Ch 5 Kotler Apple

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Value Proposition
A value proposition is a statement summarizing the customer segment, competitor targets and the core differentiation of a company’s product from the offerings of existing competitors. A company's market contribution usually extends further than the core product, to include services, programs and systems essentials. Value Propositions translate those market offerings into a proclamation of the combined benefits a customer will gain.

There are essentially 3 elements to Apple’s value proposition. They are: 1. To own the software and the hardware; controlling the experience from beginning to end 2. To make usage very easy and intuitive

3. To present the the hardware, simply, and elegantly.

How did Apple gain customer satisfaction and maintain customer loyalty? When customers sleep outside the apple stores just to be one of the first to buy an iPhone, it's very clear that Apple Inc. is a company that enjoys passionate brand loyalty, and this brand success is part of a well-thought-out plan to deliver strong and unique products, and to create an Apple culture. Apple made a revolutionary launch of its tablet, the iPad. In barely 3 months, more than three million iPads were sold. Apple’s marketing strategy has been exclusively unique; the company is constantly gaining competitive advantage in the digital market; translated in terms of customer loyalty.(Thompson, Gamble, & Strickland, 2007)

How Apple gains customer satisfaction
Products That Deliver: Apple carefully considers what consumers are looking for, so its products are a result of research and strong design. This thorough planning is a large contributor to Apple's high customer-satisfaction rates.

Continuous Innovation Apple sells customers what they didn't know they need. A lot of times, people don't know what they want until you show them. Moreover, human preferences are always changing. Introducing new products helps attract new customers and satisfy the already existing loyal ones constantly.

A Store Just for Apple: Apple created a store strictly devoted to Apple products; hence it was able to set its very different products apart from the others, and has made an excellent customer-loyalty move. Apple stores are a friendly place where Mac and PC users are encouraged to explore the technology that the company offers, hence encouraging current and new customers to get excited about what it has to offer.

Attractiveness: From packaging to aesthetic design to user-interface experience, Apple makes its products attractive and accessible. Bright colors, a smiling icon etc. are things that always remind customers every time they use Apple products that this company’s offering is appealing.

Lower entry cost products Much of Apple’s consumers may not be ready to buy Apple computers, but are in fact willing to buy gadgets such as iPods, iPhone and iPads. Thus, Apple’s strategy of offering options that have lower entry costs opens up new opportunities for novel users to be introduced gradually to Apple products

Small and light products Apple keenly focuses on products design and innovation; before developing a product’s packaging it takes into consideration what consumers really want; its products are well researched and carefully designed. This type of careful planning significantly contributes to the company’s high customer-satisfaction rates.(Howe, 2007).

Education Sales: By selling its products to schools and universities, classrooms are turned into showrooms. If students go through school using Apple products, they become comfortable with the interface and the unique performance the brand offers. This early exposure captures customers before they even know they are ones.

Apple retail store customer service the apple retail store is one of the most profitable store present. The soul of apple is its people; how they are hired trained and motivated, and taught to communicate with customers to create magical...
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