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.

Chapter 14: Marketing Channels and Retailing

Apple and it's Apple Store's throughout the world can be known as a direct channel because they distribute there products via there own retail stores or there online store's also known as online retailing (e-tailing). Apple also uses a multiple distribution channel because they also distribute there products to other retailers such as AT&T, Best Buy, Wal-Mart, RadioShack, and other electronic retailers. 

Apple is a well known Specialty store because they specialize in computer electronic hardware and software and offer products unlike any other on the market. The inside layout of the store is normally what they use to attract people to there store because they tend to always have it a bright clean white in the inside as if was saying everything is brand new and futuristic, come into the light and check it out for yourself.

Chapter 6: Consumer Decision Making

When it comes to Apple products vs other products most of the time "Consumer Decision Making" is fairly easy. I say this because Apple markets there products to show consumers just how beautiful, sleek, and essential, there products are in our everyday life. They try and give there consumers a different perspective and outlook on life. One of the ways they show us this is via there commercials.

Another way they keep consumers interested is by coming out with new iPhone's every year. Which they continue to better there product. Normally it's 2 new iPhone's one around Spring and one around Fall. From the last iPhone sometimes we barely even notice that big of a difference, but they aren't just pointless updated phones. Sometimes it's a newer software version like iOS7 or an even faster processor like the new A7 chip which is built inside there phones, so they can continue to say it's an even better, faster, and more reliable product than the previous model. Me as an IT person would have to agree with them because they are in fact telling the truth and even benchmarks can prove just how much faster it is from the last. Take the new iPhone 5s for example. Now this iPhone is supposed to be 40x's faster than the previous iPhone 5 which is already fast, but they promise a faster and better experience which they continue to do, which is why they remain one of the top companies in the world.

Chapter 5: Developing a Global Vision

When it comes to Apple and a global vision they originally were a hardware company based out of California. They used to have a large facility there they called the Elk Grove plant, which manufactured circuit boards and desktop computers.

The plant operated seven days a week and employed more than 1,500 people. The more popular and bigger Apple grew though they eventually started job outsourcing to cut and reduce there manufacturing cost. So rather than opening new plants in other U.S. cities, and expand it's existing operations, Apple moved it's production offshore, largely to China where the majority of there Foxconn facilities are located. They also have facilities in Brazil and Ireland.

When it comes to the marketing aspect on a global vision Apple originally opened up there first retail store on the United Stated on May 19, 2001. One in Virginia and the other in California. At first Apple was entirely focused on spreading their retail stores throughout the US. Eventually as they seen there stores becoming more and more successful they started to look into opening up stores internationally. So after about 70 stores in the US, the first international Apple Store was opened in Tokyo, Japan on the 30th of November, 2003. Japan was a main early focus for going international which is why they quickly got 5 stores by the end of 2005. Soon after though Apple shifted it's focus to Europe, specifically the UK. By 2009 more stores were being opened internationally than in the US. By the end of the 2012 fiscal year, 83% of new stores were located in international countries.

As of July 2013, Apple has 415 retail stores in 13 countries (253 US, 37 UK, 29 Canada, 20 Australia, 16 France, 14 Italy, 12 Germany, 10 Spain, 8 China, 7 Japan, 3 Switzerland, 3 Hong Kong (China), 2 Sweden, 1 Netherlands), and an online store available in 38 countries worldwide. Apple is also set to open up to 35 new retail stores by the end of 2013.

Chapter 4: The Marketing Environment

Apple's marketing environment is very interesting because they tend to target all types of users from the younger generation to the older generation. The way they do this is by showing us how simple there products are to use, what they can do, how smooth and fluid there products work as compared to other companies. Nowadays you will see kids from as young as 3 to adults as old as 100 years old using iPhones, iPods,and iPads. Why because it's simple, easy to use, it's very cool and they overall make people very happy.

When it comes to Apple people tend to have component lifestyles because people don't normally care about the price when it comes to Apple products anymore, they care about the experience, having the latest and greatest technology. They already know that when they

are buy an Apple product they know that they are buying something that is normally going to last awhile as compared to Window's PC's or Windows Phones which tend to have very short life span's before having to take it to get repaired compared to a Mac Laptop or Desktop. Apple products are build with quality, smooth edges and beautiful surfaces which attracts customers.

In edition to targeting people of all different ages and people who love to have the greatest and latest products, Apple is looking to target newer markets such as the low income people whether Whites, Blacks, Asian, or Hispanic. They know that we are still in a recession and they want to try and penetrate the low income house holds, which Android phones control that market heavily. So what better way to do it then redesigning there iPhone and making it look extremely cool by allowing you to be able to customize your own colors on your phone. Which is why they made the "iPhone 5c" (Color). So they give you the latest phone for a nice new price of just $100 for a 16gig or $200 for a 32gig, which are cool colorful looking devices that will definitely stand out and attract more customers.

Chapter 3: Ethics and Social Responsibility

Over the recent years Apple has been under much scrutiny for it's ethics and social responsibility. One of these big issues Apple was in headlines for was the safety conditions of the factory workers in China at the Foxconn plants where they make iPhones and iPads. Because of factory conditions and the way these people were being treated, some of them were committing suicide. More than 17 people committed suicide at this plant which makes these devices that we all use on a daily bases.

