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.