Business Marketing

          Traditionally, Apple’s products hasn’t been the primary chose among business organizations and enterprises. In the beginning, Mac computer symbolized individuality, creativity, and uniqueness which was more appealing to a variety of different consumers more so than businesses. It hasn’t been until the past four years where Apple popularity and recognition for innovation has been accepted in the business world.

          Currently, Apple growth in demand and popularity have put them in a better position to compete against the dominance of Microsoft in the business market. More and more organizations are removing whatever computer brand they were using before for a MacBook or iMac. It doesn’t stop there, Many organizations have switch from their traditional blackberry to an iPhone as the company’s phone.

          For educational institutions, many schools have implemented Apple’s iMac and iPad products as their choice for technology use among students and faculty. Stephanie Reitz of Associated Press reported the growing use of iPads in public secondary school classroom this fall. Principle Patrick Larkin of Boston’s Burlington High School calls iPad “a better long-term investment than textbooks.” The use of a lightweight tablet instead of textbooks shows how popular Apple has become among consumers and businesses, not to mention the environmental benefit of “Going Green” with the saving of more trees and the use of less paper. Even at Borough of Manhattan Community College, There are at least two iMacs in every computer labs (10) with two computer labs filled with iMacs only. The presence of Apple among businesses and schools are become more dominant as Apple popularity grows, with the expectants of that presence to keep on growing as the years fly by.

Segmenting and Targeting Markets

          The market segmentation concept is crucial to market strategy.  Apple has targeted and marketed their products to consumers with a few certain characteristics. Apple doesn't  target markets in the same way many of their competitors (if any) do, because it targets people and focuses on users, more so then the target markets alone, who then decide how and where they will use Apple's products. This doesn't mean Apple are exempt or ignorant of the "laws" of marketing, but instead they use a unique form of marketing strategy called psychographic segmentation to appealing to all consumers no matter the age, race, income level, and/or demographic. 

          Although Apple try to be appealing to ALL consumers, this is never the case for any company even Apple. Instead, Apple typically appeal to those who are middle to high class who do not mind spending a little extra cash for the best quality in the product being purchase and those who are in the profession of media and design. The use of Demographic Segmentation illustrate the concentration of Apple retail stores around the United States. New York and California are the main area where Apple position their retail stores. Apple targets those two area because they appeal to the lifestyles of those living at the locations. Our generations X and Y have been heavily expose to the internet using computers for a wide variety of reasons (research, Audio, etc). Apple offers unique and innovating computer device with great quality at and reasonably affordable price. Top of the line and innovating products is what most appeal to the youth and middle age residents of New York and California. Not to mention these States can be consider the most popular and profitable, where something of high value and quality can surely be purchase with little resistances. The segmentation strategy Apple applied in their market strategy prove to been beneficial and a success for the Superior Computer Company better known as Apple.

Developing and Managing Products

          The main idea behind developing and managing new product is that firm try to create a product that is appealing and meet the needs of consumer with innovative properties.

          Apple is one of the very few firms that achieved a newly established product(s) that have shown innovation in features And design that became very popular and profitable. For example, both the iPad and iPhone are trademarks of apple successfully developed products that receive recognition from many (consumer, reporter, computer analysis) as being innovative with slick designing.

          Apple managed to merge their very famous iPod touch and a cell phone and sold it as one. This newly innovative product is called an iPhone and it made Apple very profitable with the record-breaking sales. With every new model or version of the iPhone that releases, the revenue accumulated by Apple increases compared to the previous model sales. The iPad was no different. Record-breaking revenues reported by Apple with new and innovative design and features. Both iPhone and iPad weren't the first cell phone nor tablet to be established, but with apple unique touch and innovative enhancement to the existing product s made it appealing and demanding by consumers across the united states and the rest of the world. This prove that Apple develops and manage their products exceptionally well, just look at the iPhone 4S and iPad 2.

