Where a company bases a product to make a different product. For example Mars have made milkshakes based on the Mars bar. Brand extension
Where a company uses their brand name on different products to increase the profit margin. For example Hugo Boss could put their logo/name on a watch and customers would still pay more money for their product. Diversification
Is where they take a product into a new market. It is a slight risk as the company may not have experience in this market. An example of this is when Apple decided to enter the market for MP3 as to their original market of computers. Brand building
Making your product stand out by using your logo which has been used on previous popular products. As long as it is still successful it will succeed. An example of this is PepsiCo using their logo on their lesser brands. Market Penetration
Involves increasing sales in existing products within an existing market. There is a usually a low risk element as the business is usually experienced. An example of this is a Fredo chocolate bar increase their prices. Brand positioning
This is how a product is viewed by the consumer in relation to their rivals in the market. An example of this is food in Tesco might be seen differently to the food in Lidl. Market development
This involves releasing an existing product into a new market, for example a IPhone that has been selling well in the UK will be sold across
Europe. Relationship Marketing
This focuses on building a good relationship with customers in the long term basis. They try to build an everlasting one to one relationship with their customers in order to guarantee themselves customers for a long time.
How does Apple use it?
Apple would use a product that they use and would expand it in to a different model. For example Apple started with computers and moved to MP3 players and phones. Brand extension
They would put their logo on different products. For example they would brand their headphones or phone cases with their company name or logo. Diversification
Apple have successfully used by trying out their IPod in the MP3 market as to their original market of computers. Brand Building
They would do this by making their lesser products stand out. They have labelled their cases for their IPod/IPhone cases with their logo which would make customers more willing to pay more for the product. Market penetration
Apple have used market penetration well by slowly increasing the prices for their products. They have succeeded as they are very experienced in the business market. Brand positioning
They would try and make their products better than their rival businesses in their market. For example they would try and make their phones better than Samsung’s. Market development
Apple would look at how successful their product was in one market and therefore try and sell it in a new market. For example if the IPhone done well in the UK they would launch it in Europe. Relationship marketing
Apple give a clear description to their customers about their products. They also make sure they have plenty of new products out for customers to enjoy. They also have products out in their stores for customers to try out.
How Thorpe Park would use it?
They would move away from rollercoaster and perhaps sell costumes for their event Fright Night. Brand extension
They would put their logo on items such as key rings or photos. Diversification
Thorpe Park would sell souvenirs such as key ring or t-shirts to remind you of the visit. Brand building
They make their business stand out by flashing their logo in adverts. They also make deals with other businesses such as Nestle to promote their business on the back. Market penetration
They tend to rise their ticket prices on bank holidays, school holidays or weekends as more people would go to their business. Brand positioning
They would advertise their newer rides to make them stand out. Sometimes making them look even better than they are. Market development
Thorpe Park would advertise their business abroad so that when tourist travel to England they would consider using their business. Relationship marketing
They would give special offers such as two for the price of one tickets. They would also promote their new rollercoasters. They will also host special events such as Fright Night. To inform customers of this they may send an email to those who are likely to be interested.
Both Thorpe Park and Apple use marketing techniques in different and similar ways. The way they use product development is quite similar. However Apple have a larger range they can develop products in to, due to the type of market they’re in. They are also quite similar at using brand extension. Where Apple put their branding on headphones, chargers and cases, Thorpe Park similarly brand photos, key rings and t-shirts. Apple would be more successful with diversification than Thorpe Park as they have been able to move from computers to MP3 players to phones, mean whilst Thorpe Park is mainly based on rides. Therefore they are only limited to selling merchandise such as t-shirts and key rings, etc. Thorpe Parks way of brand building is much more efficient than Apple’s. They have made links with different companies such as Nestle, who would advertise their brand on the back of cereal boxes.
This in my opinion is much more effective as you could see their branding on products not even relating to them. However Apple tend to brand their own smaller products such as phone cases. Thorpe Park’s way of market penetration is much more effective than Apple’s. Thorpe Park subtly raise their ticket prices during school holidays, bank holidays or weekends. This is because more people are likely to visit their business. Apple however just raise the price of their products less so often as eventually prices will become too high. In terms of branding positioning, both businesses are very similar. They both try to promote their business more than any other rival in their market. Therefore they are very similar in this sense. Market development is yet another one that these to businesses are similar in.
They both bring out new products to satisfy customers. Apple more frequently bring out new products than Thorpe Park as they bring out new rollercoasters every year or so. Both companies try their best to build good long term relationships with their customers. Thorpe Park have popular annual events such as Fright Night which their customers love and Apple bring out new pieces of exciting equipment their customers can buy. Yet again in this sense they are very similar.
The way Apple have used their market techniques is very effective. The way they have used product development has been very successful. They started off in the market of selling computers, and took a risk of moving to a new market. This new market was MP3 players. It proved to be very successful and they are now arguably more noticed for their MP3 players and tablets rather than their original product of computers. Apple have also quite cleverly used brand extension very well. They have done this by being consistently reliable and known for their top quality products. An example of this is when they put their logo on products such as headphones customers would feel more comfortable buying a product from a well known, trustworthy brand. . They have also used diversification very well. They have taken a chance in a market they wasn’t so familiar with and succeed. An example of this is moving from computers to MP3 players. They have also proved to be successful in brand building.
They have promoted their lesser products to be a big seller thanks to their reliable reputation a company. They would sell products such as phone cases to protect their product. Customers would trust their cases equally as much as the product they have purchased as the product is so good. They have put their brand name and logo on them to make them seem better than what they are. This also makes customers look fancier as they have a product from a very successful company. Since Apple is a reliable business they can charge more for their products. People are more willing to pay more for their products as they are known for their low risk of picking up a virus. This shows they have succeeded in market penetration. In terms of brand positioning I think Apple have done very well. If I were to go out and buy a products in their market it would be more than certain be an Apple product as opposed to Samsung. This is because in my opinion Apple make the most reliable products. In my history of buying Apple products they have never let me down.
They have also never broken when I have brought them which means I wouldn’t have to keep replacing their elite products. They have constantly continued with their rising reputation. In my eyes they have used brand positioning very well. Apple have succeeded in market development. Every year they have a new model of an IPhone and every year everyone has to have the new IPhone. People pay ridiculous money for the IPhone. This just proves how well they have done in market development. Relationship marketing with Apple is okay. They are always honest with when describing their products. This shows they’ve got nothing to hide. Just by being successful will guarantee them to have long term relationships with their customers. An extra treat for Apple customers is they can try out the Apple products in their stores to see what they think about the product. To conclude I think Apple have been very successful with the way they use their marketing techniques. They have proved they are a successful business in every market they have been involved in. If they keep on doing what they are at the moment they can only get better.