BUS312.Section 5 Dongfang Nie Prof.

Garrity Apples marketing Table of Contents

Introduction 4Ps in Apple marketing Key strategies in Apples marketing Apple in the past, now, and the future Conclusions Reference

1 1 5 6 7 8

Introduction Apple, the most admired company in the world, has changed the world we live. It not only invents great products for us, it also changes the way we think of human imagination. Innovative products contribute to its success. Marketing also contributes to its success to some extend. In this paper, we will analysis the fundamental principles of marketing and its application by Apple.

Product Apple has hit the world in the recent ten yearsthe iPod, iPhone, and iPad. Apple sold three million iPads within 80 days of its release, and there were 25,000 iPad-specific apps in Apples App Store within six months. Like iPhone apps, many iPad apps are free because they display ads that produce revenues for developers. The iPod wasnt the first digital music player, but Apple was the first to make the music player right. Apples uncovered consumers want to take all their music with them and want to keep the player hidden. This led to apple to make it as small as possible and build it to hold more songs. Apples expanded iPod and iPod Touchlines now seize more than 75 % of market share. And theyve generated other Apple blockbusters such as the iPhone and the iPad. Also, apple turned the retail music business on its head by selling music for the iPod via the Internet on iTunes. Besides iTunes, Apple also invents podcast. With podcasting, consumers can download audio files or videos files through the Internet to a handheld device and then listens to or view them whenever and wherever they want.

The stylish iPhone 4 has a 3.5-inch color screen and is well equipped for music, video, and Web access; it also has communication, calendar, contact management, and file management functions. Its global positioning system technology can pinpoint a users location. Also, users can erase data with a remote command if the smartphone is lost or stolen. Apple constantly comes out new products. For example, Apples strategies are getting customers to get rid of old apple products and buy the latest version. New products are the lifeblood of Apple. As old products become obsolete, Apple must develop new ones to take their place. Few brands stimulate such intense loyalty as that found in the hearts of core Apple buyers. Whether they own a Mac computer, an iPod, an iPhone, or an iPad, Apple fans are devoted to the brand. What is it that makes Apple buyers so faithful? Why do they buy a Mac instead of an HP or a Dell, or an iPhone instead of brands from Nokia, LG, or Motorola? An apple products user will reply simply that Apples products work better and do more or are easier to use. Apple puts top priority on understanding its customers. To Apple buyers, a Mac computer or an iPhone is much more than just a piece of electronics equipment. Its a part of the buyers own self-expression and lifestyle. When you have a Mac, you are anything but mainstream. From slim laptops to the even slimmer iPhone, Apple products are imaginative, attractive to the eye, and exciting to use. Price

Many companies that create new products set high primary prices to skim profits layer by layer from the market. Apple repeatedly uses this approach, called market skimming pricing. When Apple first announced the iPhone, its initial price was as much as $599 per phone. The first generation iPhones targeted clients who really wanted the smooth new gadget and could offer to pay a high price for it. Six months later, Apple plummeted the price to $399 for an 8GB model and $499 for the 16GB model to draw new buyers. Within a year, it dropped prices again to $199 and $299, respectively, and you can now buy an 8GB model for $99. Apple skimmed the maximum amount of income from the different segments of the market. Apple. The latest iPhone 4s even has a simple Artificial Intelligence system-Siri and more other feather. Regarding to pricing products, Apples foreign prices is higher than domestic prices for comparable products. An Apple iPad that sells for $600 in the United States goes for $750 in the United Kingdom. The higher price includes the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to its factory price. Depending on these added costs, the product may have to sell for two to five times as much in another country to make the same profit. Most of Apples products are made in China; however, Apple products are even more expensive there. Place Apple locates its stores in high-end malls and trendy shopping districts, such as the Magnificent Mile on Chicagos Michigan Avenue or Fifth Avenue in Manhattan, not low-rent strip malls on the edge of town.

Apple targets the whole world market. It uses an identical advertising theme around the world. For example, Apple sold millions of iPods with a single global campaign featuring some figures dancing against a colorful background. And other than for languages, the Apple Web site looks about the same for any of the more than 70 countries in which Apple markets its products. Promotion Apple has a group of loyal users. Other Apple purchasers are somewhat loyal such as they are faithful to iPhones only. Apple has learnt a lot by analyzing loyalty patterns in its market. For example, by studying Mac enthusiasts, Apple has better pinpointed its target market and develop marketing appeals. By studying its less-loyal consumers, Apple has detected which products are most competitive. By looking at customers who are shifting away from Apple, Apple has learnt about its marketing weaknesses. Apples iPad was one of the most successful product launches. Apple started to promote ipad without advertising. Instead, it distributed iPads for early reviews. At launch time, Apple held many launch day events. In the process, the iPad launch generated abundant consumer excitement, media fever, and long lines outside retail stores on launch day. Apple sold more than 300,000 ipad on the first day alone and more than two million in the first two months. Key strategies in Apples marketing Ignore Your Critics

Each and every time Apple decided to innovate, they were laughed at. They prevailed anyway. When Steve Jobs debuted the iPad, the critics stood in line, throwing every insult they could muster. The critics said that the iPad would fail. Turn the Ordinary into Something Beautiful Apple has designed its products to a piece of art. The beautiful design is eye catching. With the goal of perfection, Apple thinks details matter. Justify Your Price They build beautiful products for an audience that loves them passionately. Also, they justify their price with features and benefits that cant be matched. Apple adjusts price according to the market and has full control of its price. Build the brand name You dont buy MP3 players, you buy an iPod. You dont buy a smartphone, you buy an iPhone. The iPhone isnt the first phone, but they engineered it to be so unique that you couldnt help but think it was. The iMac isnt the first all in one, but it became the only one that matters. In my opinion, Apples brand name is as valuable as Coca Cola. Apple in the past, now, and the future Apple was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, to sell the Apple I personal computer kit. The Apple I was sold as a motherboard (with CPU, RAM, and basic textual-video chips)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. The Apple II was introduced on April 16, 1977 at the first West Coast Computer Fair. By the end of the 1970s, Apple had a staff of computer designers and a production line. The company introduced the ill-fated Apple III in May 1980 in an attempt to compete with IBM and Microsoft in the business and corporate computing market. When Apple went public, it generated more capital than any IPO since Ford Motor Company in 1956 and instantly created more millionaires than any company in history. Apple is the most admired and creative company now. With the spirit of innovation, Apple will bring more surprise to the world. Conclusion Apples owes its success to not only great products, but also great marketing strategies. Through great marketing strategies, Apple has enhanced its competitive advantages. Apples marketing is as innovative as its technologies. Marketing has created and captured customer value for Apple.

Works Cited
Leavitt, David. The Man Who Knew Too Much; Alan Turing and the invention of the computer. Phoenix: Phoenix Press, 2007. Jefferson Graham, Apple Reports Best Earnings Ever, USA Today, January 26, 2010, p. B1; Macolyte, Urban Dictionary, www.urbandictionary.com/define.php?term=Macolyte, accessed Oc- tober 2010 Katie Hafner, Inside Apple Stores, a Certain Aura Enchants the Faithful, New York Times, December 27, 2007, www.nytimes.com/2007/12/27/business/27apple.html Steven H. Wildstrom, The Stubborn Luxury of Apple, BusinessWeek, November 23, 2009, p. 82; Adam Lashinsky, The Decade of Steve, Fortune, November 23, 2009, pp. 93114