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