Ch. 16 - Advertising, Public Relations and Sales Promotion

Apple is a company that ranks among the top ten most innovative companies in USA and the world. It is a branded company and is highly praised among all ages and races.  The two main aspects that contribute to Apple Inc’s success are the quality of product and advertising, sales promotion, and the public relations. In this blog i will be focusing mostly on the adversting aspect of the chapter .

 

 
 
 
 
 Apple is a corporation that advertises aggressively and the advertisemnets make it seem like they shove their products down consumer’s throat, they put a lot of thought, effort, and time, not to mention money into ads and publicity campaigns. The advertisement of few minutes captures the attention of its target markets. It affects consumer’s daily lives, inform them about new products and services.  As the ad image for iphone 6 (attached above) shows the featured new phone, various themes, the colorful image of the new phone, and its features. Apple uses two major types of advertising, which are institutional advertising and product advertising. Institutional Advertising is a form of adverstising designed to enhance a company's image rather than promote a particular product. Apple Inc. uses institutional advertising to promote the corporation as a whole and its design, to maintain the company’s identity. For example we go back to the first big commercial of Apple Inc that took place in the Super Bowl in 1984. The ad showed a black and white color theme but promoted a unique idea “ THINK DIFFERENT”.
  

 
 
Fast foward and we are now in 2015 Apple has changed its identity, the company has become a brand, a competitive company, and a highly recommended company, this all happened due to the strategy of institutional advertising. Now, Apple Inc has a colorful image, and the way the products are portrayed add a luxury feel to the company's product even though they are simply electronics. An example of the luxury feel is the picture below of a gold iphone 6.
      
 

 

  The other type of advertising that Apple uses is Product advertising. Product Advertising is a form of advertising that touts the benefits of a specific good or service. Unlike institutional advertising, Apple Inc. does a great job promoting the benefits of the new product released and also those advertisements appeal to show the new features, quality, design, style, advantage and better capacity of the product comparing them to old products and other competitive brands. The video below shows how Apple promotes the new IPhone 6 using Product advertising.

 

 
After watching this ad it is hard not to agree with the fact that Apple products are beautiful, elegant, precise, and they are everywhere. Apple Inc does this through the advertising, which is done through every possible aspect to connect with the public and to introduce them to the upcoming new products. Apple spends alot of money on advertising in 2014 the company spent 1 billion dollars which now seems minuscule due to the incredibly high profits the companymade that year.
 
SALES PROMOTION
 
When it comes to sales promotion Apple is one of the best. The company uses short-term techniques to persuade their target market to buy their products. Some examples of promotion sales are the money back guarantees, rebates etc. The Apple stores are very distinct and captivating because they expose all their products for consumers and they allow them for example to surf on the web from any computer or listen to music on ipods and experience the iPhone and its features. This lets consumers to be more comfortable with the product and familiarize themselves with them.
There's no denying that Apple is one the best in the World using the Advertisng and Sales promotion strategy. The company's innovative and agressive style is what has mad it one of the worlds top brands.


 

Ch. 14 - Marketing Channels and Retailing

There are more than 400 Apple’s retail stores in 13 countries, with 253 of those being incorporated in the US. Apple also has an online store, available in 38 countries, which provides immediate service at the consumer's convenience. The Apple Store (Apple’s online store) is also very popular, as it is accessible worldwide and convenient. Online or by phone one can also customize Apple products. Apple retail stores can be classified as specialty stores. “Consumers usually consider price to be secondary in specialty outlets. Instead, the distinctive merchandise, the store’s physical appearance, and the caliber of the staff determine its popularity.” Apple stores are most certainly fine-tuned to cater to the Apple consumer and to embody company brand image and ethos. The stores, I would say, also add to the feel of exclusivity.

The Apple stores’ motto is: “Come to shop. Return to learn.” I visited the Apple store in 5th Ave to see for myself. Similar to the marketing mix, there is a retailing mix – the 6 Ps: product, place promotion, presentation, and personnel.

