Apple Inc.’s branding strategy involves creating innovative products and digital services aligned with a “digital hub” strategy. Apple computer products function as the digital hub for its digital devices, including the IPOD, cellular phones, personal digital assistants, digital video, still cameras, and other digital devices. Apple wants the customers experience to be central, and the Mac is no longer the central hub of Apple. The company now offers a harmonized, synchronized and integrated user experience across all of its main devices. Apple uses three things when it comes to the pricing strategy of the company. The first step is Bundling. Bundling is referred to a marketing strategy where the seller combines two or more products and/or services and sells theses as a single unit for a slightly reduced price. For buyers, buying bundled products may result in increased savings and for the seller, it usually results in higher sales and higher profits too. Apple sells two or more products at a seemingly attractive price, knowing that the customer will pay later for the software that will play on the hardware. Second, Apple uses Reference Pricing. Apple benefits from reference pricing by launching a slew of products at various price points. A buyer wouldn’t mind paying for more versions that usually do not have most of the cutting edge features. Last Apple uses Differentation. Differentation is what allows Apple to price its products at a premium and compel customers to compare Apple products with other Apple products, rather than with lower priced products from other reputed marketers. Apple products look, feel, and seem very different from competitors products that customers who buy an Apple product buy it not because it offers more features or its cheaper but because the company has succeeded in creating a unique identity for its products. Apple spends lavishly on all stages of the manufacturing process, giving it a huge operations...
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