Tuesday, February 24, 2015

Ch.4- The Marketing Environment

Apple is company that began In a small marketing environment. Over the years the company grew out of this small share of the market. I will discuss the overview of Apple's marketing environment and what particular aspect of the market the company shares.
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During Apple's infancy years the marketing environment for the company was quite small. The company first started developing home desktops known as Macintosh. Microsoft a competitor of Apple was way ahead of Apple in software development and technology. Apple had its back against the wall and in 1984 the company made a move that would launch it into the market. The 1984 Macintosh commercial describing consumers to think different and rebel against big brother which is Microsoft really made an impact and put apple on the map and began the upward trend of success the company is known for.



Producers and consumers transform the way the market functions, during their development companies should require its new changes in order to be prepared for the possible effects of the shift. The changes in an environment can give a company either success or failure.

              Apple's marketing environment factors are several which include, technological factor, inflation, and the competition factor. As we experience changes in our environment Apple's strategy is to remain constant focusing to make a major impact on their environment. When it comes to the technology aspect, Apple uses various technological innovations that help in increasing productivity and improving the quality of their products. Although Apple had faced some problems with their products that were affecting the environment and its consumers. The Company executed those changes into solving them by showing their customers that they care, and giving them information about future improvements to their products. As a new season comes Apple tries to improve their products by reinventing their previous products and making them more creative, enjoyable, innovative, unique and more usable which always impacts society. One of Apple's improvements that helped them within the environment was when the company started removing toxic parts on their products, and providing products with less materials, lighter in weight and sizes also products with less electricity consumption. In our environment many consumers are concerned on what they purchase, and they make sure is worth the products price.

             In the competitive economy that we live in today, many consumers think twice before they do their purchases. Inflation is one of Apple's concern, as Apple's products are in high prices. Many customers tend not to buy Apple's products due to high prices. Even though their products prices may affect their profit, they keep the same price on most of their products and yet Apple remains being a successful company.

             When it comes to competition, Apple's makes sure they stay on the top with their high-tech products within the market. By creating very modern, advance and usable products. Apple's main competition are Microsoft, Samsung and other main computer companies, and even music products in the music industry. Apple provides as huge variety of uses in their products such as the iPod, IPad, iPhone, and Mac computers. Within the environment Apple's target Market and consumers are professionals and everyone else. Teenagers, professionals, college students are their primary consumers and so Apple’s popular products attracts those customers. The company adapts to the marketing environment an example of this is when the company adopted a new feature to their Latest IPhone. For years consumers have been complaining that the IPhone was too small and lacked screen size and definition. So in 2014 Apple did the unthinkable and launched the IPhone 6 with a bigger screen, state of the art technology, and HD capabilities far surpassing that of previous IPhones. The company knew that Samsung had been doing the same for years and Apple took it to the next level matching the competition leading to record highs in revenue and profit. This shows us that Apple strives in changes of the environment.

Tuesday, February 17, 2015

Ch. 3 - Ethics & Social Responsibility

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Apple is a company that has a huge task of meeting its ehics and social responsiblilty standards. In the past Apple has been criticized for exploiting workers and paying them extremely low wages for extra long shifts. Over the years Apple has been improving their ethics and social responsiblilies with investegations and funding. Ethics and Social responsibility are crucial for Apple's future because in the information age we live in it is very easy to find out whether or not Apple is following these standards. I will discuss how Apple is working and improving on these standards.



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Legal Responsibility- Apple has taken action against unethical conduct in its facilities. For this particular responsibility, Apple has stopped the use of underage labor in ten facilities including Foxconn. According to Apple's website Since 2008, more than 861,000 workers have taken advantage of their Supplier Employee Education and Development (SEED) program, which offers free courses ranging from economics to English.
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Economic Responsibility- Every corporation economic responsibility is to be profitable. Apple is first in its class in this field. Apple's revenue and profits are ($10,000,000,000 cash, gross profit margin 43.9% and no debt).  This data is from the year of 2013 and the most likely scenero is that amount doubled in 2014 with the release of the IPhone 6. When it comes to Economic Responsibility Apple is one the best companies in the World.
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Voluntary Responsibility- Apple has done a tremendous job concerning environmental issues that range from toxic material removal from its products to the recyclying and the use greenhouse gas emission. Not only is Apple exceeding the environmental impact of its products in a positive way, Apple also support Bono in his Product Red Campaign by contributing it's revenue to fight against AIDS, Tuberculosis, and Malaria.

