An Analysis of Apple's Marketing Strategy
1. Introduction
1.1 The introduction of Apple
Apple is a personal computer company founded in 1976 by Steven Jobs and Steve Wozniak. Throughout the history of personal computing, Apple has been one of the most innovative influences. In fact, some analysts say that the entire evolution of the PC can be viewed as an effort to catch up with the Apple Macintosh. In addition to inventing new technologies, Apple also has often been the first to bring sophisticated technologies to the personal computer. Apple's innovations include: Graphical user interface (GUI). First introduced in 1983 on its Lisa computer. Many components of the Macintosh GUI have become de facto standards and can be found in other operating systems, such as Microsoft Windows. Color. The Apple II, introduced in 1977, was the first personal computer to offer color monitors. Built-in networking. In 1985, Apple released a new version of the Macintosh with built-in support for networking (LocalTalk). Plug & play expansion. In 1987, the Mac II introduced a new expansion bus called NuBus that made it possible to add devices and configure them entirely with software. Quick Time. In 1991, Apple introduced QuickTime, a multi-platform standard for video, sound, and other multimedia applications. Integrated television. In 1993, Apple released the Macintosh TV, the first personal computer with built-in television and stereo CD. RISC. In 1994, Apple introduced the Power Mac, based on the PowerPC RISC microprocessor.
1.2 The introduction of Apple’s product
The Apple iPhone provides its user with the ultimate mobile device which include high quality features and stunning design concept. The iPhone is a mobile phone, a highly useable widescreen iPod with touch screen controls and a Internet communications device, all rolled into one portable device making it an outstanding smart phone. The casing is small and lightweight which measures 115mm x 61mm x 11.6mm and weighs 135 grams. The casing comes is a selection of popular colors which include a sleek black gloss look finish and a sophisticated glossy white color.
The phone comes with a huge multi touch color screen which acts as a brilliant display as well as the users input method which allows the user to control all the phones functions using the multi touch screen. The screen measures 3.5 Inches and provides a screen resolution of 320 x 480 pixels on a brilliantly colored screen. The Apple iPhone has changed the way user will use their mobile phone device and the iPhone provides the user with state of the art technology which is extremely user friendly.
The iPhone comes with a new Mac OS X based user interface which is based on the large multi touch color display. The iPhone is available in 8 Gbyte memory version. The smart phone comes with a fitted battery which provides the user with up to 16 hours worth of music playback and approximately 5 hours of talk time which includes call time, video time and Internet browsing time.
The Apple iPhone comes with a picture address book which allows the user to see a picture of their contact as well as the contacts name. The address book is easy to access from the phones main menu and the user can make a call by simply touching the contacts details on
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the multi touch screen. The user can select to mute, use the keypad, switch to speaker phone, add a call, hold a call, access contacts details or end the call all from the call menu. The phone will automatically create a favorites call list which is made up of all the most frequently made calls. The user can easily create a conference call my merging their calls together.
The user will enjoy and quick and easy input method when typing messages as the iPhone will display a touch QWERTY keyboard on the 3.5 Inch screen which is a predictive keyboard and automatically corrects typing errors. The touch keyboard provides a user friendly input method and the Apple iPhone displays the typing above the keyboard which provides a real feel typing experience for the user. The user can create text messages, multimedia messages and emails using the touch keyboard. The email service works just like the users PC, Mac or laptop email client but the iPhone email service is a mobile email service which is easy and quick to use. The email client supports POP3 and IMAP based email service which include Microsoft Exchange, AOL Mail, Apple Mac Mail, Google Email and ISP email services. The user can enjoy a real email experience on the Apple iPhone which can include graphics, images and photo attachments. The visual voicemail feature works like an email service which allows the user to select and listen to their voicemail messages in any order they desire, just like email service. The user can select the voice mail which is of most important and use the touch screen call back control to call their contact back from the voicemail screen.
The built in music player comes with touch screen music controls which allow the user to play, pause, rewind and fast forward their choice of music. The user can view their album covers on the screen and the iPhone comes with a touch screen search facility which allows the user to search by song, album, artist or play list. The multi touch screen controls and easy to create music play lists make the music player fun and simple to use.
The beautiful Apple iPhone comes with a built in camera and video feature which allows the user to capture still photographic images and moving video footage easily with their portable device. The smartphone comes with a selection of camera and video settings which will ensure the user gets the perfect effect and finish to every photograph or video captured. The advanced photo management application provides the user with everything they need to gain the perfect finish to each and every photo. The user can record and play video footage in all popular video formats. The Apple iPhone comes with easy to use touch screen video controls which include play, pause, chapter fast forward, chapter rewind and volume controls which are all displayed on the intelligent multi touch screen. The smartphone allows the user to watch their favorite TV shows and movies which makes the iPhone the perfect companion when the user has some leisure time.
