Apple present

Institute of Specialized Economics and Finance

BUSINESS CONCEPT

Lecturer Morn Nerot

THE MARKETING STRATEGY OF

APPLETEAM WORKSEM CHANNARATH HENG CHANREAKSMEY LAY SOKHEANGEOUK NIMOL OL CHINEANG CHEA SOCHEATACHHOULEAKHENA CHAN CHENDA CHAY SREYNOUCH

Year I, semester I2012-2013

OUTLINE

• About the company• Product• Price• Place• Promotion• The Marketing Strategy

ABOUT THE COMPANY Apple Inc. is a California corporation founded in 1977 by Steve Job.

Now, Apple Inc. operates 301 retail stores in ten countries, and an online store .

As of May 2010, Apple is one of the largest companies in the world and the most

valuable technology company in the world, having surpassed Microsoft (Linz

Mayer, 1999).

As of September 2010, Apple had 46,600 full time employees and 2,800

temporary full time employees worldwide and had worldwide annual sales of

$65.23 billion.

ABOUT THE COMPANY In a short period of 33 years, it has been grown to be a world well-known brand.

Fortune magazine named Apple one of the most admired company in the United

States in 2008, and in the world in 2008, 2009, and 2010, standing an important

place in the fast-moving technology world.

PRODUCT New Product Development

• Numerous product ranges that provide product lines to attract customers have been

introduced throughout the years since 1983, for example, portable computers, servers,

accessories, Wi-Fi based stations, developer, iPod, iPhone, iPad, iTunes, peripheral products

and more.

• Consequently, the Company has come up with newer versions of its product lines with similar

characteristics that are also updated from time to time. For instance, in the iPhone portfolio

range, Apple initially came out with the iPhone 3G, then iPhone 3GS ,iPhone4, iPhone 4s, and

iPhone 5.

PRODUCT

PRODUCT Product Differentiation

• Launching the iTunes marked the beginning of Apple’s new strategy of making the Max the

hub for the “digital lifestyle” and also launched the iTunes Music Store online in 2003.

• The iPod was then introduced and it “changed the way people listen to music”.

• Apple continued their innovative streak with advancements in flat-panel LCDs for desktops

and improved notebooks in years 2002 and 2003.

• In order to satisfy consumers’ favor, Apple Inc. has their product line for the iPod.

• AppleCare offers a range of support options for the Company’s customers.

PRICE The company has reduced prices after some initial product launches.

The retail pricing control by Apple is somewhat limited and, like many other products, the iPod

has been subject to considerable discounting particularly in the one intermediary channel of

distribution.

From Apple’s perspective, discounting usually only eats into the margin of the retailer, not the

company itself.

Another pricing strategy used by Apple Inc. was launching a low-price version of an existing

product targeted at price-sensitive consumers.

PLACEMENT there is direct distribution though Apple stores located in many countries and accessed on line.

Apple, Inc.

There is direct distribution though Apple stores located in many countries and accessed on line.

Apple, Inc. This is where there is a retailer between the manufacturer, Apple, and the consumer.

The Apple Store (80 000 references) is a large hypermarket. With shelves and products inside.

PROMOTION Personal selling

• This form of promotion is most relevant to the Apple exclusive and authorized retailers.

• Staff are trained to have a high level of product knowledge and are completely focused on

the sale of Apple’s range.

Advertising

• Apple has used a range of media advertising to promote the iPod. Electronic, print, the Internet and

alternative media (such as billboards and bus shelters) have all been used.

• Advertising costs are expensed as incurred. Advertising expense was $691 million, $501 million and

$486 million for 2010, 2009 and 2008, respectively.

PROMOTION Cross promotion

• This involves the use of one product to support another.

• One of the clearest examples is provided by the iPod cross promotion of the rock group U2

and its album ‘How to dismantle an atomic bomb’.

Internet

• The Apple Consultants Network website provides a search tool allowing visitors to locate

nearby certified Mac product consultants in the U.S, Canada, and a number of international

locations.

• The online Apple Store offers free shipping for orders over $50 and also offers iTunes gift

cards.

THE MARKETING STRATEGY Success by design

Pricing

Distribution

The hype

Customer satisfaction

Developers and apps

REFRENCE

• Silverman, Dwight. “Tech Blog.” 6 Aug. 2008. Chron.com. 11 Nov. 2008. http://blogs.chron.com/techblog/archives/2008/08/the_price_difference_between_

• Apple.com (2007) HOMEPAGE.RETRIEVED ON SEPTEMBER 20, 2007, from http://apple.com

• BODDIE, J. (AUGUST, 2005) BEHIND APPLE'S STRATEGY: BE SECOND TO THE MARKET.RETRIEVED ON SEPTEMBER 20, 2007, from http://hbswk.hbs.edu/archive/4970.html.

• Blythe,J. (2008) The Official CIM Course book: Marketing Essential. UK: ElsevierJobs,S. Apple’s CEO (02/03/2011) Apple’s Keynote, USA: San Francisco.Kotler,P. Armstrong,G. Saunders,J. Wong,P. (1999) Principles of Marketing Second European Ed. New Jersey: Prentice Hall Inc.LearnMarketing.net, (n.d.) Consumers’ Buying Process, [Internet] http://www.learnmarketing.net/consumer.htm [Accessed on 13/03/2011]MarketingTeacher.com, (n.d.) Apple’s Marketing Mix, [Internet] http://www.marketingteacher.com/case-study/apple-case-study.html [Accessed on 10/03/2011]Dr. Willan, M., (08/03/2011) CIM Marketing Essentials [Lecture], LSBF: London

THANKS FOR YOUR GREAT PARTICIPATION

& WELCOME FOR ALL QUESTIONS

THANKS FOR YOUR GREAT PARTICIPATION

& WELCOME FOR ALL

QUESTIONS