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."