FACULTYOFMANAGEMENTANDLAW

SCHOOLOFMANAGEMENT

DISTANCELEARNINGMBA2015/16

MAN4042N

Marketing

ModuleLeader:LynnParkinson

Tutor:LynnParkinson

FormativeAssignment

AppleInc.–AMarketingSuccessStory

UBNumber:

Author:RaúlBartoloméCastro

Date:2016-04-10;Version:V1.0

Icertifythatthisassignmentistheresultofmyownworkanddoesnotexceedthewordcountnotedbelow.

Wordcount:1721(excludes:frontcover,tableofcontents,listoffigures,listoftables,annotations,figures,tables,footnotes,references,bibliographyandappendices)

Marketing UBNumber:

Page2of26

TableofContents1 WhyAppleCanBeConsideraMarketingSuccessfulHistory?.....................................4

2 KeyFactorsWhichHaveLedAppletotheMarketingSuccess.....................................5

2.1 BuyingBehavior.............................................................................................................5

2.2 MarketingEnvironment.................................................................................................6

2.2.1 Macroenvironment...........................................................................................................6

2.2.2 Microenvironment............................................................................................................8

2.3 CompetitorAnalysis.....................................................................................................11

2.4 MarketSegmentation..................................................................................................13

2.5 MarketingMix.............................................................................................................15

2.5.1 Product/Service..............................................................................................................15

2.5.2 Price................................................................................................................................16

2.5.3 Place...............................................................................................................................16

2.5.4 Promotion.......................................................................................................................17

3 ChallengesandRecommendations...........................................................................19

4 References...............................................................................................................21

5 Acronyms.................................................................................................................22

6 Appendices..............................................................................................................23

6.1 SmartphoneandComputerSales.................................................................................23

6.2 ExpenditureinResearchandDevelopment..................................................................24

6.3 AdvertisingExpenses...................................................................................................26

Marketing UBNumber:

Page3of26

ListofFiguresFigure1.Apple'srevenuefrom2004to2015..........................................................................4

Figure2.AppleInc.(AAPL)stockchart,last10years...............................................................4

Figure3.ConsumerPropositionAcquisitionProcess...............................................................5

Figure4.Porter's5Forces........................................................................................................8

Figure5.CompetitorsMarketShare........................................................................................9

Figure6.TheSTPProcess.......................................................................................................13

Figure7.Apple'sPerceptualMaps.........................................................................................14

Figure8.Apple'sProductForm..............................................................................................15

Figure9.GetaMacCampaign...............................................................................................17

Figure10.FirstheardaboutApple.........................................................................................18

Figure11.UnitsalesofAppleworldwidebyproduct/operatingsegment............................20

Figure12.GlobalSmartPhoneSales......................................................................................23

Figure13.GlobalComputerSales..........................................................................................23

Figure14.Rankingofthe20companieswiththehighestspendingonR&Din2014............24

Figure15.Apple’sexpenditureinR&D..................................................................................25

Figure16.Samsung’sexpenditureinR&D.............................................................................25

Figure17.AdvertisementExpenses.......................................................................................26

ListofTablesTable1.PESTLEAnalysis(PESTLEAnalysis,2015),(Lombardo,2015)......................................6

Table2.CompetitorsSummary.Source:Appendices..............................................................9

Table3.Apple’sSWATAnalysis.(MarketLine,2015,pp.22-27)............................................11

Table4.Samsung’sSWATanalysis.(MarketLine,2015,pp.19-23).......................................12

Table5.Lenovo’sSWATanalysis.(MarketLine,2015,pp.23-27)..........................................12

Marketing UBNumber:

Page4of26

1 WhyAppleCanBeConsideraMarketingSuccessfulHistory?Acompanythatgrowsthankstomarketingorientationcanbeconsideredamarketingsuccessfulhistory.Figure1showsarevenueincreaseof2850%inthelast12yearsandFigure2showsastockpriceincreaseof1328%inthelast10years.

Figure1.Apple'srevenuefrom2004to2015Source:http://www.statista.com

Figure2.AppleInc.(AAPL)stockchart,last10years.Source:http://finance.yahoo.com

AppleInc.companyiscustomerconcentric,createsvaluestohiscostumersbycontinuouslyanalyzingandadaptingitsoffertocustomer’sneeds(Baines&Fill,2014,p.8).Thisassaywillshowusevidencesofsuchorientation,likeFigure7.Apple'sPerceptualMaps(chapter2.4)orFigure10.FirstheardaboutApple(chapter2.5.4).

