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EXPERIENTIAL MARKETING: APPLE
Apple Computers was in need of a new retailing strategy and a more widespread adoption of its products. The 2005 annual report mentions that “One of the goals of the retail initiative is to bring new customers to the Company and expand its installed base through sales to computer users who currently do not own a Macintosh computer and first time personal computer buyers.” As a result, Apple has undertaken store based retailing with heavy emphasis on making the customer test the products first hand before purchasing a product. A visit to the Apple Store shows that they have a combination of a free flow layout and a loop layout. According to the company “this helps to guide a consumer’s
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This also helps to build up store traffic and enhance the overall store image of Apple. Store openings are treated as big events among Mac users where the company attracts people through sales promotions and free giveaways. The key aspects the company is looking for by employing these means are emotional attachment to the brand and customer satisfaction with consumers being more interactive towards the products. The company also hopes to achieve resonance with each customer’s value expectation set creating more brand loyalty in the long run. Besides this, Apple also has a variety of training programs for their products called “one to one” in-store where customers can learn to use computers and other products they have purchased at a fee of 79.99 pounds/year. Customers are re-assured by the products post purchase and it is brought to their knowledge that usability of the computers and software purchased can be enhanced by this method. Analysis and evaluation of the customers in Apple stores is carried out by an installed system developed by ShopperTrak. This system is a discrete, video based customer counting system which automatically sends the information to the headquarters and other places where they might find it useful. It enables the company to assess how many people pass by the store, the number that enter the store and consequently the customers that approach the cashier to
Unfortunately in the present day we are a culture that are not only more aware of the products we chose to purchase but are able to enjoy the flexibility of shopping from home. Customers shopping at Best Buy find themselves being “up-sold” instead of being “educated” on the products they are considering purchasing. Customer service is lacking and store associates do not have the appropriate product knowledge to satisfy customer questions. These are only a few concerns disrupting Best Buy’s position in the market today. Their dismal financial performance is a clear indication that customers are choosing alternatives. Retail stores can be successful if given the right tools. Apple stores are the perfect model to emulate. Apple provides a variety of sample products to navigate, hires and trains their personnel on the products they offer, and exudes an ambiance that is welcoming to the customer. Much like Lowe’s, Apple offers classes to customer to gain the knowledge necessary to operate their products in a fluent and enjoyable manner. The staff does not push sales, instead remaining laid back and offering an efficient check out
First, Apple introduced a new OS in 2001. Second, Apple shifted to Intel chips and by the following year all Macintosh line ran on Intel making laptops run faster for less power. The third strategy was the development of proprietary set of applications. The fourth strategy in becoming the “digital hub” was to come up with a new distribution strategy: the Apple retail store, where customers can have a direct use and experience of Apple’s product and software.
Apple came back from near extinction to become one of the most revered technology companies in recent memory. They achieved this status by developing innovative design products and pushing the limits of their marketing prowess. Apple is known for their ability to listen to consumers and revolutionize market segments by providing modern design laden and feature rich alternatives to the target markets. They employ strategies that might contradict normal convention by keeping their prices high to build a brand image of prestige and promote their products through word of mouth. The impact on marketing is hugely noticeable by other companies following suit with store models
Apple Computer uses focused differentiation to help sell its computers to a narrow target market of graphic designers and educators rather than the general population of computer users. Apple’s innovation on the ITunes store together with the widespread use of the IPod. The corporate strategy is focused on being a market disrupter, and in turn a market maker, by focusing relentlessly on the customer experience.
Apple is a global company represented in many parts of the world, but born in the United States by computer wizards by the names of Steve Jobs and Steve Wozniak who founded the company back in 1976 (Capon, 2008). The organization deals with the design and sale of computer hardware, software and offers tech support to its customers. Examples of the hardware the company manufactures and sells include mobile phones, personal computers, iPads, tablets and iTunes with associated brands, like the MacBook and iPhones that represent Apple’s driving force towards its success. It is recognized as a brand leader in consumer electronics by the world in terms of quality and customer satisfaction and despite the wide product range, Apple manages each product in a distinct way that is a single business unit (Mittan, 2010).
