What Is Successful Marketing - Apple - Case Study Example

Introduction In assessing an effective marketing model, the researcher has chosen a business enterprise, which is Apple. Along with the fast paced development of technology and the emergence of numerous information technology companies in the market, Apple stood out as one of the most competitive firms that are capable of aggressively marketing their products to consumers and making it work (Nguyen, 2011). Apple has been able to dominate its market in terms of production and development of hardware and software, which is substantially supported by its effective marketing strategies. Few of Apples famous products are the MacBook Air, the iPad and the iPhone. If one would take a closer look, these products are just a laptop, a tablet and a smart phone- which is widely produced by other companies at a cheaper rate and possibly better features (Boddie, 2005). Apple produces and sells the same products that are in the industry, which is why the key to their success is not the products they offer, but how they present and offer these items to their consumer base. Apple employs a marketing tactic that relies on hype build up as pegged by sneak previews, impeccable release timing, and most importantly, a well prepared presentation during its launch (HBS, 2005). Apple was found in 1976 at Santa Clara Valley in California, by Stephen Wozniak and Steven Jobs. The company transfigured the computer industry, releasing its first product which is the Apple I. Apples early beginnings were not legendary, as like other companies, Apple had struggled to get to where they are at present. In essence, Apple Computers Inc. is known as one of the key innovators in the computer industry across the globe. It has contributed a lot to the industry, in the sense that other companies used Apples products as a basis of specifications and even design (Gholap, 2011). In the chart below, one can identify that Apple is one of the leading businesses in the industry of Mobile Technology, as it is one of the firms with the biggest share in the Market. Figure 1: Mobile Market (Bloomberg Business Week, 2010) Market Orientation Apples marketing direction involves its personnel in terms of implementing internal modifications in regards to procedures and policies that can be associated to market performance in which the business consumers would appreciate. This process entails beyond the contemporary marketing strategies. The transition to market orientation and consumers implies that the current organizational comprehension has been streamlined based on a distinctive perspective. A companys strategic principles are considered as the foundation for the feasibility of a business and connect the company to its macroenvironment factors (Gholap, 2011).Such principles are manifested by the predominant culture within the company. Basically, Apples market is focused on professionals and students who require digital technology. This specific market necessitates devices to attend to work or school activities and entertainment purposes. Apples approach in marketing direction is towards a profound consumer focus. Such orientation helps the firm to achieve its corporate objective, while provisioning exceptional service as opposed to competing firms (HBS, 2005). Apples Marketing Principles Apple follows a set of principles in its marketing campaigns, which they employ in all the business products throughout the companys history. Regardless of the new products they develop, Apple holds true to the principles they have adapted. Regis McKeena is one of Apples pioneer marketing officers, and she had introduced several core marketing values that are being applied up to this day. One of which is that the marketing process of high-technology products needs to be inclusive. In that regard, it must be all encompassing. With this statement, one can derive that high technology products cannot be easily easily presented to the business consumers through various media channels, or a specific segment of consumers (Gholap, 2011). In that light, the company must ensure to market the product to all the segmented groups within the market, and must be willing and proactive in establishing and defining communications concerning the product. This principle can be culled from the iPod. An iPod is similar to an MP3 or MP4 player. Its sole purpose is to play music, which is now common to mobile phones and other electronic devices. However, people still buy an iPod and all its successive products because of Apples marketing strategy. This strategy involved the generation of iTunes, which is an exclusive software for Apple products that allows users to manage files in their iPods. Apple has promoted the iPod not as a music player, but as a social class that defines ones status quo and personality (Boddie, 2005). The second principles present the statement: "Markets are made, not won". The aforementioned statement implies that a company cannot simply steal another companys consumer base. Rather, a company must be responsible for creating a market around its products. On Apples case, the company launches innovative products, which enjoins them to create a market and define it well (Gholap, 2011). While the products are on the course of the being released, Apple creates its market through its tactic of building hype around the product. Apple does not believe in stealing other companys market, rather, it focuses on creating and establishing its respective market for its products. The third principle is that the key to marketing is to influence (Nguyen, 2011). Apple believes that its consumer base does not need aggressive advertising measures. Rather, the customers are more inclined towards neutral parties who, despite of not being connected to Apple, still trust the product and the company. Over the years, Apple