Ch7- Business marketing

Nowadays, Apple products are used so frequently, not only for personal use, but also for business. 

 iPad is used in so many ways in business. For example, we can use iPad as a sales brochure, instead of using a brochure made of paper, we use the iPad. With the iPad you can have all of your company's products and services in the palm of your hand, whenever and wherever you go. And also you can access your company email from your iPad or iPhone.

Macs are used by most of successful companies and also by the employees especially when they started to bring their own devices. More than 2 out of 5 of 10000 surveyed employees use one of more Apple device at work. 

Apple is now a part of the business world. iMacs and laptops are used by producers, pilots. iPads are used in business meetings interviews. iPhones are used in stores like macys to check prices of make payments. 

Ch. 8 - Segmenting and Targeting Markets

Apple's target market is everyone willing to spend a little extra money for something more sophisticated .  But to be more specific about which target market, they need to analyse and break down the market into segmentations. There are four bases for segmenting consumer markets : Geographic, demographic, psychographic and behavioral segmentation.

Geographic segmentation is dividing the market by regions cities or the density or the climate.

Apple  focuses on users of all type of demographic group and market. Apple lets users decide how and where they'll use its products. Most importantly Apple target to the most creative and liberal people that love innovative, high-tech new products. 

Demographic segmentation is based on age, sex,family life cycle, income,education and nationality. 

Apple products can be used by everyone and at every age. The app store has some games for kids and even apps with songs for babies. Apple products are good for teenagers, students, firms etc.. 

Psychographic segmentation is based on socioeconomic status, values, attitudes and personality.

Apple used psychographic segmentation in the case of the iPad2 Apple takes in to consideration  the socioeconomic status lifestyle and personality variables of its consumers. 

Ch. 11 - Developing and Managing Products

Apple is clearly one of the most innovative firms in the world. They have a new product every few months. Innovation is the key to new product devlopment and Apple has it nailed. Apple is a company that keeps coming ou with new ideas o how to make their products better and more efficient. The first iPod was introduced in 2001 and after that apple came out with 24 more models, one better than the model before. they also came out with 4 iPads generation and 2 mini iPads and 8 iPhones.

The Apple new product strategy is put in action once the product is designed and talked about. Its a document that sets every step in the devlopment process of a product in detail. This concept was first applied at the company when the macintosh was developed; It's not an original apple concept. its shows the objectives of the marketing department, the business  unit and the corporation.
Apple's team meets every monday to go over the New product and discuss it.

Ch. 18 -Social Media and Marketing

Social media is a tool or service that uses the internet to facilitate conversations. Social media is one of the top source of marketing for any kind of business. the larger your company is, the more marketing you start to need in order to grow demand. There are many brands that do not have social media such as Apple inc.
Apple is one of the most successful companies and has absolutely no social media. Apple do not have any official Facebook page and only a 55 tweets on twitter account, avoiding social media. but consumers are still searching for them on the net,there are millions of consumers liking their pages on facebook and following them on twitter, on hundreds of unofficial accounts. We can say that Apple's social media strategy is to create great and good products and letting people talking about them to each other. consumers go in person to the apple store or Bestbuy just to touch the new iPad or iPhone 5S. Maybe apple think they are too successful for using scoial  media, they are using the good old business saying of " why fix it if it's not broken " .

Ch 10- product concept

Apple made the first major change in its product mix in 2001, by introducing the iPod. Apple was taking a huge risk by extending its brand to the portable music player category, but this change allowed apple to reach a completely segment of consumers. Apple took this opportunity  to transform these new consumers into mac consumers by making them into the iTunes system. Ipod users need to have music on their devices, and to have music they need a computer. Itunes and Macs were the perfect support products. The iPod was a huge hit for Apple this year, and in the same year apple opened its. First retail store to improve its distribution strategy. As the company knew a Huge success with both the iPod and iMacs and MacBooks, it's product line began to expand. The introduced the iPod mini followed by iPod nano and shuffle. In addition, the brand was extended with introducing further products such as the Apple TV, iPhones and recently the iPads. 




Products are what's makes a business. Concept of products determines how successful a business can be financially. Business product and consumer product are two types of product concept. The consumer product best describes Apple because they are made to satisfy costumers needs and wants for example : the MacBook, iPod, iPhone and iPad, they are all for personal use. 
When Apple came out with the iPad, that product in itself was a specialty product because no other company was selling a device like the iPad. I think the iPhone belongs to the shopping product because buyers are comparing it with other phones before buying it and also the iPhone is more expensive than the other phones. 

Ch. 17 - Personal Selling and Sales Management

Personal selling is the act of using people to sell products to consmers face-to-face. Apple's sales representatives are very well trained in both customer service and product information. Apple has a new product every few months, so it is important for those sales representative to be up to date about the latest technologies entering the market. Those sales representative are generally within the generation X or Y age range, so they grew up in this technology era and they are already familiar with it.
It is important that the sales representative offer excellent customer service. they should be able to explain this technology to consumers who are not exposed to it and want suddenly to obtain this knowledge. They should be able to make the transition from "old world" to " new world"easy for those consumers. These methods help increasing sales and a trusting and reputable image for apple.

