Free Essay

Apple Inc Marketing Strategies

In: Business and Management

Submitted By yumz
Words 812
Pages 4
Impact of Apple Marketing Strategy on Consumer Self-concept and How Various Products Appeal to the Different Types of Self In their marketing strategy, Apple Inc capitalizes on their consumer’s self-concept such as their beliefs, opinions, preferences, attitudes and what they think about the Apples brand (Schneiders, 2011). As explained by (Budnikas, 2010), Apple Inc marketing strategy focuses on the customer experience as it is fully aware that all aspects of the consumer experience are important to the success of their brands. Apple Inc develops products that are beautifully designed, innovative, ergonomically simple to use and user friendly interface. Additionally, Apple has also spent as much time and resources on the design of their products packaging as on their products hence they have created an experience among their customers that is impossible to match. Apple Inc also uses scarcity as its marketing strategy (Katie, 2013). The company stocks a limited number of their products. Due to the limited availability of the products, people perceive their products as high quality and of great value (McCormack, 2016). This creates very long queues which helps publicize their products and increase demand. Apple has also come up with Apple Genius. These are employees trained and certified to provide technical assistance to apple stores. This creates trust in their products and conveys their products as superior. Apple Inc products include Mac, iPod, iPad, iPhone and Apple stores. According to (Lashinsky, 2012), Apple products appeal to people from all age groups, cultures and professions. They appeal to business persons due to easiness in performing tasks and communicating. MacBook appeals to graphic designers due to simplicity to use and smooth running of graphic design software. IPods appeal to many teenagers due to their appealing appearance, easy ability to listen to music as they incorporate iTunes and many gaming apps. Additionally, Apples MacBook and iPhone appeal to students due to ability to quickly take notes. They are also light.
Behavioral Targeting Techniques Used by Apple and Techniques Used to Track and Target Customers According to (Montgomerie & Roscoe, 2013), Apple Inc uses its integrated ecosystem, its online and offline retailers and the iTunes software to capture comprehensive information about customer’s behavior. Detailed analysis of this information has enabled Apple to understand their customer’s behavior. It has also enabled Apple tailor their products and brand messages according to the information obtained hence making their products more appealing to their target markets (Lüsted, 2012). Apple Inc uses cookies and email marketing programs to help them target their customers (Phillips-Melancon & Dalakas, 2014). When a person searches for any apple product in the internet, visits their website or E store, Apple uses cookies to track their interests and preferences and they send them emails of their products that would be of preference to them. This is possible through use of an online marketing program. The information obtained through cookies is also used in analyzing consumer behavior. Apple Inc also uses retail stores to target their customers (Katie, 2013). These include online Apple Store and App store. Apple stores are retail stores that are highly visible. These stores enables people to try out, play with and learn more about Apple products without being pressured to buy the products. People can also ask questions and get technical support from the Apple Genius Bar (Montgomerie & Roscoe, 2013). Moreover, as discussed by (Johnson, Li, Phan, Singer & Trinh, 2012) Apple stores are also branded and uniquely located to target their customers; this has contributed to sky rocketing of Apple products sales. Apple Inc also uses large retail stores to target their customers (Gupta & Prinzinger, 2013). These retails stores advertise and sell Apple products. However, Apple Inc retains control over all Apple product adverts, display and the prices. The retailers give Apple Inc exclusive space to showcase all their products. Additionally, Apple adverts are similar despite the many retailers who undertake advertising of their products.

