Business Marketing

Now a days the marketing world is too large and too competative to tackle it head on on you're own. Having high friends in good places can mutualy pay off. When in business it is wise to consider business marketing as much or if not more then consumer marketing depending on what you're product and services are. Business marketing differes from consumer marketing by the fact that it is marketing to individuals and organizations for purposes other then personal consumption.

An example of this can be called a stratigic alliece, this is a cooperative agreement between firms. Such as an agreement Apple has with Sony. Both being electronic giants. Sony has a major record label and Apple has a music media store/player called Itunes. Sony has agreed to give Apple licensing rights over Sony's music from artist like Britany Spears and The Foo Fighters. Apple needed these rights for their Icloud service Itunes offers. Icloud lets users stream their music library to any electronics device compatible with itunes like computers, mp3 players, phones, etc without having to download them from one device to an other. This saving up to days of time depending on a users electronics. So the agreement allows Apple to stream music through their servers that they dont create. (http://crave.cnet.co.uk/software/apple-strikes-deal-with-sony-for-cloud-music-service-50003836/) In return Sony will get paid in percentages for their music being streamed and Apple has a new service to hopefully atract consumers to use Itunes and their Itunes compatible devices.

This agreement is relavent to business marketing because both companies have agreed to provide each other their services in hopes that it will provide mutual capital for both firms.

chap - 8 Segmenting and Targeting Markets

    Apple is more than just a brand, its a lifestyle, part of growing culture of consumers who are artist, musicians, writers, photographers, and most of all innovators. The firm has positioned itself as a high end brand that offers beautiful hardware designs and also an amazing user experience. Apple targets a market that consist of people from their teens to their 40's.

    The most consistent marketing strategy used by apple  has been psychographic segmentation, which appeals to a persons personality, interest, moods, and social life as well as show off the possible convinience an Apple product can have on someones life. For example Apples Ipod commercials have transformed into a mini party for the consumer. Apple tries to entertain you while presenting it's new music player by showing off the products colorful color wave as well as playing uptempo music and showing teens dancing or have the actual ipod move itself. This typicaly consisting of a young adults lifestyle.

Ch. 16 - Integrated Marketing Communications

The main goal for any company is to make a certain profit through the open market by putting a product or service out to the public in hopes that the public will consume it. The way of putting you're product out there is through promotions. A promotion is communication by  marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or response. The ultimate responce being to go out and buy that product.

Phil Schiller : senior vice president of worldwide marketing at Apple Inc

Apple uses two primary methods of promotional strategies towards its public. The first being advertising. In fact Phil Schiller (senior vice president of worldwide marketing at Apple Inc) revealed that Apple spent $933 million on advertising during 2011. Meanwhile their second main method of promotional strategy being personal selling. Apple Stores are home to many young and knowledgeable sales representatives who are trained thoroughly in both product information and customer service. With the release of new products and upgrades the company produces every few months or so, it is important for sales representatives to stay abreast of the latest technologies entering the market. Walking into any Apple Store you will realize that employees are often young and most likely fall within the Generation Y or X age range. Today, technology explosion has caused people to either accept the new changes or quickly fall behind. The employees of Apple, however, grew up in this technology era so they have quickly adapted to making them the perfect retail employee.

Apple uses these promotional strategies to adapt the concept of AIDA. AIDA is an acronym that stands for attention, interest, desire, and action.

Apple gets you're attention through its websites creative graphics and global headlights mostly including a highly aticipated product or institutional advertising for the company. Take its "New" ipad campaign for example the trailer for the Ipad tries to get the consumer interest by telling you things such as "best display ever on a mobile device" or "state of the art camera lenz".

The trailer then goes on to tell you about its software features such as social network apps, stock market app, and communication methods the product in equiped with.

Apple's form of exacuting the AIDA method has apperently worked out with the third generation Ipad selling 3million units in just its first weekend. Mind you the starting price for the New Ipad was $599 at the time.

Ch. 10 - Product Concepts

As I have stated before Apple has worked to greatly seperate themselves from the pack when it comes to their products. You don't simply call an Ipod a MP3 player, or a Mac a computer. Through selective adveretising, clever names for products, and very customer frienly stores Apple is now in a league of it's own compared to most electronics companies.

To be more spacific Apple does it's homework. The companies look at the numbers, meaning sales, revenue, etc in different parts of the world. So in places where sales are lower then others the companie becomes more sales oriented while in the U.S. Apple does'nt try to persuay customers to break their loyalty from other companies any more. Instead Apple often finds itself competing with its own past products trying to sell a more current one.
Image, names, and slogans are also something that can not be over looked when looking at Apple as a whole success story. With it's traditional "I" put behind the name of most of it products Apple has helped build an identity for its products. As well as its stores that have an exclusive enviornment yet making the public feel like all of Apples products are accesable to the "average" user. Stylish, durable, and efficient. If the customer can have these concepts of any company (Apple) then it is likely to give that company his business.

