Marketing Management -Prof

Home , Apple Specialist, Core product, Think different

Symbiosis Institute of Media and Communication, Pune

Marketing Management -Prof. Chandan Chatterjee

Marketing Diary Apple Macbook Pro

Submitted By: YASMIN HUSSAIN 144 MBA

2011-2013

TABLE OF CONTENTS TOPICS PAGE NO. Product chosen 5 About the company 6 About the product 7 AMA and Marketing 8

• AMA • Marketing • My view Customer Value 11

• Value chain analysis • Customer Perceived Value Product 20

• Core/Augmented Products and Services • Product Levels • Product classification and hierarchy • Product Mix • Product Lifecycle • Industry Lifecycle Competitors 27

• Competitor Map • Direct Competitor Comparison • Competitive Forces • Market Share Pricing 31 Brand 33

• Branding • Brand Equity • Branding Strategy • Apple and the environment

Marketing Communications 42

• Marketing Mix • Marketing Communications Mix (ATL & BTL) • IMC Campaigns

Distribution Decisions 87

• Distribution Structure • Target • B2B Channels • B2C Channels • Retail Strategy – SWOT Analysis • Apple Store Vs Luxury Retailers Sales Management 95 Consumer Behavior / Organizational Behavior 96

• Consumer Decision Making • Consumer Satisfaction • Organizational Culture • Organizational Structure STP 103

• Segmentation • Targeting • Positioning Role of Marketing Management 107

• Marketing Manager Role What makes Apple different? 109

• Income Sheet • Milestones • Apple without Steve Jobs References 120

PRODUCT CHOSEN

APPLE MACBOOK PRO

ABOUT THE COMPANY- APPLE

Industry: Computer Hardware, Computer Software, Consumer Electronics, Digital Distribution Founded on: 1 April 1976 Founders: Steve Jobs (Chairman and CEO), Steve Wozniak, Ronald Wayne Headquarters: California, U.S. Products List: Mac, iPod, iPhone, iPad, Apple TV, Mac OS X, iLife, iWork, iOS Services List: Apple Store, Apple store online, App Store, iTunes store, iBooks, MobileMe

ABOUT THE PRODUCT

FEATURES

AMA AND MARKETING AMA

• American Marketing Association • The professional association for individuals and organizations who are leading the practice, teaching, and development of marketing worldwide • Founded in early 1900s MARKETING AMA DEFINITIONS: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved October 2007) Following diagram depicts the change in definition of marketing (by AMA) over a span of 7 decades.

My View: According to me, marketing is a process of identifying and fulfilling needs and wants of the customer by creating, communicating and delivering value. The central focus is customer.

CUSTOMER VALUE

VALUE CHAIN ANALYSIS

ACTIVITY EXAMPLE Administration A greener Apple–Apple redesigned packaging for many of its popular products to be more lightweight and take up less space in shipment. This means reduced emissions during transportation and results

in a savings for the firm. Apple has also made moves to reduce the number of harmful chemicals used in the production of its products. Strong cash position– Apple maintains a large cash reserves and carries a comparatively small amount of long-term debt. This way it can finance expansion, capital purchases, and development internally with little reliance on third-party creditors.

Human Resource Management Selective hiring process– Apple follows selective hiring practices to recruit and hire talented individuals. Generous employee benefits program–Apple offers a variety of attractive employee benefits to complement direct wages. The benefits system is used to entice, and retain industry-leading talent to benefit Apple.

Technological Research and development– Apple increased Development research and development funding by nearly 66% from 2007 to 2009.In 2009 Apple spent $1.33 Billion on research and development. This is a commitment to continue to push innovation forward to keep ahead of competition. Patent filing– Apple believes in the importance of protecting its intellectual capital by filing patents in the United States and worldwide for its inventions and innovations. Apple currently holds a portfolio of several thousand patents.

Procurement Positive relationships with suppliers– Apple works closely with its key suppliers to benefit all parties involved. Apple is a member of the Electronic Industry Citizenship Coalition (EICC) and works to ensure fair treatment of workers in OEM factories. Apple has also developed its own Supplier Code of Conduct to govern the actions of its suppliers. These beneficial steps foster positive relationships with suppliers.

Inbound Logistics Automated receiving systems– Apple has implemented sophisticated automated receiving systems to speed up the receiving process and reduce facility footprint and storage space requirements. Delegate raw materials acquisition– Apple works with its OEM partners to delegate the raw materials acquisition process but provides some supervision for quality control purposes.

Operations Utilize OEM’s economies of scale– Apple outsources production to third-party OEM partners to utilize their economies of scale while removing the burden of production management from the firm. Internal design– The design and conceptualization of current and future products is done internally at Apple, utilizing industry-leading industrial design teams and engineering knowhow.

Outbound Logistics Economical/stylist packaging– In order to save money on shipment and entice customers, Apple uses eye-catching packaging that takes up less physical space and weighs less. This reduces shipping costs and environmental effect while attracting customers to the firm’s products. Apple Stores/Authorized retailers – To control the firm’s brand image Apple sells through first-party retail establishments and through authorized retailers. Apple Stores act as advertisements for the brand and provide a human point of contact between the firm and its customers. Authorized retailers are held to certain standards to protect Apple’s brand image. Direct shipment–Apple.com online orders are shipped directly to consumers from storage facilities in China. This minimizes inventory buildup in more costly warehouse locations in the United States.

Marketing and Sales “Get a Mac” Ads – Apple uses a series of television advertisements comparing the firm’s products to competitors using a variety of direct and indirect methods to build a lifestyle brand image. The ads are humorous and do not emphasize cost or feature-by- feature comparisons, opting instead to develop the firm’s image. Retail locations/Flagship stores– Apple stores across the United States serve as living advertisements for the company promoting the brand and lifestyle image. Flagship stores, like the 5th Avenue New York store are an attraction drawing visitors on novelty hoping to convert the visits into sales. Secretive and selective unveilings– By keeping secrets about product releases and holding invitation- only press events for product unveilings, Apple creates hype and suspension around product launches

Servicing Apple Genius – Apple stores house the ‘Apple Genius Bar’ where customers can talk with an Apple specialist known as a ‘genius’ about problems with their device. This human interaction with a first party service provider builds a rapport with customers and offers a stark contrast to endless phone service calls. Included and extended warranty– Apple offers an included 90 days warranty against defects and issues with its products. Customers can also purchase extended warranties through ‘Apple Care’ to protect their product. Free consultation– Customers can bring in their device for a free consultation regarding issues problems with no commitment, whether it is in or out of warranty. The customer then has the option to pursue different avenues of resolving the issue without an upfront charge

CUSTOMER PERCEIVED VALUE

TOTAL CUSTOMER TOTAL CUSTOMER BENEFITS COST

PRODUCT VALUE MONETARY COST SERVICE VALUE TIME COST PERSONNEL VALUE ENERGY COST IMAGE VALUE PSYCHIC COST

VALUE OF MY PRODUCT: PRODUCT VALUE:

• SIMPLE AND ELEGANT DESIGN • WORKS EFFICIENTLY • FASTER PROCESSOR

Following diagram is an example why customer values the product:

SERVICE VALUE:

• STORE EXPERIENCE PRE/POST SALES • EXTENDED WARRANTY /REPLACEMENT • FREE APPLICATIONS

Apple retail stores are all owned and operated by Apple – they are chain stores. There are more than 300 worldwide, and 4 of them are located here in NYC. The stores offer an outstanding level of service, including free workshops, one to one membership service, and the genius bar. The Apple Store (Apple’s online store) is also very popular, as it is accessible worldwide and convenient. Online or by phone, one can also customize Apple products. Apple retail stores can be classified as specialty stores. “Consumers usually consider price to be secondary in specialty outlets. Instead, the distinctive merchandise, the store’s physical appearance, and the caliber of the staff determine its popularity.” Apple stores are most certainly fine tuned to cater to the Apple consumer and to embody company brand image and ethos. The stores also add to the feel of exclusivity.

