Last Blog Post

The semester has come to an end, and I'm grateful that I've taken a marketing class, which is a subject i was always passionate about.
It's been a great learning experience where I've expanded my knowledge about marketing and about a company i knew little about before.
I earned important tools i can implement in other classes in my college career!

Dave's iPhone Sneak Peek

Week 14- Segmenting and Targeting Markets

'Apple doesn't target markets. It targets people.'

The company's consumers are a blend of different market segments all looking for the same thing Apple offers: Simple, elegant devices that will perform in a way other players in the same market don't.
In most cases, the average Apple consumer might be someone with a high income that is willing to pay extra for user experience, but that is not necessarily the case.
Apple has a wide product mix that allows different consumers to purchase its products.
Some products are more affordable than others and have different characteristic to fit different uses.
Whether you're a music lover, an email freak or just one of those who loves technology- Apple has a product for you.
When you come to think about it, Steve Jobs and his company did not invent anything new; computers, smart phones and mp3 players were there before; Apple changed the way we think and use those devices.
The market is already there waiting for a new surprise.

Happy Hanukkah!

Tomorrow will be the first day of lighting the Hanukkah candles and i already got a great gift for my iPhone..
It's called Charge Block and i simply have to plug it to my phone, turn the On switch and that will keep my iPhone charged.
Another function it has is the flash- since I haven't upgraded to the iPhone 4 I don't have any flash when i take pictures, so a tiny button on the Charge Block helps me with that.

Week 13- Developing and Managing Products

From the mouse through the click wheel and to the touch screen
Apple is all about creating and modifying new products to the world.
Many have stated that Apple=Innovation.
The company is offering a unique line of products, some are new to the world such as the iPod, iPhone and iPad.
Focusing on the original iPhone, there is never enough to say.
The first iPhone was launched in January 2007 after months of rumors and speculations.
It might seem like a completely new- to -the -world device, yet it can also be considered as a modified, improved mac.
The development of the phone took about 2 and a half years where Apple was secretly collaborating with AT&T
Steve Jobs wanted to create an easy to use phone that is smarter then any other device.
His ideas were inspired from competitors clumsy devices, and from a consumer concentrated view leading to the creation of an easy to use and multi functional phone.
A giant screen replacing a keyboard and fingers replacing the use of a mouse or a stylus
There is an Internet browser, email , ipod and access to a variety of applications
The release was an immediate success, many stores reported on a shortage within hours.
As to where we are now, the iPhone phenomenon is still going Strong with product modification such as the iPhone 4 that was released in the past year, offering new improvement such as new design, face time offering video calls, multi tasking improved camera and more.

Steve Jobs about Product Strategy

It’s not about pop culture, and it’s not about fooling people, and it’s not about convincing people that they want something they don’t. We figure out what we want. And I think we’re pretty good at having the right discipline to think through whether a lot of other people are going to want it, too. That’s what we get paid to do. So you can’t go out and ask people, you know, what’s the next big [thing.] There’s a great quote by Henry Ford, right? He said, ‘If I’d have asked my customers what they wanted, they would have told me ‘A faster horse.’’

Apple buys former HP Headquarters in Cupertino

As Apple is adding more and more new employees to its constant growing company, the computer maker has purchased a 98 acre land that will almost double its home base size in Cupertino California.
The purchase will make Apple the largest land owner in the city.
Apple has added 12,300 employees in the past year which makes the total global force 46,600.
That rising amount of new team members being hired might be the reason Apple needs the site, but no one is sure what exactly will be done with the large piece of land they now own.

Apple Black Friday Deals

As it seems the website MacMall gives the best prices

Current Model	Retail	MacMall	MacConnection	Amazon
13" White MacBook	$999	-$59	-$150 (15%)	-$87
13" 2.4GHz MB Pro	$1199	-$101	-$150 (13%)	-$101
13" 2.66GHz MB Pro	$1499	-$101	-$200 (13%)	-$125
15" 2.4GHz MB Pro	$1799	-$101	-$200 (11%)	-$125
15" 2.53Ghz MB Pro	$1999	-$140	-$240 (12%)	-$165
15" 2.66Ghz MB Pro	$2199	-$155	-$220 (10%)	-$170
17" 2.53GHz MB Pro	$2299	-$204	-$150	-$245 (11%)
11" 1.4GHz 64GB MB Air	$999	-$51	-$51	-$51 (5%)
11" 1.4GHz 128GB MB Air	$1199	-$60	-$60	-$60 (5%)
13" 1.86GHz 128GB MB Air	$1299	-$101 (8%)	-$60	-$5
13" 1.86GHz 256GB MB Air	$1599	-$101 (6%)	-$60	-$5
2.4GHz Mac mini	$699	-$51	-$100	-$100 (14%)
2.66GHz Mac mini	$999	-$45	-$50 (5%)	-$26
21" 3.06GHz iMac	$1199	-$101	-$150 (13%)	-$101
21" 3.2GHz iMac	$1499	-$101	-$150 (10%)	-$101
27" 3.2GHz iMac	$1699	-$104	-$150 (9%)	-$104
27" 2.8GHz i5 iMac	$1999	-$105	-$180 (9%)	-$105
2.8Ghz Quad Core Mac Pro	$2499	-$129	-$100	-$129 (5%)
2 x 2.4GHz "8-Core" Mac Pro	$3499	-$200	-$200	-$201 (6%)
8GB iPod Touch	$229	-$14	-$6	-$29 (13%)
32GB iPod Touch	$299	-$19	-$11	-$19 (6%)
64GB iPod Touch	$399	-$30	-$16	-$29 (7%)

