Apples Marketing Strategy - Essay Example

?Apple’s Marketing Strategy Introduction Apple Company has grown by leaps and bounds in the last few years. It is one of the companies that have managed to make it to the top in unbelievably short span of time. Apple’s success can fundamentally be attributed to the high quality and sophistication level of its products, innovation and creativity, and most importantly, its outstanding marketing strategies. Not all Apple products managed to have immense market value immediately after their release e.g. Apple iPod. Many of these products showed a rapid increase in their sale few years after their release, thanks to the informed decisions made and prudent marketing strategies adopted by the Apple Company. It took Apple only five years from 2003 to 2008 to have the market value of its shares increased by as many as 25 times, as the value of Apple’s share in 2003 was $7.5 which increased to $180 in the year 2008. “At July 2008 prices, before the US Financial Crisis, Apple stock market capitalization was $160 billion. In January 2010 Apple shares topped the $210 mark” (Vertygo Team, 2011). The case study of Apple Company provides an excellent practical example of how the theoretical marketing principles can be brought to life by incorporating them into the business strategies, and their benefits can thus be obtained. This paper discusses the potential ways of integration of the marketing theory with practice, and explores the comprehensive marketing strategy adopted by the Apple Company that has led it to the profound success. The secret of Apple’s success lies beyond the design standards of its products as well as the core philosophy of Apple which suggests that “the user doesn’t always know what they want” (Tiojanco, 2012). Apple’s successful marketing strategy constitutes a range of elements that primarily include persistence despite criticism, innovation, price worth the quality, and respect of the consumers’ values, projection of consumers’ good experiences. Integration of the Marketing Theory with Practice In order to integrate the marketing theory with practice, there are certain steps that need to be taken which include but are not limited to knowledge of the fundamental principles of marketing, identification of the potential hurdles in the way of integrating marketing theory with practice, and recognition of the measures that can be taken to overcome those obstacles. Subjectivity in the knowledge of marketing theory is introduced by the conflicting and complimenting marketing theories of different scholars and educationalists. There is not a single established way of marketing that has gained mutual consensus of all scholars and authors. In fact, different good practices have been explained in different books and literatures depending upon the context, circumstances, organizational objectives, and internal and external environmental and cultural factors that vary from one case study to another. However, there is a need to generalize certain marketing practices and principles that have been approved by a vast majority of scholars. Such marketing principles include but are not limited to improving the brand image by fulfilling corporate social responsibility, incorporating innovation and diversity in the product design so that the product addresses the needs of a vast majority and diverse population of consumers, and selecting the right medium and the right time to advertise the products. Application of the marketing theory in practice requires understanding of difference between the role of advertisement and promotion. “[A]dvertising-like messages are used for longerterm strategic efforts to build brand awareness and attitude while promotion-like messages are designed for shorter-term tactical needs to stimulate an immediate sales response” (Percy, 2008, p. 28). Some of the hurdles in the integration of marketing theory with practice include lack of consistency between the organizational structure and the scope of work and organizational objectives, lack of involvement of subordinates in the decision-making, and authoritarian leadership. The prime responsibility to remove these hurdles is assumed by the top management because the decision-making authority rests with it. Top managerial commitment is fundamental to the occurrence of a transformational change in an organization so that it welcomes new and innovative ideas from the organizational personnel and implements them to generate fruitful results for the organization as well as the people associated with it. Comprehensive Marketing Process of the Apple Company One word that describes the Apple’s marketing process is “differentiation”. Apple has acquired success by investing its time and efforts in making its products different from its competitors in the market. The product strategy implemented by Apple is fairly simple. Apple chooses superior designs for its products so that they stand out when compared with other products in the market. Apple uses minimalism to remove the clutter from the user interface as well as the appearance of its products; no wonder the consumers feel proud of the exceptional user interfaces of their iPhones and iPods. Apple has provided its consumers with software in addition to the hardware to keep them updated with its latest features and offers. Over the years, there has been a decline in the prices of Apple products primarily because of Apple’s attempt to expand its market. The initial skimming strategy is subsequently followed by lower-price versions of its products but with lesser features to justify the low price. Apple gets the undivided attention of its prospects and achieves greater control over the sale of its products by expanding its stores. There are over 300 retail Apple stores all over the world with most of them being in the US. Apple creates hype for its promotion strategy. The founder of Apple, Steve Jobs is famous for hyping as he managed to spur the excitement among the consumers with his panache and charismatic style even before the products got launched. Steve Jobs knew what the consumers really needed, and he not only made them aware of their needs, but also incorporated the design elements and features in the Apple’s products that addressed those needs. Apple has adopted a cult marketing style as opposed to the traditional marketing style generally adopted by other companies. “Cult marketing is all about strengthening customer loyalty and about tools that work to achieve this aim…Apple’s customers are fans…[who] camped for four days in front of the New York Apple store, only to get one of the brand’s innovation” (Schneiders, 2011, p. 20) when Apple launched the new iPad. References: Percy, L 2008, Strategic Integrated Marketing Communication: Theory and practice, USA: Butterworth-Heinemann. Schneiders, S 2011, Apple's Secret Of Success - Traditional Marketing Vs. Cult Marketing, Germany: Diplomica Verlag GmbH. Tiojanco, M 2012, 7 Key Strategies That You Must Learn From Apple’s Marketing, [Online] Available at http://blog.kissmetrics.com/7-strategies-apple-marketing/ [Accessed: 1 September 2012]. Vertygo Team 2011, Analysis: Apple Marketing Strategy, [Online] Available at http://www.vertygoteam.com/apple_marketing_strategy.php [Accessed: 1 September 2012]. Read More