Brand Management Apple - Essay Example

?Table of Contents Page Apple Brand Value Chain 2 Marketing Program Investment 2 mindset 3 Market Performance 4 Shareholder Value 5 Program Multiplier 5 Consumer Multiplier 7 Market Multiplier 8 Brand Portfolio and Brand History 10 References 12 Apple Brand Value Chain Illustration 1. Apple Brand Value Chain Shown in the above illustration is Apple’s Brand Value Chain which specifically composed of value stages and filters. Marketing Program Investment There are three most important and distinct about marketing program investment of Apple. Apple primarily tries to go for cutting edge technology which is a strong marketing proposition that it tries to integrate in all of its product offerings. This is the reason why Apple is highly associated with quality. Having an Apple brand would mean getting the right quality of product offering. The cutting-edge technology is a substantial product strategy of Apple and it truly invests in this area because this is a good marketing strategy that entices the target market. Apple is good at stimulating market needs and this is truly emphasized by its brand features on highly advanced technology and product design. There must be something about the product in order for it to be more attractive in the market (Belch and Belch 1998, 69; Boone and Kurtz 2008, 56; Kotler et al. 1999, 89). On the other hand, in line with marketing program investment for product, Apple brand substantially considers innovating possibilities. Apple is one of the leading brands in its industry on differentiation. The product innovation is clearly one of Apple brand’s competitive strategy and this highlights its capacity to be the leading brand in the market. Apple brand is known for its distinctive market campaign. Since it is good at stimulating needs, it has to strategically invest in distinctive marketing campaign as part of its dynamic communication for its brand. Apple brand is widely heard on national television’s commercials, print advertisements, posters in public areas and wrap advertisement campaigns. Customer Mindset Marketing is clearly an important component in spreading Apple brand and especially on the part of how it creates impact on customers’ mindset. It is in this move that the brand has important goal to substantially stimulate customers’ needs. In line with this, it has become so easy for Apple to influence customers’ awareness about its brand through emphasizing its innovative products. Its innovation comes in different areas but they all substantially focused on differentiation in general. With this differentiation, customers are given the chance to be aware on specific issues about what makes Apple different from other brands. This is a specific area where Apple brand is successful about creating awareness for its target market especially on its innovative new product design and technology. It is in line with this that Apple tries to integrate in its brand the customer loyalty by serving high quality brand and highly on time to satisfy customers. It is through this that Apple brand develop a certain level of customer loyalty for its brand. This is a specific component of attachment that is developed at the mindset of customers. Market Performance In the United States, the best-price strategy compared to low-cost strategy is tantamount to high quality standard of product or service offering. This is the reason why customers are willing to pay for high price and it is expected that such is highly associated with high standard quality. It is a challenge then among products with premium prices to achieve certain level of customers’ expectations. Apple brand is successful in satisfying customers’ expectations. This justifies its premium price to speak for itself and this further means that Apple strategy to go for best price is tantamount to high standard quality and customer satisfaction. Apple brand is primarily the leading innovator in its industry. Its name cannot be highly disregarded by its competitors. The bottom line is that it has achieved certain level of point in differentiating its brand among any other leading brands and such is a specific indication of strong market share. A strong market share is tantamount to successful market penetration. Shareholder Value Apple seems to be doing well financially and this means, every shareholder has given the chance to make out the best of Apple brand. There are positive results for the brand’s three indicators for the shareholder value. This further means that the financial market has substantial information to say about the success of Apple brand in the market. The financial performance of Apple has been going well for years. Being the leading brand in the market for its industry is a specific indication that Apple brand has substantially performed the best financial performance for its level (Johnson, Scholes, Whittington 2008, 89; Pfeffer 1996, 105; Walker 2003, 69). Program Multiplier The quality for marketing program for Apple brand is positive considering that all essential factors that need to be judged in this aspect are present. Apple brand with its strong marketing proposition on high quality, innovative design and cutting edge technology has substantially created important brand meaning and value for its customers. This is a clear indication that Apple brand has successfully conveyed a positive quality for its marketing program based on its creation of clarity for its customers (Hitt, Ireland, and Hoskisson 2008, 65). The level of relevance of Apple’s brand marketing program is tantamount to its ability to stimulate needs for its products. This is a specific area in Apple’s brand marketing program that is responsible for the generation of customer’s trust which in return results to gain serious consideration of the brand. Since Apple brand is a leading differentiator in its industry, its innovative approach in technology and design makes it distinctive among any other available brands in its industry. Apple