The Apple stores’ motto is: “Come to shop. Return to learn.” The stores have a very welcoming atmosphere. The displays are sparsely laid out on big tables and very easy to interact with. All computers, phones, and pads are always on and have Internet connection, so you can fully experience the product. The sound in the store is soft; the music is soft rock and classics rock. There are no abrasive colors in the store and a lot bright and natural light. All employees wear blue shirts to be easily recognized. The personnel at the stores are very attentive and knowledgeable. They even offer free workshops and you can come to the genius bar where knowledgeable Apple employees will help you troubleshoot and with any problems or questions you might have.

Overall, Apple definitely offers a unique shopping experience.

PERSONNEL VALUE:

• PRE SALES INTERACTION AT THE STORE

IMAGE VALUE:

• SIMPLICITY • SOPHISTICATION • QUALITY PRODUCTS

PRODUCT

CORE / AUGMENTED PRODUCT AND SERVICES

PRODUCT SERVICE

LAPTOP STORE EXPERIENCE

CORE P1 S1

CHARGER, WARRANTY, ACCESSORIES REPLACEMENT AUGMENTED P2 S2

PRODUCT LEVELS

Core Product: A portable computer Basic Product: A laptop with a battery and charger at a reasonable price Expected Product: An efficient laptop with good performance and speed Augmented Product: Expected Product + More applications, games Potential Product: Macbook Pro with almost everything that I could ever think of.

PRODUCT CLASSIFICATIONS AND HIERARCHY Apple MacBook Pro belongs to the category of: Durable goods: Tangible goods that normally survive many uses; require more personal selling and service; require more seller guarantees. Specialty Goods: Has unique characteristics or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort. Apple is often in category of it's own when it comes to strategy, advertising, retailing, and products, additionally in the way consumers view Apple and its products. Apple products cannot be quite completely categorized into one specific type of product.

An Apple product can be called a shopping product, because it is "more expensive than a convenience product and found in few stores," yet Apple products enjoy the status of specialty products. If one were to call a Mac a "computer," than it could be called a shopping product. It would be a heterogeneous shopping product, because the "prices, quality, and, features [of computers] vary so much." This could be said for someone that is considering a Mac and might compare it to other computers, but to some to even compare a Mac to other computers would be blasphemy.

The way Apple has been marketed and branded, consumers do have this concept of an Apple product being a specialty product. Those that are Apple users, particularly Mac users are very reluctant to accept substitutes and Apple definitely has an exclusive image. Apple is "cool" – most importantly cooler than the "other guy" – Apple is quality, Apple is "magical. The Apple stores help create this image. They almost have this boutique feel as any exclusive product would, and yet Apple products feel attainable. This is where Apple has achieved greatness and is the envy of many marketing professionals. Although Apple products are more expensive and have this very stylish, elegant, and upscale feel they still feel reachable and accessible to what one might call the "average" person.

PRODUCT MIX A product mix is a group of diverse but related items that function in a compatible manner. It is also called as Product Assortment. Apple Macbook Pro is a tangible good with accompanying services. A limited product mix and small product lines have also worked to their benefit, which many might say goes against convention. And now this "niche" brand appeals to the masses. Product Line of Apple PC Industry

Macbook Air i5 processor i7 processor which come in 11” and 13” Macbook Pro i5 processor i7 processor Which comes in 13”, 15”, 17” iMac i5 processor i7 processor

which comes in 21.5” and 27” display Mac Pro Mac Mini OS X Lion iPad iPad 1 iPad 2

PRODUCT LIFECYCLE

There is high brand recognition in the introduction and growth stage of the PLC. But towards the end of Maturity stage, the decline does not happen as a new use/version of the product is launched, which results in high brand loyalty.

It is also known as product line stretching.

INDUSTRY LIFE CYCLE INDUSTRY: PERSONAL COMPUTERS

PC industry follows a scalloped pattern as before the decline of a product, a new product is introduced. Extension Strategy = Innovation

COMPETITORS

COMPETITOR MAP

DIRECT COMPETITOR COMPARISON

COMPETITIVE FORCES

POTENTIAL ENTRANTS TABLETS INDUSTRY COMPETITORS HP, DELL, SONY, LENOVO SUBSTITUTES SMART PHONES, PLAY STATION, XBOX, KINDLE, TELEVISION

MARKET SHARE

Apple has become the second largest PC maker with market share of 14%

PRICING

Price is the amount of money charged for a product or service, or the sum of all the values that customers give up in order to gain the benefits of having or using a product or a service (Kotler definition).

Pricing is an important to a business; it must set prices so that it can profitable. Apple adopts value-based pricing, (setting prices that are based on buyers' perceptions of value rather than on seller's cost), more specifically value-added pricing. Apple products usually cost higher than other market offerings from other brands, Macbook Pro's are high-priced compared to market offerings by Hp, Dell, and other laptop manufacturers. But, Macbook Pro's have the ability to dual-boot and run OS X and a Windows operating system. They also offer a plethora of other features that increases its value such as LED-lit screens, an aluminum body, prolonged battery life and much more. It has features that justify the higher premiums. Apple also uses optional-product pricing. Optional-product pricing is defined as the pricing of optional or accessory products along with a main product. A variety of applications that are usable on the Macbook can be only purchased directly from Apple's App Store. If a user wants to legally download certain mp3 songs, albums and video files, they can download those files from Apple's iTunes Store. Users can also customize the hardware of their Macbooks and Macbook Pro's; they pay extra for upgrades in hard-drive space, Random Access Memory (RAM), processors and much more.

Apple occasionally uses product bundle pricing as well. Product bundle pricing is defined as the combination of several products and offering the bundle at a reduced price. For example, during the summer of 2009, Apple bundled certain iPods and printers with Macbooks and Macbook Pro's for the retail price of the Macbook or Macbook Pro. Apple also applies psychological pricing. Psychological pricing is defined as a pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something about the product. The higher prices of Apple's products compared to its competitors triggers signals to consumers, exclusivity, high quality, uniqueness, coolness factor, etc. They also incorporate psychological pricing in a different way.

Apple in general is positioned as a premium product. Apple products are generally priced higher than competition. This position has helped Apple a lot as it avoids getting into price war. Instead of competing on price, Apple can now compete on innovation and unique value propositions. Premium pricing strategy helps to make big profits without hurting the brand. Apple brand is the most valuable asset, bigger than all the technologies it controls. Having volumes at this premium pricing helps Apple make bold design decisions and force its supply partners to comply with its design decision. To strengthen its premium pricing, Apple does not do any discounting on its products.

