Ch. 4 - The Marketing Environment

Apple Inc. has been a leading innovator in the cellphone industry for the past decade. Earlier this year, Apple sold its billionth iPhone. Apple has a vast target market. It includes everyone from teenagers to Generation X, in its target market. Its iMessage emojis to iTunes service to more sophisticated, yet easy to use apps such as GarageBand and iMovie are all example of Apple’s component lifestyles products. Apple has a product for everyone from a teenager to a college student and from a businessman to a musician.

                In the recent years, Apple’s marketing environment focus has been on technological factors. Apple has been heavily investing in Research and Development. This year, so far it has already invested 10 billion dollars in R&D. Apple strive for innovation as its slogan says, “Think Different”. Apple’s recent risk of the removal of headphone jack is another example of its focus on technological innovation. Apple is also slowly trying to drive us away from our traditional laptops to its new iPad pro. Apple’s new ad “What’s a computer?” evident apple’s long-term marketing strategy with its iPad pro tablets

Ch. 18- Social Media and Marketing

Apple is the world's largest information technology company by revenue and the world's second-largest mobile phone manufacturer. But, has yet to open an official company account on any social networking sites. Apple doesn’t use social media marketing as extensively as its competitors.

            Unlike its competitors, they also do not use social media to introduce their new products. Apple have tendency to keep secret about their products until launch. Instead of using social media, Apple tend to drive consumers towards their interactive company website, www.apple.com . On their website, along with buying its products one can find anything and everything- from their product launch event videos to every detail about their product. One can also chat with apple specialists to resolve any issues.

            Although Apple Inc. doesn’t have any official account with @apple domain, it is present on the social media through its CEO Tim Cook and its other flagship services such as Apple Store, Beats and Apple Music. In 2015, they also started a twitter account, Apple Support (@applesupport) with focus towards improving customer experience. Apple Support share tips and tricks for Apple users as well as answer product and support questions. Even though Apple invest very minimal in social media marketing, its loyal customers helps comprehensively in marketing. We all have at least one friend or follow at least one page that will have posted about the upcoming iPhone 7 by now. Apple benefits a lot from third-party marketing carried through their customers and other Tech gurus and websites dedicated to Apple News such as, 9to5mac.com.

Ch. 2 - Strategic Planning for Competitive Advantage

Apple is the world's largest information technology company by revenue and the world's second-largest mobile phone manufacturer. Apple’s mobile phone, iPhone has taken the world by storm through its amazing iOS operating system along with its incredible design, since 2007. It was the first truly called “smart phone”. Having established a strong brand value, Apple iPhone still has a strong ongoing influence in the smartphone industry. Here is the SWOT analysis of Apple iPhone.

All generation of iPhones upto iPhone 6.

Strengths

• Brand Loyalty: An Apple loyal customer will proudly proclaim in front of the whole world that he is an ‘APPLE guy’ and will have an extensive debate with you, just to prove that Apple is better than Samsung. Apple’s customers are so loyal that they sold out the entire unit of their least innovative smartphone, iPhone 7 plus, in just 20 minutes from its pre-order inaugural. The brand loyalty of Apple iPhone user can be compared with that of Harley Davidson brand loyalists. Just like the HOGs, Apple customers proclaim themselves as proud iPhone owners. 
• Wide Developer Network: Google play came long after the Apple developer network. Before Google play or android even started, Apple had thousands of applications and games made and maintained through its developer’s network. Apple developer community is one of the strongest online community till date.
• Incredible Design: Thanks to Jonathan Ive, who was able to put Steve Jobs vision onto papers and create unique looking iPhone and also other various Apple products. Apple’s amazing design has been a driving force for many of the smartphone users to switch to iPhone.

Weaknesses 

• High Price: Apple’s products are expensive. Compared to their closest and biggest rival Samsung, iPhones charges its customers more for the same features. Due to increasing pressure from its competitors, Apple has now started to offer financing options and also phone upgrade options.
• Restrictions: There are many unnecessary restrictions on iPhones. There is no option for expandable memory, also the battery is non-removable. With such a high priced phone, customers expect more liberty. It also has restriction on choice. Unlike Samsung, they only have one option for mobile phone. iPhone lacks variety.

Opportunities  

• Market Potential: Smart phones are the rage nowadays and the market has no signs of getting any smaller in near future. With billions of smartphones users worldwide, Apple has great prospect to expand their market in satisfying their demand. There is plenty of market left to be covered in Asia. Also, People around the world are getting more and more depended on their phones for everything and Apple has an opportunity to fulfill their wants.

