Ch. 18 -Social Media and Marketing

With an increase of social media use across the globe, industry giants such as Apple Inc, could not ignore its tremendous influence. Industries that neglect the power of social media, soon will be left behind. On the other hand, for companies like Apple, social media is seen as a great opportunity to boost their sales and improve the overall image of their company. Social media facilitates conversation over the internet, and makes it easy for consumers to share experiences about their product or company. Positive or negative feedback can instantly effect the reputation of a firm. With that in mind, Apple Inc. is continuously increasing their digital advertising investments. Last year, Apple spent US$933 million (Dh3.42 billion) on global marketing efforts, up from 35 per cent in 2010 and nearly double the $501 million it spent in 2009. Apple is also taking the benefits of social networking seriously. Currently, it has tens of thousands or even millions of followers in sites like LinkedIn, Facebook and Twitter. With the participation in these sites, Apple is trying to educate potential customers about their current products, products people may not have otherwise known the company carried, or  for their new upcoming releases. Even though Apple, is a well established brand and is known throughout the world, it continues to reinforce their brand by using social media along with traditional means of advertising. Social media is a fantastic way for Apple to gain brand awareness and extend its market reach far beyond the realm of traditional advertising, that is all around the world.

Ch. 10 - Product Concepts

Apple's products, like every other company's products, are the starting point in creating a marketing mix of an organization. This is why products are the most important aspect of a firm, regardless of its size. Whether or not a product is going to turn into a successful consumer's product depends on many factors such as price, design and promotional strategy of the marketing mix. Apple's products are divided into two categories, shopping products and specialty products. Apple's new IPhone 5C, 5S and Ipad Air are shopping products which means they are of moderate price and require research, compare and contrast, and evaluation of product information by the customer before the actual purchase is made. On the other hand, what happens when there are consumers that consider Apple's products so unique that they would go as far as staying out in the cold for hours or even sleeping on the street overnight, to be the first people to try Apple's new releases? These are the products that are categorized as specialty products. Specialty products, have gained the absolute trust of a consumer. Examples include, Apple's Mac Pros and Airs. No comparison needs to be made in this category since the consumer has already made up their mind. Therefore, the high price or the research required before buying a product is of little or no importance.  Although, we recognize that Apple's products are more expensive that its competitors, Apple's efforts in creating stylish, elegant and upscale products have helped the company to create an unprecedented competitive advantage, which instantly places, for many consumers, a wide number of its products into the specialty product category.

Ch. 17 - Personal Selling and Sales Management

 

Apple Inc., like all companies, uses personal selling to persuade a potential customer to purchase its products. This face to face interaction has helped all of us find, and persuaded us to buy a product. For example, if you were at the Apple store, and you were looking to buy an electronic device, one of the sales people would come over to help you pick out and buy a device that fulfills your needs. Apple's salespersons are well trained in encouraging sales, from having the right attitude, the perfect appearance and the specialized knowledge of Apple products. Companies like Apple, that have expensive products with complex features, need personal selling. In my recent visit to the Apple's store, I was able to get personal advice about the new releases of Apple and the benefits of each of these products. An employee came to me personally and allowed me, to both try and compare a variety of different Apple products. She advised me to try the new version of the IPhone, the IPhone 5C, and patiently showed me how to use it. She also informed me about all of its new features that make it so unique and worthwhile to purchase. My whole interactive experience at the Apple store was very enjoyable and informative which led me to the conclusion that Apple's promotional mix in personal selling has helped the company not only increase its sales but also boost the potential of developing a long term relationship with their consumers.

Ch. 16 - Advertising, Public Relations and Sales Promotion

Apple’s Inc. is probably one of the most known companies in the world. It is impossible to achieve popularity like Apple’s based only on the quality of your products. Product advertising is one of the most important tools if not the most important, of the promotional mix. Apple's success in advertising its products is not something new to the company. For over three decades ,Apple has spent millions of dollars participating in every kind of advertising from institutional to product advertising. Its most significant ad campaigns include the "1984" Super Bowl commercial, the 1990s Think Different campaign, and the "iPod people" of the 2000s. Apple's ad budget rose only marginally from a base of $467 million in 2007 until 2010.  Then, recognizing the importance of the promotional mix and advertising, Apple doubled its Ad budget to $ 1 billion a year in 2011. That year, Apple began a series of new product launches in both the iPhone and iPad lines that has continued unabated. This might sound like a lot of money to spend for the everyday person, but with such fierce competition, Apple has to constantly improve and increase its Ad budget.


Just a couple of weeks ago, the TV advertising analytics firm, Ace Metrix, found that Samsung's ad featuring clips from futuristic shows and movies which featured technology similar to their new Galaxy Gear smart watch were very successful. Dreams of the past had become reality! This ad scored an extremely strong 682 on its 950-point Ace Score scale, whereas Apple’s most popular ad for the Iphone 5C, only scored a 522. The advertisements are displayed below. See for yourselves.