BRAND According to AMA definition, Brand is a “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of a seller or a group of sellers and to differentiate them from those of competitors. Brand Name: Apple Brand Logo:

Brand Promise: Simplicity is the ultimate sophistication Brand Ranking:

BRANDING Design Supports the Brand Throughout Apple's history, groundbreaking design has played a key role. Apple's product design elegance in both hardware and software plays an essential role in the company's brand message. It all makes a difference. Minimizing windows with smooth animation in Mac OS X, aluminium body of the MacBook Pro, magnetic charger, the clever packaging that comes with all of Apple's products - everything combines to support a message about the brand. Simplicity, attention to detail, ease of use, creative thinking, and an absence of jargon are all messages conveyed through these products. Brand messages are supported by other aspects of the company's activities as well. The first-time visitor to the Apple Web site is left with an impression distinct to the Apple brand. The site is clear and easily navigable, and it manages to avoid clutter and technical terminology. With Apple, the impression you're left with matches the experience of the product. Buying from the Apple online store, the purchasing experience, the packaging, and finally the product itself and its functions, all fit into Apple's carefully constructed brand promise. That's one of Apple's major strengths - the company maintains its brand promise from the customer's research phase on the Web site, through the online store purchasing experience, and all the way to the point where he or she unpacks and starts using the product.

Brands Go Deeper Yet This element of promise conveyed by a company's products and Web presence goes well below the surface. Since the "1984" commercial that launched the Macintosh, Apple has overtly challenged convention. The "Think Different" marketing campaign that Apple started after Steve Jobs returned to the company asked consumers to step beyond conventional wisdom that has resulted in 95 percent of computer buyers looking no further than Windows on Intel-compatible processors. Apple's brand message is actually focused on people of a particular outlook, and that may or may not correspond with specific professions. This point is important, because brands deal with people on a level of feelings and instincts that goes beyond role and circumstance. The "1984" commercial epitomizes rebelliousness and the chance for a fresh start, smashing the status quo along with the Orwellian vision of video-induced conformity. In an age when a desktop computer was still a rarity, Apple offered the consumer "fire from the gods,"

giving the individual power and freedom that was at the time nearly unimaginable. Apple's brand has remained remarkably consistent ever since, and that is, to a large degree, the secret of Apple's long-term success. Products change quickly, technology constantly evolves, but the message stays the same. Consistency over time makes a strong brand, especially when it's supported by fresh and contemporary ways of demonstrating the same attitudes

Looking Toward Retail As a brand, Apple is strong, and the company's brand promise is currently matched by the user's experience online, with Apple's products, and in marketing campaigns.

BRAND EQUITY If there is any one brand that personifies the advances of the digital age, the seamless integration of technology and the ability to constantly innovate to excite customers, it has got to be Apple. Although Apple started out as a computer company rebelling against the market leader Microsoft, it has successfully reinvented its brand identity over time to suit the changing trends and times. Unlike most iconic brands that get complacent and rest of their past laurels, Apple has been an exception in continuously innovating and creating pioneering products that have changed the rules of the game. And so powerful is the Apple brand that literally every product launched by the brand in recent memory has become a blockbuster product in its portfolio. Given such stupendous success, it is no wonder that Business Week and Interbrand have consistently ranked Apple as one of the most valuable brands among the annual ranking of the world’s top 100 brands as evaluated. Given the many hallmarks of the current business landscape – hyper competition, rapid globalization, new regulations, and the constant struggle to innovate – companies are desperately searching for a sustainable source of competitive advantage. From such a search has emerged brand equity as one of the most important corporate assets that can offer a sustainable source of competitive advantage to companies. Apple, more than any other brand, personifies a well- managed global iconic brand.

BRANDING STRATEGY Apple’s branding strategy can be analyzed from four dimensions that form core pillars of Apple’s identity:

Constant innovation: Apple has emerged as one of the pioneering innovators in the consumer electronics industry. What started as an innovative computer to challenge the dominant PC has spawned a whole range of products in music and mobile telecommunications. Innovation and efficient commercialization of those new products have helped Apple to constantly excite customers and to enhance their loyalty towards Apple.

Collaboration as competitive strategy: As the number of fronts in which any company has to fight competitors’ increase, conventional strategies of market competition may not serve the best purposes. Collaboration has been found to be much better than all out competition. Apple embodies such logic. Apple has led the way in collaborating with both potential competitors and customers. For a long time, Apple had Google’s CEO serve on its board of directors. Furthermore, Apple collaborated with Google for both enhancing search and offering map services. Similarly, Apple has enabled thousands of independent developers around the world to be part of the Apple adventure. Through its online app store, Apple has allowed customers to ally with Apple in developing cutting edge applications. Such collaborations have only strengthened the identity of the Apple brand and enhanced the inherent buy-in from all these important stakeholders to the brand offerings. Consistent communication: One of the fundamental aspects of a strong brand is its CEO being the staunchest brand ambassador. Steve Jobs of Apple has carried on the role of the chief brand ambassador of Apple with excellent panache and finesse. Every year, Apple celebrates the coming year of technology and programs with its annual Worldwide Developers Conference (WWDC). WWDC has become such an anticipated event in the technology and consumer electronics industry that it offers the Apple brand an excellent opportunity to showcase to the world its superior technology, cutting edge design and cool applications. Steve Jobs always represents the brand at these conferences to convey a very strong commitment from the top to the brand in the eyes of its customers, collaborators and competitors.

Connecting with customer touch points: Apple has established a seamless experience for customers across online, telephone and personal touch points. The Apple store is the physical manifestation of the brand. In addition to displaying all Apple products in a very simplistic store design, Apple store offers training workshops to potential customers, conducts customer gatherings for existing customers and overall offers an engaging and exciting experience for customers who want to interact with the Apple brand.

Similarly, its online web portal and its telephone customer service offer high quality information and service to all Apple followers. Such consistent connection with all possible touch points with customers allows Apple to constantly reinforce its core brand image and identity. More importantly, it offers customers a firsthand opportunity to experience the many different tangible aspects of the brand. Such moves have helped Apple to remain one of the highly liked brands worldwide.

These four pillars of Apple’s brand seem simple enough for any other company to implement. But not many brands in the marketplace command as much loyalty and brand equity as Apple does. Implementing branding as an organization wide discipline led by the CEO and the top management board is one of the toughest challenges for any company. Apple proves yet again that by investing in the brand, it is able to stay ahead of its competitors and define the industry it plays in.

APPLE AND THE ENVIRONMENT

MARKETING COMMUNICATIONS Marketing communications are the means by which firm attempts to inform, persuade, and remind customers – directly or indirectly – about the products and brands they sell. They represent the voice of the company and its brands. They can contribute to brand equity – by establishing the brand in memory and creating a brand image – as well as drive sales and even affect shareholder value.

MARKETING MIX

TARGET AUDIENCE Target markets for Apple include environments where graphic design, video and audio editing are in demand. The price of Apple computers indicates that they also target end users with a higher measure of disposable income. The market has included students in elementary through primary grades where Apple has offered free computers in classrooms. Their hope of creating future customers is apparent in their firm ranking in the computer marketplace with a loyal client base.

