In any given company, there is a set of marketing tools that all businesses refer to in order to cater to their targeted market that includes influencing the demand for the product they are selling. These marketing tools are referred to as the 7P’s – price, promotion, place, product, packaging, positioning and people.

Product refers to the goods and services that a company offers to their target market, so it must be noted that the most ideal product must provide value for the customer. Apple differentiates itself from other similar companies in the marketplace, through creating a perception of value for their customers; by delivering innovative technology that caters for ‘forward thinking’ customers. Upon visiting Apple, it was personally noted that the product essentially sold itself. Due to the Apple brand being internationally known, the logo is a synonymous representation of the company, placed on every Apple product, and the simplicity of the logo entails the cliché saying ‘less is more’. By this virtue, the Apple Company does not need to elaborate on who they are as their logo is a representative of them. “Price is the amount of money consumers must pay to obtain the product” (Kotler et al. 2013); this is where a negotiation can be put into place or discounts offered as this factors in the buyer’s perception of the product the company is selling. Companies also need to consider that a product is only worth what the customer is prepared to pay for it as well as the price having an impact on the positioning of the company in the marketplace. Apple understands that from losing a customer, it isn’t simply just a loss of a single purchase but in actual fact, an entire stream of purchases that the customer would make in their lifetime. Thus leading companies like Apple heavily focusing on customer lifetime value (Kotler et al. 2013). Place denotes where a consumer purchases, the means of distributing the product to the location that must be convenient for the customer, company logistics and display of inventory. Within the Apple store, it was noted that all Apple’s latest technology was displayed in an orderly fashion throughout. The general atmosphere and structure of the store encouraged customers to test products at their own leisure, effectively allowing customers to form personal evaluations of the product without feeling pressured by a sales person. Essentially, Apple retail stores are ‘experience stores’ in which they appeal to customers, giving the perception of self-empowerment. This in turn makes the customer feel satisfied with their purchase and this is indicated in the statement, “experience stores are based around the simple idea of ‘try before you buy’ and the accent is on providing potential customers with an attractive and relaxed environment where they can try out and learn to use products and services and ask questions without feeling under pressure to purchase. At another level, experience stores look to encourage customers to experience and communicate with the merchandise and more importantly to develop an emotional bond with the brand” (Jones et al. 2010). This represents the culture of the Apple store, as their main goal is to enrich their customer’s lives. This also links directly to Physical evidence, as this is where the visual display of the product as well as the company proves vital to the potential customer’s final purchase decision. Apple removes the common issue many businesses face where customers are unable to test their products and provides their entire range of technology to be put on display at the customer’s self use.

Promotion refers to the various ways a company communicates what it does and how customers can benefit from their product. Promotion activity includes branding, advertising, PR, special offers and so on. People draws on the relationship between customer and employee/r, as first contact between company staff and customer leaves a lasting impression and whether it is positive or negative is entirely up to the level of service the business provides. Through observation, Apple displays their heavy focus on Customer Relationship Management in order to create and sustain a long lasting relationship with their customers. From the very beginning of the experience within the store, an Apple employee is there to greet you and ask what you’d like to do and if any help is required. Process additionally plays a crucial role in creating value for customers, as it is the entire procedure of delivering a service. To avoid a disorderly crowd of customers, Apple has created a genius bar that encourages customers to look to them for technical support with a promise that they will receive as much assistance as they need. Apple has also taken the bold step to completely remove all cash registers from their stores; this proves to be extremely effective in creating a low stress environment where customers are not feeling pressured to purchase. This process now sees employees equipped with the new Easypay system that allows customers to quickly swipe their credit card thus finalizing their low stress purchase in an easy transition.

As illogical as it seems, Apple doesn’t sell their products. They are inviting customers to experience the Apple lifestyle and instead of showing you how their products work, they show you how you’ll feel using their visual product as a status symbol. Apple manages not only to satisfy customers but also persuade customers into making purchases with them over a lifetime, they sell memberships and this is the a majority of the value that is perceived by their customers.

Referencing

Kotler, P. (2013) Marketing, 9th edn., National library of Australia : Pearson Australia Group Pty Ltd.

Peter Jones, Daphne Comfort, Colin Clarke-Hill, David Hillier, (2010) "Retail experience stores: experiencing the brand at first hand", Marketing Intelligence & Planning, Vol. 28 Iss: 3, pp.241 – 248