 Apple's Iphone 5C Advertisment

Samsung Galaxy Note 3 Gear Smart Watch TV Commercial

 

Ch. 14 - Marketing Channels and Retailing

There are more than 400 Apple’s retail stores in 13 countries, with 253 of those being incorporated in the US. Apple also has an online store, available in 38 countries, which provides immediate service at the consumer's convenience. Last week, I went to 767 5th Ave, and visited a store myself.  I have to admit that it was the coolest apple store I've ever been to. It has a really cool glass cube entryway; a unique glass elevator which leads you down to the lower level that houses all the cool Apple gadgets. It is quite innovative! I was able to find the latest models like the Iphone 5C, and virtually any Apple product anyone may desire such as IPhones, iPads, Mac Computers, Apple TVs etc. Despite it being crowded, I was still able to browse the store and try out all the products, thanks to an excellent customer service.

Overall, Apple's stores offer a unique shopping experience that incorporates all six Ps in the retailing mix - great products, place of business, promotion, pricing, presentation, and personnel- a great marketing strategy. In looking for the presence of all the these components in their stores, I can say that all of the Apple’s stores I visited in NYC are conveniently located, relatively close to a train station, in busy areas and operate 24 hours.All of these factors help to catch the attention of thousands of people passing by creating further awareness. Next, employees successfully enticed consumers to embrace an Apple brand preference by displaying the new Iphone 5C and its benefits, which include a more affordable price and a plastic color of your choosing. Apple is even taking action at its exterior, continuously advertising the benefits of the new IPhone 5C to draw every potential costumer. In conclusion, after visiting this store I was able to live the unique use of Apple’s retailing mix.

Ch. 6 - Consumer Decision Making

Nowadays, a consumer uses what is called the consumer decision-making process pictured to the left when buying goods or services. Apple's marketing managers on the other hand, try to understand what the needs and wants of a consumer are, in order to create the ultimate marketing mix. Apple Inc. recognizing the importance of the need recognition step in the consumer decision-making process, has doubled its Ad budget to $ 1 billion a year.  Further, Apple's marketing managers, realizing the importance of  the second step used by the consumer or the information search  step,  wherein the consumer will search for new information about a product, have provided valuable information for all of their products, to their customers through their internet website( http://www.apple.com/ )  advertising, Facebook, twitter and tours. 

Apple is ubiquitous. As such, Apple is rated by Interbrand as the world's most valuable brand. In conjunction with Apple's fame and its trustworthy name, new consumers can easily obtain internal information from what other consumers have relayed to them about their past experiences. The third process in the consumer decision-making process is the evaluation of alternatives. Luckily, Apple's products are known as being the best in the market. Apple has achieved the product/service differentiation competitive advantage that few companies in the world have. The last steps involved are purchase and post-purchase behavior respectively. Purchase is the actual purchase of the product, and here Apple has also won the bet. Just three days after the launch of the new Iphone 5C, iPhone sales topped nine million, setting a new record for the company. Apple is making sure that all of consumer’s expectations are fulfilled. This has led to positive feedback and consumer-generated advertising of which I am participating in right now by posting on my blog.

 

Ch. 5 - Developing a Global Vision

Interbrand(the world's leading brand consultancy) announced yesterday that Apple is the world's most valuable brand. As of May 2013, Apple is one of the worlds leading companies. Apple maintains 408 retail stores in fourteen countries, sells all of its products online as well and  participates in worldwide tours to promote its products. Apple also participates in the international market by having many of its products manufactured outside the US. Despite the efforts Apple has made to compete internationally with other colossal technological companies, Apple still suffers negative drawbacks. The number of Apple retail stores in foreign countries is relatively small for such a well known company with competitively priced products. Unfortunately, Apple's global market in developed regions was very uncertain up until recently because of its pricey products. Its being pricey caused Apple to struggle in the past to compete with foreign competitors efficiently. Today, acknowledging the importance and benefits of globalization, and in an effort to penetrate the more determined international markets, Apple improved its global vision by implementing new global marketing strategies.

 

One of these strategies was Apple's announcement of the Iphone 5C that comes in a lighter, cheaper, plastic case than its predecessor. The more expensive Iphone 5, was very successful in the US and European Market, but lacked in sales in developing countries such as Brazil and Turkey. Apple now hopes that by offering a cheaper version its international sales of the Smartphone will expand. With the release of the Iphone 5C, Apple is hoping to grab the attention of its target market both domestically and internationally- the poorer, teenage and eldery populations that were unable to purchase the Iphone 5 the precedent of Iphone 5C.