Apple presents their product as highly advanced and innovative yet easy to use. With this in mind, Apple Computers Target Market includes middle-income individuals searching for a better user experience. These tend to be people who like to have fun with technology. This might be people who take pleasure in activities such as editing digital photos or video. Professionals in media and design are also a part of Apples Target Market group along with children that often utilize the Internet. PRODUCT Apple has multiple base choices and few upgrades within the choices to expand their variety. Apple products run on Apple created operating systems, and since the same company that produces the computer creates the software for every Mac, total integration and streamlining are innate. And this is one way they target the market of the tech-savvy. The variety of software products available for MAC is limited to specific compatible components, but to only what exists in the market place. Software available for Apple products must be Mac compatible limiting many programs, many that are less recreational and more business oriented. Apple laptops, formally known as MacBooks, with varieties such as MacBook Pro, higher end, MacBook Air, thin, light and compact, and MacBook, the common needs version, reach their target market of more electronic savvy customers through reliable and aesthetically pleasing devices. MacBooks can run various software types, including Microsoft’s office for the student or business user to a wide variety of media applications for the media rich consumer. MacBooks come with built-in video cameras that are integrated with software to allow easy video conferencing and detailed editing, ideal for graphic design or video editing whether professional or personal. To optimize these functions MacBooks use high quality video cards for dynamic video display. To accomplish such rigorous processes, Intel processing chips are used to provide the fastest speed for processing multiple jobs simultaneously, another key component to heavy media use and gaming success. Designed with security in mind, Mac’s operating system is not plagued by constant attacks from viruses and malware. And thus, Macs are not inundated

by continuous security dialogs requiring consent to do normal tasks allowing you to safely go about your use without interruption. Also incorporated are easy-to-use parental controls that let you manage what your kids can do on the computer, and even when. These features roll over into their desktop selection as well, which is comprised of iMacs, computers integrated with the monitor, Mac mini, very small desktops, or the Mac Pro, which looks like the more common tower designed desktop Macs come with everything the overly tech-savvy customer could want but also provides more than the average user needs or knows how to use. This again is where customer support is crucial to educate their consumers on different abilities available to provide a better user experience. Apple’s other drawback, yet possibly a good business decision, is when they do have problems more often than not the customer needs to visit an Apple store for service. PLACE Apple handles the task of placing its products in the market by offering those products worldwide. This is accomplished through online stores, retail stores, direct sales and third parties. Apple divides its global market into four segments. The three geographical segments are Americas, including North and South America, Europe, including the Middle East and Africa and Japan. The fourth segment is retail. As of the end of their fiscal year in September of 2007, Apple owns 174 retail stores in the US and 23 stores in Canada, Italy, Japan, and the UK. PROMOTION Apple Computers are integrated as a one-piece working module. They have always been considered more expensive. They simply have a combination of higher profits and low market shares. Apples' ads infer through conversations that Apple is better and more convenient. Its current promotional plan includes effective communication with a tablespoon of comic relief. Markdowns and discounts offered by Apple are rare although there is a little known Apple Store website. At that website there are specific discounted rates that are included in the custom website price list. This website is exclusively

available to schools and businesses. Apple surpasses its competition by consistently upgrading its visibility, usability and designs of their products. Apple Computers are associated with promoting primary colors to differentiate from other systems. It focuses also on offering new features and services to gain customer loyalty. It does not allow cloning of its product. That guarantees protection and tight control over manufacturing of their system. PRICE People might think that Apple is over charging or being unfair in their pricing of merchandise. That is not necessarily the case. Apple computers are in extremely high demand right now so they are able to charge a higher price. They have a very faithful group of followers, better known as Mac Heads, who want to buy an Apple computer no matter what. They also have advertisements like the PC guy and Mac guy commercial that make PC’s look dumb and Apple’s look smart and cool. By marketing their product this way and by having a somewhat middle to upper class target market, they are able to charge a much higher price. Apple only offers a few different models and they are all loaded up. They come with a lot of different programs and new technology, and that is why they come with a higher price tag. This works great though because Apple targets the kind of tech savvy, artistic consumer who wants all the extras and does not mind paying for them. Apple has an almost cult following that does not really care about the price. Apple will never price their product downward, even in a down market. The reasons for this is to maintain a premium brand with premium price points, to maintain their margins, and to take in the maximum amount of revenue and profit from their target demographic. Apple will be able to maximize revenue and profit with their consistently high price points during this season. In the long term, this may be the right strategy. Apple believes that once their prices go downward, and it will be difficult to raise the price.

MARKETING COMMUNICATION MIX PROMOTION – ATL & BTL

ADVERTISING There might be some out there that may think Apple doesn't need advertising – Apple is an incredibly popular and successful company. Well, this doesn't happen by accident. Products don't just sell themselves, no matter how good they are. While Apple might have great products, a good ad and/or publicity campaign can do wonders for sales. While we may not think of Apple as one of those companies, which advertises aggressively and is shoving their products down our throat, they put a lot of thought, effort, and time, not to mention money into ad and publicity campaigns.

Apple has had many iconic ad campaigns, including: the 1984 Superbowl commercial, the "Think Different" campaign of the 1990's, and in the 2000's the "Get a Mac" campaigns.

Advertising Age (AdAge.com) recently named Apple "Marketer of the Decade!" And with good reason, Apple has done a great job of appealing to the masses, building great loyalty among customers – any marketer's dream – and touching on something allusive as our emotions and "coolness." Apple understands that consumer perception is heavily influenced by displaying who uses a product and in what context. A great example of this is product placement of Apple products. In 2009 Apple products were in 18 of the 44 films that topped the box office (that's 41%) and in 2010 they were in 10 of the 33 (30%) number one films of the year! Not to mention they are featured in countless popular TV shows, such as 30 Rock, Heroes, Dexter, Sex and the City. PRODUCT PLACEMENT The strategic placement of consumer products on TV shows and in movies is quite common now, but it’s something Apple has been working at and refining for quite some time. While most product placements typically involve seeing a product in the background, or having a character specifically mention a brand name mid-sentence, Apple products sometimes take center stage in the actual plots of certain TV shows. Apple is, and has been, so successful at product placement that during a 4 month period in 2006, The Hollywood Reporter noted that “Apple iPods, Macs and other products have been featured 250 times on 38 different network primetime shows, including such hits as “CSI: NY” and “The O.C.” for a total of 26 minutes of exposure”. Make those 26 minutes of free exposure.

Apple’s product placement isn’t limited to Television as it also has an impressive resume of product placement in some of Hollywood’s biggest blockbusters such as Independence Day, Zoolander, and Mission Impossible and so on. The fact that Apple is able to achieve such widespread product placement free of charge is an advertisers dream come true. Apple certainly isn’t the only company who gets free product placement. But when you consider the quality and number of shows that feature Apple products, and feature them prominently, it becomes clear that Apple is playing the product placement game extremely well. Apple isn’t the only one benefitting, though. Product placement is a two way street and is often the result of a mutually beneficial agreement where a show offers to show a product in return for getting that product for free.