In the store you can find ALL Apple products, including all iPod models (Nano, touch, shuffle, etc.), iPhones, Macs, MacBook’s, MacBook Air, Apple TV, IPad, IPad mini, IPad mini2, IPad air, and IPad air2. They also sell accessories, such as covers, Apple headphones, Beats headphones, laptop pouches, chargers and complementary products such as printers and speakers. Not all accessories and complementary products are Apple brand. One can find Apple products in other retail stores, but Apple stores will be the only ones where one could find everything and anything Apple. Apple stores are well known, as they have even become tourist destinations here in NYC. All Apple stores in NYC are conveniently located, none being more than 3 blocks from a train station and also in high traffic areas and in areas where there is high tourism and shopping value. The flagship store in 5th Ave is right by Central Park and open 24hrs, 365 days a year! This store never closes. Tourists go to visit the store in particular, as it is definitely a destination store. The stores have a very welcoming atmosphere. The design of the stores is as sleek and sophisticated as the products are. At the 5th Ave store there must have been about 50 or more employees there, one does not feel hovered over, but if you have any questions there is always an Apple specialist nearby. The displays are sparsely laid out on big tables and very easy to interact with. All computers, phones, and pads are always on and have Internet connection, so you can fully experience the product.

Apple has its own retailers around but the company also has other means of distributing and making the product available to customers. For customers who prefer not to buy the IPhone or IPad at the Apple store for full price, Apple gives these products to phone companies like T-Mobile, Sprint, Verizon, and AT&T. Instead of paying full price for the IPhone or IPad a customer makes a down payment and pays the phone off through a two year agreement with installment or simply a non-contract installment plan like the one T-Mobile uses. These companies receive an incentive from Apple for selling the product to customers. The factors I mentioned above are related to Apple's PLACE UTILITY of the product. Place Utility is the usefulness of a good or service as a function of the location at which it is made available. When it comes to FORM UTILITY which is the elements and composition that make the product desirable Apple does a great job. For example the IPhone 6 has a slim nice look to it, especially the white and gold one this adds a luxury feel to the product and a unique style to it. TIME UTITLITY is the increase in customer satisfaction gained by making a good or service available at the appropriate time. When it comes to time utility Apple Is very good at it. The company always releases its IPhone during the fall around September and October. During this time no other competitors release there products they usually wait till the holiday season. Apple uses this to their advantage and promotes its products to customers while their pockets are still full. One thing I noticed when entering the Apple store is that customers don't take a lot of time to decide which IPhone they want to buy they usually go in and just inform a employee that they want the product and leave with a happy smile in their face. As for my own experience at the store I liked it very much. The employees are well trained and are very helpful they don't try to push a product down your throat and they let you decide instead of trying to force you to buy in. For example I asked an employee about which IPad model is best for a student, he presented me the different models and their features and broke down each detail of all the models and came to a conclusion of which model I should buy. I didn't buy the model that day but the way he presented it made me want to come back because he was so helpful and he didn't force me to buy the product. Now I know exactly what I want and I will be returning there In the near future.

Ch. 6 - Consumer Decision Making

                       In the cuurent world we live in it is very important for marketors to know how consumers behave and make decisions. Understanding how consumers make decisions can help a company better serve and compete in the market. When making a decision of whether to buy, not to buy, and what to buy the consumer generally follows the consumer decision-making process. This post will discuss the process regarding Apple.




