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.