Scene from ‘Sex and the city’

Scene from ‘Twilight’

Scene from NBC Comedy Series

Scene from ‘House’

Scene from ‘Dexter’

Scene from NBC’s ‘The Office’

Scene from ‘Legally Blonde’

PRINT ADS

PACKAGING

PACKAGING INSERTS

BILLBOARDS

SALES PROMOTION When it comes to Sales Promotion, Apple knows best. Apple uses promotional methods using special short-term techniques to persuade members of a target market to respond or undertake their products. Examples of certain methods Apple uses for sales promotions are money back guarantees, lower purchase price and rebates etc. The Apples stores are very distinct and captivating from many other electronic stores because they display all of their products for consumers to experience hands on. Consumers are allowed to surf the web on any of their computers and check out its features. This lets consumers get comfortable with the products and familiarize themselves with it. This is a major consumer sales promotion that Apple has developed.

Marketing managers can use sales promotions to increase the effectiveness of their promotional efforts and to offer incentives to buy. Unfortunately for us, Apple does not offer many promotions. Fortunately for Apple, they don't need to! Apple sales are pretty good without aggressive promotional campaigns.

Apple does offer some rebates. You can see current promotions they are offering on the company site. At the moment, Apple is offering an online rebate for up to $100 dollars back on a printer with the purchase of a Mac and a mail in rebate of $30 back on iWork and MobileMe software. One of their more popular promotional campaigns has been the "Buy a Mac for college and get a free iPod touch" campaign, which usually runs from late May until mid September. Apple also offers education pricing – discounts for students and faculty. This is a great way to entice the student. A college student that uses a Mac during their time in school is more likely to stay loyal and want to use it for work later, as it will be the product they are most comfortable with.

Talking about sales promotion and personal selling and Apple it is of note to mention Apple sales personnel – Apple Specialist. While the personnel at the stores may not be aggressive sales people or may not fall under the definition of consultative selling, they are there to help you and help make the sale. The selling strategy at Apple is fairly unique and great. While one does not feel pushed to buy plenty of representatives are at the store to make the consumer feel more comfortable and informed about their high value purchase and to answer technical questions. While the Apple Specialist at a store may not be following up on a sale they do help build that relationship between Apple and the consumer that makes Apple customers so loyal. They use Pull marketing.

Some sales promotions currently going are:

EVENTS/EXPERIENCES Apple hosted an event for Macbook on October 14, 2008.

Apple is to host a spring event in 2011 A recently emerged rumor claims Apple has new MacBook Pros on the launch pad featuring solid state drives (up to 512GB), no optical drive, and light-peak technology - a new, super-high-speed data transfer technology promising up to 10 Gbps of bidirectional throughput. The new computers are to launch at a special event early next year, according to the source of the rumor. Some of the events that they hosted are as follows:

PR/PUBLICITY

This diagram portrays Apple's public relations effort. The Mac shown, demonstrates a picture of Star Trek. Star Trek is a very popular show, which has thousands of fans. With this ad, Apple tries to attract not only Mac fans for its

beautiful screen image but to Star Trek fans also showing them the exceptional quality in which they can see their favorite show. I believe that this is a great public relation effort. This ad attracts many people for many different personal reasons and that's what advertising is all about.

Let’s face it, Apple gets tons of publicity. So much so that some sites have made feeds that include all articles dealing with Apple.

Why does this happen? Apple makes their hardware and software themselves for the most part. This means every time one of these products gets updated, there is news about it. With so many products, many updates are bound to happen, which means more publicity. Also, Apple knows how to market a product efficiently and increase the publicity even more. They make the announcements of the devices they create huge and develop tons of hype. All this hype around the device causes it to be heard about all over the Internet, news shows, etc which is bound to lead to good things

DIRECT MARKETING As part of Apple's ongoing customer communications, they send out three different types of emails: 1. Product: specifically relating to a new product launch or upgrade 2. Software: similar to product, these types of emails relate to a new software launch or upgrade 3. Event: these emails are around particular times of the year - Post Christmas, Valentine's Day etc.

E-mail announcing apple’s newly updated pro notebook

Shake + MacBook Pro Email promoting Apple's visual effects software with the MacBook Pro.

PERSONAL SELLING During special consumer promotions, Apple has its certain auditions in which they target directly. For example during the month of July to September 1st, Apples promotes their Mac book laptops for college students. When students show their school I.D, they pay for a Mac book and get any free Ipod they desire and a free printer. I can personally say that this is a good promotion method because I was one of its targeted audiences who purchased this great deal. Another great promotion sales are the teamwork between Apple and Ticketmaster. They have teamed upon once again to give fan a great deal they cannot resist. When you purchase a concert ticket through Ticketmaster, you can simultaneously purchase the corresponding artist's album for $1 off the iTunes Store price. This is an excellent promotional deal that benefits the music fans.

WORD OF MOUTH Apple's products are designed in such a way that the joy factor generates word of mouth marketing for Apple. Because Apple pays so much attention to industrial design, simplicity and the "just works" design, customers love to tell their friends. After all, there are so many other frustrating products, poorly conceived and implemented, that it's no wonder Apple's customers vent their frustrations by focusing on what does work. And using social media to spread the word. There are non-corporate blogs that lead to word of mouth publicity such as macrumors.com.

Following are the fan pages created by people on Facebook:

Snapshot of the tweets made by people about Macbook Pro:

INTEGRATED MARKETING COMMUNICATIONS IMC is the coordination and integration of all marketing communication tools, avenues, functions and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost. The goal is to create a campaign that is effective and consistent across media platforms. It ensures that all forms of communications and messages are carefully linked together. It is more than just an advertising campaign; the bulk of marketing dollars is spent on the creation and distribution of advertisements. Hence, the bulk of the research budget is also spent on these elements of the campaign. Apple has had many campaigns till now: 1. Byte into an Apple 2. Soon there will be 2 kinds of people. Those who use computers, and those who use Apples. 3. The Computer for the rest of us 4. The Power to Be Your Best 5. Think Different Campaign 6. Switch Campaign 7. Get A Mac Campaign 8. Why you’ll love a Mac Campaign Apple campaigns have worked great to set them apart. People have come to trust their products and think of them as better for their unique, user friendly, intuitive user. Apple has always done a great job with not only setting themselves apart as a superior product, but also as a "cooler" product as well. "The ultimate goal of any promotion is to get someone to buy a good or service or to take some action." The AIDA concept outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.

A= Attention I= Interest D= Desire A= Action

Apple's strategic marketing targeted at the new consumer has facilitated the growth that they have experienced in the past two decades. Simple, yet

prominent, images of Apple's sleek products are the focal point of print advertising and billboards. Commercials for Apple products lack dialogue and instead focus on telling emotional stories through graphics and music. The distinct marketing campaign aims to relate to consumers the benefits of having technology entwined in their everyday lives, sharing how the firm's products offer the potential for individuals to "participate in their own experiences". Apple's marketing campaign has certainly been flexible, yet remained characteristically simple, through changing economic climates. Creating a stable and recognizable marketing campaign that can weather both shifting generations and a tumultuous economic recession has allowed Apple to grow into a brand of which consumers are proud to take ownership.

WHY YOU’LL LOVE A MAC CAMPAIGN

“Make the ultimate upgrade. To a Mac. Why get a new PC and just upgrade your computer, when you can get a Mac and upgrade your entire computer experience?”