References
Budnikas, A. Apple Inc. Business Policy v. Competition Law. SSRN Electronic Journal.
Gupta, A., & Prinzinger, J. (2013). Apple, Inc.: Where Is It Going From Here?. Journal Of Business Case Studies (JBCS), 9(3), 215.
Johnson, K., Li, Y., Phan, H., Singer, J., & Trinh, H. (2012). The Innovative Success that is Apple, Inc.
Katie, J. (2013). Critical marketing audit: The case of Apple Inc. Munich: GRIN Verlag GmbH.
Lashinsky, A. (2012). Inside Apple. New York: Business Plus.
Lüsted, M. A. (2012). Apple: The company and its visionary founder, Steve Jobs. Minneapolis, MN: ABDO Pub.
McCormack, F. (2016). Apple’s iPhone Marketing Strategy Exposed. Small Business. Retrieved 7 April 2016.
Montgomerie, J., & Roscoe, S. (2013). Owning the consumer—Getting to the core of the Apple business model. Accounting Forum, 37(4), 290-299.
Phillips-Melancon, J., & Dalakas, V. (2014). Brand Rivalry and Consumers’ Schadenfreude: The Case of Apple. Services Marketing Quarterly, 35(2), 173-186.
Schneiders, S. (2011). Apple's secret of success. Hamburg: Diplomica Verlag.

Similar Documents

Premium Essay

Marketing Strategies of Apple Inc.

...INTRODUCTION If one had to summarize Apple Inc.'s marketing strategies in one word, it would have to be “differentiation.” The Marketing Strategies of Apple, Inc. Market segmentation strategy involves dividing the market into groups, where individuals have similar needs and wants. Apple position itself as a niche player in laptop industry and concentrate on the professional segment. Market Development In the Market Development, Apple could use different marketing strategies in order to sell existing products/services to new markets and increase its profit. It could achieve that, either by expanding to other geographical areas or by looking for users that will use the product in a different way. A common example is by expanding to foreign markets or to expand from the private sector to the public.Some examples of Apple are the following: Apple did not stayed on selling only to U.S but expanded on all over the world and in 2010 it earned $24,298 from America sales and $30,929 from worldwide. Another example is that when Apple introduces a new product to the market, it leaves the previous one for some time in the market in order for the customers with low income to buy it. With this technique Apple gain a new market and make a small profit. Apple Inc., formerly Apple Computer, Inc., is an American multinational corporation headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software and personal computers.......

Words: 2475 - Pages: 10

Premium Essay

Apple Inc Financial Strategy

...Apple Inc Financial Strategy ------------------------------------------------- 窗体顶端 Search 窗体底端 * Home Page » * Business and Management Apple Inc Financial Strategy In: Business and Management Apple Inc Financial Strategy Apple Readers of this blog know that I’m not a huge fan of Apple, but that’s neither here nor there. No matter what you read in the press or business press about Apple and innovation, marketing, or product development, the fundamental business strategy at Apple is a financial one. Apple’s fundamental strategy is to squeeze as much profit as humanly possible from every sale it makes. Apple’s financial strategy, then, is to maximize its margins, a financial strategy it has pursued single-mindedly since Steve Jobs returned to the company. This foundational financial strategy informs every other aspect of its business model. Product development — to maximize margins, Apple has to offer products that consumers can buy nowhere else. This involves one part cutting-edge design, one-part unique, hard-to-emulate features, and several parts marketing. Always be launching – A standard truth about marketing is that early adopters are willing to pay the highest prices – and highest margins. The Apple launch strategy involves super-hyping products in order to build the largest army of early adopters possible. All those nice people who stood in line for an iPad on the day of its launch were willing to pay a pretty penny to get their hands on the device....

Words: 357 - Pages: 2

Premium Essay

Apple Marketing Strategy

...Lost in Translation', The plummeting economy persuaded Apple to decrease the price of it's product as global recession was hitting it's peak by the time Apple launched it's product in the European market. The market although dense & vast still couldn't afford the price of the product so Apple had to work on the problem enumerate the decision factors and the best alternative it had according to the situation was lowering the price. This was the right step as buying power of the western world was getting affected by the economic downturn and job security was affected so a high price item would not have attracted the consumers. The economic growth in south Asia has tempted Apple to enter the Asian market where India and China are home to about 25% of the world's population for firms to aim their products at together and emerging markets even during the economic downturn coupled with cheap labour and the lower costs in these countries are not to be ignored. How Apple wants to be aware of the effects of this factor in the macro environment is that product exclusivity might not be favourable in the Asian markets as people will never want to and be able to pay the high costs of switching. It has worked in the western world but not in the Asian countries although in certain places people have a lot of spare cash yet the psyche of a credit shopping spree or big monthly mobile bills doesn't prevail. To meet those standards Apple will have to subsidise its products and not make......