Applealsoiscompetitororiented,developsandunderstandsthestrengthsandweaknessofitscompetitorsandre-positionitsofferaccordingly(Baines&Fill,2014,p.8).ThispaperwillshowevidencesofsuchbehaviorinFigure4.Porter's5Forces(chapter2.2.2)andcompetitoranalysiswithSWOT(chapter2.3).

Marketing UBNumber:

Page5of26

2 KeyFactorsWhichHaveLedAppletotheMarketingSuccess2.1 BuyingBehavior

Apple’scustomersdoesn’tfitverywellintheclassicconsumerpropositionacquisitionprocessshownintheFigure3(Baines&Fill,2014,p.42).Thisisfundamentallyarationalproceeds,triggedbytheneedtosolveaproblem(motivedevelopment)andfollowedbyachainofsteps(notalwayssequentially)ofinformationgathering,evaluation,selection,acquisitionandre-evaluation.

Figure3.ConsumerPropositionAcquisitionProcess

Insomecases,wherethepurchasingdecisionhasabigsignificance,theprocessisveryaccurate.e.g.buyinganexpensivebrandnewcomputerorswitchingfromWindowsPCtoAppleMacintosh–author’scase.

Thepurchasingbehaviorisstronglyinfluencedbythebrandinitself,manyofthecustomersbuyApple’sproductsperiodicallyandemotionallylookingforfunctionality,quality,easeofuseandbeauty.

Thebrandhasreachedacultlevel.Matthew&Bueno(2011)defines7goldenrulesforcultbrand.CreatingacultbrandgivestheadvantagetoAppleofaloyalpoolofcustomerswillingtopaypremium(Schneiders,2011,pp.49-50).Somekeyaspectsofcultbrands:

• Consumerswanttobepartofthegroup(Maslow,1943)anddifferent.• Cultbrandsareinclusive,sellslifestyle,createcustomercommunicates,brand

evangelist,promotepersonalfreedomanddrawnpowerfromenemies.

MotiveDevelopment

InformationGathering

Proposition Evaluation

Proposition Selection

Acquisition/Purchase

Re-Evaluation

Marketing UBNumber:

Page6of26

2.2 MarketingEnvironment

2.2.1 Macroenvironment

PESTLEframeworkhelpstoidentifyfactorsthatmightimpactinthelongtermbutthecompanyhaslittlecontrolaboutthem(Baines&Fill,2014,p.116).

TheTable1shows25factors.Someofthefactorsarecommoninmostcompaniesofthesamesector.Appleiswellpositionedtominimizethethreatsandtakeadvantageoftheopportunities,someadditionalremarks:

• Economic:ApplecoulddiversifythesupplychainstablishingoperationsinotherregionslikeIndia,recommendationforFactors4and7.

• Socio-cultural:toreactagainstF8thecompanycouldconsidertoacquireasocialmediaplatformliketweeter.

• Technological:forF14sellingsecondhandhandsetscanbeoneaction,howeveritwasbannedinIndia.

• Legal:Appleissufferinghighpressureinthedebateofpersonalprivacyvs.nationalsecurity:F20&F21.

Table1.PESTLEAnalysis(PESTLEAnalysis,2015),(Lombardo,2015).

Category Factor ImpactPolitical 1. Theglobaltrendisfreetradespoliciesbetween

countries,governmentsmorestablesandlesswars.Opportunity

Economic 2. TheglobalGDPtrendispositive,thereforemorebudgettopurchaseelectronicdevices.

