Apple’s Marketing Strategy
A brand name differentiates one company from another. Apple, for example, is known to be a manufacturer of Macs, iPods, iPhones, iPads and various types of computer professional software. Companies build customer relationships to ensure customer loyalty through their innovative products, creative features, attractive designs, elite quality and reasonable prices (Richard, 2013). Apple has made sure that is was the first corporation to integrate modern technology in its products, before any other company. This is exemplified by the company’s computers that came in a plastic case with color graphics. Creating these computers set it apart from its competitors (Company History, 2013). Apple Inc. was started in 1977 by two high school friends, Steven Wozniak and Steven Jobs. On April 1, 1976, Apple I, the first Apple computer was launched. It took about a year for the computer to gain popularity (Company History, 2013). The company has now become one of the most successful companies in the world. By 2001, Apple had generated millions of dollars a year with its sales of music, movies, and books through their iTunes store (“How Apple”, 2013). When Apple’s computers first penetrated the technological market, the company needed to create a market for personal computers in homes. In the 70s and 80s, Apple built its marketing strategy by selling computers to help “lighten the user’s workload”. The key objectives were to make its products useful and to encourage small investors. At the same time, Apple wanted to inform its potential customers about the simplicity of using its computers (“How Apple’s”, 2013).
Apple’s marketing strategy shifted in 1984. Apple computers were no longer simply marketed to professionals, but children as well. The company launched its “Why every kid should have an Apple after school” campaign. However, the majority of the advertisements continued to emphasize the technical capabilities of the Mac, and thus they were not targeted at children (“How Apple’s”, 2013).
By the late 1990s, Apple had successfully implemented its marketing strategy to create a leading brand name in technology, and it positioned its premium brand in the market place. Apple used a number of marketing strategies for different products to maximize success and increase customer loyalty. When Amazon entered the tablet market with the Kindle at a staggering low price of $199, the company could be perceived as a significant competitor for Apple and a potential threat to Apple’s dominance in the tablet market. However, Apple was not threatened by Amazon’s launch of the tablet because Apple was aware of its customers’ needs. Instead, Apple refined the iPad’s marketing strategy according to the changes in the market dynamics and designed its 3rd generation iPad. The company’s marketing strategy was based on the following eight factors (Hickie, 2012): * Apple does not challenge other technology brands by engaging in a price war, regardless of the competitor’s offerings. As a result, iPad is seen as a premium brand. * Further differentiation among other brands includes the utilization of Apple’s exclusive FaceTime and iCloud services.
* Apple makes sure to emphasize its networks’ benefits, such as advantages of having more people on FaceTime * “Make sure the hardware is profitable and the additional content revenue is just add-on revenue.” * “Lead the race in research and development to ensure that the iPad maintains its top of line tablet functionality and performance.” * Selling only to major consumers will safeguard Apple’s products so that they will only be used in conjunction with its other related products, such as iTunes and other Apple content. * Advertising its app store, and by bringing attention its efficient security standards. * By standardizing iPad’s size, Apple encourages consumers to purchase accessories for iPads that are not offered for...