia, China, Switzerland, Germany, France and Spain. MacBook Pro is not the only be sold from Apples shop, but it also have been sold from other shops agents with different prices due to the currency value and the more intermediaries would like to make a profit. The Apple store sells and ships their products to end user customer only. Furthermore, only certain Mac products and certain accessories for Mac can be purchased because not all products may be available at all times. For online purchase, Apple will deliver the products to customer by shipping such as planes and Apple will charge the customer sales tax based on customer shipping address. The sales tax rate will charge at the time the customers make an order is billed. According to Apple Press Info (2004), Apple will open the first retail store in Europe on Regent Street in Londons West End. They will offer first opportunity to visitors to experience Apples unique retail in Europe. They can get a chance to test-drive Apples entire product line including the Apple notebooks. Customers can learn about all the latest products from Apple and they can shop from this retail shop.

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Promotion Information
Mostly, Apple Company promotes their products by advertising through the television, magazine, newspapers, Internet and direct mail to the audience. For example, if customers want to get know more updates on Apple products, they can give an email in the Apple websites and they will directly email to us all updated news of Apple products. Besides, almost everyday Apple promotes their products through the newspapers and magazine. They want to let all of the people around the world know the new MacBook Pro is produced. Moreover, Apple also contributes an event where Apple participates at Macworld Expo San Francisco (Apple Press Info 2003). They opened an Apple Booth which Apple employs teams will introduces about their products and technologies that they have. Apple also has their sales promotions where customers can redeem an Apple Gift Card in Apple Retail Stored, at the Apple Online Store or by calling directly to the Apple. Apple Gift Cards can be used only in U.S. In Apple Retail stores, customers can simply present the card to the cashier at the time of payment or purchase (Apple Store 2011). Apple gives special education pricing or discount for the student holding a SPM, a teacher, administrator and staff member of any grade level to purchase on Mac computers and Apple software (Apple Store 2011). However, there is applying in limits of the quantity. Buyers can start saving their money from today to buy the new MacBook Pro for everyone. Apple education pricing helps in most of the students by giving them their own Mac to build learning labs and improve their skill in using educational software and technology available. Furthermore, buyers no need to pay for the shipping if they make orders over RM250. For example, one of the customers wants to buy 13-inch MacBook Pro, he or she will get free shipping for their orders. Apple sellers will ship your orders to the country where do you live in.

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Conclusion
In the conclusion, Apple has developed the four basic components of the marketing mix, which are product, pricing, place, and promotion. Apple becomes the most worlds integrated system in technology. Apple product: MacBook Pro gives high performance in graphics, ultrafast Thunderbolt and other features. MacBook Pro is the first computer on the market developed the groundbreaking Thunderbolt I/O technology. Besides, MacBook Pro gives a good value for the price as it provides in high quality. Most of consumers get benefits when they buy Apple products as comes up with the new MacBook Pro with OS X Lion software. The price of the MacBook Pro is expensive compare to other brands notebooks. Apple gaining more consumers to purchase the MacBook Pro through the way they promote their products and using psychological pricing tactics. More over, it is easy to purchase the high-class technology of MacBook Pro in any Apple Retail Store or even by online purchase for 24 hours on Apple web site. The Apple Store is a popular way for gaining more consumers and businesses to purchase Apple products. Apple Inc. not only using media advertisement, they are also doing their promotion by sales promotions and publicity like an event. Customers will pay attention to what interests to them on Apple products.

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Reference List
Apple and the Environment: Designed for energy efficiency. 2011. Apple Inc. http://www.apple.com/environment/energy-efficiency/

Apple and the Environment: 13-inch MacBook Pro Product Environmental Reports. 2011. Apple Inc. http://www.apple.com/environment/reports/

AppleCare Protection Plan. 2011. Apple Inc. http://www.apple.com/asia/support/products/ Apple Press Info: Apple to Open First Retail Store in Europe on Londons Regent Street Saturday, November 20. 2004. Apple

Inc.http://www.apple.com/pr/library/2004/11/18Apple-to-Open-First-Retail-Store-inEurope-on-Londons-Regent-Street-Saturday-November-20.html

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Apple Store: Apple Education Pricing. 2011. Apple Inc. http://store.apple.com/my/browse/campaigns/education_pricing Business Manageent 061 Assessment 2 1 0

Blodget, Henry. 2008. Microsofts Real Problem: The Second Coming of Apple. Business Insider Inc. Accessed September

19,http://www.businessinsider.com/2008/7/microsoft-s-real-problems-cloudcomputing-and-the-second-coming-of-apple#ixzz1YVMTmItv

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