Segmentation and Targeting markets

Apple does not have a target market but they have specific products that accommodate the needs of certain demographics.

The ipod nano cater to people of all ages, gender and lifestyles but the affordability and the portability of the product makes it appealing to those of a younger age. 

The iphone is applicable to all demographic groups but it caters to the needs of mature by having phone functionality and diverse applications that cater to the business people to the social butterflies. 

The ipad is again applicable to all demographics but its big screen and specialty for reading caters to the needs of all people but it specially caters to those who use the Barnes and noble nook and defers them to the ipad by having more features and internet function-ability 

Steve Jobs Versus The Beatles

Chapter 11: Developing and Managing Products.

            In the Diffusion of Innovation Apple in the electronics market are the Innovators. They are always on the cutting edge of technology coming up with new concepts and ideas. Apple consumers joke around saying that if they where to buy one of their products they are going to release a better more efficient product in six months. The company seems to be obsessed with their market it is never enough for a company like apple, their approach to their products is to satisfy the need for an ideal product. Steve Jobs and his production team try to make products that they would like to see on the market. There seems to be no limit to Apple's creativity their leadership is seen in the other companies. A lot of companies seem to be playing catch up to Apple's products if they do not adapt to the new technology that apple is presenting to the market failure seems to be inevitable. For example in reaction to the iPhone 4's face time, Sprint released the HTC Evo 4G phone. This phone offers a program similar to the iPhone 4's face time but unlike the iPhone which can only do face time over a wifi connection, the HTC Evo 4 can do "face time" over a 4G network. This is an example of the Diffusion of Innovation Apple created face time and HTC created a similar function but with an alteration that the iPhone 4 does not have.

The Beatles Arrival on iTunes

On November 17 Apple and Apple corps finally came to an agreement on distributing the Beatles's music. And it seems the sensation that was behind the Beatles in the 1960's  has not died down. In the U.S sold more than 450,000 albums in their first week. They also sold over 2 million singles all around the world the albums where priced at $12.99 and singles where sold at $1.29 each. The most popular album was Abbey Road and the most popular single was George Harrison's "Here comes the sun". Apple's total revenue for last week topped 8 million dollars. Apple is taking full advantage of the Beatles by offering an app that shows people how to play Beatles songs. The app is called iVideosongs  and it is priced at $4.95. The Beatles music stands the test of time by still being a highly profitable band even though they broke up in the 70's.

Black Friday 2010

                                                                   After The Storm


 Apple seems to have won the title of Black Friday. Apple offered 5%-10% discounts on several products. Consumers that took advantage of the Black Friday madness saved $101 on Mac's including the iMac, MacBookAir, and MacBook. They also saved $41 on the iPad and iPod touch, and $21 on the new iPod Nano and all orders had free shipping. With Apple products being valued as high quality and cutting-edge consumers took advantage of the savings. There was a huge increase in sales which is a good indicator of the holiday shopping season. Sales figures where not released but the iPad and the 11-inch MacBook Air where the top selling products this black Friday. The sales rates of the Mac's where about 8.2 an hour and the iPad had a strong sale rate of 8.8 iPads sold per hour. Although times are hard all over consumers are taking advantage of the sales of the season foreshadowing great success in the upcoming Christmas season.

Customer Relationship Management

I feel like my posts have been all leading up to this blog post. What we as a class have been doing is a part of customer relationship management we all have been writing about our company of choice. Meaning that the company that we have chosen is one that we are loyal to and are willing to write about it because we have some level of admiration and loyalty to the companies. Apple is my company because they are a easy company to write about. They keep on evolving and succeeding as times go on when apple releases a new product the world knows because it is everywhere in the media and it will be a part of the media as long as they do not release a new one. They have quality products which is a great reason why they are so popular all the media attention that the products receive is deserved. Apple is portrayed as a fashion statement in the electronics market, they do not have as many apple users as they have PC users but thats another reason why its so successful its a breath of fresh air in the stale PC overruned market. Apple is in short is easy the products they make are easy to use and deliver their purpose, by providing quality products and software the consumer does not need to stray away if they don't want to. The apple consumers dont need to even buy apple products in the mix of other products because there is the apple store where everything apple is under one roof. And if anything is wrong with your apple product you can get it serviced at the genius bar where the helpful hipsters at apple repair whatever damage is there to be dealt with. Apple creates loyal customers by providing them with a quality product and quality service on top of a unique experience that separates the sheep from the flock.  