Ch. 17 - Advertising and Public Relations

compare the size of this urban naighborhood add to the one in
China covering a whole bridge

easily more than 10x the size of the ad above

If you ask and American in the U.S. and a Chinese citisen in China wheather or not Apple is an agressive advertiser chances are you will get two different answers. In a previous post I mentioned how it wasn't until recent years that Apples popularity really took off in foregn countries. Apple has decided to take a more sales orientated aprouch in foreign countries like China and Spain that they would normally take in the U.S.
In the U.S. Apple has established itself as a gold standard for music players and portable laptops, however products dont sell themselves and a creative and thoughtfull ad played every other commercial break can do wonders for sales. For example compare the two Apple comercials on the side. One from 1984 and their most recent one of 2012. Both are unique in their own way and very creative. Not excactly the type you would expect from an electronic company. Instead of simply telling you about the product Apple entertains you to keep you engaged and see the whole comercial which gives them time to introduce their product to you.


Not only has Apple tried to entertain you with their products but they also have had entertainers use their products. The company understands that celeberties, movies, and music have a strong influence in our society. So what Apple has done is put their products in the middle of a movie or show used by actors and entertainers such as Brad Pitt, and Justin Timberlake. That way you let your customers favorite idols do all the talking.

Ch. 6 - Consumer Decision Making

For a company their most important aspect to research and know about is their customers, or for some starting companies customers they hope to attract. To understand how a customer behaves and and make decisions is key on selling your product.
Traditionally the first step in customers rutine to buying a product is need. Most electronics in todays world are not neccaseraly needs, however Apple products have been so accepted, and praised that someone who isn't necaseraly the biggest Apples fan might hear about how great iphones, ipods, etc are that they feel they need it for its conviniet features and to fit in among others that have Apple products.
After deciding wheather or not the product is a need customers then try to find information on the product. Their is many ways to find information now a days thanks to our civer world. Customers ask their fellow piers if they have been satisfied with a passed generation of a product by Apple or they can go directly on Apples website wich has slide shows videos and hardware specs on all their latest products. apple does a really good job on informing consumers on the their products. Take their new Itouch generation 5. I personaly can't survive without my Itouch gen 4. It not only has an informing media player but also has games, apps, retina display, etc. I wasn't sure if buying a new Itouch would be necasery until I looked it up on Apple's website and I was mind blown. They literaly have information on every little detail of the new itouch from design to software (http://www.apple.com/ipod-touch/features/). It was really helpful for me as a consumer and I decided i will go ahead and replace my current Itouch when ever I can financialy get a chance.
With that being said its obiuse the next step is the decision. After gathering information customers will waigh their options with other products. However Apple is in the unique position of being a golden standerd for certain areas. For example most people my age (16 - 24) dont say "I need an MP3 player" they say "I need a new Ipod". The satisfaction on Apple products in certain areas has become so massive it is the face of that area of consumption.
Finally a consumer will purchase a product. Fortunetly for Apple lack of purchases has not been a problem in recent years. In fact in 2010 (one of Steve Jobs last events) Apple announced that it sold 100 million products in Iphones alone (http://techcrunch.com/2011/03/02/apple-announces-100-million-iphones-15-million-ipads-sold/). Now add the 5 million record breaking sales Apple had in the first 3 days of its Iphone 5 release (http://tech.fortune.cnn.com/2012/09/24/apples-5-million-iphone-5-sales-what-analysts-are-saying/).
The last and final step in purchasing a product is called post purchase behavior. Is the customer satisfied with the product? Will they recomend it to their piers? Will it keep him/her coming back for more. I would say do to the record breaking sales of the new Iphone that customers are pretty satisfied with their products. In addition due to its large demand of the Iphone 5 many Apple stores have put up signs recomending customers to just order their Iphone online due to shortages.



People camping out for the Iphone 5 in manhattan.

Ch. 5 - Developing a Global Vision

Although an American company Apple manages to see the bigger picture in global marketing. The company has been doing very well up to recent years, infact it claims to have had a revenue of over $2000 (in millions) in just the 4th quarter of 2010. That is 30% of it's revenue! (numbers from apples official website). However Apple is ambitouse and it is making a push on it's global marketing. With stratagies like releasing its Iphone brand earlier over seas like in Europe and some places in Asia. As a result the Iphone is Apples most selling abroud product.

Apple is currently purchasing more billboards for ad's in foreign countries such as downtown Bai-jing (picture to the right). Apple has also stated that half of the the 40 new stores it opened this year were located overseas as opposed to in the U.S.A.

Apperantly the companies new marketing plans are working as Apples COF said "Apples international numbers are killer" refering to Chinas 144% growth in Mac sells this year and a 59% growth in sales in Spain. http://appleinsider.com/articles/10/07/20/apple_international_numbers_are_absolutely_killer.html