Opportunity

3. TheUSDisstrengtheningversusothercurrencies. Opportunity 4. IncreaseofwagesinChinaaffectstheelectronic

supplychain.Threat

5. Trendofbasicgoodsgettingcheapersocustomershasmorebudgetforauxiliarygoods.

Opportunity

Socio-cultural

6. Anti-AmericanismsocialmovementscanaffectnegativelytoAmericancompanies.E.g.:ChinaandMiddleeast.

Threat

7. SocialunrestinChinamightaffectnegativelyelectronicsupplychain.

Threat

8. Thesocialmediaisrisingspeciallyinmobiledevices. Threat/Opportunity

9. Mobiledevicesarerisinginalsociallevels. Opportunity 10. Theglobalpopulationisgrowing. OpportunityTechnological 11. InternetofThings(IoT)isgrowingexponentially. Opportunity 12. Cloudcomputingisglobaltrend. Opportunity 13. Slowingdemandinconventionalcomputingdevices

likelaptopsanddesktops.Threat

Marketing UBNumber:

Page7of26

14. Strongdemandinaffordablemobiledevices,speciallyinIndiaandemergingmarkets.

Threat

15. MarketappreciatesopenplatformslikeAndroidorLinux.

Threat

16. Growingdemandinmobileapplications. OpportunityLegal 17. StricterlegislationinEUmightforcecompaniesto

declarecorporateincomeinthecountriesofsales(Oliver,etal.,2016).

Threat

18. Internationallegalpressuretoincreasetherightofthecustomers:longerguaranteesandhighercoverage.

Threat/Opportunity

19. Countriesmightimposehigherstandardregulationsforelectronicproducts.

Threat/Opportunity

20. USAmightrequiretobuildbackdoorsinelectronicdevicestohaveaccesstotheirdata.(Lynch,2016)(FTView,2016).

Threat

21. Globalconcernintheuser’sprivacy. Threat/Opportunity

Ecological 22. Globaltrendforbusinesssustainability:CO2emissions,wastetreatment,etc.

Threat/Opportunity

23. Globaldemandforlowenergyelectronicdevices. Opportunity 24. Globaltrendforstricterrecyclingprogramsof

electronicdevices:Li-Ionbatteries,heavymetals,etc.Threat

25. StricterambientregulationofelectronicsupplychaininChina.

Threat

Marketing UBNumber:

Page8of26

2.2.2 Microenvironment

In1980Porterdefinedafiveforcesframeworktoanalyzefactorsthataffectaspecificindustry(Baines&Fill,2014,p.134)(Dobbs,2012,p.22).Applebelongstoconsumerelectronicsindustry(hardware&software)andrecentlytoaudiostreamingservices.Figure4showsthesummary:

Figure4.Porter's5Forces

Newentrants

Threatsofnewentrants:Generallylow

Buyers

Bargainpowerofbuyers:Apple low,Othershigh

Suppliers

Bargainpowerofsuppliers:Apple low,Bigcompanylow,

Smallcompanyhigh

Substitutes

Threatsofsubstitutes:Generallymedium

Competitors

Verycompetitivesector

Marketing UBNumber:

Page9of26

Competitors

• StrongcompetitionbetweenverybigcompaniesinvestingalotinR&Dandadvertisement.

Table2.CompetitorsSummary.Source:Appendices.

Company SmartphonesSales ComputersSales R&DExpenditure

AdsExpenditure

[MUnits] [%] [MUnits] [%] [BUSD] [BUSD]Samsung 102 21.2 13.4 4.2Apple 46 9.6 5.7 7.5 6.04 1Microsoft 30 6.2 10.4 1.6Huawei 27 5.6 Lenovo 17.6 3.7 15.4 20.3 2 HP 14.2 18.8 3.5 1Dell 10.2 13.5 0.8Google 8 Others 258 53.7 30 39.7

Total 480.6 100.0 75.5 100.0 Date 2015Q3 2015Q4 2014 2012

Figure5.CompetitorsMarketShare

• Buyers

CustomerseasilychangebetweenbrandsinPCandAndroidmarket,howeverApplehasaloyalclientelebecauseisacultbrand(Schneiders,2011).

• Suppliers

Thebargainpowerofsuppliersislowforbigordersandhighforsmallorders.In1997Jobsdecidedtoreducetheportfolioandswitchtosinglesuppliertoobtainfavorablecontracts(Schneiders,2011,pp.29,31).

Others57%

Samsung21%

Apple10%

Microsoft6%

Huawei6% SMARTPHONES

Others42%

Lenovo19%

HP18%

Dell13%

Apple8% COMPUTERS

Marketing UBNumber:

Page10of26

• Newentrants

ThethreatofnewentrantsislowbecausethesectorrequiresbiginvestmentinmarketingandR&D,seeTable2.