They go into great detail to describe why the Mac is a superior and unique product, and also better than the competition. They describe how they have better hardware, better software, better operating system, better support, and emphasize the compatibility of their products and how Macs can run Windows and Windows applications. The campaign's message is broken down into five categories: hardware, software, OS, support and compatibility. Each category is full of useful information. GET A MAC CAMPAIGN

The Get a Mac campaign is a television advertising campaign created for Apple Inc. by TBWA\Media Arts Lab, the company's advertising agency that ran from 2006 to 2010. Shown in the United States, Canada, Australia, New Zealand, the United Kingdom, and Japan, the advertisements in the campaign have become easily recognizable because each advertisement follows a standard simple template: against a minimalist all-white background, a man dressed in casual clothes introduces himself as a Mac ("Hello, I'm a Mac."), while a man in a more formal suit-and-tie combination introduces himself as a Windows personal computer ("And I'm a PC."). The Get a Mac campaign received the Grand Effie Award in 2007. The song in the commercial is called "Having Trouble Sneezing" composed by Mark Mothersbaugh but is better known as "Get a MAC Melody".

All of the ads play on perceived weaknesses of standard non-Mac personal computers, especially those running Microsoft Windows, of which PC is clearly intended to be a parody, and corresponding strengths possessed by the Mac OS (such as immunity to circulating viruses and spyware targeted at Windows). Several advertisements have been shown exclusively in Flash ad campaigns running on numerous websites. Unlike the ads shown on television, these advertisements have not been posted as high-quality QuickTime videos on Apple's website. These ads run for approximately 20 seconds each and reference specific online advertising features (such as banner ads), making it unlikely they will ever appear on television. For the British market, the ads were recast with the popular British comedy double act Mitchell and Webb in the lead roles; David Mitchell as PC and Robert Webb as Mac. As well as original ads, several ads from the American campaign were reshot with new dialogue and slightly altered scenes. These ads are about 40 seconds long, which is slightly longer than the US advertisements. All of the ads used to be viewable at Apple's UK website. http://www.adweek.com/adfreak/apples-get-mac-complete-campaign-130552

THINK DIFFERENT CAMPAIGN

"Think Different" is an advertising slogan created for Apple Computer in 1997 by the Los Angeles office of advertising agency TBWA\Chiat\Day. It was used in a famous television commercial, several print advertisements and a number of TV promos for Apple products. Apple's use of the slogan was discontinued with the start of the Apple Switch ad campaign in 2002. The slogan may have been a play on the venerable IBM Think motto coined by Thomas J. Watson. The words "think different" were created by Chiat/Day art director Craig Tanimoto. Rob Siltanen and Ken Segall wrote the text of the various versions of

this commercial. The one-minute commercial featured black-and-white footage of 17 iconic 20th century personalities. In order of appearance they were: Albert Einstein, Bob Dylan, Martin Luther King, Jr., Richard Branson, John Lennon (with Yoko Ono), Buckminster Fuller, Thomas Edison, Muhammad Ali, Ted Turner, Maria Callas, Mahatma Gandhi, Amelia Earhart, Alfred Hitchcock, Martha Graham, Jim Henson (with Kermit the Frog), Frank Lloyd Wright and Pablo Picasso. The commercial ends with an image of a young girl (identified as Shaan Sahota) opening her closed eyes, as if to see the possibilities before her. Print advertisements from the campaign were published in many mainstream magazines such as Newsweek and Time. Their style was predominantly traditional, prominently featuring the company's computers or consumer electronics along with the slogan. There was also another series of print ads, which were more focused on brand image than specific products. Those featured a portrait of one historic figure, with a small Apple logo and the words "Think Different" in one corner, with no reference to the company's products. The familiar faces on display included Jim Henson, Richard Feynman, Maria Callas, Miles Davis, Martha Graham, Ansel Adams, Cesar Chavez and others. http://www.youtube.com/watch?v=4oAB83Z1ydE

DISTRIBUTION DECISIONS Distribution channel is “a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user”.

In general, the distribution channel enhances a company’s operations by dealing with customers more efficiently. The channel is not only a market supplier but also a partner of the company that works as a team to achieve higher quality performances. Thus, utilizing the distribution channel effectively is considered as one of primary factors of accomplishing a successful marketing. DISTRIBUTION STRUCTURE

TARGET

• 75% of overall sales Consumer & • Short lived product • Emotional buying SME • Highly sensible to purchasing experience

• Emphasis on simplicity & reliability Education • Typical solutions consists in one laptop for every student and teacher, along with the installation of a wireless network

Enterprise, Gov. • Require high-power computing performance & Creative • Need high integrations & service level

B2B CHANNELS

B2B CUSTOMERS

Enterprise & SME Education Gov.

Added Added On-line On-line Direct Direct On-line Offer Value Value store store sales force sales force store solicitation Reseller Reseller

• Not sold • Need for consultancy and • Shorter channel due to through direct assistance the active role of Apple sales force due in the design of this to small volume • Crucial consultant role systems • High level of • On-line services for service • Use in educational companies similar to • Channel with environment also has a Dell high level of promotional dimension control from §Governments buy mainly through tenders Apple

B2C CHANNELS

B2C CUSTOMERS

Large Stores Resellers On-line store distribution (274) (3000) (36 Countries) (320)

Absence of Drives huge Visibility on Give high High service More capillary differentiation Mass volumes of web & visibility level distribution avoided customization traffic through worldwide corners

• Flagship • Serving local • Very • With one store Stores communities problematic, access • Zero investment due to from Apple inexistent • High quality purchasing experience experience • Selected retailers only (best Buy) • Separate space, serviced by Apple staff

RETAIL STRATEGY – SWOT ANALYSIS

STRENGHTS WEAKNESSES -Total control -Expenditures -Retaining of margin -Integration within supply chain -Better service level -Competition with big and expert retailers -Reduced pressure from buyers

THREATS OPPORTUNITIES -Cannibalization -Greater exposure -Boycott from resellers -Positive effects on brand -Aggressive reaction from other resellers -Bigger market share -Cold reception from customers -Increased loyalty -Low exposure

APPLE STORE VS. LUXURY RETAILERS

APPLE STORE

APPLE PREMIUM RESELLER

APPLE CORNER AT BEST BUY

APPLE ONLINE STORE

SALES MANAGEMENT Direct Sales is when a company sells its only products and services ‘directly’ to its client or customer base without an outside party involved. People say that the shortest distance between two points is a straight line, the direct route, and so direct sales is the conventional approach of selling directly to your customer and cutting out the middleman. Cutting out the middleman sounds like a good idea at first. Selling directly means that you keep all of the profit; no one is taking a chunk out of your sales. But on further consideration this is not always the case. When analyzed, direct sales are full of hidden costs - salaries and overheads. Apple now primarily sells its own products via its website and retail stores, although they have allowed some other companies such as PC World, Jumbo Electronics, Croma electronics to stock their computers as they’ve become more popular. Of course, in order to increase the number of items sold worldwide, with products like the Apple iPod, they have allowed resellers to sell their products too, in order to massively expand where the iPod can be bought. This is known as Channel Sales. Two thirds of all computing sales in the world are not direct sales like Apple; instead, they are ‘Channel Sales’ or ‘Indirect Sales’. This is where the company employs a third party, a reseller to sell their products on to their customers. Apple uses channel sales to expand the sale of their most popular products. Apple has developed a mixed approach, which has allowed it to capture an increasingly large share of the home computer market, while retaining some control over how individual products are sold. Channel Sales is like outsourcing the costs of having your own far-reaching sales operations, whilst still retaining an excellent portion of the sales profits. These days the relationship between the seller and the reseller is much closer, allowing for better cooperation and coordinated strategies. Channel Sales doesn’t just mean shipping your products off to a third party and hoping for the best. Channel Sales means keeping your outsourced sales teams up to date with your products, ensuring that they are adequately informed and regularly updating them on changes and issues in order for them to function at their best. The main benefit of working with a Channel Sales provider - a reseller, is that you can rapidly expand your business without having to rapidly expand your entire business operation.

