Ch. 8 - Segmenting and Targeting Markets

Apple is a company who has a reputation of success In the market, how do they do it? Part of that success has to do with how Apple Segments and Targets its markets. As we all know without segmenting and targeting a particular market it is impossible for a company to succeed because  the company would not know what are the needs, desires and interests of that market, also the company would not know the cultural preferences, the demographics, the beliefs and so on of that particular market.


In order for Apple to meet the needs of its target markets, it has to first successfully divide the specific market into meaningful, relatively similar and identifiable segments or groups. One of the strategies that Apple is using to segment its markets is referred as geographic segmentation. Apple, in the USA, locates its retail stores based on the population and the density of each state. For example, in  California, the most populated state in the US, Apple currently hosts 52 retail stores, whereas in less populated states such as Maine, Apple hosts as little as one store.


Two additional strategies that Apple uses to further segment its markets are known as demographic and psychographic segmentation. Demographic segmentation is of great importance for a company because it targets groups of people based on their age, gender, income, ethnic background and family life cycle. Every segment of this subgroup has different interests and needs which poses great challenges for Apple's marketing managers to effectively create a marketing mix that meets the needs of this segment.  But, it is the psychographic segmentation that is based on the personality, motives and lifestyles of a group that paves the road of success for Apple. Apple, is known for its efforts in creating stylish, elegant and upscale products, such as the elegant and thin iPhone 6, which besides having a large variety of features satisfying every personality regardless of its motives or needs. It also allows the user to access more powerful apps and allows the user to do more work play more games due to the newly inserted A8 Chip and 64-bit processor which allows the device to perform much better. Apple in this segmentation is trying to appeal to low or high income groups, teens, adults and baby boomers and ultimately improve every lifestyle, no matter its diversity.


According to an article on CBS news the new features and design has expanded Apple's target market to the more "professional users and Phablet users". This means that due to the bigger screen, new design and features on the iPhone 6 the company has now added the target market of big screen and technology loving users, users that were stuck with competitor Samsung because of the bigger screens, designs, and technology of their Samsung galaxy S smartphones.

Ch. 15- Marketing Communications

  Apple's marketing communication has abroad with knowledge and enticing customers every time. Apple's communication is intriguing, simple, clear and clever. Their strategy is broadcasting in TV ads, in print ads, billboard ads, and online ads to attract customers. Its communication process within all Apple's promotion mix; advertising, public relation and encoding the message of Apple's mission has helped boosts sales, but enhances the brand value as well.





 Apple's promotion strategy begins by introducing their new products to a group of people in conferences and then advertising through ads. Apple's promotional goals are to bring more customers and increase sales by promotions, discounts and much more. Also the AIDA ( Attention, Interest, Desire, Action) concept is used by Apple in their strategy plan. As we all know the only way many people find out about new products are through Advertisements and sometimes a firm cannot reach their sales goals if their target market is not aware of the good or service that exists. Apple uses mass communications as one of its communication strategies to create AIDA, what is mass communications? Mass communications is the communication of a concept or message to a large audience.


 





 When Apple introduced the iPhone 6, Apple had to advertise and promote it extensively through ads on TV, news papers, billboards and on the internet to create attention (A) and awareness for the new product. After the target market was aware of the product it was time to create interest ( I ), it was by demonstrating to the public the products features on hands in Apple's stores, videos on you tube and  through authorized phone retailing companies like AT&T.  Apple faces competition based of desire (D)on other brands. They need to convince potential customers that iPhone 6 is the best solution to meet their desires by adding special features such as, extended-life battery, photo-video storage and HD video and camera, touch id scan, Apple pay, a built in monitor that keeps track of your fitness on a daily basis, A 64-bit processor along with the A8 Chip for better performance  and other features. As a result of convincing the target market to choose Apple's iPhone 6 the most important part was Action (A) to purchase the item, Apple continued advertising to communicate the features and benefits with the use of promotions, personal selling and channels like radio, news papers, you tube, and TV and the strategies have worked to perfection. The company made billions of dollars in revenue In 2014 and continues to profit to this day. The two videos below are Apple's advertisements on the new apple watch and the features of the IPhone 6.