Words: 2897 - Pages: 12

Premium Essay

Strategies at Apple Inc.

...The normal thing organizations do is define a single ambiguous strategy like differentiation by development of core competence, intense efficiency leading to cost leadership or choosing a niche market. The thinking is that should firms choose to pursue more than one strategy at a time, they will run into confusion and may fail Somehow, select firms like apple has done what can be termed “quantum strategy” (loizos hercleous 2012). They are able to balance contradicting strategic features like groundbreaking innovation and quality with rock bottom cost to achieve extraordinary performance. The leadership at apple is at the heart of this competitive advantage. The leadership aims at strategic alignment, focus, simplicity, synergies and systemic connections to bring about a balance on competing demands and gain strength in the industry. In the past fifteen years, Apple Inc. has brought a revolution in the personal electronics, telecom, computer and media by string of excellent products, offering unique, designer and exciting customer experiences. They have exceeded industry expectations thereby exerting significant power over both customers and industry players, with outstanding financial results. In August 2012, Apple inc was announced the most valuable listed company having a market value of $ 623 billion. In September 2012, it had the highest cash reserves of USD 121 bn. achieves a net margin of 20 % with a revenue increase from us $ 65.2 bn in 2010 to us$108.2 bn in 2011......

Words: 1281 - Pages: 6

Premium Essay

Marketing Strategies of Dell Inc

...printers, and related products and software. Dell is very well-known for its direct-sales model and its “configure to order” way of supply, where customers can have their own order with required specifications and got it delivered at their place. Recently, Dell gave more focus to IT services and software. By 2012, Dell established a new software group and focus on four areas: end user computing, enterprise solutions, software and services Table 1: Basic Information about Dell Basic Information about Dell Name Nature of Business Dell Inc. Computers, IT and related software and products 1. Individual users with low income who appreciates technology such as students, small Target Customers home office users and so forth. 2. Large to mid-size businesses. Main Competitors locally & Globally Sony, Samsung, Apple Inc, Lenovo, Fujitsu, HP, IBM, 1 Intel, Seagate, Best Buy, SGI, SMCI, CRAY, CUDA, CSCO, CDW, FIO, IN, Acer, Toshipa. Marketing Strategy Innovative Direct Model Build-to-order approach. 1.2 FINANCIAL SITUATION: From graph 1 we may see that Dell is doing well enough through the last 4 years. Its revenues, expenses and profit are quite stable. It’s notable that revenues grew dramatically between 2010 and 2011. Revenues dropped again in 2013. Graph 1: Performance of Dell 2010-2013 ($ billions) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2010 2011 2012 2013 Revenues Cost of Revenue Gross profit 2 Graph 2, shows the global PC market share of the......

Words: 1894 - Pages: 8

Premium Essay

Marketing Strategy of Apple

...Good figure. Though the stock prices of Apple had dipped after the fmous resignation of Steve Jobs from the position of CEO followed by appointment of Tim Cooks in the same position; financial analysts now say that Apple is all set to conquer expectations in the 2nd quarter. After Tim Cook joined the board he drove major financial ventures like increasing Apple’s buyback intentions to a figure of 90 billion dollars from 60 billion dollars which in turn drove up dividend by 8%. The robust financial performance of Apple seems to be a direct result of Apple’s broader price range on I phones and increased portfolio. Obviously portfolio diversification has fueled sales and nearly 50% of activations that happened in the last year came from new sales. Apple’s gross profitability ratios are pegged at 44.11 and it is quite higher than the average of 43.5 (Morningstar 2012). The retail outlets owned by Apple helps allocation of selling and distribution expenses in an efficient manner and this way the discount fee which is paid to wholesellers is avoided. The industry average ratio of net profit is 26.97 while Apple’s figures show that its nets profit is 26.97 (Morning star, 2012). Apple’s market share is 29% in smartphone segment and 60% in tablet segment. The low price to earnings ratio of Apple (14.5) confirms that is a lesser risky investment (Garner, 2012). The current ratio of Apple is 1.6 which demonstrates that short term assets of Apple can be quickly dissolved to form hard......