CONSUMER BEHAVIOR / ORGANIZATIONAL BEHAVIOR CONSUMER DECISION MAKING It is very important to know how consumers behave and make decisions. When making a decision of whether to buy, not to buy, and what to buy the consumer generally follows the consumer decision-making process.

The first stage is need recognition. Many electronics are things people want and not necessarily need, but many have become more than that. They have become needs. Through external stimuli, such as the popularity of Apple products among peers, their recommendations, the perceived superiority of the product, and the slick design wants and needs are created.

After recognizing a need or want consumers will search for information about the product. There are many ways a consumer may search for information. The information search can be external, internal, or both. When thinking of buying an Apple product many consumers search for internal information, such as previous experience with the product. Apple consumers are very loyal. Consumers may also seek external information. These might be recommendations from friends. The external information may also be market- controlled. Apple is in the fortunate position of being a trusted company. Consumers will trust what Apple tells them. Apple communicates greatly with their customers with their keynotes. These keynotes make people feel well informed, like they really know the product.

After getting information, the consumer is ready to make a decision, to help make that decision the consumer may evaluate alternatives. Apple is in the unique position of being an industry standard. That is to say, one wouldn't generally think, 'I'd like to buy a laptop' but rather 'I want to buy a Mac,' alternatives are almost moot. Apple products are in a category of their own. Next in the process is purchase. Luckily for Apple, people are purchasing A LOT of their products! Finally, when buying products consumers expect certain outcomes from the purchase. How well these expectations are met determines whether the consumer is satisfied or dissatisfied with the purchase. This is post purchase behavior.

September 20, 2011 American Consumer Satisfaction Index

Traditionally, Apple customers have been Loyalists; long time users with a strong bias toward the Design and Education markets. Now, following the introduction of the iPod, iPhone, iPad, and soon AppleTV, most users of Apple products have a Windows computer.

One of the reasons Apple has been so successful, is that most technology companies fail to understand that customer satisfaction is actually a complex variable. They focus narrowly on issues of usability or reliability; forgetting that in a dynamic category like technology, other factors are critical and also drive satisfaction. Some of these factors include: Innovation – Being at the leading edge enhances satisfaction Design aesthetic – Using a product that “just fits right” enhances satisfaction Desirability – Having something that others want enhances satisfaction All of these attributes (including usability and reliability) are at the core of the Apple brand. As long as they continue to adhere to these principles, and as long

as other manufacturers fail to understand the qualitative factors that drive satisfaction, Apple is going to stay at the top of this list. ORGANIZATIONAL CULTURE The culture of Apple is based on an ideal that: self-motivated individuals will work harder if they do not have a boss micromanaging every action. The unique structure of Apple has allowed it to grow and react more quickly to changes than its competitors. The reason for the quick responsiveness is simple; it is much easier to get a project started if there are only a few people to obtain approval from. Apple initially grew fast, because decisions were made at the lowest possible level. Corporate headquarters made policy and oversaw all activities, but the local employees made the day-to-day decisions on the ground in countries all over the world. This type of top-down philosophy allowed for quick responsiveness and resolutions to situations without involving the corporate headquarters, thus avoiding corporate red tape.

ORGANIZATIONAL STRUCTURE The organizational structure of Apple was almost non-existent and focused on placing decision making in the hands of the people in the field. Apple was doing incredibly well and had gotten the attention of many people because the company worked well and was very responsive to change. However, things took a downward turn and Apple found them in a financial nightmare. Apple suffered problems in regional areas, specifically in the accountability of spending and in fiscal decision-making. The same "top-down" ideology that helped Apple grow also opened the door for some serious financial losses. With employees at different levels making decisions, it became difficult for the corporate office to keep track of spending and purchasing.

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STP Segmentation, targeting, and positioning together comprise a three stage process. We first (1) Determine which kinds of customers exist, then (2) Select which ones we are best off trying to serve and, finally, (3) Implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way.

SEGMENTATION Apple has combined strategies for selecting and segmenting target markets. Apple uses conventional, proven to work strategies, unconventionally perhaps. While Apple is unique in many senses, they are not immune or ignorant to the "rules" of the market. Apple uses strategies for segmenting markets such as demographic segmentation in the placement of their retail stores. There are 47 stores in California (the most in any state or any other one place) and while there are 14 in New York 4 of those are in the small island of Manhattan, making them the most concentrated. Here, they are definitely focusing on a certain market. Apple has used a concentrated targeting strategy that has helped them position themselves as a niche and quality product. A limited product mix and small product lines have also worked to their benefit, which many might say goes against convention. And now this "niche" brand appeals to the masses.

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The most successful and most applied segmentation strategy has been psychographic segmentation, which appeals to our personalities, attitudes, motives, and lifestyles. Apple has aimed at being a "lifestyle brand" and this lifestyle appeals to Tweens to Boomers, low-income to high-income individuals, and all shape, race, and size. TARGETING Market Targeting is the process of analyzing each market segment's attractiveness and selecting one or more segment to enter. The idea is to target segments that will be able to generate the greatest customer value and sustain it over time while being profitable. In other words, the goal is to build the right relationships with the right customers. Apple's target market is not as cut and dry as those of other companies. Apple surely knows that their products are pricey. There must also be a profile typical of the person who buys a Mac or other Apple products. This person probably has a bit of disposable income, is 12-35 in age, also professionals in media and design are drawn to the brand. But Apple also knows that people will sacrifice for a “better” product or luxury product. Apple has historically targeted everyone, or rather, the individual, rather than a whole. Apple products are for people, for all. This consistent company disposition has served them well to being attuned to changes in environment and the component lifestyles of people today. People today are no longer defined by their professions and Apple would hope to appeal to the individual and their vast array of needs rather than those of simply their profession. Apple particularly appeals, not necessarily to the artist, but they aim to appeal at the creative side of all of us and our individuality. POSITIONING It is widely recognized that Apple is a premium brand that demands and earns a price premium. This price premium spans the entire Apple product lineup encompassing the Macintosh, iPod, iPhone, software, and accessories. Apple's positioning is aligned with targeting a less price sensitive customer. As a result, Apple's culture and internal activities are structured to meet the needs of these customers (strategists call this needs-based positioning). Apple has thus created a culture and a set of activities to differentiate itself from rivals in order to meet the needs of their target customers. Positioning involves implementing our targeting. For example, Apple Computer has chosen to position itself as a maker of user-friendly computers. Thus, Apple has done a lot through its advertising to promote itself, through its

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unintimidating icons, as a computer for “non-geeks.” If Apple were to attempt to compete for all customer segments, it would have to lower product prices. The danger with such an approach is that it would not only undermine and erode the company's premium brand image but it would also undermine the company's culture and internal activities. Apple has positioned itself to a certain type of customer, wealthy people, innovators, people with good jobs, good lifestyle, etc. If Apple targets the poor man type, the trendy guys will stop buying Apples, because everybody can and Apple is not the Porsche of the computers anymore, this would hurt more the brand than maybe the increasing sales because of lower prices, and in good times, where everybody has more money, Apple would have the problem that they cannot rise prices, because everybody expects a cheap Apple.