 

Ch. 10 - Product Concepts

 In order for a marketer to create a marketing mix the first thing they need is a product. According to the book, consumer product can be divided into four types: convenience product, shopping product, specialty product, and unsought product. An Apple product can be classified as shopping product because is usually more expensive than a convenience product and is found in fewer stores. The basic product concepts for the company are “think different”, it means the company innovates new way to do old things or do new things that have never been done before, for example, the company's Iphone product fully interprets that idea. Before the Iphone was introduced, nobody had any idea about what is a smart phone and nobody thought about to putting an operating system into a phone until Apple did it. Steve Jobs said "the best technology is invisible - things work like magic".






Apple has different product mixes such as Iphone, Ipad, Mac, Ipod, Itv, MacBook and Itunes, and Iwatch and there are several product items under each product line, for example, right now the company is offering several types of Ipad. The most recent one is the Ipad Air 2, Ipad Mini 3, Ipad Air , Ipad Mini with retina display, the regular Ipad mini and Ipad 2. Every product targets to different group of consumers to attract them with different preferences, to increase sales and profits. The company’s product quality, functional, and style modification are changing frequently in order to respond to changes in the environment and increase the advantages in market competition. Beside the company’s major products, Apple also sells convenience products such as their white headphones, Ipad and Iphone cases, Mac laptop keyboard casing to place over your keypads, case to store your phone,ipod and Ipad touch as you exercise.

            Planned obsolescence is always a change in Apple products as they come out with new forms of technology. The Iphone 4s is now obsolete because the product its in its decline state of its life cycle. The reasons for this are that Apple has advanced with new technology on newer models like the Iphone 6 and have other generations like the Iphone 5s, and 5c. The same decline Is happening to the Iphone 5 due to the fact that soon it would not be compatible with Apple constantly improving its software and the products features. One thing is for certain Apple's Product Concepts are one the reasons why the company has become so successful a success that has made Apple surpass companies like Exxon mobile as one of the most valuable companies in the world.

Ch. 17- Personal Selling and Sales Management

 Personal selling and sales management are a very important part of a companies success especially Apple. Sales promotions are part of important strategies to increase sales. Unfortunately for the consumers, Apple doesn’t offer many promotions even though recently the company unlocked certain Apps for free. However, maybe Apple is right to choose not to focus on promotions because they can still sell their products pretty well without using aggressive promotional campaigns. This is the difference between Apple’s market and other competitors.

According to the text personal selling has several advatanges that other forms of promotion don't  have for example: Personal selling provides a detailed explanation or demonstration of the product,the sales message can be varied according to the motivations and interests of each customer, Personal selling can be directed only to qualified prospects, and Personal selling costs can be controlled by adjusting the size of the sales force in one-person increments. Also Personal selling is considerably more effective than other forms of promotion in obtaining a sale and gaining a satisfied customer.
 

 

 Although Apple does not focus on promotions, the company cares and focuses more on personal selling. One of the reasons why Apple has a lot of loyal customers is because the company understands the importance of building a relationship with its customers. The company's Apple Stores are home to many young and knowledgeable sales representatives who are trained thoroughly in both product information and customer service. They are salespersons, but they are unlike traditional salespersons. They don’t attempt to persuade the consumers to buy its products. The primary job for these sales representatives is to answer and help the customers with any questions or corncerns they have. Walking into any Apple Store will reveal that employees are often young and friendly. When the company releases new products and upgrades these sales representatives are able to assist customers to make purchasing decisions. Today, the explosion techonology has caused people to either accept the new changes or quickly fall behind. For those who fall behind, these sale representatives are able to help them catch up. Apple uses one of many techniques called relationship selling which is a sales practice that involves, building, maintaining and enhancing interactions with customers in order to develop long term satisfaction. A perfect example of this is the Apple store sales associates themselves and how they interact with customers which is one the reasons behind their success. According to Forbes Apple representive use specific sales steps to make a consumer buy an A product specifically the Iphone and at the same time make the customer happy these steps are:

Step 1: Approach with a personalized, warm welcome.

Step 2: Probe politely to understand all the customer’s needs.

Step 3. Present a solution for the customer to take home today.

Step 4. Listen for and resolve issues or concerns.


Step 5. End with a fond farewell and invitation to return.

Sales promotions are not Apple's strength but the Personal Selling techniques along with other Marketing Strategies the company uses add to the reasons why Apple is one of the top Brands in the world.