Words: 2674 - Pages: 11

Premium Essay

Quantum Strategy at Apple Inc

...com/locate/orgdyn Quantum Strategy at Apple Inc Loizos Heracleous Over the last 15 years, Apple Inc has revolutionized the personal electronics, telecom, computer and media industries through a string of blockbuster products that offer unique, designer, integrated customer experiences. In the process, the company has helped to accelerate the blurring of industry boundaries through the spread of devices that offer convergent technologies, and to position itself so that it exerts significant power over both consumers and industry players, with outstanding performance results. Apple became the most valuable listed company, with a market value of US$623 billion in August 2012, and has gathered the highest accumulation of cash reserves ($121 billion in September 2012) of any listed company. It regularly achieves net margins of above 20 percent in industries where most competitors achieve single-digit margins. Its net margin was 26.7 percent during 2012, having increased from 23.9 percent in 2011 and 21.5 percent in 2010. During the same period, Apple’s revenues increased from US$65.2 billion in 2010 to US $108.2 billion in 2011 and to US$156.5 billion in 2012. The chief architect of the business model and value system that led to this exceptional performance is widely acknowledged to be the late Steve Jobs. With Jobs’ passing in October 2011, many have wondered whether the magic at Apple would last, or gradually fizzle out. In this article, I take an in-depth look at the......

Words: 5440 - Pages: 22

Premium Essay

Apple Inc Financial Strategy

...Apple Readers of this blog know that I’m not a huge fan of Apple, but that’s neither here nor there. No matter what you read in the press or business press about Apple and innovation, marketing, or product development, the fundamental business strategy at Apple is a financial one. Apple’s fundamental strategy is to squeeze as much profit as humanly possible from every sale it makes. Apple’s financial strategy, then, is to maximize its margins, a financial strategy it has pursued single-mindedly since Steve Jobs returned to the company. This foundational financial strategy informs every other aspect of its business model. Product development — to maximize margins, Apple has to offer products that consumers can buy nowhere else. This involves one part cutting-edge design, one-part unique, hard-to-emulate features, and several parts marketing. Always be launching – A standard truth about marketing is that early adopters are willing to pay the highest prices – and highest margins. The Apple launch strategy involves super-hyping products in order to build the largest army of early adopters possible. All those nice people who stood in line for an iPad on the day of its launch were willing to pay a pretty penny to get their hands on the device. The second part of the strategy is to continually relaunch products. The Apple financial strategy – maximize margins as much as possible – is wedded to a marketing strategy of maximizing early adoption. Why is Apple so secretive to the......

Words: 1530 - Pages: 7

Premium Essay

Corporate Responsibility and Marketing Strategies of Apple Inc.

...Corporate Responsibility and Marketing Strategies  Apple Inc is known world-wide because of the quality of the products it produces. This is a primary reason why its sales have remained high. The mission of Apple Inc is to ensure that it remains socially responsible to the community it serves in addition to persuading the supplier store comply with socially ethical issues. The mission expresses the commitment of the company in implementing corporate social responsibility activities, apart from providing innovative product store the customers .Corporate social responsibility is an important product to companies because it builds up the reputation of a company by showing the society that the company is not only after generating profits but also intends to support the society in other ways. The employees, suppliers and public members are all necessary for support. As for Apple Inc, their corporate social responsibility can be rated as average. It is not okay that the company has done nothing in terms of implementing corporate social responsibility (Backer, 2013). Internally, the company ensures that its employees are well compensated in relation to the performance of the company. On some occasions, the company has issued some of the products it makes to the employees for free, this includes Macbooks, iPads, and iPhones. Additionally, the company has issued shares to the employees for free or at a lower price. This shows that the company is employee friendly. Pros about the......