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Ethical Responsibility- Apple has eliminated dangerous working conditions and bribery in many of their facilities. Also Apple requires that every supplier that does business with Apple must demonstrate the highest commitment to protecting workers’ rights. This includes abiding by a maximum 60-hour workweek. In 2013, 92 percent of all Apple's suppliers’ workweeks were compliant with their 60-hour maximum standard. It also means holding suppliers accountable to ethical hiring practices. In 2014, Apple helped over 4500 foreign contract workers recoup US$3.96 million in excessive fees paid to labor brokers. Apple's dedication to human rights even extends to using more conflict-free minerals in thier products.
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Apple has thorougly improved on their ethics and social responsobility standards. They have developed more environmentally friendly technology and have vastly improved working conditions. There is still room for improvement, but if Apple continues in the right direction they can set a the bar on how ethical and social responsibility is carried out.

Monday, February 9, 2015

Ch. 2 - Strategic Planning for Competitive


As we all know Apple Inc. is a Multinational Corporation known for its production of consumer electronics like the IPhone, Ipad, MacBook, etc. Also the company is well known for the production of the Mac X OS and IOS software. This company has been very successful and continues to thrive in a very competitive market, how do they do it? The main reason for their success their strategic planning, I will be discussing the strategic planning process of Apple Inc. and how this planning has made this company what it is today.

Strategic planning is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities. Part of Apple's strategic planning is the company's goals and objectives. The company's Goals are to provide the best and upgraded products, maintain investor support, ensure that the company has a long-run profitability, and production and service.

The company's objectives are to expand the sales of products to whom it is not introduced yet, produce products that are full of enjoyment and service, become the best company in the mobile device category, and to expand the production rate and have high demand of products.

COMPETITIVE ADVANTAGE

One of the reasons why Apple is so successful is because of the competitive advantage the company creates for it self. For example Vertical integration has given Apple a competitive advantage, as it owns chip manufacturers, controls manufacturing, follows extremely strict software standards, and operates in a nearly closed ecosystem of proprietary retail stores. With these advantages, the company has more control of its value chain and, more importantly, its component costs. This is the reason why Apple profits so much on its signature IPhone and all of its products. also a big part of the iphone 6 sucess and most of apple products is the look and the design of the product.

SWOT ANALYSIS

According to the 2013 Apple SWOT analysis is as follows.


Strengths

Weaknesses

  1. Customer loyalty combined with expanding closed ecosystem
  2. Apple is a leading innovator in mobile device technology
  3. Strong financial performance ($10,000,000,000 cash, gross profit margin 43.9% and no debt)
  4. Brand reputation
  5. Retail stores
  6. Strong marketing and advertising teams

 

  1. High price
  2. Incompatibility with different OS
  3. Decreasing market share
  4. Patent infringements
  5. Further changes in management
  6. Defects of new products
  7. Long-term gross margin decline


Opportunities

Threats

  1. High demand of iPad mini and iPhone 5
  2. iTV launch
  3. Emergence of the new provider of application processors
  4. Growth of tablet and smartphone markets
  5. Obtaining patents through acquisitions
  6. Damages from patent infringements
  7. Strong growth of mobile advertising market
  8. Increasing demand for cloud based services

 

  1. Rapid technological change
  2. 2013 tax increases
  3. Rising pay levels for Foxconn workers
  4. Breached IP rights
  5. Price pressure from Samsung over key components
  6. Strong dollar
  7. Android OS growth
  8. Competitors moves in online music market

TARGET MARKET STRATEGY

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A big part of Apple's strategic planning is selecting a target market. The company's main target market are teenagers and young adults due to their high use of social media, the internet, and the rapidly improving smart phone camera. These are the reasons why the company's IPhone product has made so many sales. The company also targets college students due the fact that they use apple devices like the IPhone to do their School work and read online. Another important target of Apple are Business individuals who use Apple products like the IPhone and Ipad to keep track of products, financial information, and control the daily operations of their company or business.