The user can enjoy a real mobile Internet experience on their phone which allows the user to view all Internet sites the way they were designed to be viewed. The user can access the Safari Internet browser which comes with a zoom facility which is activated by the user simply tapping the multi touch screen. The Safari Internet browser comes with a built in Google and Yahoo, Internet search functions. The user can search the Internet on their mobile phone where ever they are, but using either Edge or WiFi. The user can connect to compatible devices using Bluetooth? wireless technology, WiFi and USB connectivity. The Apple iPhone smartphone comes with built in technology which provides the user with a fast
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and efficient portable device. The phone comes with Edge technology which provides the user with fast data transfers which are up to three times faster than GPRS. The smartphone works over a GSM quad band network which allows the user to use their Apple iPhone Worldwide. The iPhone will automatically synchronize all the users contacts from their PC, laptop, Mac or Internet service. The user can view their iPhone in either portrait or landscape mode and the intelligent built in technology will automatically change the viewing screen to suit the users requirements. The user can see the whole width of an Internet site or a photo in true landscape setting by simply turning the iPhone to landscape mode. The iPhone automatically knows when the user lifts the phone to their ear to use and will switch off the display to save the battery and prevent any touch controls being selected in error. The Apple iPhones comes with a Google map application which allows the user to view maps and satellite images on their phone. The maps application can provide the user with directions, and traffic information when the user is on the move. The widgets application provides the user with helpful real time information on stock reports and provides Worldwide weather reports.
2. The current develop situation of Apple 2.1 The competitive advantage of iphone
First is innovation. Apple store successfully deal the use of related products, bug collection, ideas and opinions. For example, Apple user can log in apple store directly to see how to use iMovie, to see the tips other people use, and download the related products. Undoubtedly, this perfect replaced phone calls and complaints, let users really feel the joy of Apple family. At the same time, apple's software engineers are busy with the development of new software, new plug-in, allows users to download and use. Apple store will also release some interesting news, whether original or collected, can quickly share to the user. Apple's customer loyalty increase rapidly, and such design is not popular in the domestic market. Second is customer loyalty. Any design of Apple are carefully considered, even the packing can let a person feel content. From the neatly wrapped power cord to the smooth lining design, each step to open the packaging is enjoyable. Apple is very consistent in each customer contact. From new product launch to apple's web site, and the product itself. This brand gives person the sense with neat and organized. In the high-tech industry, it is a pleasure feeling.
Third is the differentiation. Even if the company use of traditional channels and media promotion, it will also be in unexpected places with a special way. Former apple senior marketing personnel Steve Chazin said, Apple iPhone attached little white earphones are using white is not accidental. Chazin wrote in his e-book Marketing Apple, The white iPhone earphones was not designed by the engineer, this is pure apple's marketing tactics. Because when people listening to the music through iphone, the only visible part is the white earphones, which makes the white headphones has become a symbol of a trendy fashion. Apple is not simple to packaging products very beautiful or giving it a perfect logo. It is unique in its unexpected places, in unusual ways to distinguish from the others, and will not affect the customer experience to enjoy.
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2.2The problem in development process (1) Less product variety
Compared with Several traditional mobile phone manufacturers such as Nokia, Motorola, Sony Ericsson etc. Numerous years only launch few mobile phone. Apple’s quantity and the market share is always lower than rising star Google which only produce software and systems.