• Substitutes

Therearenoclearsubstitutesatthismoment,howevertheindustryisyoungandnewinventionscouldappear.E.g.brainimplantsasphoneandcomputer.

Marketing UBNumber:

Page11of26

2.3 CompetitorAnalysis

Apple’stopcompetitorsareSamsunginsmartphonesandLenovoinComputeraswesawinchapter2.2.2,weidentifiedthemarketshareand,expenditureinR&Dandadvertisement.

AdditionallyweuseSWOTanalysistoidentifythestrategicpositionofthecompanies,identifyingstrengths,weakness,opportunitiesandthreats(Baines&Fill,2014,p.163).

Table3showsApple’sanalysisthathelpstocomparewithcompetitors.Strengthsinintegration,profitandcash.Weakness:highdependenceinmobile.OpportunitiesinnewproductslikeApplePay,AppleWatchandnewbusinesssector.Threatsare:complexenvironment,penetrationinemergingmarketsandcutofsubsidies.Table3.Apple’sSWATAnalysis.(MarketLine,2015,pp.22-27)

Strengths

• Horizontalandverticalintegrationprovidescompetitiveadvantages.

• Highprofitmargininanindustrydecliningmargin.

• Highgrowthratesandcashflows.

Weakness

• StrongdependenceiniPhoneandiPad

Opportunities

• ApplePayopenspaymentgateway.• Appleproductsapportioninbusiness

sector• AppleWatchstronggrowthin

wearable

Threats

• Complexenvironmentthatmightaffectmarketposition

• Emergingmarketsresistanceforpremiumproducts

• Smartphonesubsidycutscouldimpactsales

Marketing UBNumber:

Page12of26

Table4showsSamsung’sanalysis.Strengthsinmanymarkets(smartphone,memorychips,etc.),inR&Dandglobalpresence.Weakness:dependenceinmobileandAndroid,thiscanbeexploitedbyApple.Table4.Samsung’sSWATanalysis.(MarketLine,2015,pp.19-23)

Strengths

• Establishedpositionacrossseveralmarketsenhancebrandvalue

• Stronginnovationandresearchanddevelopmentcapabilities

• Presenceacrossdiversegeographiesspreadsbusinessrisk

Weakness

• Weaknessinthemobilesegmentcouldimpactrevenues

• RelianceonAndroidplatform

Opportunities

• Growthinsmartphoneandtabletmarketsrepresentsopportunity

• PositiveoutlookforsmartTVmarket• Increasingadoptionof3Dflash

memory

Threats

• Intensecompetitionandincreasingcommoditizationinthemobilesector

• DecliningaveragesellingpricesmaystrainmarginsForeignexchangerisk

Table5showsLenovo’sanalysis.StrengthsincomputersgloballyandChinesemarket.Weaknessinpossiblerecalls,thiscanbeexploitedbyApple.Table5.Lenovo’sSWATanalysis.(MarketLine,2015,pp.23-27)

Strengths

• LeadingplayerintheworldwidePCmarket

• Strongperformanceacrossallproductlines

• ExposuretohighlygrowingChinesemarket

• StrongpresenceinPC+market

Weakness

• Significantproductrecallscoulddentbrandimage

Opportunities

• Growingsmartphoneandtabletmarket

• Positiveoutlookforcloudcomputingmarket

• Strategicacquisitionstoboosttoplinegrowth

Threats

• Competitivepressurecouldreducemarketshare

• NegativetrendsinPCsalescouldimpactrevenues

• Decliningaveragesellingpricesmaystrainmargins

Marketing UBNumber:

Page13of26

2.4 MarketSegmentation

TheFigure6showtheSTPprocessusedtoSegmentthemarketindifferentgroupswithsimilarneeds,decidewhatgroupstoTargetandPositiontheproductorservicewithauniqueofferthatencouragesthepurchasing(Baines&Fill,2014,pp.203-228).

Figure6.TheSTPProcess

AccordingtoBaines&Fill(2014)thereare3basecategories:profile,psychologicalandbehavioraland9segmentationscriteria.Manyliteratureexiststodevelopthecoreofeachsegmentationprocess(Hamka,2012,p.23).

Appletargetscustomersmainlyinthenextsegments:

• Geographic:worldwide,speciallyindevelopedcountries,usingofretailstoresandonlinesales.