Why is apple so successful?? What is their competitive advantages in the electronics market?

First and foremost the main reason why I am blogging about this company is because of the man in the picture, Steve Jobs. Apple had a very rough start and failed many times but Jobs is one smart business man he knows how to market his products and how to accommodate them to the target market. Jobs is a marketing genius with a wide range of memorable commercials like the 1984 commercial, the Mac v.s PC commercials and the dancing silhouettes. The advertisements are catchy entertaining and they usually get good feedback from the public. Another thing about apple is the design of their products look at them be honest they are easy on the eyes they are trendy and command attention. Jobs design team strategically put the apple logo facing the prospective buyer glowing commanding attention differentiating themselves from the competition. Look at the competition in the matters of design apple products are clean understated and sophisticated on the other hand the PC's have a wide range of products but they are all similar although they all have different manufacturers, they lack the style that apple possess. Apple is also a very innovative company always steps ahead of the competition this works for and against the company because it has consumers wondering what will happen next. This is also discouraging to prospective buyers because they fear that the product would be outdated in 6months.

But the products that they put out are so close to perfect that it is worth the money. This also creates consumer loyalty because the features seem to be never ending as the company goes along. The products are a little pricey for the lower income market but it is easy to overlook the price when you are getting high quality products like Apple products. There are reasons why there are people waiting on line for insane amounts of hours for an Apple product to be released.

White Box phones take lead in global market.

White Box electronics: In computer hardware, a white box is a personal computer or server without a registered brand name. For instance, the term is applied to systems assembled by small system integrators, and to homebuilt computer systems assembled by end users from parts purchased separately at retail.  

You really don't get to see much of them in the American market but globally they are pretty common. White box handsets accounted for 33 percent of the 417 million cellphones that where shipped in the third-quarter. The white box handsets grew 35 percent from the previous quarter. The phones are mainly shipped out to countries like Africa, India, Latin America and Russia. Providing similar functions as the phones that are being copied at a lower price. Which in countries like Africa, India, ect  has alot of value because they provide the need for American products. Where in other countries "American" products are over priced. This is not a trend that will come and go as financial situations get more and more complex there will be a demand for white box electronics. 

The evolution of the iPhone

iPhone(original):Released June 29 2007, with the storage capabilities of 4gb,8gb,16gb  It cost Apple inc. 150 million dollars to develop the phone over a thirty month period. It introduced the innovative multi touch screen removing the keyboard. Having only five buttons and a chrome plated metal frame. And a 2 mega pixel camera. It was using AT&T's EDGE network. Selling 700,000 its first weekend at a hefty price of $599.00 for a 2-year contract. Apple made profits the first weekend. Time declared it the invention of the year in 2007.

iPhone 3g: Released June 9 2008, having storage capabilities of 8gb and 16gb. Made with a plastic polycarbonate casing giving the 16gb an option of white or black. The LCD screen was made scratch-proof designed for bare fingers and multiple fingers for multi-touch sensing. The camera was also 2 mega pixel without zoom, recording, flash or auto focus. The 3G ran on EDGE and 3G allowing turn by turn navigation with  maps. Selling one million units over the first weekend although the poor reviews. At a price of $299.00

iPhone 3Gs: The new features on this June 19, 2009 iPhone were mostly internal as you can see the s in 3Gs is for speed as there were complaints about the performance of the 3G. Selling 1 million units its first weekend it was a definite successor. With the storage capacity of 8gb, 16gb, 32gb. The camera is 3 mega pixel featuring auto focus, auto white balance and video recording capabilities. The iPhone 3Gs also featured voice control, Magnetometer, Color inversion, and Text zoom. Failing at the battery life and overheating complaints it was still a successful take on the iPhone. With a lower price of $199.00.

 iPhone4:  Released June 24 2010 selling 14.1 million units since then the iPhone 4 is nothing less of remarkable. With a storage capability of 16gb or 32gb running on a 3G network. With a LED lit LCD screen improving battery life and following Apple's green agenda. And it is marketed with a retina display meaning at a distance of 12 inches it produces the most detail the human retina can process. The iPhone 4 features two 5 mega pixel cameras one in the front and one in the back. The one in the front is for Face Time where people can chat face to face over Wifi connectivity. And the camera that can record HD videos in 720p with a LED flash light. The most noticeable change is the design which Johnathan Ive re-designed with chemically strengthened alluminocilicate glass covering the internal components. With a stainless steel frame that serves as an antenna. There was a problem with the antennas in the phones creating an uproar with the customers as they where loosing reception. So Apple responded with a case program that gave out free cases for customers that where loosing signal. Although there was some animosity against apple for the signal problem it was still ranked highest among smart phones in numerous electronic magazines. 

