Marketing Strategies Analysis of Apple Inc - Term Paper Example

? Marketing Strategies of Apple Inc. Marketing Strategies of Apple Inc. Corporate Background The history of Apple Inc. can be traced 35 years ago in 1976 when two high school friends, Steven Wozniak and Steven Jobs, both interested in electronics have created a computer design which became the Apple I (Stanford, 2010, p. 1). Today, a comprehensive snapshot of the company by Corporate Information accurately describes the organization, to wit: “Apple Inc. (Apple) designs, manufactures and markets a range of personal computers, mobile communication and media devices, and portable digital music players, and sells a range of related software, services, peripherals, networking solutions, and third-party digital content and applications. It's products and services include Macintosh (Mac) computers, iPhone, iPad, iPod, Apple TV, Xserve, a portfolio of consumer and professional software applications, the Mac OS X and iOS operating systems, third-party digital content and applications through the iTunes Store, and a range of accessory, service and support offerings” (Corporate Information, 2011, p. 1) With the rich legacy and tradition that has revolutionized computer technology of the 20th century, Apple Inc. has been revered by contemporary organizations as an icon of global technology. In this regard, the current research aims to proffer pertinent information that highlights the marketing strategies employed and implemented by Apple Inc. in its journey towards exemplary performance and financial success. Products Apple’s products are categorized into personal computers (PCs), to operating systems (OS), peripherals and the latest non-PC product lines (iPod, iPhone, among others). A quick view of the official website’s product images and information classify their offers as: iPad and iPhone; Mac; iPod and iTunes; and iCloud; with specified retail stores for these products (Apple Inc., 2011). The slump in the technology industry, particularly in terms of trends in personal computers in the 2000s shifted Apple’s focus in the digital technology market that enabled them to recover from financial distress. The innovative strategy of designing iPhone was another instrumental investment that paid off for Apple. Having capitalized on the increasing proliferation of mobile phones, the technology of uniting the features offered in iPod to mobile technology attained the object to reinventing the phone to what emerged as the iPhone. As advertised in their website: “iPhone 4 features a durable glass design, the remarkably high-resolution Retina display, FaceTime video calling, a 5-megapixel camera with HDR capability, and HD video recording. It’s the biggest thing to happen to iPhone since iPhone” (Apple Inc., 2011). Marketing Strategies The success of Apple Inc. has been attributed to their expertise and competitive advantage of knowing their products and scanning for opportunities in their external environment. As revealed by Vertygo Team (2011), “Apple has been so successful in these last years thanks to the fresh, imaginative way to think and do its business: a winning combination of exceptional products, great style and design, great strategy, innovative marketing, sleek and enticing communications” (par. 1). Apart from these, Apple’s competitive advantages could be summed as follows: (1) possesses strong corporate position and image as a pioneer manufacturer and marketing of easy-to-use computer for a wide range of customers; (2) positioned itself as an established manufacturer of high quality products: (3) exhibited exemplary competence in both hardware and software applications; (4) invested considerably and strategically in research and development paving the way for the discovery of new product designs deemed to be more versatile than competitors and creation of innovative applications; (5) possesses the ability to employ strong leaders with vast professional experiences; (6) offered products packaged in strategic designs to focus on the products’ strengths; and (7) maintained strategic locations for distribution and sales of products through outlets both in the U.S. and abroad. Advertising and Communication Strategy The Vertygo Team acknowledged that “Apple communication is sober, intriguing, simple, clear, minimalist and clever. And it has a style of its own. Both in the TV ads, both in print ads, both in the online communications. A lesson to be learned by many companies in the world. Well, of course when you have great products it is much easier to entice the costumers, but nevertheless doing it with style and cleverness is a very good point. It boosts sales, but enhances the brand value too” (Vertygo Team, 2011, par. 23). In