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.