Apple Corporation Marketing Strategies - Essay Example

Apple’s Marketing Strategy Apple is a multinational company that designs, develops, and sells computer software, personal computers, and consumer electronics. According to recent statistics, the company is considered the second largest company that produces technological appliances, after Samsung, when focusing on revenue. Similarly, the statistics show that Apple is the third largest company that produces mobile phones in the world. This is after Samsung and Nokia, which are first and second respectively. According to the fortune magazine, Apple was rated as the most admired company in the United States. As such, the market is appreciating the performance of the company, especially when focusing on the production of consumer electronics. Late in 2013, the company’s brand was considered the most valuable brand, after trouncing the Coca-Cola brand. From this information, it is evident that apple has been making immense improvement in the market, in concern to its performance, production and market prevalence. In the initial strategies of introduction of the company, it was dealing with computers. The most prevalent computer produced by the company is the Mac computer. While producing the Mac line of computers, the company was known as Apple computer Inc. even though the company was making immense progress in the line of computers, the company felt the need to intensify its business model (Vogelstein, 2013:13). This is by introduction of better products, depending on the market demand. Since the company is indebted to serving its customers, it made an approach of initiating a new line of products to fit the market needs. It shifted to production of consumer electronics, which were gaining prevalence in the market in the wake of 2007. Similarly, the company had to change its name, to reflect on the products and services that are offered to the market. This prompted the introduction of the name Apple Inc. Marketing strategies: Retail stores in many countries The corporation has various market strategies that are optimising its performance in the market. Apparently, the company has been recording a steady improvement in its performance, especially after introduction of the consumer electronics. For example, the corporation has retail stores in over 14 countries in the world. As such, they have over 408 retail stores in the whole world. This is an initiative to ensure the market niche of the corporation is widespread in the world. With an increased market niche, the company is likely to make a better performance. As a fact, consumers in the market are attracted to products due to proximity to the stores (Sadeghi, 2012:13). This initiative has been used by the corporation to ensure it is selling its products in the market optimally. Secondly, with retail stores in different parts of the world, there is an advantage in that the corporation will have an opportunity to serve a larger market share. This exposes the corporation to a wider market, which increases the chances of selling products. As such, the company has been making immense progress in concern to improving a market niche for its products. The corporation has stated that it is planning to increase the number of retail stores in the world, which will be an advantage in increasing the revenue of the company. According to recent statistics, it is noted that Apple is the number 1 seller of Smartphones in Japan. As a fact, Japan is a country that is enhanced when it comes to technology. However, Apple initiated retail stores in the country, to compete with other firms that are in the consumer electronics industry. Apparently, the company has taken control of the market as its products are receiving a large demand. Similarly, the company is enhancing its market share in the United States. According to recent demographic statistics, the United States has a total population of over 315 million people. Consequentially, apple is focusing on taking control of 50% of the share market in the United States. This marketing strategy will surely enhance the optimal performance of the firm (Vogelstein, 2013:14). In using such a strategy, the company will have a greater demand for its products from the world’s third largest country in the world. This is a prudent approach, especially when the company needs to trounce the other competitors. Market brands and different products Initially, Apple was immensely involved in production of Mac line of computers. This was a lucrative business line, as the world appreciated the products. The corporation had a large market demand for the products, as it was among the world’s leading companies dealing in computers. However, the company had an unlimited desire to make a greater impact in the business world. As such, the leadership decided to change the business model and structure of the firm. This is by initiating other brands and products in addition to its line of computers. The company felt the need to give its customers a form of entertainment, especially when travelling from one place to another for long hours. For example, customers had to carry electronics when listening to music. This was uncomfortable, as mobility was affected. Apple decided to introduce the iPod media player, which is portable and in small sizes. Apparently, the media player has a large memory, which can hold thousands of songs and data. This product was highly appreciated in the market as the demand for the product hit millions (Peter and Donnelly, 2013:23). This encouraged Apple to initiate various ideas in ensuring it was holding to the market niche and improving its performance over time. After the immense performance of iPod media player, the corporation felt the need to introduce other products, which would make the lives of the consumers easier. The corporation decided to embark on production of iPhone Smartphone. This is a product that replaced the traditional way of communicating on the cell phone. Many people in the world have cell phones at the moment. However, the company felt that people need more than a cell phone. Therefore, additional services on the phone would make it attractive, which will lead to an increase in the demand for the product. After such deliberation, the corporation decided to introduce Smartphones to the market. Apparently, the market felt that this product was offering value for money, as it had additional services. For example, in the current times, many people are communicating to each other over social media like twitter, Facebook, and Instagram (Sadeghi, 2012:13). Therefore, the market will feel the need for a product that makes communication over social media easy. Therefore, they will look for a product like Smartphone to ensure they are connected to friends, family, and acquaintances. With such an approach, the