• Demographic:nospecificage,middle/upperincomeclass.• Lifestyle:businessprofessionals,media/designprofessionals,educationsector,

music/videoenthusiasts,technologistenthusiast.• Productusage:targetingbasedonthefunctionality,mobility,integrationand

performance(Maha,2012).

Segmenting

Identificationofgroupswithsimilarneeds

Targeting

Selectingthegroups

Positioning

Creatingtheofferthatencouragesthepurchasing

Marketing UBNumber:

Page14of26

Apple’spositioningisoutstanding;thebrandis‘topofmind’inmanyattributes.Perceptualmapsshowhowwellpositionedisthecompanyvs.thecompetitors(Baines&Fill,2014,p.230).Figure7shows3perceptualmapswhereAppleisthe‘topofmind’inquality,innovationandreliability;secondpositioninfashionableanddurability.

Figure7.Apple'sPerceptualMapsSource:ProfessorMaylesMassel,Bus50.2Marketing.

Marketing UBNumber:

Page15of26

2.5 MarketingMix

2.5.1 Product/Service

Applehasanextensiveportfolioofproducts(Mac,iPad,iPhone,Watch,TV,Software)andrecentlysomeservices(Music,Payment).Applepresentshisofferfocusedonbenefitsratherthanfeatures.Figure8showsthreekeyaspectsoftheproductform:

• Core:benefitsfromtheproductsasservices.• Embodied:thephysicalpropositionisverystrong:stylishdesign,sublimepackaging,

highqualityandbrandname.• Augmented:includesadd-on:customerservice(rated#3on2015(Sauter,etal.,

2016)),warrantiesbeyondregulations,trainingsandreplacementprograms.

Figure8.Apple'sProductForm

Appleisasignificantexampleofaservice-dominantlogic(SDL),Baines&Fill(2014)considerinSDLthatcustomersneedtoobteinvaluefromtheproductbyconsumeingit.ApplerecentlyintegratessubscriptionserviceslikeiCloud,Applemusic,iTunesthatisdificulttodiasociatedfromtheproducts.

Apple’sbrandsisacultbrand,wedescribeditonchapter2.1.

Augmented Proposition

Customerservice,warranty,replacementprograms, trainings

EmbodiedProposition

Style,quality,durability,packaging,brandname

CoreProposition

BenefitsfromApple’sproductsandservices

Marketing UBNumber:

Page16of26

2.5.2 Price

Apple’sproductsaremoreexpensivethantheirpeers,customerstoleratehigherpricesduetohigherquality,differentiatedstyleandease-of-use.

Appleusesvalueorientedpricing,thepriceisbasedonbuyers’perceptionoftheproduct/servicevalueratherthanthecompetitorsormaterialcost(Baines&Fill,2014,p.331),thisstrategyprovidesbigprofitmargins.However,ApplegetsclosertodemandorientedpricingtocompeteinthelowersegmentswithproductslikeiPhone5CorlowerversionsofiPad.

Appleusespriceskimmingfornewproductsintroduction,highpriceatlaunchingtocovertheR&Dexpenses,andpricereductiononmatureproducts(Baines&Fill,2014,p.336).Innovatorandearlyadaptorscustomerssupportthelaunchingphase.

2.5.3 Place

AppleprovidestraditionaldistributionwithApplestores(463on2015(Statista,2016)),AppleAuthorizedStoresandonlineApplestore.

Applestorearelocatedinexclusivespotsinthemostimportantcitiesaroundtheworld.Thestaffprovidespersonalizedsupport,traininginaleanenvironment.

Marketing UBNumber:

Page17of26

2.5.4 Promotion

Themarketingcommunicationsocalledpromotion,helpsorganizationstocommunicatetheproductandservicetotheircustomers(Baines&Fill,2014,p.349).Appleusesnextmechanisms:

• Advertisement:Appleusesverywiselyhisbudget(seechapter2.2.2)withsuccessfuladvertisementcampaignsthatdifferentiatesthebrand.“GetaMac”campaign,oneofthebestofthedecade(Guerrero,2015;Kolowich,2016),engagestheaudiencewithMacincontrapositionwithPC.Othermemorablecampaignswere“thinkdifferent”or“iPodbillboards”

Figure9.GetaMacCampaign

Marketing UBNumber:

Page18of26

• SocialMedia:manyApple’sfollowerspromotethebrandininternet,magazineandmouth-to-mouth(SeeFigure10).Digitaldivas,cultbrandevangelist,opinionleaderandopinionformersreinforcefreelyandpositivelythebrand.ProfessorYoffieestimatesabenefitof400M$comingfromthissource(Schneiders,2011,p.61).