has been followed by its set of fanatics who religiously await Apple updates and never ceases to influence potential and existing consumers (Gholap, 2011). The last principle is that Apples marketing message is not driven towards profit, rather, it must be inspirational and user-centric. Apple does not believe in middle men, they always communicate to their customers in a direct manner. Apple taps the emotional aspect of people when they present their products, rather than simply instigating a need for the items features (Boddie, 2005). The aforementioned statements can be validated with the figure below, which shows that in spite of the established status of Windows in the OS market, Apple’s growth continues to develop in terms of marketshare. Figure 2: OS User Percentage (Kim, 2009) Apples Key Marketing Strategies One of the key reasons why Apples business is effective is because of its loyal customer base. This is where the concept of brand loyalty comes in. With every marketing strategy lies the plan that enjoins the company not only to present exceptional products, but to create an organizational culture that would arouse brand loyalty. The researcher would enumerate notable Apple measures that promote brand loyalty (Nguyen, 2011). First is the exclusive store for Apple products. Instead of relying on middle mens efforts of marketing its products that are usually half-ignorant of the products features and capabilities, Apple sees to it that they have their own personnel who are capable of explaining every nitty gritty detail to potential and existing customers. Through setting up an exclusive store that only offers Apple products; the companys provision of customer service had been ensured. In Apple stores, people are enjoined to try out the products freely and can be provided a walkthrough upon request. This strategy presents a conducive area that allows users to explore products and share their love for the companys products with other customers (Gholap, 2011). The next strategy employed by Apple is it offers complete solutions. With Apple, buying a product is a package, as each complements another. Buying an Apple product does not only give you an item, but it also allows you to utilize Apple software. An iPod allows a user to use iTunes and a MacBook runs on Mac programs. In that regard, one can note that Apple has complete control over all their products, inclusive of its outer and inner facets (HBS, 2005). This type of approach reinforces customer loyalty. Another strategy is their efforts of defining their market. As mentioned earlier, buying an Apple product doesnt just give you an iPod or an iPhone, it defines ones personality and status quo. Apple has marketed its products being used by hip people, those who emanate confidence, makes smart decisions and are always up to date (Boddie, 2005). Another effective strategy is the variety of products that Apple offers. It covers a range of items from the MacBook, to the iPod and iPhone product lines. Even though a consumer would not dare buy a MacBook because of its price, they might consider getting an iPod. Through introducing products at a lower rate, it allows potential customers to join the Apple bandwagon. In return, the satisfaction that these users get from their newly purchase products would enjoin them to purchase other Apples products in the future. Apples tactic of building hype is supported by its sneak previews in which bloggers and other media outlets love (Nguyen, 2011). Each snippet of Apple update circulates the World Wide Web like a virus. Another strategy is usability. Apple sells its products to universities and schools. Not only does this provide them profit, but it also trains students of being familiar with the interface of the product. This would then influence the students to consider purchasing an Apple product in the future (HBS, 2005). Since Apples core principles are consumer-centric, they ensure that the products they produce and deliver are those that are needed by its consumers. Apple employs a rigorous planning phase that helps them design their products, which is guided by a simple principle: develop strong and easy to use items that customers need. Through this manner, the customers would be both satisfied with what they purchased and they would be encouraged to buy more products. In line with their intent of provisioning customer satisfaction, Apple has outsourced its phone interaction with AT&T in line with its customer service representatives (Gholap, 2011). Other strategies include consistency, new innovations and attractiveness. On the context of consistency, all Apple products basically have the same context, which allows familiarity. Using one Apple product gives one a clear context of how to use the others easily. In the aspect of new innovations, each product that apple releases may be similar to other companies, but the company always adds something new to its portfolio (Gillooley & Varley, 2001). An example is the variance along the iPod product line, which varies from the iPod classic, shuffle, iTouch and so forth. Lastly, Apple utilizes the strategy of appeal. Apples products appeal to consumers, which can be noted from its packaging, user interface, and right down to its design (Proctor, 2000). The indicated strategies had helped fortified the business through consistently developing its market share as shown in the figure below. Figure 3: Market Capitalization (Digital Trends, 2011) Less successful business models Less successful business marketing models include that of GMs failed attempt of marketing efforts through viral marketing. General Motors planned on utilizing viral marketing as their strategy in promoting their vehicles, through tapping user interactivity factor, in the hopes of enabling people to market the companys cars through their own advertisements. GM had