Integrated Marketing Communication

          The whole concept behind "Integrated Marketing Communication (IMC)" is to maximize the impact a company has on consumers. Apple has done an exceptional job using components from IMC and the AIDA (Attention, Interest, Desire, Action) concept to achieve and maintain long-term customer relationship with their consumers while driving Apple brand value.

          Apple uses promotional and advertising tools to capture the attention, interest, and desire of the consumer. Apple capture our attention and interest through innovating and sleek imagery of their products on Apple's official website as well as keynotes and other publication. For example, just prior to the highly anticipated IPhone 4S being release, it received a tremendous amount of publicity that captured many potential customers attention.

          Our interest and desire is fullfilled by the "new features" on the IPhone 4S that is appealing to our needs and wants. For example, features such as the personal intelligent assistant (SIRI), the faster dual core chip, and eight megapixel camera can be very influencial and drive consumers to buy the new phone.

          Getting the consumer to take action and purchase your offering is something Apple does a great job at. According to "Forbes," the IPhone 4S sold over four million units during its opening weekend. The earning was more than the prior high anticipated IPad 2 sales an another knotch on Apple's Belt of Excellence.

Product Concept

          Apple's Product Concept is one that's unique and innovating. There is a general saying that consumer will favor those product that offer quality, performance, or innovative feature. If you consider the comparison between a "computer" versus a "Mac" from Apple, there is practically no competition. With that said, one can tell that Apple puts forth enormous effort in their strategey, advertisement, and product to attain the "category of its own" title. Eventhough Apple's products are consider a "shopping product" because of the pricing compared to "convenience products," the image portraited by Apple, innovating and sleek design, and the popularity of the products give Apple's products the luxury to be called specialty product. Just the perception of Apple products that consumer have alone help us see the Product Concept form by Apple to be pure genius. Every consumer that has a products from Apple can tell you how much it means to them and how "cool" they think their product is. This thought or opinion can be form by Apple's Product concept as well as the performance Apple display to their consumers.

Sales Promotion and Personal Selling

          Sale promotion are typically used by marketing managers as a tactical tool in order to increase sales and give consumers an incentive to buy the company's products. Unfortunately, consumers of Apple's products are not offered many promotions. Being the huge sucessful corporation Apple is, they do not need to offer many sales promotion because of their exception record-breaking sales achieved every year.

         With that said, there are some sales promotion offered by Apple. During this time, Apple offers an one hundred dollars mail and rebate on a printer when you purchase a Mac computer, as well as thirty dollars off MobileMe and iWork softwares. Another more famous sale promotion by Apple is the "Buy a Mac and get a free iPod Touch" offer. The offer name speaks for itself and you can find this sale promotion during the spring to fall period. One sale promotion that is offered all year round is the educational discount. This is a "one hundred dollars off" Mac computer discount that is available for only students and faculty and can be consider a tactic by Apple to establish a long term relationship with consumers.

          When speaking of personal selling in Apple, it is crucial to mention the impact of Apple's sale personnel (employees). They are there to help finalize the sales as well as to inform consumers about the Apple product they are inquiring about in a attempt to create a long-termm relationship with consumers so they can become loyal Apple customers.

Advertisement and Public Relations

          Apple has been well knowned for its advertisement for the past twenty years. With every good product comes a great marketing plan, which includes advertisements and public relations. In the past ten years, the most significant advertisement ads include the "Switch" campagne and "Get a Mac" campagne.

          The "Switch" campagne was a very unique and interesting one. I was around to see the commercial for this campagne unlike the 1984 Superbowl commercial. The "Switch" campagne shows what the Apple company view as real people switching from a Microsoft Windows computer to a Mac. I was ateenage at that time with a Microsoft computer and the commercial on the campagne was very funny to me and had me curious on why is the Mac so different and "better" than Microsoft Windows. The "Switch" campagne was the advertisement that put Mac on the map to me because it was the first time I heard about the company eventhough it was around years before, the popularity gain from the campagne prove crucial to Apple's sucess.

