Apple Inc. is a company founded by Steve Jobs, Steve Wozniak and Ronald Wayne in April 1976. It is an American multinational technology company that designs, develop and sell consumer electronics, computer software and online services. The initial purpose of Apple was to sell personal computers, but that company later started expanding, and now it is considered as one of the big four technology companies.
Apple’s Marketing Strategy:
Apple decided to break all the rules and denied social media marketing they decided to use other marketing means other than social media. They kept on insisting on their decision which is why when they announced that they are making a twitter account for their customer service that came as a shock for consumers. At first, Apple refused to give in to the latest trend of social media marketing, but later they finally decided to change their view as per consumers demand. Apple gave this declaration of twitter account in March 2016 since then they are handling their customer service and social media marketing through that account. Unlike many other companies, Apple does not waste their money on PPC ads; they focus on two different strategies like product placement, and buzz created through the positive reviews of the product.
Apple’s Four Market Segments Strategy for Business and Marketing:
Apple applies four market segments efficiently and effectively. The market segment of Apple includes demographic, geographic, psychographic and behavioral.
Demographic market segmentation is successful in this segmentation they divide people based on their age, lifecycle and occupation. For example, a PC with many games for kids and a PC with the latest software for professionals according to their needs.
According to geographic segmentation, Apple has its retail stores in 45 out of 50 states in the United States of America. It also has its stores in 18 countries of the world. That is not it Apple is using other mediums as well like their providing online store now people can easily access to Apple’s product through online stores. Apple has expanded its market so much that one can easily purchase Apple’s products.
In behavioral segmentation, they evaluate the behaviors of the consumers. The behaviors include attitude, usage and responses of the consumer. They devise and make modifications in their product while keeping in mind the behaviors of the consumer.
Last is psychographic segmentation they are successful in it as they make the product while keeping in mind the choice of their consumer they produce products of different colors for people who like fancy things. Their brand image also adds value to the product and services of the company. During the time of Steve, Jobs Apple used the mono segment type of positioning while focusing on a single customer market after Tim Cook become CEO, he focused on multi-segment positioning. According to the multi-segment, they targeted multiple customers with different products and services of varying price ranges. I do not find any urgent issue necessary for me to penetrate or protect my desired market place as I believe Apple is working hard on their market segmentation and target market while keeping consumers demands in mind.
Apple, in general, is positioned as the premium product as all the products are expensive. I believe Apple has already owned its desired position in the market as its brand image is too strong, and its high tech security is also one of the many reasons for its strong position in the market. The company which needs to outgun for Apple to maintain its premium position is Samsung.
On the marketing mix
Apple Inc.’s Strength in the Technology Market:
Apple’s strengths which can help the company to avail an opportunity and to overcome their weakness, these strengths are internal factors within an organization. Advantages of Apple Inc. are:
- Strong brand image
- High-profit margins
- A rapid and effective innovation process
Apple has made a sharp image in the market that the company is capable of introducing profitable new products in the market. Apple’s marketing mix 4P involves a premium pricing strategy that even if they do not have enough sales, they have high-profit margins on their products. Apple is a very strong brand but, recently they are not focusing a lot on their innovation as there are no as such changes in the internal features of iPhone’s they are only focusing on the external body. One of the marketing mix 5C is customer mind they should focus on it.
Apple Inc.’s Weakness in the Technology Market:
In this phase of the SWOT analysis, the focus is on the weaknesses and shortcomings of the organization. Vulnerability is an internal factor which is a barrier to the success of an organization. Weaknesses of Apple Inc are:
- High selling price
- Limited distribution network
- Dependence of sales on high-end market segments
Apple Inc. has a limited distribution to maintain exclusivity Apple products are not available on just any retail shop they place their product very carefully. Due to high pricing, not everybody can afford their product as they all are expensive. They should keep in mind the marketing mix 5C customer cost factor as in this time of economic crisis few people can purchase Apple’s product they should consider this factor to save its customers. Another marketing mix 5C customer convenience factor they are not considering this as well as even though they have developed a high network still not everybody can reach out to their product because of their exclusive distribution.
Consumer Buying Behavior for Apple Products:
There are five stages of the buyer’s decision-making process such as;
- Need recognition
- Information search
- Evaluation of alternatives
- Purchase decision
- Post-purchase evaluation
Need Recognition for Apple Products:
Decision-making process step like need recognition is influenced by the marketing team of Apple Inc. they have presented their product in such a way that even though it is a luxury but by providing the latest technology Apple Inc. have made it a need for consumers. That is why most individuals, feel like to stay updated they need an Apple product.
