Apple Inc. is a company that produces electronic devices and software. It was founded in 1976 by Steve Jobs. Also, they develop online stores designed for the use of their electronic products. It generally serves customers having a fairly high income and interested in having an up to date technological style. Its head office is located in Infinite Loop, Cupertino, California (United States). Ethics
On the ”Spectrum of Social Responsibility”, Apple is in the ”Responsive Contributions” sector. In fact, this firm chooses case by case the stakeholders it wants to help .For instance, Apple Inc. seems paying a lot of attention to its social responsibility towards its customers and the environment. Thus, the company give much less importance to the work conditions of their employees. In 2012, it revealed that 62% of its suppliers do more than 60 hours of work per week, 32% of them do not meet the company’s safety workplace standards and 32% do not respect Apple’s hazmat management practices. Examples of social responsibility to stakeholders
A) Customers:One of Apple’s marketing strategies has always been to build a particular relationship with its customers and future customers. By working in that way, it can make them feel as they are part
of a community of proximate buyers to the company. Therefore, those recipients are more likely to stick to Apple Inc. weather than to approach a competitor. To put its social responsibility toward customers in action, Apple Inc. organizes events in which any customer can go. Among other things, the last financial results of the company, the new products, etc. are discussed with the public in those places Also, the president of the company is often present at those semi-annual meetings.
Apple is also very proud of its reduction of its environmental impact. By gaining experience in the area, the firm tends to communicate to customers its improvement regarding ecological issues. For example, in the previous years, it reduced Iphone packaging to use fewer transport than before. Also, it removed toxic substances from its factories. Those actions make customers trust the company’s actions and help the firm’s image. Target market
Oppositely from many other firms, Apple Inc. does not target only one type of market. Although their targeting idea is clear and specific, more than one type of human being is likely to choose Apple. A) Demographic Factor
Demographically, the company targets teenagers a lot. This group of age, born in the technological era, uses Ipods to listen to music, Ipads to take notes in class or Iphones to communicate with friends, for example. This is why they represent an important source of revenue. Also, Apple targets adults having a normal to high income by being present in their working sector. In the end, Ipads, for example, can stimulate children, which are the last demographic target market of Apple. B) Psychographic Factor
In a psychographic point of view, Apple targets a public interested in business. In fact, they produce nice business related advantages such as easy document opening and stock market application. Also, with the Itune store and the easy music listening application, it targets people who are interested in music. Another likely customer of Apple is the one interested in social activities and communication. In the end, its products are easy to use, but satisfy also people interested in technology. Product : Iphone 5s
Iphones are one of Apple’s most important products. They are intelligent cellular phones that can be used by anyone. Iphone 5s is the very last and most advanced generation of Iphones. Type: This item is a shopping product because it is quite expensive and consumers do not buy it every day. Also, they consider its features and benefits before buying. Core Benefit: The core benefit of the Iphone 5s is its easy communicating system, entertainment games and applications, the quality of the image and the research system.
To continue, there are other examples of core benefits , such as the camera options and the internet connection. Actual Product: The actual product is its lightness, the high quality of its materials, its look(thin, gold option), its ring tones, its ”easy to use” way, the branding and the packaging. Augmented Product: The augmented product is the customer services, the warrantee, the insurance (Apple Care, Apple Care Plus, etc) and the user’s manual. Place/Distribution
At the beginning, Apple distributed their products themselves since they principally emphasize on customer’s buying experience. However, the business slowly started to add partners to its channels of distribution, making it easier to increase their sales. The channels of distribution used by Apple are direct to consumers, retailers (both company-operated and independent) and wholesalers. Direct to consumers is used as online orders directly on the website of the company and is probably the simplest and cheapest distribution.
Apple uses company-operated retailers, known as Apple Store, principally in North America and also pretty much everywhere on the planet. It is a very good way to distribute their products since consumers have access to all the product lines of Apple, as well as personalized services and specific. Independent retailers such as WalMart, Future Shop and Bell are used to extend Apple’s products exposure to a wide range of electronic consumers. Finally, wholesalers are utilized to distribute all the products of the company to a large quantity of independent retailers. Promotion
As mentioned earlier, Apple puts a lot of its energy on the customer’s buying experience and on the relationship it has with its clients. These values of the company are related to the world’s oldest form of promotion, which is personal selling. Person-to-person presentation of products to potential buyers is an effective way of selling that Apple uses in its retail stores. For example,
when you go to the Apple Store there is always an employee that is there to help you and answer your questions. In the case of Apple, personal selling is a crucial promotional tool to reinforce “customer relationship management”. In other words, personal selling helps to acquire, maintain and grow customer relationship with the company. “Customer relationship management” is important for customer satisfaction, customer loyalty and for the value that the customer associates with your products. Another important type of promotion that Apple uses is public relations.
Everyone has probably heard of Apple’s public meetings in which it launches a new product. This type of event that Apple does attracts a huge mass of media and key influencers for the new product. It is an awesome PR strategy that creates a positive relationship with customers, employees, suppliers, the community and the general public. It also creates a buzz on the social media even before the event is held. For Apple, public relations are an indispensable way to promote its products in the hope of having strong customer demand. Price
Pricing strategy is a challenging area of marketing. In order to deliver customer value, the prices at which you sell your product must be fair in terms of the benefits it brings to the consumer. Apple differs from many companies since the prices of their products are very similar in each of their points of sale. The popularity of its products provides an opportunity for Apple to use a pricing strategy named “price maintenance”. The business founded in 1976 offers a small wholesale discount to the retailers on its products, therefore, it prevents the retailers in providing big discounts for the consumers, explaining why the prices of Apple’s products are close to one another everywhere.
Apple also maintains a “minimum advertised price” for its products, again responsible for the similar asking price in different stores. External social factors also affect the pricing decisions for the benefits of Apple. The company knows that Apple consumers attribute a high a value to their products and that they are ready to spend more money just for the brand name even though competitors offer similar products at a lower price.
An internal factor that affects the company’s pricing decisions is the marketing strategy chosen by Apple, known as “product quality leadership”. The company asks for high prices to demonstrate the quality and the performance of its products. It gives the customers the idea that the product has better features and is superior comparing to its competitors.