          As of today, Apple can be consider as a "marketing genius" company. Not only has their ads been very sucess, but also the advertisement of Apple products in many recent movies (Abduction, film 2011) and commercials shows Apple's public relations and popularity among people and consumers.

           

Retailing at Apple

          There are over three hundred Apple retail stores worldwide and four in the New York City area. I decide to explore the Apple store located on fifth avenue rather than the one in Soho because I never been to that particular Apple location before and for the popularity of the location with residents of New York and tourists, and I never shopped at that Apple location before. The Apple store is located next to the CBS station building and is on the same avenue as high scale clothing stores such as Gucci and Saks fifth.

          I walked into the store and the first thing I notice was the sleek and unique design of the store. The store looked very clean and provided an attractive appearance to people walking in. It is interesting to see that the design of the store looks similar to the sleek designing of all Apple’s products. The store provides EVERYTHING that is Apple. From all IPod models to all Macs, whether it is the Macbook, Macbook Pro, IMac or Macbook Air, it is all there. Not to the mention the new IPhone 4S which recently been release last week. All products in the store were typically Apple but is not limited to. There are other products such as headsets, stereo systems, and backpacks in the Apple store. All Apple electronic products are all at the consumer fingertips, which give the consumer the right to be informed and to pick and choose. The employees, which approximately consist of fifty members, were very helpful and informative on Apple products sharing their knowledge and experiences with the brand. There was also a section where employees teach you how to use your Apple product if you are a first time buyer. I look at this as a tactic to establish a long-term customer relationship with the consumer. There was another section where if you were having troubleshooting problems, the “genius” at that Apple store could assist you.

          Overall, the visit to the Apple store on fifth avenue was a unique one. I witnessed consumers going through the decision-making process, the marketing environment and strategies, and good ethical behavior from the employees which are all element of business that we are learning in class. This shopping experience was very informative to me on how businesses work and market their products to consumers in retail stores.

Consumer Decision Making

          Consumers do not just wake up and decide he/she will buy a product today. There are steps, a process that consumers go through before purchasing any product. It is important that businesses know how consumers behave and make decisions in order to serve them better and be on top in the market.

          The first step is called need recognition. In regarding electronic, it used to be that people considered it to be a want more than a need. Now-a-days, electronic has become more of a necessity especially when talking about a computer or laptop. This serve as a benefit to Apple because its popularity, innovation, and sleek design draw many people in and make them feel that they are obligated to buy Apple'sproducts if they are looking for the best possible electronic product.

          After a consumer recognizes he/she want or need, the next step will be the search for information. This information can be internal and/or external. When most people contemplate on purchasing an Apple's product, most consumers rely on internal information. That means most people rely on their experiences with Apple's products in order to know if they will purchase from Apple again. Most consumers are loyal to Apple when their experiences with Apple are positive. The other type of information is external and usually come from advertisements and recommendations. Since Apple's consumer base are loyal, they typically believe whatever Apple advertise. With added recommendations from friends and peers, you will find all the information needed to discover that Apple is the company to go for computers and electronic.

          After all the information have gathered, the next step is to evaluate alternative. With Apple being very popular and in a position of being on top in the markets of electronic, their product are viewed as one of a kind knocking off the alternatives when it comes to purchasing a computer or laptop.

          The next step is purchasing. This is the process that Apple Inc knows all about. With millions of purchases every years with revenues reaching over billions of dollars, Apple does ALOT of selling.

          The last step is Postpurchase behavior. This step determine whether the consumer was satisfied or dissatisfied. When we purchase a product, we have high expectation that must be upheld. When that expectation is not upheld, it means that we was not completely satisfied with the product and you as the company may have potentially loss a loyal customer. On the other hand, If the expectations of the consumer was upheld or exceeded then he/she will remain loyal and you can count on another purchase from that consumer again.

