RDI MARKETING PLANNING ASSIGNMENT NAME: RODHIANA ELLYSHA MOHD SHAH STUDENT NO:STU18449

TASK 1 MARKETING AUDITS TASK 1a) IMPORTANCE OF AUDITING MARKETING ENVIROMENT Apple Inc is an American company which design and manufactured softwares and computers. It is a multinational corporation and well established in the IT industries . There fore it is important for the company to audit their marketing environment with the purpose look and check at the organisational situation which aligned with their mission goals and strategies. According to Philip Kotler, Marketing Audit is to actually exam your company resources and to view the activities establish the problem areas, to seek opportunities and lastly to plan an action plan. Auditing the marketing environment can be accomplished by environmental scanning and analysis on the extenal and internal factors that may cause performance and marketing. In order to learn about the inside situation Apple Inc will need to use internal audits and external audits which is for the outside situation. Below are the few points of the importances of marketing environmental audit for Apple Inc: Apple Inc is an multinational brand therefore the company will have the chance to view on their marketing activities and the chance to actually see the complete picture of their products operations. In the process of Marketing environment audit there will definitely be drawback but the results will lead Apple Inc to efficincy. The importance of audit marketing environment is to help the company to increase their profits by refining on their business practices and productivity. Eventually, marketing environment audit will help the top management, company marketeers and even investors to understand in deepth on the growth of Apple inc. Based on the audit, changes and innovation is essential for company like Apple Inc which deals with the changing of technologies. It measures the performance measure, the effectiveness of Apple Inc business planing and definetly to build very positive thinking and perception. This will help Apple Inc to establish their sales value. In marketing the needs of customers and their requirement is very importance therefore testing the program of marketing and also retesting back is important to find the most profitable and applicable formula for the company. Most of the marketing audits will often provides the company a strategic change in their company marketing. Finally , the direction of Apple Inc will also be based on the changing of enviroment, channels, customers and their competitors.

TASK 1b) ENVIROMENTAL AUDITING TECHNIQUES Marketing external audit can be divided into to which is the internal audit and the external audit. This will enable Apple Inc to review their capability internally, their previous performance, relationship in business and their issues. On the other hand external audit will normally covers economic factors,their technologies, legal political, social and also their competitors factors. There are few tools or technique on the environment marketing audit that Apple Inc can used to improve their productivity and business. Below are few tools that most companies uses to audit their marketing environment: SWOT Analysis SWOT stands for Strength, Weakness, Opportunities and Threat. This is one of the most usefull tools for company such as Apple plan. In any situation SWOT analysis can be adapted. The strength is the internal factor that helps company to achieve their objective, for example Apple Inc objective is to established brand name and to become the world leading technology provider. Their weakness in also the internal factor that actually prevent Apple to achieve their goals and objective. Example problems with their product faulty. Opportunities and threats are the organisation external audit. The opportunity is that Apple has the demand, brand name and their customers loyalty. The treat is the organisation performances itself and also the competition from the competitors such as Microsoft, Google, Sony. PESTEL analysis

The diagram are taken from http://www.marketingminefield.co.uk/jdd/public/documents/Image/Pestle %20Analysis%20Diagram.jpg

Political & Legal factors- the instability of the political can effect the operations, regulation and laws, government action can cause problems to the product, pricing, consumer choice , competition and their distribution in the market. For example if the government impose higher taxation and rules regulation on the international trade then it would be harder for Apple to expended worldwide without having difficulties. Economic factor- The world global economy is interconnected therefore if recession can have the effect on the consumers and business purchasing power. The buying power of customers are influence by the economic factors. For example if the economy is under recession then people will start to purchase less and find something cheaper because of the recession. Social cultural factor size of the market, segmentation, demographic such as gender, occupation, ethnic, income in household. For example most of the Apple products attracts most of the younger generation, different age group. Technology Factor- The technology has effect people around the world. It is fast changing and technology influence the market of the products. It is therefore essential for Apple Inc to be ahead and create new software and technologies for the customers. Ecology factors- Must meet the environmental standards that is getting stricter and sometimes does bring pressure to the company that deals with raw materials. For example Apple Inc is using non toxic or PLC products for its Iphones product and is trying to be environmental friendly. Competitive factors All business and organisation faces the most challenging treat which is competition. The market will be competitive when too many rivals enter the market and customer& supplier will have the power which will lead to competitive environment and pressure. Apple is well known for its innovative and technology in order to be ahead of their competitors.

TASK 2 BARRIERS TO MARKETING PLANING 2a) MAIN BARRIERS TO MARKETING PLANING There are few barriers which problems may arise in marketing planing. These barriers include cultural barriers, behavioural barriers, cognitive , system and procedures and resources. Below are some explanation on the barriers: Cultural; believe is lack in marketing or planing (the need of change) Behavioural : Top management is lack of support and no involvement in functional cross involvement. Cognitive: knowledge and skill lack System and Procedure: Used of inappropriate system and data Resources: Money, time and people lack.

