Price and Channel Strategy

Price and distribution regard how effectively and efficiently a firm can sell its end product to the target market. The approaches that the firm can choose to utilize can be both direct and indirect. Proper pricing of the products and the use of the right channel of distribution play an essential role in the growth, profitability, and success of any business (Mohsen et al., 2023). On the other hand, the channel of distribution is the approach in which the product and services are distributed from the manufacturer to the end user. The paper will discuss the pricing and distribution channel choice for Apple Inc. products and services, mainly the iPhone. Apple Inc. is a firm that produces one of the best products, and it has done exceptionally well in its placement and pricing strategies.

Distribution Strategies

An indirect distribution channel is what Apple Inc. uses to sell its products to stay competitive. This means that they do not sell their products to consumers directly. This is essential since it allows the company to sustain a better market position than a direct distribution channel (Mohsen et al., 2023). Apple Inc. utilizes online methods and storefronts to sell its phones. For example, iPhones are sold on the Apple website or shipped to storefronts such as Apple Stores. The company usually strives to be unique with its product sales and distribution methods. Apple Inc. alleges that it does not want to pressure its customers to buy its products. Instead, they make their clients seek their products, making it a well-thought-out strategy for marketing your products.

Positioning with Channel

The positioning of a channel is critical because it ensures that the product is noticed in a large advertising market. Positioning can be used to make a product stand out at a particular time. For example, Apple Inc. makes its product stand out during holidays, the festive season, and income tax, when people are willing to use the money to buy new iPhones on the market. In other instances, they choose to position iPhones among other products in the market using Think Different Campaigns (Payne, 2017). They usually state the uniqueness of their products, which goes a long way because the customers would compare their features with those of other similar products. Through this, their products typically stand out.

Apple has many competitors producing similar products, such as Samsung; therefore, they must stay competitive irrespective of the product's status in the market. Apple should also use trending or the most used channels to position its products. It ensures that the right group or intended audience receives the right message. Apple Inc. utilizes Twitter and Facebook channels currently while positioned because of the mass usage of these platforms. The consumers who use these social media channels require the newest technology; thus, the positioning of a product by Apple Inc. has proven to be the right strategy. They have successfully positioned their products and used the right communication channel to reach the target market.

Channel Tactic (Pricing)

The iPhone's pricing depends on factors such as the competitors' price, production, distribution cost, and customers' income, among many other factors. Zhang (2023) argues that Apple's pricing strategy is customer-driven, meaning that it is determined by the market demand. A good price strategy will enable the company to determine the level of price they would charge to maximize the profit of their products. The company should be aware of all factors to avoid underpricing and overpricing. It is because the company would incur a loss if it underprices and loses customers if it overprices. It would then affect the company's growth and success.

The company should utilize the following pricing strategy while determining the price of products. Pricing at a premium is a strategy that argues that the cost of a product should be slightly higher than that of competitors to increase profits from the sale of the products and services. Economy pricing is also another strategy that the company should utilize. It alleges that reducing production costs would lead to low product prices and more sales. Price skimming is a strategy that says the amount should be high in stages when the product is released. Apple has utilized this strategy while unveiling its products.

The market position of Apple Inc. is way too different from that of other players in the same field because Apple does not rely on discount offers. The company's products, such as the iPhone, are sought after by a large group of people, meaning that the characteristics of their products are in high demand. The company is thriving because its products are tailored to meet the customers' needs. There is substantial revenue from the retail stores that sell Apple products.

Conclusion

Apple is a company that is well-versed in the placement of products in the market. It is evident that Apple Inc. has utilized the right strategies in pricing and distribution, and that’s the reason that they keep on upgrading the iPhone each time. The marketing team has played an important role in the success because they can release a product and still make an older product sought after. Apple Inc. has usually been aware of how it prices its products and its distribution methods. It has made it one of the biggest companies globally and has the most sought-after products.