Apple Corporation was sure of taking control of the market, as the market demand for the Smartphones started to swell. The Apple Corporation noted that the world is evolving in each passing day. As such, the computer market is evolving to conform to the evolving world. In the past, computers were massive and were hardly mobile. However, there have been immense changes in concern to computer sizes. As such, the producers in the computer market have been making improvements, especially in the size and functionality. Apparently, Apple decided to take the competition a notch higher, by introducing the iPad tablet computers. With such a change in the size, functionality, and specifications of the computers, many people felt the need to purchase such a product in the market (Edson, 2013:15). This was due to its functionality, size, portability, and design. This has been a success trait for apple, as many of the people in the markets appreciate their product range. As a fact, many people like to have products that are initiated by Apple, since they are offering brands that are highly rated in the world. Apple Corporation has been selling computer software in the market for a long time. As such, it has created a stable market niche for the products and services. Some of the computer software sold by the corporation includes the OS X and the IOS operating system. Even after introduction of new brands and products in the market, the corporation did not discontinue its business operation in the sale of computer software. This was a marketing strategy to enhance its market niche, even though it was swelling significantly. Secondly, the company introduced the iTunes, which is a strategy of giving their customers additional services. Customers who have Apple products are enhanced to use the iTunes, since it is a way of getting some of the latest and highly rated songs in the world (Edson, 2012:8). This complimenting product is one of the aspects that have ensured Apple in making greater performance in the market, since it is an avenue of luring the customers for repetitive purchases. Similarly, the corporation embarked on increasing its market share by introducing other products. These products include media browser, iLife and iWork, which are products that enhance creativity and productivity. With such an initiative, the corporation has been attracting a larger market share, while trouncing its competitors. Empathy, focus and impute For a firm to enhance its performance in the market there is a need to appreciate and improve its core competencies. Apple is among the companies that have a strong reflection on its core competencies. This is a marketing strategy that has enhanced its performance in the market. To begin with, the corporation insists that it truly understands the needs of customers. As such, it understands the needs of the customers more than any other corporation in the market does. This has been a marketing strategy to attract more customers from its competitors. Apparently, customers in the market will have a liking for a company that understands their needs. As a result, the company will ensure it produces products that conform to the customer needs (Vogelstein, 2013:19). This ensures the customers make repetitive purchases from the company. In such an aspect, the company develops customer loyalty at the highest level. With a larger population of loyal customers, the corporation will have a large niche market that will make a constant demand for the products of the company. With such an initiative, the company is likely to trounce its competitors, as the competitors are highly unlikely to reduce the market niche of Apple Corporation. Secondly, the corporation is focused on the important opportunities in the market. This is enhanced by prioritising the customer and corporation needs. With a focus on the important aspects in the business, the corporation is likely to make an impact in the market. Apparently, Apple Corporation states that it eliminates the unimportant opportunities to attract a larger market niche. This ensures their focus is on serving the customers to the best. In such an approach, the corporation prioritises on the aspects that will improve its performance optimally. With such an approach, the company has been able to make a significant performance in the market. This is to the admiration of many businesses that would like to make a similar performance in the market. However, since the focus of such companies is not in the limits of Apple Corporation, the corporation continues to make immense progress in the market (Peter and Donnelly, 2013:45). When a corporation focus on the vital opportunities in the market, it sparks a commitment to exploring and exploiting these opportunities. This leads to greater performance, as they make the best out of the situation. With such commitment and focus, the corporation is likely to attract larger market share. Thirdly, the corporation is focused on enhancing its image in the market. Apparently, the reputation of a corporation is through the perception of the market. The market often gets an opinion of a corporation, and rates the reputation. After understanding such a phenomenon, the company initiated various avenues of appealing to the market, in an effort to enhance its reputation. For example, the company insists on production of high quality products. With high quality products, the market will appreciate the products, as they will use the products effectively and efficiently. As such, they will have thigh reputation for the products. This may lead to a marketing aspect, which is known as word of mouth. The market for the products will be increasing due to the prevailing word of mouth in the market. This has been an encouragement to the corporation as it seeks to please the market through production of better and high quality products (Edson, 2012:10). Secondly, the company has initiated the production of useful software. In the current times, people are using computers in a wide range of activities. As a fact, many people are using computers in virtually all activities. This is to make work much easier and simple. As such, Apple has noted the initiation of useful software in the market. This is to the attraction of a larger market niche, as many people find the software useful. This has led to massive demand of the products of the company, as many people find it prudent to use such software. In ensuring the above market strategies work, the company has wrapped with professionalism. Exposing the products in the market with high sense of professionalism ensures the market appreciates the product. This is an initiative to increase the market niche of the company, as many people will feel the need to use a useful, better and high quality product that is offered professionally. Customer obsessed