Chapt. 7: Business Marketing

As well as marketing towards the people who use Apple products for recreation. Apple has also been into business marketing to help make the corporate environment become more elusive, efficient and effective.

PepsiCo North America Beverages, has made an app called Power4Merch that aids merchandising and distribution with the iPad. This app sends alerts when the driver has arrived. The merchandisers are updated immediately so that the right things can get put on the shelves ready to be sold.

http://www.apple.com/ipad/business/profiles/pepsico/

Chap. 8: Segmenting and Targeting Markets

Apple is famous worldwide and seems to have a global market. There demographics segmented when it comes to the benefit segmentation. Apple produces a product based on how much utility their customers get out of it. Customers needs really matter to Apple that's why they produce products that appeal to the artist as well as the professional.

All these new products in Apple's product mix are targeted to the demographics aged 15-35. Teens control most of the buying power in the economy and Apple makes tech-savvy, sleek products that attract them. Also, the older, working professionals aged 21-35 also have buying power and have a need for a product that can get them through the work day as well as assist when they are feeling a little artistic.

Chapt. 11: Developing and Managing Products

When it comes to developing products, Apple Inc. is listed in the Business-Week Boston Consulting Group as one of the most innovative firms right now. One of those innovations was the introduction of the new product the iPhone. (Image Below):

 Totally making a big scene within the smartphone industry, Apple Inc.  released this new product exclusively on the AT&T network only in the U.S. The mere simplicity incorporated in this new tech-savvy smartphone has made it a hit. Fast forward five generations later Apple has managed to sell over $250 million units world-wide.

 

Above, you see Tim Cook and the iPhone product line,(the first generation at the far left and the iPhone 5 at the far right) this image can not delineate the changes that has been made. Although they make minor adjustments with each new phone release, Apple manages to make adequate innovations such as retina screens, Siri, better cameras etc. These improvements has created brand loyalty to Apple's phones.

Chapt. 16 Integrated Marketing Communication

One thing about Apple Inc. that builds a strong communication with it's consumer is it's distinctive brand quality and features. Apple's flawless and simplistic yet innovative style in their portable media gadgets  are idiosyncrasies  that appeal to the consumers aesthetic mind. By doing this, this company has successfully incorporated the AIDA (Attention, Interest, Desire and Action) concept into their business plan.

Apple Inc's customer focus is this: "Every product we make and every service we provide is for our customers. Focus on providing innovative, high-quality products and services and on demonstrating integrity in every business interaction. Always apply Apple’s principles of business conduct."

With Apple's infamous comparative ads, delineating the dichotomy between the Mac and PC, demands our attention informing us that they are better than the competition. From the moment we walk into an Apple store and we see kiosks with ready to use iPhones, iPads, and Macbooks, that automatically strikes interest in the consumers.New features in the iPhone like Apple Maps, a bigger screen, and panorama picture setting (iPhone 5) create that desire that makes us the consumer desire this product.

Apple make's sure to assert it's presence in our every day lives by becoming a household name. Also, their success in the NASDAQ, going head to head with Google in QE3 doesn't directly prove Apple as the best tech company however it definitely holds the spot above Microsoft. Even though Apple's share price has dropped, it is climbing again trading at 563.05 per share and is a bull in the NASDAQ Composite.

Apple: Product Concept Chap. 10

Apple's product concept is a product line. They have created a demand for their varied specified products by supplying the consumer with the most innovation and simplicity in a technological invention that is far from simplistic. From the Mac desktop shown on your right, to the iPad, iPhone and Macbook.

Apple is strategic in how they release their product mix as well. Many might say that the new iPhone 5 is not that different from the iPhone 4 or 4s but it was greatly over-priced. Others beg to differ.

Apple Inc. and Tim Cook have managed to create a demand for the iPhone 5 that they could not keep up with in September. Creating high demand with low supply, making it hard to actually get this over-priced phone. However, mobile products have done the company some good. According to the The New York Times, "revenue from the iPhone rose 56 percent to $17.13 billion, making up 48 percent of the company’s total revenue. It sold 26.9 million iPhones, 58 percent more than a year earlier."