Apple has positioned itself to be a lifestyle product for wealthy people, innovators and people with good jobs. Apple has become a desired product but not easily affordable. This premium positioning helps Apple in the long term. With inflation in wages, affordability, more people can afford Apple products in future, thus increasing sales by reaching out to a larger audience with time, and when people can afford to buy Apple products they do not haggle about price, price would be secondary and the image of having an Apple product is more important. Apple is currently occupying the "white hot center" of converged personal computing & entertainment market, and that's a tough position to beat for any competition. White hot center is a market position where all the customer's attention is on. It is essentially the prime spot of customer attention, and everyone is watching every step the seller makes. Apple did not get to the white-hot center by accident, it was culmination of a decade's hard work and mistakes of its competitors. Another good point of Apple's product positioning is that there are very few variants in each class of products: MacBook Pro is available only in one silver color, only in i3 and i5 processor. There is a Spartan range of models to choose from. This limits the number of choices the customer has to choose from and it makes it easy for customer to decide and buy.

No-Substitute Positioning: Apple products are unique and do not have a similar substitute. A PC can technically replace a Mac, but the user will never accept the substitute PC because of the user experience on a PC is totally different than on a Mac. So a replacement for a Mac is another Mac, and so on.

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Three rules of positioning are: 1. Be Distinct. With its tagline "Simplicity is the ultimate sophistication", Apple has defined itself to be different from other competitors. How different? It offers everything in one simple and sophisticated laptop.

2. Be Desired. For a product to be successful in the market, it has to be desirable. A product needs to be both distinct and desirable so that the customers have ample reasons to buy the product. From the Apple commercial, the market nowadays doesn't want to be the “the geek guy” with a PC. The market demands a user- friendly laptop, which is designed to differentiate itself to be more easy to use than its competitors.

3. Be Defined. Because of all the great features and fast processing speed of the MacBook Pro, it costs a lot. Though it is quite expensive, however, given all the convenience that Apple MacBook Pro offers, it has positioned itself in a spot where customers would not mind spending such an amount for a laptop.

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ROLE OF MARKETING MANAGEMENT

ROLE OF MARKETING MANAGER

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▪ Instilling a marketing led ethos throughout the business ▪ Researching and reporting on external opportunities ▪ Understanding current and potential customers ▪ Managing the customer journey (customer relationship management) ▪ Developing the marketing strategy and plan ▪ Management of the marketing mix ▪ Managing agencies ▪ Measuring success ▪ Managing budgets ▪ Ensuring timely delivery ▪ Writing copy ▪ Approving images ▪ Developing guidelines ▪ Making customer focused decisions

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WHAT MAKES APPLE DIFFERENT?

INCOME SHEET

Apple spends a huge amount on Research and Development, unlike other companies. Apple cares about little details no one else does.

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Apple goes against common business practices. They do their own thing, don’t jump into trends, and they inevitably end up setting trends instead. Apple is one of the few companies today that seems to put its design ethic and consumer appeal over the effort of increasing market share and profit. It seems that they are happy to let market share grow organically rather than possibly sacrificing their ethics of design in order to attract a larger consumer base. Apple is so admired today for it’s innovation, not just because of their products, but the innovative ways they are used and interacted with and all the other innovations they have sparked. Their products have been the catalyst and conduit for much other innovation which did not exist before.

MILESTONES IN APPLE INC HISTORY 1976

High-school buddies Steven Wozniak and Steve Jobs start Apple Computer. Their first product, Apple I, built in circuit board form, debuts at "the Homebrew Computer Club" in Palo Alto, California.

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1977

Apple II is unveiled, the first personal computer in a plastic case with color graphics.

1983

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Apple starts selling the "Lisa," a desktop computer for businesses with a graphical user interface, the system most users are familiar with today. 1984

Apple debuts the Macintosh personal computer. 1985 - Jobs leaves Apple after a power struggle. SEP 1997

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Jobs is named Apple's interim CEO after the company records losses of more than $1.8 billion.

NOV 1997

Jobs introduces a new line of Macintosh computers called G3, and a website that lets people order directly from Apple.

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1998

Apple unveils the iMac desktop computer. 2001

2003

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The iTunes Store opens, allowing users to buy and download music, audiobooks, movies and TV shows online. OCT 2005 Tim Cook is named Apple's chief operating officer, after serving as executive vice president of worldwide sales and operations since 2002.

JAN 2007 Apple introduces the iPhone.

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2008 Apple opens its App Store as an update to iTunes. JAN 2009 Jobs takes leave for health reasons. COO Cook leads the company in the interim. JUNE 2009 Jobs returns to the company after undergoing a liver transplant. APR 2010 Apple begins selling the iPad, a 10-inch touchscreen tablet, and has an 84 per cent share of the tablet market by year's end.

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2 MARCH 2011 I Pad 2 was launched.

9 AUG 2011

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Apple briefly edges past Exxon Mobil Corp to become the most valuable US company. SEPTEMBER 2011 Steve Jobs resigns as the CEO of Apple. Tim Cook is the new CEO.

APPLE WITHOUT STEVE JOBS Jobs, who saved the company from near bankruptcy in the 1990s and transformed it into the phenomenally successful tech giant it is today, will be sorely missed as a leader and an innovator at the company. Already, the financial markets have reacted to the news, with shares in the company dropping more than 5% in the early hours of trading.

However, more crucially for the organization, is how the brand will survive post- Jobs. Although Jobs holds cult-like status with tech enthusiasts, will Apple's growing global consumer base care about his departure at the helm as long as the company continues to lead the charge with revolutionary new products?

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A branding expert offers his opinion on how Jobs stepping down from his role might impact the world's most innovative and valuable brand.

Kimberley Criss, director of brand strategy at Interbrand : "Steve Jobs has been a visionary for his organization and people recognize him as being synonymous with Apple. But he has also done a great job of impacting his staff internally and creating and inspiring future leaders who will go on to carry out this very strong brand vision that he has laid out. "His ability to respond to market changes and opportunities has been tremendous and that will continue to happen at his organization with the team he has in place. "Apple has done a stellar job of understanding what their brand is and what it stands for and it will continue to be responsive and relevant. "He will still be there for an advisory role and Tim Cook has been working hand in hand with him. Everyone who works there does not sell, they talk about the brand, and inspire you to join it. That will not change."

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REFERENCES www.apple.com www.google.com www.wikipedia.com www.slideshare.net www.livemint.com www.scribd.com www.pragmaticmarketing.com www.youtube.com www.facebook.com www.twitter.com www.adweek.com www.wordpress.com www.macrumors.com www.macosrumors.com www.cultofmac.com www.appleblogr.blogspot.com www.macobserver.com www.lowendmac.com www.kpozo1016blogs.blogspot.com www.edibleapple.com www.launchpadonline.com www.millwardbrown.com www.uwmktg301.blogspot.com http://www.theacsi.org

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