Ch. 16 - Advertising, Public Relations and Sales Promotion

Apple Inc has become very famous for its advertisements since 1980s. 
Its most significant ad campaigns include the super bowl commercial in 1984, the 1990s The think different campaign, and the "iPod people" of the 2000s.

The "think different" campaign is 

one of the most successful campaigns in the history of advertising.During the 90's, Apple was in a crisis and with only one campaign, they were doing better. The campaign consisted of two main parts : the black and white television commercial and a print campaign. 

Steve Jobs said: “It only took 15 . . . 30 . . . maybe 60 seconds to re-establish Apple’s counter-culture image that it had lost during the 90s”.

When it comes to sales promotion, apple knows best. Apple uses short-term techniques to persuade their target market to buy their products. Some examples of promotion sales are : the money back guarantees, rebates etc. The apple stores are very distinct and captivating because they expose all their products for consumers and they allow them for example to surf on the web from any computer or lister to music on ipods and experience the iPhone and its features. This lets consumers to be more comfortable with the product and familiarize themselves with them. 

Another example of Sales promotion is when college students buy the Macbook during summer they can get any free iPod they want and a free printer. This promotion will highly increase the sales of the Macbooks. When you purchase a concet ticket through Ticketmaster, you can purchase the corresponding artist's album for $1 off the iTunes Store price.

Ch-14 Marketing Channels and Retailing

Apple is one of the world's most successful retailers. Apple operates nearly 400 retail stores all over the world with 42 000 employees  and with more than  a million visitors every day.  It is estimated that Apple’s Fifth Avenue store generates over $35,000 per square foot making it the highest grossing retailer in New York - ever. 
Apples annual retail sales per square foot are approximately $6000( excluding online sales ) and this is more than the annual sales per square foot of Tiffany & Co and Best Buy. 

Apple's retail success is dued to a large demand for the company's products. Apple had to think different about retail and make their stores more than just a place for people to go and buy products. The job of the Apple store employees is to not to sell, but to help the costumers and to understand all of their needs. Also to approach customers with personalized warm welcome, and at the end, an invitation to return if they need something.  "People don't just want to buy personal computers anymore, they want to know what they can do with them," said Mr. Jobs. 

Apple have direct and indirect channel. Direct channels are when they sell products directly to consumers. In order for Apple to expand their sales,they use also indirect distribution channel, they have been slowly adding  distribution channels with high sales such as AT&T,Sprint, t-mobile, Verizon, Best Buy and Walmart. 

Ch 6 - Consumer decision making

The apple store is one of the successful products of Apple inc. Thousands of applications are submitted and downloaded  every day. Applications are developed according to the need and interest of the consumers. Those applications can be purchased or downloaded from the desktop iTunes App store and the mobile App Store on the iOS devices such as iPhone, iPod touch and iPad.
Consumers on the App store are behaving differently depending on the unit they are using.
Young consumers with lower income purchase apps more frequently than those with higher income.
While buying the apps, consumers consider also the screenshots, the description and the rating of the apps. Consumers are attracted by visual elements that they are already familiar with, like famous logos, fonts, names and colors.  Most of the consumers found the iTunes app store messy and confusing. They prefer using the App store because they found found it to be a good mixture of both iTunes and iPhone app store but also because it has a lot of options to consider.

  

Ch. 5 - Developing a Global Vision

Apple is an international corporation currently operating and expanding its service available over 96 countries building overseas presence with Apple stores.Apple opened its first retail stores on May 19, 2001, one in Virginia and the other in California. 

The Apple Store in London was the first to open in Europe in November 2004, and is the most profitable shop in London with the highest sales. 

 Apple has developed a well understanding in the global vision, by providing well customer experience, providing products with the own country language and having people feel more comfortable with the products, and getting familiar with local culture, also establishing its branch in well developed countries.

Apple international strategy is a Global strategy of a standardized products.  The only modification Apple alters in their products is the power source because of the different power voltage in different countries.  Other than this, Apple products are precisely standardized throughout international markets.   Apple’s engineering, design, and manufacturing is controlled by one source, which is why it differentiates from other computer makers.  If Apple followed a multi-domestic strategy, they would have excess overhead and management would loose control of the company, more importantly the image of cutting edge and advanced technology, products, and marketing can be damaged.   

Ch. 4 - The Marketing Environment

Apple is marketing to people who have a few characteristics.

1) Middle/Upper income folks who are willing to pay a bit more for a better user experience. paying 500 more for a computer is not a huge deal if you have a decent income.
2) People who like to have fun with technology. No other platform offers as many entry level tools (the whole iLife bunch and more). This includes people who like to shoot a lot of digital photos or video. It's the whole digital hub concept. People are starting to buy into it.
3) Music enthusiasts and fans ages 12-35.
4) Professionals in media and design.