(2) Maintenance is expensive
Because Apple uses relatively new design, make the products more artistic sense, but the trouble is that relative to other products, Apple's products are more easily damaged, including mobile phone, computer and other electronic products. and because of the material and the cost of maintenance, repair Apple products also means high cost, this is that many consumers complain about. Many users reflect, although Apple authorized service point more formal, price transparency, security maintenance quality, but the price is too high, the customer is difficult to accept. Consumers said the apple authorized pits, as long as it is beyond the scope of the warranty parts, basic price it is hundreds of yuan, such as screen 1000 yuan, batteries 580, home button, 800-1000 yuan. If the touch screen is broken, the average price of maintenance is more than one thousand, is equivalent to a third the price of the machine. Apple authorized service providers explain, because apple products button is with the motherboard together, change the keyboard need to change the mainboard, so the price is more expensive. (3) Marketing channel is not clear
Because of dependence of operators, phone market is divided into operators to customize the way and open pipelines. Among them, operators to customize is more popular in foreign countries. On the contrary, in China, the main sales channel is the open pipelines and operators only represent a small fraction. According to the communication data, in 2008, the sales of customized cell phones by China Mobile only represents 17% in the total sales, but, with the evolution of market and the improvement of 3G, I believe that the proportion will be bigger and bigger. Apple mobile products have two independent distributors in China, they are China unicom and China mobile. Also is their product assigns the business agent in China. The products of two parts will be exclusive, if they give a product to the China unicom, the product cannot be given to the China mobile any more and vice versa. Now the two companies separately represents a number of cell phones of Apple. The sales of network coverage throughout all the retail stores in townships,cities and country.The two company are also the national agency of Nokia, Samsung, LG, HTC etc.. The distribution capability is always in front rank, the two company have their own characteristics, they are running neck and neck.Certainly, iPhone products to market involved choosing one agency from these two agencies. About 83 massive retailer have direct delivery agreement with Apple, and according the agreement, they have right to direct delivery, so they enjoy the price advantage and marketing support. Meanwhile, Apple demands for its quality constantly overweight. The customer is not exclusive to each other, basically cannot be talked about the channel selection issue. There are about 3850 main standard retail stores that Apple company representative can visit everyday. According different product to the market, the Apple company need to choose a proper retail channel.
3. The marketing strategy of Apple
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3.1The advantage of hunger marketing
Hunger marketing \control of supply and demand, Create the illusion of demand exceeds supply , maintain high sale price and profit margins. Hunger marketing is by adjusting the quantity of supply and demand at both ends to influence the terminal price, to achieve the objective of add price. Apple's product marketing is not simply a hunger marketing, But the hunger marketing segmentation. First they just tell the market, after a very long time almost no news. When the market is desperate to get information through a variety of ways, they give a brief description of the product. Until the product is officially listed, you will see the advertisement through a variety of ways. This extreme contrast will let consumers have great interest and buying impulse on Apple products suddenly. When iPhone display can also hide icon on the phone's screen, not only created the mystique, but also unceasingly raised speculation what new feature hide behind it. It successfully solved the problem of the less products of Apple, although it less products, it’s still one of the most popular consumption target of consumer.
3.2The Strictly control of the after sale department
The service is very reliable in Apple counter . but many buyers in order to buy apple products more cheaper. Ignoring the warranty, or choose the smuggled goods or purchased from non official channels. When the product broken, they must face the expensive maintenance cost. In order to reduce the impression of Apple’s expensive maintenance cost in the customers mind. We need to do these two point:
1、Advises consumers to buy products from the formal channels，improve the quality of after-sales service， if appear the natural problem during the guarantee period we will change another new one.
2、Manage the after sale service, and resolutely forbidden use something old to the new one, and do not accept the smuggled goods, repair and renovation one, provide the regular customers more service, reduce the cost of repair. Changing the expensive maintenance cost problem of smart phone fundamentally.
3.3 The right marketing channel
There are two types of customers in the retail customer choice, DKR and KR. Because of DKR belongs to the direct supply system, and with its perfect management. Apple has a special customer group tracking, the ability of digest is strong, accounted for about 30%of Open market sales, Is the main channel of iPhone products list. Although KR customers accounted for 70% of open market channels, the number and type of customer is big, the distribution of sales is uneven. For high-end mobile phone emphasis in social networks we should have to choice and abandon. The selection of channel will decide by the sales department 3 days before the products listed.
Two weeks before listed ,after finish feedback the general manager will along other sales planning transfer to channel、retail、market、finance department to prepare perform. At the same time the market department to do the ads section、POSM and gifts distribution.
3.4The strategy of operator
3.4.1The mobile internet strategy with Unicom
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Analysis of the mechanism Morgan Stanley believes that mobile Internet operators of broadband network have the most development potential in the few days; based on mobile Internet operators in the 3G era of China Unicom put forward their own marketing strategy: Network first
Mature quality of the WCDMA network of China Unicom is the basis and guarantee of effective development of all business, in September 2009, China Unicom has launched the international roaming of WCDMA network in215 countries and regions, covering up to 335 of domestic 3G network.. Terminal next
The multimedia intelligent of mobile phone applications is beneficial to protect the 3G network application and profitability Rule maker
Telecom operators have the right to control the mobile internet passageway. It’s the important marker in the mode of operation of the wireless terminal The application is king
The app store of China Union is under construction, network operators can also provide the content, which is the core competition of the mobile Internet. Based on the application from huge customer base is also the key of competition. At the same time, it’s a new profit growth point in the data service Online charging system
This application will be more and more in the mobile internet era, and the concept of mobile wallet has been accepted by more and more customers.