Before Apple Inc was well establish and successful as it is now, there was a problem between the two top management which is Steve job and John scully. The barriers to their marketing planing is behavioural barriers because in 1985, Apple Inc was having problem with their two major top management and This was lead to lack of the support from the top management. Apple Inc was lack of innovation and therefore the barriers in their marketing planing was also the systems and procedures and in 1996, Apple was falling apart. They company was reported lack of marketing plan and management support.

2b) OVERCOME THE BARRIERS Marketing Plan wont be effective without the support of the top management and all part of the organisation. In order to achieve the objective of the company, all parts of the management and team must work together to achieve the business goals and in order to do so, a clear direction from top management and leader is essential. In 1996, Steve Job came back to Apple Inc and reinvent the organisation with his creative, innovative and support to all of the management. Because of the successful of the team, Apple Inc gain their success back. Sometimes even with the management support it is therefore essential for the organisation to have appropriate marketing plan with clear objective. It is important for the whole team to understand the responsibility, knowledge needed for the task. There are few marketing tools that is important such as positioning, Market segmentation, Ansoff, Porter, the 4p's management, portfolio management and product life cycle management. Organisation should also provide more activities for the company which join with customers. TASK 3 MARKETING PLAN 3a) IMPORTANCE OF INNOVATION Product innovation includes a variety of activities in product development for example of the improvement of the product, entirely new products development and increase the range of the product line numbers that the firm can provides. Innovation is not invention. Innovation can be define as technology, ideas and service products that actually has been developed and also marked to customers. Normally the new product development has to go through the research and development . The new products means original product, product improvement, product modification and new brands that has been develop by the company through their research and development efforts. New development in product such as new software computers, or new medicine will result a growth in the economy.

IMPORTANT OF INNOVATION TO APPLE INC In order to survive in the market, all organisation must adapt and change. For example, Apple Inc, they have been invented the PC and graphical user interface for almost eight years but almost a decade the company has slown down due to lack of innovation. After failing for so many years, Apple Inc came back to the market with various kind of innovation and new developments that shock the technologies industries. 3b) TECHNIQUES DEVELOPING PRODUCTS Developing a new product is a concept that has been use by organisation to bring new products into the market, which involve few stages or techniques that includes New product strategy, Generation of idea, Evaluate and screening, Testing concept, Business Analysis, Development on the technical, Testing the market and Commercialisation. Apple Inc has gone through all the stages of developing their products, usually from modification of existing products to creating products which is slightly different way. Below are the explanation of techniques in developing products: i)New Product Strategy In this strategy, firm will decide on what products which will suit in for their future strategy and at this stage firm will examine their portfolio of their current situation and analyse the product life cycle management. It is important for Apple Inc examine their current portfolio in order to create a new product strategy. ii)Generation of Ideas In generating ideas, the team will go through the brainstorming process and ideas for the new products will be shared during the session. Basic research of SWOT analysis are obtained to help the team to rectify the Strength of the new product, Weakness, Opportunity and possibilities of Threat. For example Apple Inc generate the ideas of creating Ipod from the team members, engineers before it was created. iii)Evaluation and Screening The ideas will be checked and evaluate. Few questions that will be screen for example, what are the benefits of the product to the customers, market segment,will it bring profits to company and others. iv)Testing the concept Ideas that has been selected then will be discuss with prospective customers on their opinion of the product and the whole team. v)Business analysis The capability of the product is then estimated in terms of the response of the competitors, the effect of sales to other product, potential profits from the product in future and feedback from the customers regarding the product.

vi)Development on the technical A physical prototype are produce and the product aspects will be investigate by the engineers. Adjustments will be made if its necessarily vii)Testing the Market Market reseach is carried out to to check on the product capabalities and demand. Apple Inc had carried out market research on Apple Iphone before it was release to test the capability of Iphone in the market. viii)Commercialisation The firm will put product into production when the market research is positive.

3c) PRODUCT, PRICING,DISTRIBUTION & COMMUNICATION STRATEGIES Product The product that is soon to be out in the market by Apple Inc is Iphone 5 and it is the fifth generation of the Iphone designed and marketed by Apple Inc. The Iphone 5 will be integrated with the GSM, improved graphics engine, A5 processor and much more amazing features that will attract customers.

Pricing Strategies Price are normally set by the supply and demand, for example if the price is high than the demand for the product will fall and on the other hand if the price is low than the demand is high. Since Iphone 5 is consider is a luxury item that the pricing of this products need to be take in account. Below are simple supply and demand graph that applys generally to all products.

 The best pricing strategy for the iphone 5 will be the skimming strategy. Apple Inc has been using this strategy on their product because this pricing strategy is usually been carried out by firm which have developing a technically advance product. Normally the price will start with a high price and will progressly reduce as the sales level is off. For example the price of Iphone 3GS was reduce when Apple introduce the Iphone 4. This strategy initially firm will charge high price for the product and at that point those who are prepared will eventually pay the price premium. For example when the Iphone 4 was release to the customers, some customers are attempting to pre order and everybody was queuing on the first day of the release. This prove that people are prepared to buy the product because its on demand, the product technologies and the brand Apple Inc. This Strategies is normally used in consumer electronics market. The advantages of this pricing strategy is that the cost of developing the product is fairly quick returned. Distribution Strategies There are few methods for an organisation to channel their distribution for example through the Physical distribution, Transportation method and Distribution channels. Physical distribution is when company get their product physically to the point which is the most convenient to the customer to buy. Transportation method is on how the product been transport, cost, time and how the product is been handle. Distribution Channel is when the product will pass through the hand of wholesaler, agent or other middle man. Below are the figure for the channel of distribution.