Words: 1117 - Pages: 5

Premium Essay

Apple Marketing Strategy

...- current bank statement & one copy - reference letter from your employer/ education institution - visa fees for South African Visa |   | Apple Marketing StrategyApple has been so successful in these last years thanks to his fresh, imaginative way to think and do its business: a winning combination of exceptional products, great style and design, great strategy, innovative marketing, sleek and enticing communications. Apple owes its overwhelming success in the last years to the iPhone and to the smart iPod and iTunes product combination, a combination of a great hardware piece with great style, great software, great performance, user friendly interface, with a good e-business service. The iPod + iTunes halo effect and new great Mac computers and Mac OS software did the rest in increasing Apple revenue stream. In the 5 years between 2003 to 2008 the Apple share value increased 25 times, from $7.5 to $180 per share. At july 2008 prices, before the US Financial Crisis, Apple stock market capitalization was $160 billion. In January 2010 Apple shares topped the $210 mark. But even the best companies with the best products have bottleneck factors which often avoid full exploitation of the opportunities. The iPad. The new Apple Tablet, the iPad - an unnecessary product? - iPad Marketing Strategy Steve Jobs claims the iPad gives the best way to experience the web. Yet, the iPad does not have Flash Player, Flash is essential on the web and is used......

Words: 1796 - Pages: 8

Premium Essay

Apple Inc Marketing

...Apple Inc. October 13, 2013 1. Describe the company you chose (give an overview/history) Apple Inc. has become a multi-billion company from its computers to media devices to phones as well as a variety of software related to these devices. • 1976- Established April 1, 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne o Steve Jobs and Steve Wozniak effectively created the Apple Computer • 1977- Apple logo designed by Rob Janoff • 1979- Introduces first printer • 1982- Hits $1 billion in annual sales • 1985- Landmark Super bowl Commercial • 1977- Jobs was named interim CEO • 1998- Release of iMac • 2000- Jobs becomes CEO • 2001- First iPod ships • 2003- iTunes Music store opens • 2006- iPod Touch • 2010- iPad • 2012- iPad Mini, iPhone 5, iPad 3 • 2013- iPhone 5s, iPhone C 2. Summarize the company's core business/industry (also identify trends) Give your company’s specific core business (which may be equivalent to their industry). Identify trends from an industry perspective. Apple’1 s core business is computers or the Macintosh as they call it. They have 10% market share for the first quarter of 2013 but, computer sales are down as the tablet takes more and more market share. Also, the smart phone has become more user-friendly and cheaper to get. The computer might be seen as old fashion, which would coincide with market decline. With smart......

Words: 1403 - Pages: 6

Premium Essay

Apple Inc. Marketing Functions and Strategy

...Apple Inc. marketing functions and strategy Module Code: 203MKT Module Title: Marketing Management Lecturer: Ng Siah Heng Group members: LE THI DOAN QUYNH G1148492T RACHELLE BENGALA F2302665K WU YONGXIN G0948676W JIANG ZHIQIAN G1327308T Apple Inc. marketing functions and strategy Module Code: 203MKT Module Title: Marketing Management Lecturer: Ng Siah Heng Group members: LE THI DOAN QUYNH G1148492T RACHELLE BENGALA F2302665K WU YONGXIN G0948676W JIANG ZHIQIAN G1327308T Coventry University Coventry University Table of Content 1.0 Executive Summary…………………….…………………….4 2.0 Introduction ……………………………………………………4 2.1 Introduction…………………………………… ………4 2.2 Mission Statement of Apple Inc…………………….5 2.3 Vision Statement of Apple Inc………………………5 3.0 Marketing Objective……………………………………………4 3.1 Competitive Advantage………………………………..6 3.1.1 Differentiation Strategies……………………6 4.0 Objectives of the Firm…………………………………………7 4.1 Long-term………………………………………………..7 4.2 Short-term………………………………………………..7 5.0 Value……………………………………………………………..7 5.1 Value for customers…………………………………....7 5.2 Value for shareholders…………………………………8 6.0 Marketing Strategies……………………………………………8 6.1 Generic Strategy…………………………………………8 6.2 Value Map………………………………………………..9 6.3 Product Growth Strategy……………………………….10 6.4 Specific Marketing Strategy……………………………10 6.4.1 Offensive Strategy……………………………10 6.4.2 Service Marketing…………………………….10 7.0 Marketing......