Figure10.FirstheardaboutAppleSource:(Maha,2012,p.27).

Marketing UBNumber:

Page19of26

3 ChallengesandRecommendationsDuringthisassayweusedsometoolslikePESTLE,Porter’s5forcesandSWOTthathelpedustoidentifythreatsandchallengesforthecompany.Themostimportantare:

1. AppleoperatesinacomplexandverycompetitivesectorwithwellfoundedcompetitorsandexperiencedpeerslikeGoogle,SamsungandMicrosoft.

InnovationhasbeenakeycompletivefactorforApple,I’drecommendtoincreasetheexpenditureinR&Dtoguaranteeacontinuousinnovationflow.WelearntfromTable2thatApple’sR&Dinvestmentislowerthanmaincompetitors,thisisanadditionalargumentthatsupportsmyrecommendation.

2. Concernforuser’sprivacyvs.socialsecurity.

Appleimplementsstateoftheartsmechanismtoprotectuser’sprivacy:encryption,anti-bruteforce,doublestepuseridentification(Cook,2016).RecentlyUSadministrationwithdrewtherequestofabackdoortounlockinganiPhone5,theFBIfiguredouthowtohackthedevice(Lovejoy,2016).

Myrecommendationistoopenasocialdebatebetweentheadministration,thetechcompaniesandsocialrepresentativestodefinetheboundariesoftheprivacyversusthesocialsecurity.ThedebateisalreadyveryactiveinInternet(Brandom,2016).

Marketing UBNumber:

Page20of26

3. ApplehasastrongdependenceiniPhone.

FromFigure11wedeductthatin2016Q1atotalunitsalesof96.3millionswhereiPhonerepresents78%.ThatmakesApple’sprofitabilityverydependedofiPhone’ssales.Thisisariskysituationbecausethemicroenvironmentisverycompetitive(seechapter2.2.2)

Figure11.UnitsalesofAppleworldwidebyproduct/operatingsegment.Source:http://www.statista.com

MyrecommendationforAppleistodiversifyhisportfolio,withproductandservicesawayofITandHighTechindustry.AclearevidencethatAppleacknowledgesthisissueisthe“opensecret”thatAppleisdevelopingacar(TeslaCEOElonMusk)andhiringhundredsofengineerstodoso(MacRumors,2016).

Marketing UBNumber:

Page21of26

4 ReferencesLombardo,J.,2015.AppleInc.PESTEL/PESTLEAnalysis&Recommendations.[Online]Availableat:http://panmore.com/apple-inc-pestel-pestle-analysis-recommendations[Accessed6Apr.2016].

Cook,T.,2016.Apple’scommitmenttoyourprivacy.[Online]Availableat:http://www.apple.com/privacy/[Accessed10April2016].

Lovejoy,B.,2016.FBIofficiallyconfirmshackituseddoesnotworkwiththeiPhone5sorlateriPhones.[Online]Availableat:http://9to5mac.com/2016/04/07/fbi-iphone-hack-method-secure-enclave/[Accessed10April2016].

Lynch,D.J.,2016.LongbattleloomsoverencryptionbeyondUS-Appledetente.[Online]Availableat:https://next.ft.com/[Accessed6April2016].

Baines,P.&Fill,C.,2014.Marketing.3rded.Oxford:OxfordUniversityPress.

Brandom,R.,2016.Thefivebigliesoftheencryptiondebate.[Online]Availableat:http://www.theverge.com/2016/1/12/10749806/encryption-debate-fbi-terrorism-going-dark[Accessed10April2016].

Dobbs,M.E.,2012.Porter'sFiveForcesinPractice:TemplatesforFirmandCaseAnalysis.s.l.:EasternIllinoisUniversity.

FTView,2016.Consensusisamustforencryptiontechnology.[Online]Availableat:https://next.ft.com[Accessed6April2016].