 There are few ways Apple Inc distribute their products. From Producer to Consumer, for example consumers can purchase the Iphone 5 pre order online direct form Apple Inc website. From Producer to Retailer to Consumers, for example Apple Inc send their products to their Apple store retailer which is available now most of the mall around the world. Most of the Apple smartphone are now available in most of the retailer such as Orange, O2, Carphone Warehouse and other recognise retailers that provides mobiles and phone lines.

Communication Strategies Communication is the most important activities in all human life and one information will pass through to others using the communication activities. There for it is important for Apple Inc to market their products using the most effective communication strategies. There are a mixture of approach which is mix into one communication with a different elements which is known as the Promotional Mix. Consist of advertising, sales promotion, personal selling and public relation. Most of Apple Inc products are advertise in television and other medium. Information about the brands/products are available at Apple Store where customers will have the opportunity to see and try the product physically.

3d) MARKETING PLAN Apple Inc marketing plan for Iphone 5 consist of their Mission statement, Swot analysis, Marketing objective, Marketing strategy and Budget Mission Statement Apple will be the leader provide powerful, simple, high quality information products and services for the people to communicate, create and learn. SWOT analysis Strength: Brand awareness, great innovation technology with reasonable price for value. Good quality resistance to computer viruses. Weakness: Touch screen suffer from problem Opportunities: Loyal and anticipate customers. Increasing demand & expansion. Upgradeable software Threat: Competitors increased and difficulty expanding in Asia Marketing Objective Is to extend the brand of Apple name, innovation, quality and established higher position. Marketing Mix Strategies Products: 3 years of warranty with Apple care, adding features such as large capacity storage, slightly thinner, long life battery and extra software added. Price: Price are vary depending on its storage capacity, example 16G for 399 or 32G for 499. Place: Worldwide major retailer for example Apple store, O2 or Carphone warehouse. Online and showroom. Promotion: Massive TV campaign Budget Estimated profitable when sales exceed $200K

TASK 4 ETHICAL ISSUES IN MARKETING 4a) Ethics can be defined as value or moral principles that controls the people decision and actions. Marketing ethics is also values and the company moral principles that control the behaviour within the marketing field which include the issues of the product safety, relationship honesty with customers, issue on pricing and decision in marketing that has an impact to society and environment. Ethical issues thus relate to the marketing mix which cover all the aspect of product, promotion, price and place. Product: Safety of the product

It is important that each of every products in market is safe for consumers and does not bring any potential harm for consumers. Ever since 2003, Apple Inc, has issues with their product which is non recuycable hardware compenant and thus have toxins within the iphone hardware. The inclusion of PVC that they use and BFRs has serious negative issues. Therefore Steve Job in 2007, announce their plan to eliminate PVC&BFrs. They are the first company laptop maker to remove PVC.

Pricing It is unethical for business to do price fixing because it actual stop the freedom of choice of consumer and the raise of price.

Promotion misleading Most of the advertisement in television, internet or even in magazine claims to be exaggerated and therefor encourage consumers to purchase products which is misleading and false. It is important for Apple products to be truthfull on their products capabilities and realistic.

Place One of the unethical problem facing is the slotting allowances where manufacturer pay a certain fees to retailer to place their product on the shelf. This will distort competition and mostly favouring the larger supplier rather than the small ones.

4b) ETHICAL ISSUES The ethical issues that Apple Inc is facing is with their suppliers. It was said that the supplier was using child labour to make Apple product, not only that, it was reported that Apple supplier was using chemical which had poisoned 49 of the factory worker. Ethical issues like this could damage the company name, brand and customers will start having doubt on the products. Apple Inc should be more alert and aware of the surrounding rathen than focusing more on the appearance rather on the reality. On the other hand Simens the largest German Engineering conglomerate in Europe is accuse to win lucrative overseas telecoms and power contract. The company was fined 523 million by the US department Of Justice and another 180 million by their own court. Both companies are faced with ethical issues and they cannot be claiming ethical firm when they themselves ignores the unethical practice from their suppliers.

Referencing 1.http://www.investopedia.com/university/economics/economics3.asp#axzz1R3Lbzgg V 2.http://en.wikipedia.org/wiki/Apple_Inc. 3.http://www.academicperspective.com/2010/07/07/an-apple-a-day-the-fall-and-riseof-apple-inc/ 4.http://lowendmac.com/orchard/06/steve-jobs-next-years.html 5.http://www.ktec.com/sec_business/section/erc/marketing/distribution.htm