Information Search for Apple Products:
One of the steps in the buyer decision-making process is information search. There are many ways to search for information internal and external while purchasing Apple products consumers mostly rely on internal information like past experience Apple consumers are brand loyal many consumer’s update their phone as a new generation is launched.
Evaluation of Alternatives for Apple Products:
Then another step in the evaluation of alternatives in this step after gathering information consumers looks for other options which best fits its need. Is in his range, but Apple users do not think about it they only look for the features, quality and looks of the product, not the price.
Purchase Decision for Apple Products:
Apple’s consumer focuses on features and looks once they are sure about it; they make a purchase decision. Apple consumers do not need a lot of external information search as their experience helps them in making a purchasing decision. Apple consumers are satisfied with the quality, innovation and looks of their products that is why many consumers, instantly upgrade their phone as soon as a need generation launches.
Post Purchase Behavior for Apple Products:
The final stage is post-purchase behavior that is positive as they have already done their research, so they are well aware of the product. Apple consumers are well aware of the product that they are purchasing, so the post-purchase behavior is always a satisfaction, as they know no one can provide quality and innovation like Apple.
Apple excels in its adoption of recent technology as they are the first one to bring touch screen phones in the market their innovation is their biggest strength. They do not fail to surprise consumers and their competitors by making innovations in their product. They have a high rate of adoption when it comes to the technology you can take the example of their high tech security even though this becomes an issue sometimes but, their security ensures the safety of their consumer. Apple always tries to bring new features through its product for its consumers. The areas where Apple needs to pay attention to their adoption process is its high pricing even though they have a brand image but, now they have many competitors who are providing similar features in less price which can become a threat for Apple as it may lose its consumer because of high pricing. Another area where Apple needs to work in its adoption process is distribution channels even if they have a brand image if consumers will not be able to reach out to their product how are they going to buy it that may cost the loss of consumers to Apple.
On Branding and Product Life cycle:
Our brand falls in the maturity stage in the product lifecycle model as Apple has already made its brand image in the market. Apple is now one of the biggest technology company in the world. They no longer need to run advertisements all the time to remind people of their product their innovations and, high-quality products are unforgettable. We have often heard that an Apple user can never switch on Android that is because of the features Apple is offering. Apple has passed its introduction and growth stage, and right now, it is in the maturity stage as it has made its position in the market. Apple needs to maintain its strength of rapid innovation that is the only way to keep the consumers connected as if they will stop innovation, and then consumers will lose interest.
Apple is a company that has positioned itself as the metric of quality within the product line. Apple has developed itself as a driving force of innovation for over 20 years. One element remained constant in Apple throughout the adaption process was its quality product and services to its consumers.
Vision Statement of Apple Corporation:
Apple’s vision statement is, “We believe we are on the face of the earth to make great products, and that’s not changing.” According to this statement of Apple, it shows that how they perform their operations to a position in their product as a dominant player in the technological market. Apple has focused on its innovation throughout its progress that is why consumers are willing to pay higher prices because they trust in the quality and uniqueness of the product. Apple has collaborated with many well-known brands so that they can be a dominant player always and nobody else manages to beat them. Apple is also working hard to reach the point of their vision as they have stated that they will make great products they are also proving that with their every launch.
Brand Personality of Apple:
Apple’s branding strategy focuses on emotions just like the experience of the consumer with product in the past. Brand personality of Apple is about lifestyle, innovation, passion, dreams, hopes and empowerment to people with the latest technology. Apple’s brand personality is also the simplicity that is why they provide the products to consumers that fulfil their needs and want without ignoring its key point of innovations they have modified their products while understanding consumers demand. By providing the best quality and latest quality to its consumer, they have built their brand image.
Apple and Brand Positioning:
Just like all the other products, Apple has also made the promise to consumers that they will provide, quality products with innovation in them. Apple kept its position statement “Think Different” all its products are very different from any other product even if we talk about looks they make innovations in their products look in such a way that consumers feel like they should upgrade their phone as Apple’s every new phone is different and better than the older one. Apple backs up its brand promises with their products. As they know how to fulfil their commitment to the consumers, they never disappoint their consumers.
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