Reflect and evaluate Apple's marketing principles & practices - Essay Example

?Reflection on Apple’s Marketing Principles and Practices My views on the principles of marketing Theory describes marketing as one of the organic functions of business, which means that it is crucial not only to the success but also to the survival of a business (Fox, 2009). The other organic functions include finance and operations; in my opinion, though, these two are important only in so far as they strategically support how the firm meets the demands of the market. The most important purpose of marketing is to determine what the market wants, and to be able to deliver the needed product and/or service with the best quality possible among the competing firms. The other marketing strategies and tactics – use of a brand name, consumer research, product innovation, advertising and promotion, service support – these are all helpful, but not in and of themselves. Ultimately, they only count in advancing corporate performance in so far as they deliver quality to meet the customers’ needs. More recently, marketing thrusts have tended towards what I would call the splashy and spectacular, or what others would call high-profile marketing (Cheverton, 2005; Kennedy, 2006). These can be found particularly in the advertising for sports events or concerts where a large amount of sales have to be transacted within a short period of time (Morgan & Summers, 2005). There is a lot to be said, however, about word-of-mouth advertising, which is essentially low-key but very effective in the social media environment (Sernovitz, 2012). The strongest testimony would indeed come from family, friends and close acquaintances whom we know and trust, particularly if we see them patronising the same products and services. Apple’s marketing principles When we researched on Apple’s marketing, the emphasis of most researches was focused on Apple’s innovation, its market savvy, and the vision of its former CEO, the late Steve Jobs. There is a problem with this, however, because the vision, market savvy, and ideas for innovation appear to be incidentals – things we get right only with a wing and a prayer, even in the best circumstances. Moreover, ever since the death of Steve Jobs, the constancy of these three backbone factors has become uncertain for Apple because Jobs was the main wellspring from which they emanated. Unfortunately, Apple operated largely in a manner that was too closely identified with Jobs personally. In the course of my own readings, however, I am convinced that Apple has an element pervasive in its organisational culture that has developed into the winning market principle for its industry. This is simplicity, minimalism, and the quality of being understated (Vertygo, 2013). While also originally a Jobs attribute, this quality of being low-key and essentialist has, I believe, established a persistent trend in the way the company operates in a manner that defines it and its products. It is the concept upon which Apple’s brand image has been inextricably linked; its powerful digital and mobile devices such as the iPad, the iPod, the Mac, and the iPhone, which have been Apple’s greatest marketing successes, attracted the interest and commitment of the public because they were easy to operate (e.g., the absence of keys, knobs or switches) but delivered the desired quality of service in a manner compatible with our contemporary lifestyles (Van Dijk & Schipper, 2007). As for existing rivalry, Apple has redefined the market and reaped first option advantages with its revolutionary operating systems and its touch system technology. Through innovative products and technology, customers’ bargaining power is reduced for lack of competing alternatives or substitutes. How I assess Apple has done Taking a comprehensive look at Apple’s operations and it stated vision and principles, I believe that Apple has done more than apply them in the conventional way: the company has redefined what quality, innovation, and user friendliness means in the arena of digital communication devices. For all its stakeholders, Apple’s principal message in its marketing strategies is one of constant innovation, incorporating the principles of simplicity and minimalism which have come to be infused into the company’s core competitive strategy (Isaacson, 2012). More recently, with the escalation of interest in corporate social responsibility, Apple has incorporated its message of understated simplicity and outstanding quality with sustainability and ethical practices in research and development (Apple Form 10-K 2013 report). The reason why Apple is able to capture the patronage of a wide segment of the buying public, not only in the US but worldwide, because the devices and software created are designed to adjust to how people live, think, work and play, instead of the reverse – i.e, where people have to adjust to the device, which was how digital products and services were designed (Chaffin, 2005). The insight into what the market wants, not only at present but into the future, is fuelled by a practice of keeping in touch with the public pulse through WOM as well as conventional advertising (Jones, 2007), and by tapping potential strategic partners in the market, particularly through content providers (Apple iTunes, 2013). Other relevant matters Since the death of Steve Jobs, there have been speculations as to whether or not Apple will be able to maintain its strong innovative streak. I confess I also have my doubts. While the new Apple CEO, Timothy Cook, has a reputation for being a Jobs disciple when it comes to the core strategies of innovation, minimalism, quality assurance, and operational efficiency, it is not clear whether he would be able to reprise Jobs’ iconic penchant for what appears to be market clairvoyance (i.e., the ability to predict a future trend or technology). So far, the products produced by Apple under Cook had been improvements of existing products (e.g., the iPhone5 series which are enhancements of iPhone4 and earlier models). There have been no new displacing technologies, no new revolutionary products such as the first iPad that had a touch-sensitive screen instead of a keyboard, or the iPod that contained thousands of tunes, etc. Recently, Apple sought to introduce Apple Maps, an attempt to rival Google Maps but which failed miserably, demonstrated the problems the post-Jobs Apple is coming up against. I guess only time will tell if Apple will be able to maintain its brand reputation. References Apple Inc. 2013 Form 10-K Report. Retrieved 20 November 2013 from http://investor.apple.com/secfiling.cfm?filingID=1193125-13-416534&CIK=320193 Apple iTunes 2013 Content Providers, available at http://www.apple.com/itunes/content-providers/ Apple Website 2013 available at http://www.apple.com/ Chaffin, M 2005 “Strategic Plan for Apple, Inc.” CO 469V-03 Capstone. Retrieved 20 November 2013 from http://chaffinmmworksamples.files.wordpress.com/2012/04/capstone-apple1.pdf Cheverton, P Key Marketing Skills: Strategies, Tools and Techniques for Marketing Success. London: Kogan Page Ltd. Fox, W M 2009 The Management Process: An Integrated Functional Approach. Information Age Publishing, Inc. Isaacson, W 2012 “How Steve Jobs’ Love of Simplicity Fueled a Design Revolution.” Smithsonian.com, Smithsonian Magazine, September 2012. Retrieved 20 November 2013 from http://www.smithsonianmag.com/arts-culture/How-Steve-Jobs-Love-of-Simplicity-Fueled-A-Design-Revolution-166251016.html Jones, G 2007 “Apple & H&M set up ‘groups’ on Facebook.” Marketing. (00253650), p. 3, Business Source Complete, EBSCOhost, viewed 20 November 2013 Kennedy, DS 2006 No B.S. Direct Marketing. Entrepreneur Media, Inc. Morgan MJ & Summers, J 2005 Sports Marketing. Southbank, Victoria: Thomson Sernovitz, A 2012 Word of Mouth Marketing: How Smart Companies Get People Talking. Greenleaf Book Group Press Van Dijk, M & Schipper, I 2007 Apple: CSR Company Profile. Stichting Onderzoek Multinationale Ondernemingen (SOMO) Centre for Research on Multinational Corporations, Amsterdam. Vertygo Team 2013 “Apple Communications Strategy: I am a Mac, I am a PC” Mac Analysis. Retrieved 20 November 2013 from http://www.vertygoteam.com/apple/apple_communication.php Read More