There are 5 stages regarding the consumer decision-making process, they are need recognition, information search, Evaluation of alternatives, purchase, and post purchase behavior. The fisrt stage is need recognition which is the result of an imbalnace between actual and desired states. Electronics are things people want but do not necessarily need them, with advancements in technology and improved marketing strategies,  these devices make it feel and look like they are needed. Through external stimuli, such as the popularity of Apple's IPhones among peers, their recommendations, the perceived superiority of the product, and the slick design wants and needs are created. When recognizing a need or want consumers will search information regarding the product. There are many ways consumers may search for information. The information search can be external, internal, or both. An internal search is the process of recalling past information stored in the memory. On the other hand an external search is the process of seeking information in the outside environment.  When trying to make a decision of whether to buy an Apple product many consumers rely on internal information, such as a previous experience with the product. Apple consumers are very loyal. Many consumers upgrade their iPhones as soon as the next generation is out, because they have had a positive experience with the previous generation and are often anticipating the new features in the next generation as soon as they obtain the product. An example of this is the sucessful release of the iPhone 6 in 2014, many consumers were expecting new features, a bigger screen, higher and resolution, and more technological advancements such as Apple pay. Consumers were expecting these changes and it lead to the massive amounts of upgrades.

The following stages are the Evaluation of alternatives and purchase stages. After gathering inforamation and viewing the product the consumer will evaluate the internal and external information in order to decide which product is more suitable and whether or not the product should be bought. Apple's reputation of over pricing make it seem like the company is a sinking ship but in reality it does not affect the companies sales. For example consumers of Apple's iPhone focus and research more on the quality, looks, and features of the product rather than its price. A passage from Business Insider states "Apple's slowdown in growth had little to do with the price of the phone. It was that Apple was offering a 4-inch screen when Android phones at their smallest had 4.7-inch screens. Once Apple made the screen bigger, sales took off." This statement support the fact that Apple consumers were focusing more on features than price and once they are secure about their decsion the consumer makes the purchase. The final stage is the Post Purchase Behavior.
        


When buying products consumers expect certain outcomes from the purchase. How well these expectations are met determines whether the consumer is satisfied or dissatisfied with the purchase. This process is called post purchase behavior. In the past Apple was criticized by consumers for not being inovative with their iPhone 5 and 5s line, many consumers were disappointed and the company's glorious reputation was in jeopardy. Apple made a huge bounce back with the release of the iPhone 6 resulting in a hike in sales and many consumers, including my self are satisfied with the purchase of the product.

The following video shows how Apple introduced the iPhone 6 and in my opinion this strategy helped the company's consumer decision making process in a positive way.

Ch. 5 - Developing a Global Vision

 Over the years Apple Inc. has gone from being an American based company to becoming a multinational giant. Apple has become a multinational corporation, a multinational corporation is company that is heavily engaged in international trade, beyond exporting and importing. I will discuss how Apple has grown into a Multinational company and how the company has impacted the international market.

 

 Interbrand(the world's leading brand consultancy) announced that Apple is the world's most valuable brand. As of May 2013, Apple is one of the worlds leading companies. Apple maintains 408 retail stores in fourteen countries, sells all of its products online and participates in worldwide tours to promote its products. Apple also participates in the international market by having many of its products manufactured outside the US. A huge example is how China is one of Apples largest international manufacturers. Despite the efforts Apple has made to compete internationally with other colossal technological companies, Apple still suffers negative drawbacks. The number of Apple retail stores in foreign countries is relatively small for such a well known company with competitively priced products. Unfortunately, Apple's global market in developed regions was very uncertain up until recently because of its pricey products. High prices have caused Apple to struggle in the past to compete with foreign competitors efficiently. Today, acknowledging the importance and benefits of globalization, and in an effort to penetrate the more determined international markets, Apple improved its global vision by implementing new global marketing strategies.

 

The graph above shows how apple impacted the international market in 2011. In 2013 the company started producing its products with cheaper material allowing the products to be sold at lower price. An example of this is the introduction of the iPhone 5c the iPhone 5c was sold at a much lower price than previous models. This allowed Apple to sell the product internationally and have a bigger impact on the international market. In 2014 the company manufactured its successful iPhone 6 with cheaper and lighter material, despite the high prices the company was able to profit due to the introduction of the more affordable material and people were willing to pay the price. This move allows apple to manufacture at a higher rate in the international market and it adds to its international improvements as  multinational corporation.

Apple has had it's difficulties expanding as a multinational corporation, but new innovation and marketing strategies has helped the prestigious brand to expand into the international market.