Chapter 7: Business Marketing

According to business marketing Apple as a company are what they call producers. They are producers because they are an original equipment manufacturer company or OEM. Apple is an OEM because they build and manufacture their products from parts that they get from other top electronic companies such as Samsung, NXP Semiconductors, and NVidia. Normally when Apple buys these parts to manufacture there products, joint demand is used because they have to get there products from multiple companies to form there final products and they have to purchase large amounts of volume of these items to keep up with consumer demand.

An example of a joint demand that Apple uses was for one of there latest products the iPhone 5s. For the iPhone 5s they had to order large amounts of A7 processors which they got from Samsung and M7 processors which they got from NXP Semiconductors. These two parts played a major role in the new iPhone 5s because they are supposed to both make the phone more faster, powerful, and power efficient. These two products are called component parts because they are used to make up the final product.

Apple normally tends to stay away from business marketing on the internet unless it is there own website, but recently Apple has acquired a social media analytics company "Topsy." Why? No one knows yet, but I'm sure they have big plans to use it. Who knows maybe there are planning to start using the internet more to market there products or to even improve some of there services and apps.

Chapter 8: Segmenting and Targeting Markets

Apple has various target markets around the world from kids to adults, to high income households to now low income households. They use segments to separate there target markets into different segments such as Geographic, Demographic, Psychographic and Behavioural segmentation.

When the new iPhone 5c came out Apple used a Demographic segmentation because there main goal was to focus on families with lower income who wanted an iPhone but couldn't afford the price. So they came out with this plastic, cheaper priced iPhone, which was colorful and still appealing to the masses of people.

Now even though the iPhone 5c was cheaper they still had a target market with the iPhone 5s which came out at the same time. The iPhone 5s targeted consumers with Behavioral segmentation. I say this because Apple has lots of loyal customers who want the latest and greatest new iPhone's. As a company Apple had to do their research to make sure both phones will be successful and they proved them selves right because both phones are selling everywhere and are selling better then the competition.

Chapter 11: Developing and Managing Products

For many years now Apple has been wowing consumers with their innovating ways, ex. the iPhone. Apple wanted to create different things and revolutionize industries, so they looked at the cell phone and wanted to re-invent it for everyone to enjoy it. When Apple first attempted to create the new product which would one day become the iPhone, their first choice was teaming up with Motorola to make the "Motorola Rokr." It was supposed to be a phone that would connect with iTunes and be smart. But due to the fact the phone was so slow and kept freezing, it didn't live up to Apple's standards. So it eventually was scrapped and fell off the market. Which is when they decided to make the phone entirely on there own, which they later dubbed the iPhone.

During the developing stages they failed and triumphed over competitors because they listened to consumers and gave us a product in which we wanted. A product to call people, listen to music, and browse the web. When the product was first commercialized it changed the world and how everyone looked at phones. Phones were never the same again because Apple set the new standard pretty high. The iPhone has grew a lot since it started and has matured as a product. With every new version, sales continued to grow without showing signs of slowing.

Chapter 18: Social Media and Marketing

When it comes to Apple and social media marketing apple uses a very interesting approach because even though they have a Twitter and Facebook they don't really advertise there products on these social media sites. Instead they use a technique called crowd sourcing, in which they allow the consumers to talk and spread rumors about there products and let all this information go viral globally. From all the information people spread, Apple gathers some ideas from the consumers and they attempt to implement some of these ideas into there next product to make it a better user friendly experience. Below is an illustration of anextremely exaggerated concept spread about Apple's iPhone.

Because of rumors and concepts about there products Apple receives what they call earned media which is when they don't have to pay for advertising and they just get free publicity about there upcoming or latest products.So from all of the word of mouth  and rumors spread by consumers Apple doesn't have to use paid advertisements really online. Also Apple uses it's own website as what they call owned media to spread word of it's latest products, comparisons and what they can do.

Chapter 10: Product Concepts

Apple products are specialty products because you just can't buy them anywhere, you would have to buy them in an electronics store or at the Apple Store. Apple has an extensive product mix which consists of the iPod, the iPhone, the iPad, the MacBook Pro and the iMac. 

Each of these products lines have there own product line depth because there are different variations of the products for example you have the iPod Touch, iPod Nano, or the iPod shuffle. Every year Apple does what the industry calls product modification, I say this because every year they come out with a new generation which generally is a newer design or software upgrade of the same product. Such as the iPod Nano in the figure below.

Recently Apple has made a product line extension to there iPad product line which consists already of the original iPad and the iPad Mini. There new product which they are adding to the line will be known as the iPad Air which is supposed to be a much skinnier, sleeker, and faster device than it's predecessors. 

Apple has done extremely well with branding and trademarking it's products and that is one of the reasons why they are a well known throughout the world. Apple is what we call a global brand because they have established a strong market outside of the United States.

Chapter 17: Personal Selling and Sales Management

When it comes to Apple's Personal Selling and Sales Management they tend to use customer relationship selling I say this because in every Apple store there tends to be anywhere from 30-50 employees or what they call themselves "Apple Geniuses" on the floor helping customers out with all there purchase needs, help, and wants. They also have multiple of there new products on the sales floor for all the customers to test out and if they have any questions there is always and Apple Genius near by to help teach customers how to use it, why it's such a good product and how convenient it can be in their everyday life.


There customer service is great too because they have what they call the Genius Bar which is where customers can go to discuss and get all of there problems with all Apple products resolved and if the products can't be fixed they will supply customers with alternative options to replace that item as soon as possible.



The employees are friendly and when they approach a customer they try and find out what the customer needs and wants are to meet the customers expectations. They also make the environment feel positive and welcoming to the point that you will return.

Chapter 16: Advertising, Public Relations and Sales Promotion

Apple uses product advertising for their new devices such as the new iPhone 5c. They use giant billboards and put them in places where people will notice them and will draw a lot of attention to their products. In this image and many other images of the new iPhone 5c they use pioneering advertising in this image to express that not only is this a new product but it comes in variety of colors for the customers to choose from.

Apple also uses various social media like Facebook and Twitter to help spread the word about their devices to their millions of fans. They also use their own website which promotes their latest products on the front pages of each website. But before they products are shown on their website Apple normally always holds a big press conference every year to let consumers know about their new products and the price ranges such as this one. With the new iPhone 5c they promoted this phone as a cheaper and more affordable product for people with lower income who value good products.