brand has consistently appeared in the market as the leading innovator and providing customers with the satisfaction they deserved. This is a picture consistency. For how many years, Apple brand has determined its corporate goal to be the leading brand in its industry. Such vision allows the brand to grow more and since it is known for its specific differentiation strategy, it continues to provide the market with something new. This allows the brand to specifically integrate the value of technology and innovative design (Jarzabkowski 2005, 96). Consumer Multiplier Apple brand has correspondingly included in its strategy the right business partners. In its production for instance, it uses the third party in which it has a strong market power to demand for quality. Its distributors are well chosen and this is to further define its distinctive nature and to showcase how genuine are its product offerings. In fact, in order to maintain and emphasize its high level of differentiation strategy, Apple brand remarkable considers protection of its intellectual property rights. Thus, it can be considered that Apple has remarkably gained considerable amount of support from its business partners or third parties and the bottom line of this is protecting the rights and privileges of the customers to enjoy the satisfaction that Apple brand offers in the market. Apple brand has its specific market segment and this makes it a strong leader in the industry. This specific segment gives way for Apple to apply not just its differentiation strategy. Apple has remarkably done focus differentiation which encompasses understanding of its specific customers and their profiles (Kay 1993, 89; Lynch 2003, 32). This in return gives way for customers who are looking for products with high quality and premium price. This is Apple brand’s specific customers. The existence of prevailing brands that try to challenge Apple brand is a good way to emphasize the distinctiveness of Apple brand. In fact, this is a remarkable way how the entire differentiation strategy of Apple brand can be emphasized in its industry. This creates substantial meaning and in return this also provides more competitive advantage on the part of Apple brand because this is a way of emphasizing features that are distinct to Apple itself. Market Multiplier Apple is leading innovator and in order for it to continuously create positive growth for its differentiation strategy, it is important that its design and innovative products are substantially protected. For instance, in terms of its differentiation strategy, there is a need to come up with relying on the intellectual property rights. In this case, the legal business environment is very effective to contribute to the positive impact of Apple brand in the industry. This specifically contributes to its growth potential (Mintzberg, Lampel, Ahlstand 1998, 115). Mac and iPod are so renowned in the industry. These are two most familiar brands that are strongly associated with Apple brand. These brands are creating significant impact on how customers view Apple brand as the leading brand in its industry. This has remarkable impact on Apple brand considering for instance the level of innovation that its sub brands have created value in the market (Dibb and Si,kin 2008, 45; Grant 2008, 89; Hamel and Prahald 1994, 78; Lynch 2003, 100; Mintzberg, Quinn, Ghashal 2003, 60). The modern iPod for instance consists of both features coming from smartphones and laptops. This is a new product innovation that actually was able to stimulate market demand recently. Brand Portfolio and Brand Hierarchy Branding strategy is very important in every company that tries to create impact and market value for their line of products. This can be clearly observed in the case of Apple Incorporated. The following is Apple Incorporated’s product portfolio. Illustration 2. Apple’s Brand Portfolio iPhone iTunes Mac iPod iPad Illustration 3. Brand Hierarchy Tree: Apple Incorporated Generally, Apple Incorporated offers focus products and services to its specific market segment. For instance, it offers discount for computers and softwares and other third party products to students, teachers, administrators and staffs of all grade levels. This strategy has no difference with what Dell and other related companies in the industry are providing. This means that the Brand Hierarchy Tree of Apple Incorporated has associated structure with its competitors. In order to make a difference in the Brand Hierarchy Tree of Apple compared with other leading brands, it is good to generalize it at some point. This is shown in Illustration 3. This means that when it comes to Apple Incorporated’s brands, every person should buy it because everyone has the chance to be stimulated with the need to have and try it. Being so focused about a certain market segment would mean more competition because every company in the same industry seems to be doing it. The issue now is to create market focus. Such focus differentiation can be alternatively implemented on the issue of usability instead of the market segment itself (Porter 1980, 39; Porter 2004, 50; Porter 1991; 56; Porter 1998, 100; Barney and Hesterly, 76). Considering that Apple Incorporated is good at stimulating needs, there can be no problem of who to influence in the first place. Apple has already the competitive edge that needs to be implemented whenever it needs because it has remarkably gained the acceptance of the consuming market. In this case, Apple has to primarily focus on its differentiation strategy and its brand hierarchy should be designed in a general manner in order to achieve the whole market. In this case, it is attempting to another level of differentiation which becomes broader but with greater competitive edge because of its high capacity to stimulate needs and demands. References Barney, J. B., and Hesterly, W. S. 2006. Competitive management and competitive advantage: concepts and cases. 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