The newest member to the product line family is.....drumroll please................:

The iPad Mini!! Now I don't know about you but this new product has been making a lot of buzz. Apple projected 20 million early release orders however only ended up getting 17 million. The market makers will decide whether this new born in the iPad family will Pop of Flop. Starting at only $329, it seems like a great buy to add to your bitten apple logo collection.

 Apple Inc.'s product line consists of shopping/consumer goods. They are more expensive than let's say convenience goods, with the  iPhone5  starting at $199. However, compared to a specialty item like a $50,000 BMW, a Macbook is relatively cheap starting at $1,000.

Anyone can shop, compare and/or buy any item in Apple. Inc.'s product line by going to their website. http://store.apple.com/us/browse/home/shop_iphone

Apple: Chapt. 18 Sales Promotion & Personal Selling

Apple stores are known to be pretty tight with promotion but still there are in fact incentives for the loyal users and consumers who are buying a product for educational purposes. For example there is the Back to School Gift Cards that are available at $100 and $50. Parents, students, and educators are qualified for these special promotional incentives.
Also, Apple has another field of sales promotion by allowing trade allowances for retailers such as ClubMac, MacMall and BestBuy. This allows price reductions for many of Apple's product so that they can in turn make space for new products and inventory.

In regards to personal selling, Apple's retail stores set up kiosks equipt with active, fully working iPhones, Macbooks, and iPad's to entice the customer into that sale by allowing them to sample products.

 They also have the Genius Bar, who are there to assist, advise, help and support any Apple customer who has a problem or concern. This type of relationship selling has become very popular to Apple's consumers and has played an imperative role in increasing customer loyalty.

Although technology and innovations have altered the way customers shop and companies sell, Apple has adapted to the volatile markets of today by being a heavy-weight in e-commerce sales while at the same time keeping the old-fashioned traditions of resourceful sales people in stores.

Apple: Chapt. 17 Advertising

 

Apple's advertisement strategy for new products is mostly a Pioneering Advertisement. Apple seeks to create interest for a new product by featuring the specific product, with a white or black backdrop, being used. This accentuates on the special features that will make a consumer want to buy the product or makes a high demand for this one product. Apple has many of these commercials out for their iphones, macbooks, and ipads. This simple commercial is cost efficient because it doesn't cost a lot to direct and produce.

However in other occasions, Apple has used celebrities if they really wanted to get their point across (and product sold) one example is the commercial featuring Samuel L. Jackson using Siri on his iPhone 4s:

Apple Inc. reportedly spent more on the iPad early on in advertisement than the iPhone because their goal was to attract customers to buy into a new product category. Apple has spent $307.7 million dollars in the 2011 fiscal year.

Apple: Chapt. 15 Retailing

 

When you walk into an Apple store on Prince St., you aren't bombarded by sales people or data plans. You will see a display of iPhones, fully accessible. Downstairs, you will have Macbook Pros available ready to be played with. You have a very helpful staff of tech savvy employees called "Geniuses" who are ready and willing to assist with any problem you may have with your Apple product. The technology giant Apple has dominated in the retail area with their highly effective full-service stores. These stores are loved by consumers because unlike cellular phone service sales people, Apple is not trying to sell you a plan. They don't even care which carrier you have. Apple's stores are devoted to selling their Mac's, iPads, iPods, and iPhones. As of August 2012, Apple has 393 stores worldwide, up from 326 stores in 2011.

In regards to e-tailing, Apple is ranked No.1 in electronics according to a ForSee results survey and 4th overall. Whether it's in store or online, Apple has no issue with dominating the market.

Apple: Chapt. 6 Consumer Decision Making

For the highly anticipated iPhone 5, there has been a lot of disappointed consumers to say the least. That is actually an understatement. Apple has reported lackluster sales in the U.S. One reason may due to the many minor updates in features, the addition of a half-inch does nothing for Apple's faithful consumers. Also, Apple did away with Google Maps and replaced it with a premature version of their own Apple Maps. With anything new of course it will have glitches. Consumers where not happy with that one bit. I used it to locate my office in the Financial District, and the software took me to somewhere in Upper Manhattan.

