Essay Example for Everyone on Price Setting and Distribution Model of Apple Company

Published: 2022-08-23
Essay Example for Everyone on Price Setting and Distribution Model of Apple Company
Type of paper:  Essay
Categories:  Company Strategic marketing
Pages: 3
Wordcount: 776 words
7 min read

Apple Inc. Company has dominated the world by its ability to produce multiple products. With the use of the available technology, the firm has ventured in the production of iPhone, iPod, iMac, as well as music. Its capacity to produce all these goods makes it position itself as one of the great producers if not the best. To differentiate itself from other global firms, Apple has a unique logo that makes its products stand out from others in the market. Despite the increased competition from other firms, Apple has remained steadfast in its capacity to maintain its share in the market.

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As a consequence, this has made it be ahead in creating a demand for its products due to its characteristics and uniqueness. I this regard, various pricing strategies are available for Apple Inc. in ensuring its products are well received in the market. In addition, these pricing strategies are critical in coping with the available market competition. Therefore, all these pricing strategies must be cost-effective. According to Learn Marketing (2007), the price is that value that marketing mix value that ought to be handled carefully and if not, then the sale of products will not be met.

Distribution Strategies

Apple Inc. is endowed with various distribution strategies to introduce its various products into the global market. For most firms, it is their sole wish to establish a monopoly and dominate the market in their bid to maximize their profits. Therefore, Apple Inc. has to use various distribution strategies to reach as many markets as possible to promote its dominance. One of the available distribution strategies is the exclusive form of distribution. In this case, it would seek to limit the number of middlemen or intermediaries in their distribution of its products. The limiting is aimed at maintaining control over their products as well as addressing customer queries in the most natural way possible (Kotler & Keller, 2016). For this to happen, Apple Inc. should establish outlets in various global destinations and guide them on the distribution method of its products. The other strategy is the intensive one where a manufacturer is intensively responsible for distributing goods to as many outlets as possible (Kotler & Keller, 2016). However, great care ought to be taken to ensure that cost-effectiveness is addressed at all times. In this regard, Apple Inc. can create several outlets such as stores in various regions to enhance customer access to its products.

Dynamic and Static Pricing Strategies

The Dynamic pricing strategy is a mechanism where a firm does not set a specific price for its product, but it is dependent on the market circumstance. Such circumstance is the interplay of demand and supply of a product and consumer changes in tastes and preferences (Magloff, 2017. It is at this strategy where consumers dictate the price they offer for a particular product. Some at this point may suggest a higher price than what a firm intends to sell its product while others may mention lower prices (Gartenstein, 2018). Therefore, Apple Inc. may adopt this strategy as it depicts customer's willingness to acquire their products at any price.

Channel Tactics (Pricing)

In this case, a firm uses various pricing tactics to improve on its distribution in the market. All these are deemed to promote the sale of their products by charging new prices. For instance, Apple has continued to dominate the market through the use of product differentiation. In this case, it has differentiated its products from any other firm, and many customers believe this is a way of ensuring that they distribute quality products. Therefore, this is one of the best pricing techniques Apple Inc. has adapted to maintain its market base.

All in all, it is imperative to understand the relationship between pricing and distribution in the introduction of a new product or service in the market. A wrong choice of the distribution channel may lead a company to severe losses, and this leads to its fall if it persists. The use of the above strategies is important to determine the pricing of a company's goods and services. Therefore, Apple Inc. should use its strategies effectively to continue its market dominance and realize more profits.


Gartenstein, D. (2018, June 30). What Are the Benefits of Skimming Pricing Strategy? Retrieved from

Kokemueller, N. (2017). The Advantages and Disadvantages of Fixed Pricing and Dynamic Pricing. Retrieved from

Kotler, P.T. & Keller, K.L. (2016). Marketing management (15th ed). Upper Saddle River, NJ: Pearson/Prentice Hall.

Learn Marketing. (2017). Marketing Mix. Retrieved from, L. (2017). Dynamic Pricing Strategy. Retrieved from

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