an article written by Blakely (2008), she revealed that the advertising budget of Apple Inc. for the year 2008 was $486 million; $467 million in 2007 and $338 million in 2006 (p. 1). The product of coordinated strategies in product, promotions, pricing and place has been instrumental in making Apple Inc. the number 16th among Forbes Fastest Growing Tech Companies and number 75 among Forbes Top 2000 Companies (Forbes, 2011) with current market share price closing at $398.50 on July 25, 2011. From among the computer companies that trade shares publicly, Apple Inc. exhibited the highest market share to date, followed by IBM at $183.70; Hewlett Packard at $37.09 and Dell at $17.13 (Associated Press, 2011). Analysis of Marketing Strategies In a report on Apple Inc. written by Iliev, Lindinger and Poettler (2004), the authors indicated that “Apple is adapting to changes in the external as well as internal environments to align the marketing strategy with the corporate strategy and consquently Apple is ahead of the curve” (p. 57). Their strengths and competitive advantages lie in product design that enables them to create innovative products that cater to the needs and demands of the customers. As emphasized, “the R&D function is the most important source of superior innovation as short product-to-market cycles and innovative products create value for the customer, thereby consituting another factor that leads to differentiation and results in more pricing options” (Iliev, Lindinger, & Poettler, 2004, p. 135). Likewise, Apple’s thrust of focusing on customer needs, customer groups and distinct competencies put them among the leaders in their field of endeavor. As averred, “Apple products appeal to the customer’s pyschological desires and as a result, consumers are willing to pay more for their product” (Iliev, Lindinger, & Poettler, 2004, p. 139). In addition, by being vigilant and keeping abreast with the strategies of competitors, Apple is able to react and respond as needed. Ilieve, et al. (2004) stressed that “the perceived value, generated through superior design and innovation proves to be an inimitable competency, and therefore, as long as such an advantage exists for Apple, Apple will continue to outperform rivals” (Iliev, Lindinger, & Poettler, 2004, p. 144). Conclusion The research has achieved its objective of presenting pertinent information that highlighted the marketing strategies employed and implemented by Apple Inc. in its journey towards exemplary performance and financial success. Through the leadership and vision of their Steve Jobs, directing the future thrusts of its products and services, Apple Inc. has continued to exhibit competitive advantage in terms of superiority in product design in conjunction with strategic applications of advertising, promotions, pricing and positioning in defined target markets. The strength in designing innovative products has been due to the efforts generated from their research and development function. The creativity and talent of their marketing associates in designing strategies for their marketing mix have been instrumental in placing Apple Inc. among the fastest growing technology companies in the United States; as well as one of the most productive computer technology companies in the country. It takes more than a good product to make an organization to excel. It needs a collaborative effort in the design and implementation of marketing strategies aimed to satisfy the ever changing needs of their clientele. References Apple Inc. (2011). Product Images & Info. Retrieved July 26, 2011, from http://www.apple.com/pr/products/apple-retail-stores/apple-retail-stores.html Associated Press. (2011, July 25). Final Glance: Computer companies. Retrieved July 26, 2011, from Forbes.com: http://www.forbes.com/feeds/ap/2011/07/25/ap-business-technology-hardware-amp-equipment-computer-final-glance_8583578.html Blakely, L. (2008, November 21). Apple's Advertising Budget: Revealed! Retrieved July 26, 2011, from BNet: http://www.bnet.com/blog/technology/apples-advertising-budget-revealed/574 Corporate Information. (2011). Apple Inc. Retrieved July 26, 2011, from http://www.corporateinformation.com/Company-Snapshot.aspx?cusip=037833100 Forbes. (2011, July 25). Apple, Incorporated . Retrieved July 26, 2011, from http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=AAPL Iliev, V., Lindinger, A., & Poettler, G. (2004). Apple Computer Inc.: Strategic Audit. Dublin Institute of Technology. Stanford, G. (2010, June 11). Company History: 1976 - 1981. Retrieved July 26, 2011, from http://www.apple-history.com/ Vertygo Team. (2011). Apple Marketing Strategy. Retrieved July 26, 2011, from http://www.vertygoteam.com/apple_marketing_strategy.php Read More