Since then Apple has stepped up it's efforts to create better ethical and social responsibilities by applying "The Apple Supplier Code of Conduct (PDF) which is based on standards created by the International Labor Organization, the United Nations, and the Electronic Industry Citizenship Coalition (EICC). It requires suppliers to provide safe and healthy working conditions, to use fair hiring practices, to treat their workers with dignity and respect, and to adhere to environmentally responsible practices in manufacturing. But our Code goes beyond industry standards in a number of areas, including ending involuntary labor practices and eliminating underage labor. To make sure suppliers adhere to the Code, we have an aggressive compliance-monitoring program that includes Apple-led factory audits and corrective action plans, and confirmation that these plans have been carried out." -Apple

"In 2012, Apple became the first electronics company to be admitted to the Fair Labor Association (FLA), a coalition of universities, non-governmental organizations (NGOs), and businesses committed to improving the well-being, safety, fair treatment, and respect of workers."

-Apple

Since Apple recognized all of the terrible things that have been going on in they have increased Audits on there many factories through out 14 countries with over 1.5 million employees. As you can see from the diagram they have increased the amount of Audit's in 2012 72% since 2011. 

They also perform audits in select non-production facilities, including call centers and warehouses. In addition, they conduct specialized audits focusing on areas such as the environment and safety of there works.

Apple has on there website this notice for the companies that make there products

http://www.apple.com/supplierresponsibility/

Chapter 2: Strategic Planning for Competitive Advantage

Apple Inc. is one of the world's most successful and most recognizable companies for strategic marketing and competitive advantages because they know how to innovate and adapt to the current market and satisfy peoples needs. In over its 37 years in existence, the company had seen a lot of changes in the electronic industry and has also made big changes itself that has revolutionize the computer, mobile phone, music, and movie industries. When Apple stepped into the phone industry it was slowly transforming into the smartphone revolution.

At first Apple attempted to create a phone with Motorola called the "Motorola Rokr" released in 2005 which was a complete failure. It was slow, glitchy and did not live up to the standards that Apple had already created with the iPod's. Which is why they went on to create the "iPhone" which was released in 2007, which at the time was the worlds greatest phone ever which blew everything out of the water. Everything about it was exactly what people needed and always wanted in a phone, since it combined a music player, camera, phone, internet browser, and computer all into this one little device that fit sleekly into your pocket. So since the "Motorola Rokr" failed they went back to the drawing boards and created an even better, more sophisticated device, which is now to date one of the world's most respectable phones.

In recent years Apple was faced with competition with the "iPad" from other companies like Google and Amazon which were encouraging consumers to defect from the Apple's ecosystem, because of the size and price of the iPad. Which is why Apple created the "iPad Mini", to enter the small tablet market and face the competition head on. 


This is both a defensive and offensive move for Apple. Amazon’s Kindle Fire and Google’s Nexus 7 are handsome small tablets which use Android's OS, and have a friendly $200 price tag. Apple has had no small tablet offering to date, which left them vulnerable to Amazon and Google to steal consumers in this new category. Apple no doubt sees the iPad Mini as an opportunity to attract more consumers to a broader range of tablets and further enjoy the benefits of its ecosystem. The iPad Mini is another product from Apple that will further attract and lock consumers into its growing ecosystem of products, services, and content.

Apple tends to stay ahead of the game by innovating these new ideas and wowing people. They give the people what they need and want. A device that is efficient, smooth, reliable, fast, and extremely cool.

Chapter 1: History and Mission Statement

Apple Inc., formerly Apple Computer, Inc., is a multinational corporation that creates consumer electronics, personal computers, computer software, and commercial servers, and is a digital distributor of media content. Apple's core product lines are the iPhone smart phone, iPad tablet computer, iPod portable media players, and Macintosh computer line. Founders Steve Jobs and Steve Wozniak effectively created Apple Computer on April 1, 1976, with the release of the Apple I, and incorporated the company on January 3, 1977, in Cupertino, California.

For more than two decades, Apple Computer was predominantly a manufacturer of personal computers, including the Apple II, Macintosh, and Power Mac lines, but it faced rocky sales and low market share during the 1990s. Jobs, who had been ousted from the company in 1985, returned to Apple in 1996 after his company NeXT was bought by Apple. The following year he became the company's interim CEO, which later became permanent. Jobs subsequently instilled a new corporate philosophy of recognizable products and simple design, starting with the original iMac in 1998.
With the introduction of the successful iPod music player in 2001 and iTunes Music Store in 2003, Apple established itself as a leader in the consumer electronics and media sales industries, leading it to drop "Computer" from the company's name in 2007. The company is now also known for its iOS range of smart phone, media player, and tablet computer products that began with the iPhone, followed by the iPod Touch and then iPad. As of 2012, Apple is the largest publicly traded corporation in the world by market capitalization, with an estimated value of US$626 billion as of September 2012. Apple Inc's market cap is larger than that of Google and Microsoft combined. Apple's worldwide annual revenue in 2010 totaled US$65 billion, growing to US$127.8 billion in 2011 and $156 billion in 2012.

-www.wikipedia.org

There are 3 different mission statements on the internet about Apple's Mission statement

No.1

"Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them "

No.2

"Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings."

No.3
Apple's official Mission statement as of today

"Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices."