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.