Apple's Pricing Strategy Research On Advertising Investment

With the changing of technological innovation,intelligent electronic products give consumers an unprecedented experience.Push marketing to be used more widely,advertising marketing in intelligent electronic products become increasingly important,advertising investment have growing influence on pricing.The global smart electronics industry is facing unprecedented competition.Apple,Samsung and other giants have super-competitive,Huawei,Lenovo those rising star,but also Xiaomi and other brands,which makes companies have to consider competitors products when developing pricing strategies.This feature of intelligent electronic product replacement fast and short product life cycle,makes the advertisement investment have growing impact on product pricing.The rapid development of e-commerce technology,expanding product marketing channels,which requires companies in the development of pricing strategies to consider channels factors.In the face of an increasingly competitive market intelligence products,Apple's strategy to maintain its high prices,accounting for most of the market profits,Chinese enterprises rely on its low-price strategy,to obtain a low amount of sales profits difficultly.Although China intelligent electronic products business have been the development,but compared to Apple,there is great gap in the pricing strategy.So the research of Apple's pricing strategy has important reference for our country's smart electronics industry.Based on Porter's five forces model,product pricing theory of marketing and product life cycle theory,this study conducts a detailed analysis of Apple's pricing background.Based on differential game theory,considering Apple's current direct sales channels and traditional retail channels of dual-channel supply chain,as well as the advertising strategy(because the advertising strategy is an important means to deal with the competition and have a significant impact on pricing).In order to reflect the long-term effects of advertising,this work introduce the reputation model.We model the dual-channel supply chain with substitutable products competition problem as a Stackelberg differential game whose dynamics follows reputation-advertising model.This study found that it's difficult for Apple to maintain a unified price in dual channel.Compared with channel loyalty,companies should pay more attention to brand loyalty,because increasing consumer loyalty is a powerful weapon to deal with competition in the industry.In terms of advertising and price decisions,cooperative advertising is an incentive offered by Apple to influence telecom operators and retailers' promotional decisions.In addition,sustained advertising investment will help enhance the consumer of brand loyalty,and bring out the dominant position of pricing.In summary,this work based on qualitative research and quantitative research with differential game theory to analyze Apple's pricing strategy,recommend our intelligence electronic enterprises to strengthen channels of cooperation in dual-channel supply chain and strengthen brand building,enhance a good brand image.Furthermore,increasing consumer brand loyalty also important,as it's a magic weapon of the successful in the face of fierce competition.