 

In order to even upgrade to the iPhone 5, existing will have to take a new data plan. No more "free-bees". Consumers would have to make the choice to either keep their current data plan which is fairly affordable or switch to the LTE network which all iPhone 5's run on. That will without a doubt influence the new customer's decision. Many people can not afford their phone bills now, the iPhone 5 will run them dry.

To sum it up though, some people do have the capital to purchase the new iPhone and some already have. Apple has already gained that loyalty. To maintain it though, they might have to give us consumers more bang for the buck.

Apple: Chap. 5 Devloping a Global Vision

Apple Inc. has without a doubt expanded globally and is a house hold trademark in other continents. One of Apple's more vast markets is China. With over 1.4 billion people living in China it only makes sense that Apple appeals to their demographic. The Asian communities are known to be prone to the newest technological advances and have money to pay for it.

However, in the June quarter Apple has struggled in China which is their second largest market. Consumers weren't excited about the new iPad. Fortunately for Apple, things seemed to make a quick turn around with the release of the new iPhone 5 that has Chinese consumers scouring the internet for the newest product from Apple Inc. The most adamant in the country, smuggle their iPhone 5's from Hong Kong, to ensure the authenticity.

One thing that troubles me is this: Not more than two weeks ago, workers from Foxconn (one of Apple's licensed factories) rioted, and brawled livid about the pressure of the iPhone 5's release. My question is this: If these riots, brawls and protests are held in China's backyard, against the corporate factory abuse, why then are Chinese consumers still buying these products?



 http://www.washingtonpost.com/lifestyle/travel/apple-suppliers-factory-resumes-production-after-brawl/2012/09/25/3e4f0d9a-b740-4c5c-8d0d-7cad50d022e4_video.html

Apple: Chap. 4 The Marketing Enviorment

Apple Inc.'s marketing environment is designed to appeal to the tech savvy, young, professionals and artistic consumers. From the start Apple has been consistent in providing a product that intrigues the professional and artist in us all. Through applied research, this company has produced the most innovative software, phones and tablets on the market.

Most of the teens and my generation (Generation Y) that use Apple's products such as the iPads and iPhones only use the generic apps, which don't really showcase the true potential of the processors performance. For those groups the utility margin for the new iPhone 5 may not be that high in comparison to the professionals. Professionals are buzzing about the new A6 processor chip which will provide twice the CPU power and graphics potential. Graphically the A6 would be a web-designer's new favorite toy as well.

                                                                                                                                         

Apple Inc. is so popular today, the utility of this product doesn't even have to matter to most, and all that does matter is the prestige that comes with the name. A few years ago you would see every business man with a blackberry, but now as I walk down Wall St. everyday all I see are iPhones and iPads. So it is safe to say that Apple Inc. has successfully made its way into our homes as a household name, on the streets in the financial district, and at the top of the food chain on the NASDAQ. Pretty effective marketing is you ask me.

Apple: Chap. 3 Ethics & Social Responsibility

 It can't be a coincidence that chapter three is about business morals and ethics, and my colleague sent me this article about Apple's plants in China. The article looks into the dangerous environment that the Chinese workers work under. The chemicals used to polish the iPads and iPhones that are detrimental to their health, and even the deaths that have taking place through laboratory explosions. In one case a mans face has been blown off.

We all know that Apple's products are in high demand and like all flourishing companies they out source to produce their products in a efficient and profitable way. But at what costs? “Apple never cared about anything other than increasing product quality and decreasing production cost,” said Li Mingqi. It saddens me to learn that one of my favorite companies has disregarded its corporate social responsibility, to make a profit.

Apple refused to comment on this article, but I'm disappointed. Personally I don't care how well this stock trades on the NASDAQ right is right and wrong is wrong. If more people knew about this do you think they will stop buying Apple products?