 

The rumors are appearing to be true.......

It was written on fortune magazine online on Oct 29. The dreaded Verizon iPhone is real and will be shipped early 2011. The iPhone has been configured to Verizons CDMA network. If verizon releases the iPhone on their 3G network which in theory is slower than AT&T's it would be a useless move. Because the market for 4G is growing and if Verizon does not take this into consideration it will be a factor on their downfall( I hope it happens). I am a satisfied AT&T customer of 8 years and although there is basically no difference in the service I never had any other cellphone service provider and I do not want to change. And another damaging detail in this move is that the first version of the phone will not be able to work out of the U.S. To me this is an enraging concept because look in the world we are in where everything is at your fingertips and a trip to china is as easy as around the corner. If you are purchasing a product you should be able to take it everywhere you go and it should be fully functional. The world is too small nowadays to attempt such a poor concept. I say to Verizon to get their features up to date before doing anything at all, Dont be a follower be an innovator because its survival of the fittest and in a cut throat world we live in any mistake can be damaging your company.

Week 18 Sales promotion and personal selling

          Many companies have interesting promotions to increase sales. Apple for some reason or another does not attack as aggressive as other companies. I believe that apple is very confident in their products and marketing strategies.For example Apple has an annual back to school sale where those who buy a new Mac they'll receive a free iPod touch (with electronic proof of purchase). This promotion proves to be effective as sales increase as the promotion is out. It attracts college students with a iPod, with the purchase of a Mac giving the consumer a premium. And the promotion is aimed to create consumer loyalty with gifting the consumer with a iPod making them feel the need to be loyal to the company since they have to use the computer often for school work and if they are satisfied with the product they will not wander off into another company. Apple also offers a discount for students and faculty  from 5%to 15% it is a great way to promote their products by investing on those who are getting educated and are depending on the products.

Apple Commercials.

                       Apple markets it's products follow a pulsing media schedule keeping their products relevant throughout the year and increases the number of commercial time as the seasons pass. Recently apple has revealed the new MacBook Air. It will now be advertising this http://www.youtube.com/watch?v=PbcrPCRwoiM&hd=1. It is pioneering advertising, which by showing how thin the MacBook Air is it is instilling the need for a thin MacBook Air. Apple creates advertising campaigns for every product they have out like the iPad  http://www.youtube.com/watch?v=Lpo__xhTSv8, Iphone http://www.youtube.com/watch?v=yatSAEqNL7k, ect. These commercials all prove to be successful  with the iphone4selling 14million units, and the ipad selling 3million on its first 80 days of release. Apple is known for their creative commercials from the dancing silhouettes  http://www.youtube.com/watch?v=UH5ZTvmHaIk&feature=related to the infamous Mac v.s PC comparative commercials http://www.youtube.com/watch?v=TT3_tiQZwwA. Which pointed out all the flaws of the PCs'. Apple has mass appeal they try their best to market to market to as many people as possible.

Chapter 15: The Apple Store

 

W14th st  Chelsea NY 

                Not wanting to have their products in Best Buy or Wal-Mart ( although they are sold in those stores). Apple created the Apple store, a place where apple consumers can go and buy their products, get their products serviced in the Genius Bar, play with the new technology before they buy, and provide workshops ( most are free) to the public. Apple is a fast growing company the opening of the first Apple store was in 2001. And now in 2010 there are 231 stores opened worldwide and 231 of them being in the U.S. Apple having their own store is a great idea because it provides a feeling of security knowing that the people that work there know the products and how to answer questions about them unlike a Best Buy representative. Shopping at the Apple store is an unique experience you hear the music being covered up by the crowds of people. As soon as i walked in one of the many Apple store  workers came  up to me asking if I needed help. It did not feel like i been watched diligently all over the stores making sure that I dont steal, it felt like a genuine question. The store is fully packed with enough gadgets so everyone should be able to have a turn and most of the people already have these gadgets so its open to a lot of new consumers.And there were interesting workshops that they offer on how to use the products and programs. The smell of the store smells affordable. It's a great place, you can tell there is a lot of work behind every detail in the store and no two stores look the same so its a unique experience in each store.

