Marketing Audit of Apple Company - Report Example

Introduction Apple is best known as a company that has revolutionized the digital industry with its steady stream of innovative products that are technologically advanced, visually appealing and trendy to use. The ease of use of these products has only reinforced the perception among the Apple community that the company’s products are a cut above the rest. This has largely been the legacy of its legendary founder Steve Jobs (who recently passed away) who wanted to build a brand identity for Apple that would be distinct and a personality of its own (Chazin, 2011). The halo that Apple’s products have is the result of years of planning and conscious implementation of its promotional and communications that have been in tune (no pun intended) with its overall strategy of technological superiority and youth focused sales strategy. This paper lists some of the features of Apple’s promotional and communications strategy with the emphasis on the key themes that have driven this strategy. Promotional Strategy of Apple The overall communications and promotional strategy of Apple is centered on the twin pronged approach of using advertisements and personal selling as tools of reaching out to its customers. The promotional strategy of Apple is to harp on the theme of “Think Different” and create a community of users who fancy themselves as the “Mac Community” as a means of contrasting them with what they consider the “herd” who uses Microsoft PC’s. This approach has been the cornerstone of Apple’s promotional strategy since the late 1980’s when the slogan was first conceptualized. This strategy was consciously followed with the additional theme of the transition from the “old world” to the “new world” being another slogan that Apple introduced. In recent years, with the introduction of the iPod, iPad and iPhone, the Apple brand was sought to be reinvigorated with taglines like “from the creators of iPod” etc used to signify the “halo effect” of the Apple brand (Marketing Minds, 2011). It has been mentioned by many marketing experts that in recent years, Apple has become a “game changer” in many ways and the promotional strategies pursued by Apple follow this trendy and pioneering spirit. Hence, the overall promotional and communications strategy is concentrated on creating a perception among its customers that by using Apple they are partaking of a revolution in the way music is consumed, books are read and mobile phones become multipurpose gadgets in addition to computing being taken to a different level with the Mac’s(De Pelsmacker & Kitchen, 2004). Advertisements The company uses the print, TV and internet media heavily and invests substantial amounts of money to promote its products. The fact that Apple’s ads can be seen in almost all television networks, technology magazines and all over the internet is testament to the company’s heavy investment in advertising. The ad spend that Apple does is perhaps matched only by Microsoft, the other behemoth whose competition with Apple has resulted in the creation of several products by both companies and hence has impacted the industry in a positive sense. The ads that Apple puts out reinforce the perception among users that Apple’s products are different from that of its competitors and the subtle and not so subtle messages that these ads convey are all about creating an impression in the users’ minds that using Apple products sets you apart from the crowd. The advertising strategy of Apple is indeed effective when one considers the band of loyal Mac users and in recent years, the diehard fans of its ‘I’ range (iPod, iPad and iPhone) of products who swear by these gadgets. To take an example of the way in which Apple’s ads signify the differences with Microsoft, an ad features an older man and a hip youngster in formal and casual attire respectively. The depiction as well as the use of color and sound in this ad is intended to demonstrate the trendier aspects of the Mac as well as its robustness and to subtly poke fun at Microsoft (Promotional Strategy of Apple, 2011). Trade Shows The company does trade shows every year when it hosts the Macworld (or the newly christened Macworld| iWorld: The Ultimate iFan Event). The annual congregation of Apple fans from all over the world in a mega trade show of the kind that the company hosts is indeed an indication of the way Apple uses this medium to promote its products. Like other trade shows for technology companies, the mood in the Macworld is geeky and the atmosphere resembles that of a carnival (Hiner, 2011). The trade shows are attended by thousands of hardcore Apple fans whose main intention in participating in such shows is to be ahead of the curve as far as Apple’s products are concerned. The trade shows also draw in numerous suppliers, partners and retailers whose representatives strike deals with Apple executives and hence the Macworld is an opportunity for all these people in the supply chain of Apple to congregate and do business. The annual Macworld conference is indeed effective following the tradition set for it by Steve Jobs who made it a point to announce new product launches during these trade shows. Apple uses these trade shows to showcase its achievements and seek feedback from the