and empathetic employees Steve Jobs, the former Chief Executive Officer at Apple is a leader that had unique and effective approaches to business. The CEO stated that people have a unique way of interacting with technology. Apparently, the CEO stated that most customers have a limited thinking, especially when it comes to what they need. However, the CEO stated that customers should be given what is possible, as much as they would want what they need (Edson, 2013:7). As such, the corporation should make technology to function at greater heights, rather than what the customers need or want. This led to the strategy of employing employees who are highly committed to the organisation. As such, they ensure the products are in extreme ends, which will be an attraction to the customers. In ensuring this was enhancing the performance of the company, the CEO initiated the customer experience aspect in the corporation. This is to mean that the employees work on products, as if they were for their consumption. This leads to interactive technology, which pleases the employees. When the employees are pleased with their products, the customers are highly likely to appreciate the products, as they reflect the highest quality. This shows that Apple employees and entrenched in their work to ensure the customers get what they want at the most appropriate time. This marketing strategy has extended Apple’s limits in the market. Although the management is under a new CEO after the death of Steve Jobs, the culture of the organisation still continues to enhance its performance in the market. With such advances to customer experience, the firm is likely to make an even greater impact in the coming years, while trouncing its competitors. One bizarre incident is that, Jobs refused to use a gas mask while undergoing treatment, stating that its design was not adorable. This shows that Jobs was contented to make the best designs in the corporation, which would please all the customers in the market. Iterative customer involvement For a firm to make an impressive performance in the market there is a need to look at the customer’s obsession in the market. This is a marketing strategy that has been in use in Apple Corporation over time. The firm conducts a formal research in the market, in concern to how customers use products in the market. The firm has been cited to use colossal amounts of cash in conducting such market researches, in finding information on how customers use their products. Similarly, the company has involved various market researches in finding information on how customers use the products of its competitors. This has been through participatory design, where the company notes on how customers use its products (Vogelstein, 2013:8). This is an initiative that is used by the company to note which features need change and improvement. Similarly, there is the usability testing, which denotes simplicity and complexity of using some of the products of the Apple Corporation. The customer experience gives the company ample feedback on how to improve some of the products and services offered by the company. Consequentially, through this initiative, the company has noted various opportunities of enhancing its products to attract an even larger market niche. Compatibility of products Customers have a way of connecting and linking their devices with each other, which makes entertainment and use of computers an easy task. Apparently, customers would like to streamline various devices to work compatibly. This is an initiative that has been used by Apple in ensuring it is attracting a larger market niche. Apple has configured this approach, and understood the approach in serving customers optimally. As a result, the corporation has initiated an array of products that can work compatibly. This has been successful through the initiation of the digital and entertainment hub (Edson, 2013:11). This is where the products are digitally configured to work compatibly with other products and services offered by the same corporation. Apparently, this is a marketing strategy that works in two ways. First, it encourages the customers in the market to buy a barrage of products from the same company, since they want to enhance the digital and entertainment hub. Secondly, it limits customers from buying products from other competitors, since the compatibility mode will not be functional. With such an initiative, the company is destined to make the best out of the market, since it has repetitive purchases from customers. Price justification Customers in any market will have a coveted product, depending on the pricing. Apparently, at this point in time, many corporations in the business world are initiating various pricing strategies, in ensuring the market appreciates the products. On the contrary, Apple is less concerned with the pricing of its products and services. This is due to a number of reasons. First, Apple produces high quality products that are highly appreciated in the market (Edson, 2012:5). Secondly, they justify the price of their products through the services, benefits and usability of their products. When comparing the prices to the prices of their competitors, Apple Corporation is evidently having a higher pricing, where in some instances, the prices double. However, the company is still making an impressive performance, since the customers get the value for their money. Conclusion Apple is a top-notch company when it comes to technology and consumer electronics. Apparently, the company has been making impressive performance, through its marketing mix. The company has initiated various ways of ensuring it is one of the best performing technology companies. For example, the company initiated an array of products, shifting from production of computers. This has been a strategy in trouncing its competitors. Similarly, it has embedded other aspects in its marketing strategy, which includes customer experience, communicating to the audience, Differential market target, Building a name, innovation and improvement of products and extensive distribution of its stores. With such strategies, the corporation has been able to make immense progress over time, as it seeks to be the leading producer and designer of technology and consumer electronics. References Edson, J. (2012) Design like Apple seven principles for creating insanely great products, services, and experiences, Hoboken, N.J., Wiley. Edson, J. (2013) Design like Apple, New York, Hachette Audio. Peter, J.P. & Donnelly, J.H. (2013) Marketing management: Knowledge and skills, New York, McGraw-Hill Higher Education. Sadeghi, S. (2012) Defensive Strategy - Apple's Overlooked Key to Success, Berlin, epubli GmbH. Vogelstein, F. (2013) Dogfight: how Apple and Google went to war and started a revolution, Hoboken, N.J., Wiley. Read More