supported interactive software online for public usage that would allow them to create their own promotional materials. The marketing ploy involved anyone to choose video clips, integrate soundtracks and incorporate text messages that can be applied in their own works (De Pelsmacker & Kitchen, 2004). The marketing strategy turned for the worse as people were allowed to post freely in the website, which most comprised of obscenities or complaints about GMs services. GM allegedly claimed that the efforts were positive as the site received a lot of hits, in spite of most of those hits were due to negative feedback. Another unsuccessful marketing strategy is McDonalds "Id hit it" campaign. McDonalds marketing tactic aimed to tap the youth through incorporating slang terms in their promotional packages (Gottinger, 2003). In spite of the McDonalds scattered franchise in almost every block in every state, the company still sees to it that they continue to reach out to their market through marketing campaigns. In that light, they have thought of a new message for their marketing strategy, without assessing how this would affect the market. It was unsuccessful, as the message had subliminal meanings and is defined as obscene when translated (Lewis & Varey, 2000). The two aforementioned cases are unsuccessful business marketing strategies, which were carried out without thorough planning. Such things happen when a business is only geared towards promoting their product, instead of creating marketing schemes in line with a set of principles in which the plan would adhere to. Conclusion Based on the information provided, a successful business strategy is not a template. What works for Apple may not work for another firm. To deconstruct Apples marketing strategy in a brief and concise manner, one could analyze that Apple values presentation. Other companies tend to shun such an ideology, believing that the features are beyond what the eyes see. Apple disagrees, as they place value to their products design as much as they work on the software running it (HBS, 2005). Apple plays on attractiveness, right from the core of product design, towards its crust or the packaging. Another is to keep things simple, in that way, things are easier to digest. Simple messages require simple communication, and only necessitate simple understanding. In that regard, a simple message retains in ones mind, thus making it easier to share among other people. Perhaps the reason why people trust Apple is that they dont shove their products into everyones faces and tell them its the best product ever (Boddie, 2005). If the researcher were to create a marketing business model, it would be similar to that of Apples. It would be bound by a set of principles that would help each marketing plan and strategy towards the business corporate objectives. That marketing model would enable the company to define the product or service that would be catered; in order to identify what specific segment of the market must be tapped. Although it is always easy to target an existing market in the industry, it would also be advisable to create a market similar to that of the Apple. It is also important to identify the competition, and a specific niche to focus on. In every marketing strategy, it is important to establish the product or the service through creating awareness of the product, as well as reinforce its credibility in the market. Developing awareness must then be maintained through consistency and focus (Mccall & Stone, 2004). Apple plays a tactic game wherein they give snippets of what they offer, and let their fans do the talking. These fans, who are also consumers, influence others, thus helping Apple to sell. Apples viral approach also helps them disseminate information and build hype for the product since they tap the media channels effectively (Boddie, 2005). In every business, it is important to ensure a satisfying customer experience. Apple values customer service through providing a unique experience to their customers, by making them feel that with Apple, they are valued. Another notable fact about Apples marketing strategy is that their former CEO, Steve Jobs, had always been present in every product launch. In fact, hes the one presenting the new products and explaining its features to the press and other guests. This shows that the CEO is capable of representing the company, as he emanates confidence, charisma and brains. A successful marketing strategy does not entail slavery, aggressive advertising or even product giveaways- a company only need to stay one step ahead of the game by knowing the product and the market by heart. References Bloomberg Business Week. 2010. Mobile Market Share. iAd Predicted to Match Googles Share of Mobile Ad Market by Years End. Boddie, J. 2005. Behind Apples Strategy: Be Second to Market. De Pelsmacker, P. & Kitchen, P.J. 2004. Integrated marketing communications: a primer, Routledge, New York. Digital Trends. 2011. Apple VS. Microsoft Market Capitalization. Online Marketing Trends. Gholap, S. 2011. Marketing Strategy – How Apple reinforces that Simpler is Better? Gillooley, D. & Varley, R. 2001. Retail product management, buying and merchandising, Routledge, London. Gottinger, H.W. 2003, Economies of network industries, Routledge, New York. HBS. 2005. Has Apple Hit the Right Disruptive Notes?. Strategy and Innovation, 3(4). Kim, A. 2009. Operating Systems. More Evidence of Apples Massive Marketshare Growth in Higher Education. Lewis, B.R. & Varey, R.J. 2000. Internal marketing: directions of management, Routledge, London. Mccall, J.B. & Stone, M.A. 2004. International strategic marketing: A European perspective, Routledge, New York. Nguyen, T.A. 2011. Apple’s Marketing Strategy: History Repeats Itself. Proctor, T. 2000. Strategic marketing: an introduction, Routledge, London. Read More