Words: 6465 - Pages: 26

Premium Essay

Marketing Strategy for Apple

...Threats 5 Marketing process 5 Marketing mix 5 Products 5 Distribution Strategy 6 Promotion Strategy 6 Integrated Marketing Strategies 7 Situation Analysis Key objectives Apple was voted the general victor of the 2012 CMO Survey Award for Marketing Excellence. Apple has been chosen as the victor or co-champ for five back to back years by the example of top advertisers. Apple's unique points: 1. Empathy – Apple comprehends the needs of their customer superior to other organizations. 2. Focus – keeping in mind the end goal to benefit a vocation of the things the company chooses to do, Apple pans to dispose of the majority of the irrelevant opportunities 3. Impute –Apple may have the best item, the most elevated quality, the most helpful programming, and so forth; the company displays its product in an imaginative, proficient way to ascribe the coveted qualities ("Corporate Goals And Objectives For Global Final Paper- Apple Inc."). Competition Apple is being led by Samsung as purchasers are requesting telephones with bigger screens at less expensive costs. Indeed, even with the presentation of iPhone 5c, late reports have shown that Apple only share 8 to 12 percent of the mobile sharing market in the overall industry, while Samsung has a 21% share in the industry and Android telephones have a 79% piece of the overall industry. Apple can't have valuing power and market sharesimultaneously. No business can for an augmented timeframe. The issue with......

Words: 3092 - Pages: 13

Free Essay

Apple Marketing Strategy

...MARKETING STRATEGY AND ANALYSIS OF APPL COMPANY IN IPhones Vision and Mission Statement Apple, Inc.’s Vision Apple, Inc.’s vision 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 Apple's Mission Statement Apple Computer is committed to protecting the environment, health and safety of our employees, customers and the global communities where we operate. We recognize that by integrating sound environmental, health and safety management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing recourses for future generations. Apple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes and services. Various Management Objectives at many different Levels Apple, Inc.’s Business Strategy and Goals The Company’s business strategy leverages its unique ability to design and develop its own operating systems, hardware, application software, and services to provide its customers new products and solutions with superior ease-of-use, seamless integration, and innovative design. The company believes continual investment in research and development and marketing and advertising is critical to the development and sale of innovative......

Words: 13655 - Pages: 55

Premium Essay

Marketing Apple Inc

...Apple Inc; formerly known as Apple Computer, Inc. was established on April 1st of 1976 in Cupertino, California. Apple Inc is a multinational corporation that markets and designs electronics, computer software, and computer hardware. Apple I was the first product created and shown to the public at the “Homebrew Computer Club’, then unveiled Apple II, Lisa, PowerBook 100 (the first portable computer), Newton Message Pad (first handheld device), a new line of Macintosh Computers (G3), and IMac. To switch gears from just improving the styles, features and designs of the traditional personal computer, the company wanted to reflect on marketing consumer electrics. In 2001 Apple Inc officially opened their first Retail Stores and introduced the iPod; a palm –sized digital music player. Since the successful sales and request of the IPod, Apple opened iTunes Store (an app that allows users to buy and download music, movies, videos and audio books). In 2007 Apple Inc unveiled the iPhone, Apple TV, and IPod Touch, in 2008 App Store (a update to iTunes), adding small features since as games and social/ business tools. With in the last couple of months, Apple has introduce the latest products; the iPad 2 (a sleeker, lighter version of the original iPad, and other features) and iPhone 4s. For many of companies the main marketing strategy is to create and promote a product to increase sales and to achieve a comparative advantage between other companies. Apple Inc uses these......

Words: 522 - Pages: 3