3.4.2The win-win wireless internet marketing strategy with Unicom
The operator's network and terminal manufacturers products is the basic for customers enjoy the good service and experience. The good cooperation between them can enhance the consumer experience to meet the user needs to improve customer satisfaction and loyalty. Apple’s products are favorable to meet the strategy requirements of China Unicom in the mobile Internet, also the competitor of other operator terminal products. The brand appeal of Apple gives good catalysis for China Union to gain greater scope of terminal customers. In addition, Apple not only a mobile terminal hardware manufacturers, but also a wireless network provider. Over the years Apple formed a good strategic partnership with China Union. In this market environment, give Apple products actively bundling policy support, also the need of their own development. There are mainly two kinds of operators bundling policy, one is a depth of customization, the other is the common customization.
3.4.3The steps of customs made and bundled operation
（1）Companies carrier communication about customization 6 months before listed, to determine whether participate in depth of customization 1 month before listed.
(2)If participate in the depth of customization, need to determine the quarterly sales forecasts. On one hand is to determine the customized version and ordinary version of the sale account. It’s good for factory to prepare materials and produce the product flexible. On the other hand it’s good for sales and market department do the different sales plan and market supporting plan.
(3) Operators and China Unicom will determine a good binding policy 1 month before listed
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and decide released the cooperation bundled individually or jointly.
(4)Make operator channel marketing support program and channel planning1 month before listed. If entering the hall, how many POSM counters and hardware support does it need. If it needs promotion personnel or incentive measures of operator, etc.
4. The revelation to our IT industry
4.1 Think highly of our consumers
Through the analysis of the case of the Apple, the domestic enterprises should pay attention to the feelings of consumers, if this generation of products is a problem consumers are repeatedly mentioned, in the next generation of products will be repaired and reinforced swelling. For example, iPhone4 mobile phone released in 2010, due to the design problems of antenna , produce a signal problem, after the reaction of consumers the next generation iPhone4s has already been repaired. This is the domestic enterprises need to learn especially, through consumer feedback, make the products more consumer satisfaction, it can seize the consumer psychology, to win the favor of consumers.
4.2 Pay attention to the individuation and differentiation
Many domestic companies are not pay attention to the individuation and differentiation of the products, which leads many products on the market are more or less the same, lose their own characteristics. For now the era of the pursuit of personality, products no characteristic can not interest consumers, therefore the domestic enterprises in produce products, need to pay more attention to the individuation and differentiation. The mobile phone of Nokia in China because of the kind of products is too much, differentiation is too small, so gradually is not liked by consumers, sales continue reducing, it’s the enterprise do not pay attention to the individuation and differentiation that cause the results, The glorious past without insisting on sustainable development, or will be eliminated by the society. 4.3 Magnify the advantage
In fact, the domestic enterprises have their own advantages, domestic enterprises need to know how to play their own advantage. Due to domestic enterprises can easily through the familiar way to communicate with other suppliers and purchasing, so you can get a lower cost, it is a big advantage compared with foreign enterprises, a lower cost means more profit space and development depth. Combined with domestic enterprises to know more about Chinese consumption habits and have the propaganda ways close to customers, to obtain the recognition of consumers.
4.4 The choice of marketing strategy
Due to domestic enterprises and distributors know more about each other, on the one hand, can obtain more flexible way to management, on the other hand can through the distributors to open markets. Can use point to instead of the surface to develop the product sales area, while avoiding some Logistics problems because of different regions. Because of the foreign companies do not familiar with the domestic market, so choosing channels may have some errors, or big distributors to control small distributors. Although channels is very important, the force few points is the focus of domestic enterprises need to learn.
5. Conclusion
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Through the above analysis, the domestic enterprises need to learn: focus on the customer and cost; provide special service for the customer; open cooperation and service and make profit sharing plan. Today's market situation make the enterprise managers think about how to deal with, subtraction is an appropriate choice, lose those design not of much value to the customer, lose those factors influence consumer making decision , especially to lose those product increase the enterprise cost and is difficult to obtain profit. Regression of customer value to think is worth to advocate and adhere to the principle, in an inflationary environment, learn subtraction marketing, and make it as a corporate strategy to treat, can help enterprises understand the change of customer value and to make the solution.
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