Threats 

• Android: The single biggest threat to Apple’s iPhone is the Android operating system. Google has taken the world by storm with its mobile operating system and android is poised to grow even further because it is free for all and an open-source OS.
• Samsung: Another threat to Apple’s iPhone is Samsung. With it’s large arsenal of mobile phones coming in all shapes, size and price, Samsung has made it convenient for lot of people. Samsung had really shown the world the power of android phones and has also brought android OS in cameras as well. Samsung is Apple’s biggest competitor with almost 21% of market share in mobile phones industry, as compared to Apple at second place with 10%.

Ch. 1 - Overview of Marketing (Brief History and Mission Statement)

Apple Inc. is an American multinational technology company, that designs, develops, and sells consumer electronics, computer software, and online services.  Some of it’s hardware products include the iPhone smartphones, iPad tablet computer, the Mac personal computer and the Apple Watch smartwatch.

Apple founders in 1984 (from left to right):
Steve Jobs, Ronald Wayne and Steve Wozniak

          Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976, to develop and sell personal computers. It was incorporated as Apple Computer, Inc. on January 3, 1977, but was renamed as Apple Inc. on January 9, 2007, to reflect its shifted focus toward consumer electronics.

"Apple I ", Apple's first computer

          Apple’s first computer, Apple I was single-handedly designed and hand-built by Wozniak. Sold as a motherboard, Apple I went on sale in July 1976 priced at $666.66 ($2,772 in 2016 dollars, adjusted for inflation).

Apple was incorporated on January 3, 1977, without Wayne, who sold his share of the company back to Jobs and Wozniak for $800. During the first five years of operations Apple’s revenues grew exponentially, doubling about every four months. Between September 1977 and September 1980 yearly sales grew from $775,000 to $118m, an average annual growth rate of 533%.

On December 12, 1980, Apple went public at $22 per share, generating more capital than any IPO since Ford Motor Company in 1956, and instantly creating more millionaires (about 300) than any company in history.

In 1984, Apple launched the Macintosh, the first personal computer to be sold without a programming language at all. Its debut was signified by "1984", a $1.5 million television commercial directed by Ridley Scott that aired during the third quarter of Super Bowl XVIII on January 22, 1984. The commercial is now hailed as a watershed event for Apple's success and a "masterpiece".

In 1985, a struggle for power developed between Jobs and CEO John Sculley, who had been hired two years earlier. The Apple board of directors instructed Sculley to "contain" Jobs and limit his ability to launch expensive forays into untested products. Rather than submitting to Sculley's direction, Jobs attempted to oust him from his leadership role at Apple. Sculley found out that Jobs had been attempting to organize a coup and called a board meeting at which Apple's board of directors sided with Sculley and removed Jobs from his managerial duties. Jobs resigned from Apple and founded NeXT Inc. the same year.

In 1996, the then CEO, Gil Amelio made numerous changes at Apple, including extensive layoffs and cut costs. After numerous failed attempts to improve Mac OS, Amelio chose to purchase NeXT and its NeXTSTEP operating system. The NeXT deal was finalized on February 9, 1997, bringing Jobs back to Apple as an advisor. On July 9, 1997, Amelio was ousted by the board of directors after overseeing a three-year record-low stock price and crippling financial losses. Jobs acted as the interim CEO and began restructuring the company's product line; it was during this period that he identified the design talent of Jonathan Ive, and the pair worked collaboratively to rebuild Apple's status.

Steve Jobs introducing iMac- G3 

On August 15, 1998, Apple introduced a new all-in-one computer of the Macintosh family: the iMac G3. The iMac design team was led by Ive, who later designed the iPod and the iPhone. The iMac featured modern technology and a unique design, and sold almost 800,000 units in its first five months.

During his keynote speech at the Macworld Expo on January 9, 2007, Jobs announced that Apple Computer, Inc. would thereafter be known as "Apple Inc.", because the company had shifted its emphasis from computers to consumer electronics. This event also saw the announcement of the iPhone and the Apple TV. The following day, Apple's shares hit $97.80, an all-time high at that point. Apple achieved widespread success with its iPhone, iPod Touch and iPad products, which introduced innovations in mobile phone, portable music players and personal computers respectively.

Apple's current mission statement is “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 has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad."

         Apple has also used many other different catchy slogans in the past. Apple's first slogan, "Byte into an Apple", was coined in the late 1970s. From 1997 to 2002, the slogan "Think Different" was used in advertising campaigns, and is still closely associated with Apple. Apple also has slogans for specific product lines — for example, "iThink, therefore iMac" was used in 1998 to promote the iMac, and "Say hello to iPhone" has been used in iPhone advertisements. "Hello" was also used to introduce the original Macintosh, iMac ("hello again"), and iPod.