We all know about the sweatshops but we still buy Nike. Something to think about.

Business is business.



 My source: http://www.nytimes.com/2012/01/26/business/ieconomy-apples-ipad-and-the-human-costs-for-workers-in-china.html?_r=2&pagewanted=all

Ch. 2 - Strategic Planning for Competitive Advantage

Apple's Competitive Advantage: Total Domination

 

So, as we know Apple Inc. was awarded $1 Billion from the law suit against Samsung last month. Bottom line is all these smartphones on the market today are "cramping their style" if you will, absolutely emulating all the features that makes the smart phone today, well, smart. Including navigational features, application layout, even the sleek new look touch screen with boxed corners. Apple is pushing towards taking 8 of Samsung's phones off the market. Thus giving Apple a well earned head start while other companies like Google race to innovate their platforms. However, nothing they can do can stop the Sept. 12th release date of the highly anticipated iPhone 5.

 

 Another competitive advantage Apple has in the smart phone business is a product differentiation. The iPhone 4s has totally set itself apart from all the other "SMART-phones" with the progam Siri. This component of the iPhone 4s was the most popular feature in the phone resulting in 3 million being sold in the first few days of its release in 2011.

For those who aren't familiar with Siri, she is more than an a sweet talker. Siri can be used to locate restaurants, cancel flights, send and read text messages. There is a plethora of uses that Siri is loved for. But some just want a sexy voice to hear when there is no one to call. Apple seems to be cool with that too.


Hopefully she will be there for us when the zombies attack lol

Apple:Ch. 1 - Overview of Marketing

Mission
 
Apple's officially mission from the website: "Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices."

However, that is only a list of products they have produced. This closing statement in a press release summarizes the companies real mission: "Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings."


History

Originally coined "Apple Computers" the company was incorporated on January 13, 1977 in Cupertino, California. Founded by Steve Jobs and Steven Wozinak. Even their first Apple I showed innovative difference from other computers by having a TV as a display. On the verge of bankruptcy in 1996, the return of Steve Jobs and eventually his advance to CEO proved to be imperative to the companies reconstruction and success it has today. Products like the iMac, Macbook, and iPad cornered the market with the expertise innovation in computing Apple is infamous for. Also iTunes, and the iPod musically dominated while the iPhone totally surmounted all competition with its sleek, sexy look and innovations in the way people communicate in the new decade with programs like FaceTime and Siri.

The proof is in the numbers. Apple's original  December 12, 1980 IPO of $22.00 per share is the equivalent to a small seed compared to the capacious IPO as of Aug. 31 2012 of $665.24 per share. As of 2011 Apple Inc. reported to be the largest Tech firm in the world with revenues reachong $100 Billion. Now with over 60,000 employees and without a doubt a bull on the NASDAQ Apple is a strong company to beat.

Marketing

Marketing is about the way firms advertise and communicate to consumers as well as how much they listen, build relationships and try to meet consumers needs and wants.

Sales oriented marketing is more about how to put a product in the hands of the consumer whether or not the product is necessarily right for them. While a market oriented firm is one that strives to meet the needs of targeted markets, listening and creating a relationship with the customer to ensure loyalty and longevity with their consumers.

I'd say Apple Inc. is most definitely a market oriented company although the proudcts platform are desgined that no one can tamper with it (unlike Andriods platform). However, when you take an Apple product to the Apple store for example, the laid back cool, calm and collected environment represents a place where Apple users can seek tech support, view new products without them being shoved down their throats or just a place where they can enjoy their Apple products with other consumers that love their Macbooks, iPads and iPhones.

Apple's commercial are simple, always show casing what new features a product may have (i.e. Samuel Jackson using Siri to cook dinner for a special date.) Or even more basic, showing the sleek new design of a product on a black back drop (i.e. the Airbook commercial.)

 Innovation has always been key to Apple because they understand their specific tech market always want what's new, what's "hot" in the market today. Because we all fear of being left behind in this infinitely growing, for ever changing, fast paced information age.