thousands of fans who gather there. In this way, Apple manages to remain ahead of the competition by incorporating the suggestions and activating the feedback loop wherein it can leverage upon its huge user base to point out defects, offer product improvements and finally, network with its partners and suppliers along with the retailers to get business deals done. Personal Selling and PR This is the second tool of the promotional strategy that Apple pursues to such great effect. Personal selling to its customers and Personal Relations with its customers are the cornerstones of Apple’s overall communications effort and this reflects in the way Apple’s stores are home to many well informed and customer friendly representatives (who are mostly young and trendy themselves to reinforce the brand appeal). The Apple brand is built around the brand touch points which must carry the brand message that Apple seeks to convey and the customer experience which starts with the customer touch points in its stores is something that Apple seeks to nourish with its emphasis on personal selling and personal relations. Towards this end, Apple has expanded and improved upon its distribution and logistical capabilities by opening its own retail stores in multiple cities across the world. As mentioned above, the sales force at these stores is Mac experts and can understand the customers’ issues as well as educate them about Apple’s products. The co-branding that Apple has initiated has also paid off and has not diluted the brand image of the company (Vertygo Team, 2011). Recommendations With the passing away of Steve Jobs, the legendary founder and CEO of Apple, the company must not lose sight of its core competency which is to be technologically innovative and appeal to the youth. Further, the company must continue in the path blazed by Jobs and his team in terms of catchy ads and trendy communication (Studio Wide, 2011). So, the first recommendation would be to ramp up on its ads in the internet media with the legacy of Jobs being given place of prominence so that the humungous user community of Apple’s products retains their size and purpose. The next recommendation would be to direct some of its promotional activities towards the developing markets like China and India. Apple has a presence in these markets. Just that it needs to achieve depth and scale so that the growing user base in these markets is taken care of (Proctor, 2010). The promotional strategies aimed at the youth and the Gen Xers as well as the Gen Y segments in these markets can be a mix of the global and local with the resulting “Glocal” flavor doing wonders for the company. The point here is that like other technology conglomerates, Apple needs to realize that the future belongs to these markets and hence targeting these markets makes for eminent business sense (Gillooley & Varley, 2010). Finally, the company can well do to introduce more depth and zing into its ads by emphasizing social causes with catchy slogans so that the emerging generation or the “digital generation” that has a well developed social conscience can be targeted. Turning to the channels for the promotional strategy, Apple’s move to rechristen its annual gathering or trade show is indeed a step in the right direction and something that would give a new direction to the company post Steve Jobs. It remains to be seen what announcements are made in the upcoming trade shows and how much of an impact they would have on the sales numbers (iBummed, 2011). Conclusion Apple has to continue its strategy of technical superiority and appealing ads to buttress its position in the market for digital products. The combination of targeted advertising and personal selling has indeed paid off for Apple and as mentioned above, the legacy of Steve Jobs can be used to further the promotion of its products built around the memory of this great innovator and visionary. References Chazin, S. (2011, Oct 26). Marketing Apple. Retrieved Oct 31, 2011, from Marketing Apple: http://www.marketingapple.com/ De Pelsmacker, P., & Kitchen, P. (2004). Integrated marketing communications: a primer. New York: Routledge. Gillooley, D., & Varley, R. (2010). Retail product management, buying and merchandising. London: Routledge. Hiner, K. (2011, Oct 02). Macworld: The Ultimate iFan Event. Retrieved Oct 31, 2011, from Appletell: http://www.appletell.com/technologytell/article/macworld-expo-2012-registration-now-open/ iBummed. (2011, Oct 31). Marketing Audit Report – Apple. Retrieved Oct 31, 2011, from iBummed: http://ibummed.com/uncategorized/marketing-audit-report-apple-ipod/ Minds, M. (2011, Aug 24). Apples Branding Strategy. Retrieved Oct 31, 2011, from Marketing Minds: http://www.marketingminds.com.au/branding/apple_branding_strategy.html Proctor, T. (2010). Strategic marketing: an introduction. London: Routledge. Promotional Strategy of Apple. (2011, Sep 11). Retrieved Oct 31, 2011, from Wikispaces: http://macapplepod.wikispaces.com/Promotional+Strategy Vertygo Team. (2011, Oct 02). Apple Marketing Strategy. Retrieved Oct 31, 2011, from Vertygo Team: http://www.vertygoteam.com/apple_marketing_strategy.php Wide, S. (2011, May 07). The Marketing Audit. Retrieved Oct 31, 2011, from Studio Wide: http://www.studiowide.co.uk/blog/the-marketing-audit Read More