MARKETING MIX (FOUR P'S)

 
 

The Most important part of Strategic planning is implement the Four P'S of the marketing mix. As on chapter 2 of the MKTG book the FOUR P'S are Place(distribution) strategy, Product Strategy, Promotion Strategy, and Pricing Strategy.

PRODUCT STRATEGY- Apple's IPhone is packaged in white box outlined with the word IPhone and the number of the model associated with it, the product is flexible, easy to carry, and well packaged.


PLACE (DISTRIBUTION) STATEGY- Apple distributes its products in a variety of ways making them immediately available to consumers. For example on IPhone releases the product is available online, in Apple stores which are located at convenient locations, and at retailers that carry the product like T-Mobile, Sprint, and Verizon.

PROMOTION STRATEGY- The first promotional strategy for Apple is through advertisements. The company also promotes the product through bill boards, online ads, and on stickers on subway cars and buses.

PRICING STRATEGY- The prices of Apple's products are very high compared to other manufacturers. But regardless of the price the quality is what matters to Apple's customers and due to the high quality of the company's products consumers are willing to pay the price.

There is no denying that Apple is on the most successful companies in the world, but the reason for that success is Strategic Planning.
 



Monday, February 2, 2015

Ch. 1 - Overview of Marketing (Brief History and Mission Statement)

BRIEF HISTORY
 
Apple Inc. is a multinational corporation that creates consumer electronics, personal computers, computer software, and commercial servers, and is a digital distributor of media content. Apple's core product lines are the iPhone smart phone, iPad tablet, MacBook laptop, iPod portable media players, and Macintosh computer line. The Company boasts 284 retail locations spanning 10 different countries.

Apple was established on April 1st, 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne to sell the Apple I personal computer kit. Steve Jobs was said to own 45% of the company, Steve Wozniak with 45% and Wayne with the remaining 10%. Steve Jobs and Wozniak were young with little to no assets, Ronald Wayne was older with personal assets and was scared to put these assets at risk. The ending result was that Wayne sold his share of the company back to Jobs and Wozniak for a reported 800$. Today Wayne’s share of the company would be worth over 3 billion dollars.

Apple has developed a unique reputation in the consumer electronics field. Those who use Apple electronics tend to be enthusiastic about and loyal to the products while those who have no experience with Apple’s products often criticize them as being overpriced.

Many believe the single most important PR decision made by Apple to date was the production and release of their “1984" commercial. This commercial was directed by Ridley Scott and aired during the third quarter of Super Bowl XVIII. The commercial was modeled after George Orwell’s novel 1984 which depicted a dystopian future where “Big Brother” told people what to think and as a result people, in general, had very little freedom of choice. Some say “Big Brother”, at the time, was meant to represent IBM while the female heroine was Apple. Today many would say that “Big Brother” was Microsoft with the heroine still being Apple, giving freedom of choice back to the people. Regardless of your interpretation of the commercial or your views on Apple as a company there is no denying that the commercial was a major event in the history of Apple and brought some much needed notoriety to the Macintosh line of computers.

With the release of the iMac on August 15, 1998 Apple was able to put to rest some its past failures. These failures included the first Apple Portable, which was bulky and awkward and the Newton, Apple’s first attempt to enter the PDA market. In 2001, after several years of development, Apple released Mac OS X, an operating system that targeted both consumers and professionals. Mac OS X was a complete redesign from Mac OS 9 and was able to harness the power of UNIX while offering a streamlined user experience with a simplified GUI (Graphical User Interface). The iMac line of personal computers paired with Mac OS X returned Apple to profitability and the release of the iPod portable digital audio player later that year was the icing on the cake. The company released the 1st I pad in 2010 adding to their consumer electronics products and the device is one of the best-selling tablets on the market. Since the 1st launch of the Iphone in 2007 to the Iphone 6 in 2014 Apple is the top smartphone selling Company along with fierce competitor Samsung Electronics.
 

 












MISSION STATEMENT

"Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.”