Apple's target market is not as cut and dry as those of other companies. Apple surely knows that their products are pricey. There must also be a profile typical of the person who buys a Mac or other Apple products. This person probably has a bit of disposable income, is 12-35, also professionals in media and design are drawn to the brand. But Apple also knows that people will sacrifice for a “better” product or luxury product. Apple has historically targeted everyone, or rather, the individual, rather than a whole.

Ch. 3 - Ethics & Social Responsibility

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

Apple is committed to protecting the environment, health, and safety of its employees, customers, and the global communities in which it operates. We recognize that by integrating sound environmental, health, and safety (EHS) management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations. Apple strives for continuous improvements in its environmental, health, and safety management systems and in the environmental quality of its products, processes, and services.

Ch. 2 - Strategic Planning for Competitive Advantage

The SWOT analysis is made up of Apple’s strengths, weaknesses, opportunities and threats. Each segment will be analyzed as an independent component followed by a conclusion.

Strengths :

1. Customer loyalty combined with expanding closed ecosystem
2. Apple is a leading innovator in mobile device technology
3. Strong financial performance ($10,000,000,000 cash, gross profit margin 43.9% and no debt)
4. Brand reputation
5. Retail stores
6. Strong marketing and advertising teams

Weaknesses :

1. High prices
2. Incompatibility with different OS
3. Decreasing market share
4. Patent infringements
5. Further changes in management
6. Defects of new products
7. Long-term gross margin decline

Opportunities : 

1. High demand of iPad mini and iPhone 5
2. iTV launch
3. Emergence of the new provider of application processors
4. Growth of tablet and smartphone markets
5. Obtaining patents through acquisitions
6. Damages from patent infringements
7. Strong growth of mobile advertising market
8. Increasing demand for cloud based services

Threats :

1. Rapid technological change
2. 2013 tax increases
3. Rising pay levels for Foxconn workers
4. Breached IP rights
5. Price pressure from Samsung over key components
6. Strong dollar
7. Android OS growth
8. Competitors moves in online music market

Ch. 1 - Overview of Marketing : Mission Statement

It was widely reported that a famous quote from Steve Jobs in the 1980's was the Apple company mission statement: "Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them." 

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

Ch. 1 - Overview of Marketing : Brief History

Apple was established on April 1, 1976, by Steve Jobs, Steve Wozniak and Ronald Wayne to sell the Apple personal computer kit, a computer single handedly designed by Wozniak. The kits were hand-built by Wozniak and first shown to the public at the Homebrew Computer Club.The Apple I was sold as a motherboard (with CPU, RAM, and basic textual-video chips), which is less than what is today considered a complete personal computer. The Apple I went on sale in July 1976 and was market-priced at $666.66 ($2,690 in 2013 dollars, adjusted for inflation). 

Apple was incorporated January 3, 1977,without Wayne, who sold his share of the company back to Jobs and Wozniak for $800. Multi-millionaire Mike Markkula provided essential business expertise and funding of $250,000 during the incorporation of Apple.

During the first five years of operations, revenues doubled every four months, an average growth rate of 700%.

By the end of the 1970s, Apple had a staff of computer designers and a production line. The company introduced the Apple III in May 1980 in an attempt to compete with IBM andMicrosoft in the business and corporate computing market.

On December 12, 1980, Apple went public at $22 per share, generating more capital than any IPO since Ford Motor Company in 1956 and instantly creating more millionaires (about 300) than any company in history.

In 1984, Apple next launched the Macintosh. Its debut was announced by the now famous $1.5 million television commercial "1984".

On August 15, 1998, Apple introduced a new all-in-one computer reminiscent of the Macintosh 128K: the iMac. The iMac design team was led by Jonathan Ive, who would later design the iPod and the iPhone.^[ The iMac featured modern technology and a unique design, and sold almost 800,000 units in its first five months.

On May 19, 2001, Apple opened the first official Apple Retail Stores in Virginia and California.

 In 2007 Apple achieved widespread success with its iPhone, iPod Touch and iPad products, which introduced innovations in mobile phones, portable music players and personal computers respectively.

On January 17, 2011, Jobs announced in an internal Apple memo that he would take another medical leave of absence, for an indefinite period, to allow him to focus on his health. Chief operating officer Tim Cook assumed Jobs' day-to-day operations at Apple, although Jobs would still remain "involved in major strategic decisions for the company." Apple became the most valuable consumer-facing brand in the world.

On September 12, 2012, Apple unveiled the iPhone 5, featuring an enlarged screen, more powerful processors, and running iOS 6. The latter includes a new mapping application (replacing Google Maps) that has attracted some criticism. It was made available on September 21, 2012, and became Apple's biggest iPhone launch, with over 2 million pre-orders pushing back the delivery date to late October.

An anonymous Apple employee revealed to the Bloomberg media publication that the opening of a Tokyo, Japan store is planned for 2014. The construction of the store will be completed in February 2014, but as of August 29, 2013, Takashi Takebayashi, a Tokyo-based spokesman for Apple, has not made any comment to the media. A Japanese analyst has stated, "For Apple, the Japanese market is appealing in terms of quantity and price. There is room to expand tablet sales and a possibility the Japanese market expands if Apple’s mobile carrier partners increase.