Week 5: Apple, the biggest company in the world??

If you said the title of this blog post out loud a decade ago you might have been recommended to a psychiatrist . Because ten years ago apple's shares where $7. But as time has gone by Apple has proved itself as one of the most innovative successful companies in the world. In the S&P 500 Exxon and Apple are neck and neck  from the top spot as the largest company by market capitalization. If apple does get to be the largest company in the world it is predicted that there will be more investors (solidifying the company) and the value of Exxon will deplete. As you can see in the chart Exxon is still #1 but if Apple reaches the 300's its just a matter of time. Apple is getting a hold of the world with its products and their innovations. The move to the top will mean that industrial companies wont be as valuable to the market .

Corporate Irresponsibility

Iowa's Hillandale farms recalled 170 million eggs in the month of august. Because they found that the eggs were tainted with salmonella. 1,000 people have been reported sick because of the eggs, and that number is expected to grow. The eggs were distributed in states such as Arkansas, California,
 Iowa, Illinois, Indiana, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Texas, and Wisconsin. It is said that the hens got the salmonella from rat droppings in their pen. And Hillandale Farms has been written up for health code violations in the past. This is a perfect example of corporate irresponsibility because the company was made aware that their Farm was not following the health code. Instead of being pro-active they ignored the warnings and now there are 1,000+ people sick with the salmonella virus and 170 million eggs are recalled.

Week 4 The Marketing Enviorment

Apple does a lot but one of the few things they don't do is market research. When asked about it Jobs stated:

“It’s not about pop culture, and it’s not about fooling people, and it’s not about convincing people that they want something they don’t. We figure out what we want. And I think we’re pretty good at having the right discipline to think through whether a lot of other people are going to want it, too. That’s what we get paid to do. So you can’t go out and ask people, you know, what’s the next big [thing.] There’s a great quote by Henry Ford, right? He said, ‘If I’d have asked my customers what they wanted, they would have told me ‘A faster horse.’’’

This is basically saying that the products that they make are not based on target audiences or demographics. Instead they focus on creating innovative products that they like and the general public would like to purchase. And you can see that Apple does not really target any specific audiences by their commercials for example 
 http://www.youtube.com/watch?v=-CWD11qqDjs as you can see as the commercial plays the people who are featured are all different. The color of the ipod and the music changes meaning that the ipod is for everyone who likes the ipod for what it is. And thats the end of the :30 sec commercial no one to trick you, no confusion just the product and what it does.

Country of manufactoring

 T-Shirt& undershirt: Made in the USA                Jeans:Made in  Mexico






Underwear& Socks: No Tag

Week 2 Strategic Planning

FACIAL RECOGNITION  

                  Apple has recently acquired Polar Rose a Swedish company that makes facial recognition software that recognizes faces and places by tagging them using complex algorithms. By apple purchasing this company it has a sustainable competitive advantage over the competition by introducing new technology that is under the apple license. Although what apple has planned for the company's software has yet to be released but the possibilities are endless.       

Week 3 ethics and social responsability

                                                                    GREEN APPLE 
      Apple was ranked the fifth most Eco-Friendly company by Greenpeace ranking 11 places higher than Microsoft. Apple focuses on every aspect of their business and makes them Eco-friendly. From production of their products and what materials they use, the way they export their products all over the world, the products that they produce are all energy efficient and high quality giving them an advantage over the competition. They offer a free recycling program where they dispose and re-use all of the materials of the products they produced. Being Eco-friendly is a good thing in all aspects it cuts down costs of production( which means more profit), it targets a growing market of environmentally conscious customers and their need to have everything that they posses to be harmless towards the environment. And when the world ends because of global warming no one will point the finger at apple because they where Eco- friendly. All joking aside Eco- friendly is a trend that all companies are going to be heading to sooner or later. By Apple being one of the leaders so soon it will keep the company relevant and innovative as time goes on. For a detailed description of Apple's Green movement go to http://www.apple.com/environment/

Week 2 Strategic planning

Iphone 4 case program. 
After receiving many complaints about the iPhone4 and loss of signal Apple provided a program to satisfy customers and their complaints. By giving its customers free cases that take care of the loss of signal. Sadly the program ends September 30 2010. Because Apple realized that only a small percentage of users really needed the case. If someone purchases the iPhone4 after the the case program is up they can still get it they would have to complain to AppleCare and they'll receive their case for free. This is a strategic move on Apple's part because it detected a flaw in their product and they provided a free solution. Giving those who where unsure about purchasing the iPhone4 security that the product will be fully functional when purchased. And the fact that the free case program will be up by September 30 it will give an incentive for those who appreciate free stuff to get it before the program ends.