This paper comprehensively describes the marketing plan of a charismatic organization Apple Inc. The main focus of the paper is to describe the most important marketing strategies which Apple has espoused from the date of its emergence and different challenges which it has faced from time to time. The paper begins with an introduction to the organization. Apple Inc. is an American MNC; engaged in the business of developing and marketing of IT products. Apple has expanded its business operations all over the world. Every product which Apple introduces has its own target market; it develops marketing plan and strategies for each of its products separately (Apple, 2012). Apple's strengths include strong brand image, financial strength, product and process design, and highly efficient operations management while high prices and inability of up gradation of some products are its main weaknesses. Apple has threats from its competitors, increasing costs, and economic situations but has greater opportunities in entering new markets, making strategic alliances, and bringing innovations through efficient R&D. Before entering new markets, Apple has to analyze the business environment through sensitivity analysis, and then decide a framework for the future strategies.
Apple Inc. has been dedicated to innovation ever since the company was first formed. Apple's recent breakthroughs were a result of a new technologies convergence upon the "digital hub" strategy (Mortensen, 2010). This strategy has served Apple well; especially during the last few years. The iPad, iPod, and iPhone were all born from this strategy. Furthermore, producing these innovative, user friendly, and design oriented products has earned them a considerable amount of customer loyalty.
Apple has done an excellent job of developing a very distinct strategy through industry leading innovation. This strategy has allowed them to be the frontrunners in new product introductions and the improvement of existing products. Apple has employed a differentiation strategy in an attempt to meet the needs of a global market by offering customers innovative new products and improved existing products. An important part of their strategy involves meeting the needs of the evolving digital electronics and computer markets. Apple has chosen to implement its strategy by designing and developing its
Sales - Apple has a specific functional area based on sales. The sales department of a business handles how the products will be sold and helping customers find a suitable product for their needs. They organise sales promotions (or advertising), respond to customer enquiries about their products, and negotiate discounts for customers; which enhances customer satisfaction and keeping customer records up to date. E.g. Apple found that distributing their phones to sell at other shops would broaden their market and create a lot of word of mouth which would be essential to the growth of the business. The shops they distribute the phones to always try to find ways to discount their customers which always creates customer satisfaction.
This report will identify the positioning of Apple’s notebook product line ‘MacBook’ to its relative competition by the use of marketing concepts such as; segmentation marketing, target marketing, buyer behaviour, product strategy and how the company has enhanced the product over the years.
Apple will have to balance the cost of constructing a store, recruiting a suitable staff, and operating the store against the potential revenues, which in turns depends upon the registered Macintosh community, median income, currency trends and general retailing environment--just like at home!
first hand. Apple placed the ads in popular fashion magazines as opposed to just general computer
Apple is as of now tending to the chance to keep up business manageability through reusing or recycling and related programs. What's more, the company persistently looks for new technological solutions for enhance the vitality productivity of Apple items, for example, through enhanced batteries, processors, and parts that transmit less heat. Then again, the labor rights trend is affecting their worldwide business field. Apple has officially found a way to deliver the chance to enhance customer perception about Apple products by enhancing employment practices all through its supply chain
The brand identity can used to drive and guide strategic initiatives throughout the firm, to differentiate the firm’s products and create a competitive advantage, to drive the committed to customer, to support the firm’s values and culture, and to support an easier protection of the brand (Danciu, 2010). Apple’s good brand identity strategy has provided supports to its unique position and its products in the global market. Apple has ranks as the top ‘Luxury Brand’ in China and many people are desired to own the products of Apple due to its luxury identity (Kedmey, 2015). Even though Apple has charge high prices for its products to customers, but customers are willing to buy as it provide innovative and better quality of products in terms of privacy, systems, application, and functions which easy to win the customer’s respect and loyalty. The distribution and retail strategy of Apple made it successful (Denning, 2011). There are four main distribution channels for Apple of its products, which are an online store, its retail store, direct sales, and third party wholesalers, which are easy to distribute its products to consumer. The store of Apple is intensive to control the ways that employees interact with customers, scripted training for on-site tech support, and consideration of every store detail down to the pre-loaded photos and music on demo devices. It also creates a carefree and
Apple was established as an IT company dealing in exclusively in computers. However, competition in the technology sector forced the firm to focus on other consumer products. The diversification strategy has seen Apple’s sales grow tremendously in the last decade, earning the firm the No. 1 brand position at Forbes. The Apple brand is recognized on an international scale and enjoys a strong recognition thanks to its aggressiveness when it comes to creativity and innovation (Tar, 2013). It has a large number of loyal customers who would purchase the new products regardless of the market price, which guarantees profits from the new division.