Monday, May 5, 2014

Week 8 - Pricing/Channel and IMC


Apple Inc. is the top in the list of 100 top companies with the highest brand equity followed by google and IBM. Surely this is because Apple has a strong and effective marketing mix strategy that entails profiting from brand loyalty.
      4 P’s of Apple
      Product
Apple’s product include portable computers, iPhone, iTunes and other storage devices, servers and accessories. Apple’s strategy is to offer small number of products that focus on high end quality and service and entails unique product that is attractive to customers
Price
Apple is a premium brand that does not compete on price. Apple uses premium pricing strategy by offering a high-quality products with great and innovative features and amazing user experience. I believe that Apple’s high price is often perceived as indication of its high quality product offering, and reducing the price may negatively impact its brand image.
Place
Vast majority of the Apple’s suppliers are in Asia with China and Japan as major suppliers. Apple has retail stores located worldwide. Apple service providers are certified technician, who complete apple training and assessment, and offers repair services and exclusive access to genuine Apple parts. Customer can either buy online or shop with a specialist or make purchase from his iPhone.

Promotion
Apple uses advertising heavily in television network, technology magazines and internet. Apple's online store offers free shipping and school offers. The other way Apple promotes its product and differentiates from others is by personal selling through its Apple Stores. Apple conducts free workshops that includes one on one training and free youth programs like Apple Camp. Apple also provides special offers in refurbished Macintosh computers, and iPods. Apple's emphasis is primarily on customer service that allows them to gain loyalty from new customers.

Target audience for Apple
Target audience for Apple is widely distributed. Apple uses a unique form of marketing strategy called “psychographic segmentation” to appeal to all consumers no matter the age, race, income level, and/or demographic.  For example, teenagers use iPods to socialize with friends and playing games. College and university students also use iPads and MacBook, for taking notes, watching videos and reading books online. Business professionals uses MacBook and iPhone for productivity and efficiency. Apple products are even useful to young children and kids for learning. Although, I believe that Apple typically appeals to middle and high class who do not mind spending extra cash for quality.

Communications with the target audience
Apple uses advertising, public relations, sales promotion, and personal selling as a part of their promotional and communication strategy. Apple’s ads have a lot of white space in them. It’s designed to create a sense of openness.  It shifts the focus onto the product that they are sharing and on to their words. There are no distractions and it makes it easy to connect with their key message. Apple promotes its product and differentiates from others is by personal selling through its Apple Stores. Trained sales associates provide effective customer support and promote brand loyalty.

References

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