Guerrero,A.,2015.10MostCompellingAdCampaignsoftheDecade:WhyTheyWentViral.[Online]Availableat:http://www.inc.com/anna-guerrero/10-most-compelling-ad-campaigns-of-the-decade-and-what-your-brand-can-learn-from.html[Accessed6April2016].

Hamka,F.,2012.Smartphone’sCustomerSegmentationandTargeting:Definingmarketsegmentfordifferenttypeofmobileserviceproviders.s.l.:FacultyofTechnology,PolicyandManagement,DelftUniversityofTechnology.

Kolowich,L.,2016.12oftheBestMarketingandAdvertisingCampaignsofAllTime.[Online]Availableat:http://blog.hubspot.com/blog/tabid/6307/bid/32763/The-10-Greatest-Marketing-Campaigns-of-All-Time.aspx[Accessed9April2016].

MacRumors,2016.AppleCar-Apple'selectricvehicleproject.[Online]Availableat:http://www.macrumors.com/roundup/apple-car/[Accessed10April2016].

Marketing UBNumber:

Page22of26

Maha,H.,2012.CriticalAnalysisofusingmarketingstrategiesofbrandingAppleInc.s.l.:BA(Hons)inBusinessAdministration(Marketing)associatedwithUniversityofWale.

MarketLine,2015.LenovoGroupLimited-CompanyProfile.755935DB-CC13-4CB2-BD6D-8438BFB391ABed.s.l.:MarketLine.

MarketLine,2015.AppleInc.CompanyProfile.5B0A0C20-9BB6-4284-A575-AC0F2261F45Ced.s.l.:MARKETLINE.

MarketLine,2015.SamsungElectronicsCo.,Ltd.-Comapnyprofile.113F3EA6-CE38-4423-9590-97FEB3BE2F4Aed.s.l.:MarketLine.

Matthew,R.W.&Bueno,B.J.,2011.PowerofCultBranding-How9MagneticBrandsTurnedCustomersintoLoyalFollowers.1sted.s.l.:CrownBusiness.

Oliver,C.,Bradshaw,T.&Jopson,B.,2016.Apple’staxaffairssparkatransatlanticface-off.[Online]Availableat:https://next.ft.com/[Accessed6April2016].

PESTLEAnalysis,2015.AppleInc.PESTLEAnalysis.[Online]Availableat:http://pestleanalysis.com/apple-pestle-analysis/[Accessed6April2016].

Schneiders,S.,2011.Apple‘sSecretOfSuccess-TraditionalMarketingVs.CultMarketing.ISBN:978-3-8428-0221-6ed.Hamburg:Diplomica®VerlagGmbH.

Sauter,M.,Frohlich,T.&Stebbins,S.,2016.2015'sCustomerServiceHallofFame.[Online]Availableat:http://www.usatoday.com/story/money/business/2015/07/24/24-7-wall-st-customer-service-hall-fame/30599943/[Accessed9April2016].

Statista,2016.NumberofApplestoresworldwidefrom2005to2015.[Online]Availableat:http://www.statista.com/statistics/273480/number-of-apple-stores-worldwide-since-2005/[Accessed9April2016].

5 Acronyms

IoT.InternetofThings

PESTLE.PoliticalEconomicSocio-culturalTechnologicalLegalEcological

SDL.SeeService-DominantLogic

STP.SegmentTeargetPosition

SWOT.StrengthsWeaknessOpportunitiesThreats

Marketing UBNumber:

Page23of26

6 Appendices6.1 SmartphoneandComputerSales

Figure12.GlobalSmartPhoneSales.Source:http://www.statista.com

Figure13.GlobalComputerSales.Source:http://www.statista.com

Marketing UBNumber:

Page24of26

6.2 ExpenditureinResearchandDevelopment

Figure14.Rankingofthe20companieswiththehighestspendingonR&Din2014.Source:http://www.statista.com

Marketing UBNumber:

Page25of26

Figure15.Apple’sexpenditureinR&D.Source:http://www.statista.com

Figure16.Samsung’sexpenditureinR&D.Source:http://www.statista.com

Marketing UBNumber:

Page26of26

6.3 AdvertisingExpenses

Figure17.AdvertisementExpensesSource:http://www.asymco.com.Companiesannualreports.