Global Vision

          Apple definitely has a global vision. The new Iphone prove crucial to Apple's global vision with the soar of international sales. Last week, I mention the Iphone sales growth being 143% (Internationally) compared to last year. That high growth came from the expansion of the distribution of Iphones in 88 countries with 151 carriers of the product. In Asia Pacific, Iphone sales grew 474% compared to last year as well as Japan's Iphone sales growth reaching 183% and Europe's sales seeing a 133% growth in Iphones. With over 20 stores presume to open overseas in areas like china and london, We can see how Apple is striving for Global Market as it looks for growth and expansion.

The Marketing Environment

          Apple has a target market that is unique and different from those of other computer/electronic companies. Although Apple products may be a bit expensive, it offers the features and appearance that can be appealing to any individual in the age range of 12 to 35 years old. Typically, those in the profession of media and design are drawn to Apple, because of Apps such as GarageBand and IMovie, but are not limited as consumers to Apple's products. Apple's new ideas and innovations have been beneficial for us as consumers as our lifestyle and environment have been subject to change over the years. We are all unique individuals with personal wants and needs, and Apple strive to satisfy the creativity and individuality in all of us.

Ethics and Social Responsibility for Apple

          Apple has done a good job with their social and ethical reponsibilities this year. After the ten suicides at Chinese manufacturer Foxconn last year, Apple has investigated and reported child labor violation, toxic conditions, and other violations of their code of ethics. Using the Pyramid of Social Responsibility, I would illustrate Apple's actions against unethical/illegal conduct, and for Corporate Social Responsibilty (CSR) as a form to better society.

*Economic Responsibility- Every corporation economic responsibility is to be profitable. Apple is first in its class in this field. With revenues this year reaching almost double from last year (from 15.70 billion to 28.57 billion) and Iphone (143% growth sales) and Ipad (183% growth sales) sales exceeding over 100% show Apple as an ideal example of a company fullfilling its economic reponsibility.

*Legal Responsibility- Apple has taken action against unethical conduct in its facilities. For this particular responsibility, Apple has stop the use of underage labor in ten facilities including Foxconn.

*Ethical Responsibility- Apple has eliminated dangerous working condition in two facilities and bribery in one facility.

*Voluntary Responsibility- Apple has done a tremendous job concerning environmental issues that range from toxic material removal from its products to the recyclying and the use greenhouse gas emission. Not only is Apple exceeding the environmental impact of its products in a positive way, Apple also support Bono in his Product Red Campaign by contributing it's revenue to fight against AIDS, Tuberculosis, and Malaria.

          With Apple actively involve with its social responsibility, Its shows that not only is Apple an incredibily profitable corporation but a socially responsible one.

Marketing 100

William Villefranche - Mar 100 - Sec 081

Strategic planning for Apple.INC

Strategic planning for Apple. INC has by far been very good this year. With Apple's big thinkers came the development and launch of new and innovating technologies, such as the Ipad and Macbook Air, to the market. After being the first company to successfully launched the first and its own unique handheld touchscreen computer tablet, which was a great accomplishment because it depict the new level of innovation by Apple, it forces other companies (Motorola, HP, ETC...) to establish their own line of handheld tablets to compete with Apple's Ipad. Not only did Apple profit greatly from the Ipad but the company also launched the Ipad 2 months later after the original to keep them at a competitive advantage over their competitors as well as to crush the market. Not to mention, the all-new Macbook Air which is super thin and great for travelers. The laptop is ultra light and fast and by far the only thing like itself in the market right now. That makes the laptop very unique with little to no competition because from what I know and researched, there are no laptops that is as light and thin as the Macbook Air. That is what I call INNOVATION! Apple. Inc focus on innovation in the competitive computer technology field drove their performance. As we can all see, their performance created not only results but the most important aspect in business which is PROFIT!