Apple inc mission statement

                                                                      Mission Statement
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market this year with its revolutionary iPhone.

Apple Inc, Introduction & Overview.

Apple Computer Inc. was established on April 1 1976 in Cupertino,California by Steve Jobs, Steve Wozniak and Ronald Wayne. To sell the Apple I a hand-built motherboard  with CPU, RAM and textual video chips.The Apple I went on sale July 1976 and was priced at $666.66. Apple got incorporated  January,3 1977, and Wayne sold his share of the company to Jobs and Wozniak for $800. 
The Apple II was released on April 16, 1977 it was innovative at the time for having color graphics and open architecture. Which gave it the advantage against the competition, while early models used cassette tapes as storage devices, they where made obsolete by the introduction of the 5 1/4 inch floppy disk drive.
The Apple II was chosen to be the desktop platform for the first "killer app" of the business world it was the VisiCalc spreadsheet program it created a business market for apple it helped the slow sales of the Apple II when it was released. By the end of the 1970s, Apple had a staff of computer designers and a production line. The company produced the Apple III in May 1980 to compete with IBM and Microsoft in the business and corporate market but it could not hold its own against the competition. In December 1980, Apple launched the initial public offering of its stock to the investing public. And when Apple went public, it generated more capital than any initial public offering since Ford Motor Company in 1956 and instantly created more millionaires than any other company in history. In 1984 Apple introduced Macintosh and made pop culture history with it's infamous 1984 Superbowl commercial  http://www.youtube.com/watch?v=OYecfV3ubP8 .It was an initial success, but because of the high price and failure to produce a wide range of software titles. But products like LaserWriter, PageMaker and its advanced graphics capabilities kept the Macintosh alive. In the eve of  the 1990's  Macintosh entered its first golden age with the introduction of  the Macintosh portable (17 lbs 12hrs of battery life) it was built to be as powerful as the desktop but because of its bulk it sold about 100,000 units. In 1991 the Powerbook (7lbs 3hrs of battery life) succeeded the Macintosh portable by selling one billion dollars worth in its first year. But as the phoenix rises from ashes it got burned back down  with the release of the Centris line which was sold in many confusing configurations and bundles to avoid competition with large consumer outlets such as (Wal-mart, Sears and Price Club). Apple tried to make up for the Centris line by branching out into different products such as Digital Cameras, CD players and TV appliances, all of which did not succeed as one would hope so. As failure came the company was looking for innovation in 1997 at the Macworld expo Jobs announced that Apple would work with Microsoft in creating Microsoft Office for Macintosh and that Microsoft also invested 150 million dollars in non-voting shares. That very same year Apple opened the Apple store a build to order manufacturing strategy with excellent customer service. On August 15 1998 Apple introduced the iMac an all in one computer that proved to be successful by selling close to 800,000 units in its first 5 months. The iMac introduced a lot of software that is still being used such as iMovie, Final Cut Pro, Shake, GarageBand and iPhoto. In 2001 Apple introduced the iPod the portable music player that we all know and love(or hate) today. A phenomenon selling 100 million units in its first six years and from the introduction of the iPod, iTunes was created a leader in digital music by selling songs for .99 cents which changed the music industry in a huge way. It was reported that iTunes reached over 5 billion downloads by 2008. In 2006 Jobs announced that Apple will begin producing Intel based computers the MacBookpro and iMac where the first apple computers to use intel core duo. From there apple put intel chips in all apple computers. And the Power Mac iBooks, and PowerBook all where succeeded by the Mac Pro, MacBook and MacBook Pro. Apple shares where improving as well going from $6 shares in the early 2000's to over $80 in 2006. In 2007 Jobs introduced the iPhone and apple TV and apple shares went over $100 dollars, six months after the release of the iPhone it was announced that apple became the third largest supplier of mobile handsets in the world. In 2009 Apple recorded its best non-holiday quarter during the recession with a revenue of $8.16 billion and a profit of $1.21 billion. In June 2010 apple released its fourth generation iPhone which introduced video calling, multitasking and uninsulated stainless steel. and in July 2010 the iPhone 4 sold over 3million units.