Table Connect for iPhone

Apple

Apple: "- Sent using Google Toolbar"

Apple Customer Care Funny Get A Mac Commercial

Week 12- Customer Relationship Management

As we all probably noticed. Apple has its focus on creating and maintaining a big crowed of loyal customers, that will spread out the word about why they love their Mac iPhone, iPod made by Apple of course.
Apple offers high interaction with its customers which is a critical issue when its electronic devices we're talking about.
There is always where and who to turn to:when calling costumer service, a patient and helpful Representative will assist the problem.
Visiting the store,the costumer steps upon a friendly team member, and the genius bar is there to fix any device related problem.
The store has enough space for Apple lovers to hang out and talk to other fans.
That leads us to Cross-selling products.
Not everyone carrying an iPhone will necessarily own a Mac.But for example, many who used and iPhone, that has a low entry cost, "converted" and became "Mac people".
When it comes to the privacy of its costumers, Apple had a few issues in the past year regarding costumer information leak.
One of them was exposing the email addresses of over 114,000 A- Listers using ipad 3g .
Its possible that confidential data on every 3g device user in the u.s was exposed.
at&t closed the security hole a few days after the incident.

Black Friday

For those of us that wait year round for special deals from Apple, next week might be the best time to get better prices.
Toys R' US will be selling the 8 GB iPod touch  for $229 and the 32 GB iPod touch for $299.
With every ipod purchase a $50 gift card will be given.
The promotion is considered a "Door buster" deal and will be available from Thursday at 10pm-Friday at 1pm.
There are several rumours about more deals for black Friday.
More information will be available in  tech blogs and apple's website throughout the week.
SEASON'S GREETINGS!

Week 11- Integrated Marketing Communications

Apple Inc- Using Push or Pull Strategies?
Push & Pull Strategies are a factor in a firm's promotional mix.
PUSH STRATEGY- Is defined by using aggressive personal selling to convince a wholesaler to sell a company's product/merchandise.
PULL STRATEGY- Is used to stimulate a demand from a consumer to purchase and by that increase distribution.
When it comes to Apple, there is no one answer.
Since a lot of Apple's products are innovative and unknown to the future consumer, a Push Strategy must be used. though Apple is usually the exclusive manufacturer and wholesaler of its products, the company must use high volume, creative and demonstrative promotion for its products in order for them to sell.

 

 

On the other side of the spectrum, Apple is also using a Pull Strategy.
The massive advertising, unique characteristics and popularity of Apple's products are creating a higher demand.
The best example for that is  the fact that Verizon is going to be another carrier of the iPhone besides AT&T that had a market monopoly over Apple's smart phone in the past 4 years.
The ability of having consumers "sample" and try the company's products prior to making a purchase decision is another big advantage apple has over other segment market competitors.

The controversial "i"

Apple uses the "i" prefix in some of it's consumer products such as the iPad, iPhone and iPod.
The company has never established an "i" brand, yet last year Apple has gone into a lawsuit with a company in Australia that produces cases for computers and other Apple pruducts and carries the name DOPI (iPod spelled backwards.)
The Trademark Tribunal rejected Apple's claim that consumers would be confused into buying a product manufactured by certain company thinking they're buying an Apple one.
Apple has overlooked the fact that there are already a few different brands carrying the famous "i" prefix -
iSkin, and iSoft for example.

Week 10- Product Concepts

Apple is designing and markets computer electronics.
Among the well known product line, are the Macintosh computers, the iPod, iPhone and the iPad.
Apple carries specialty products that their consumers search for and can be found mostly at the Apple Store.
Nowadays, Best Buy is selling iPads and the Macs are to be found in various computer stores, yet the preferable place to shop for Apple's products, is in the company's speciality store.
Apple focuses in a relatively narrow product mix, and the reason for that is to create high quality, unique devices and be the first among others in a competitive technological environment.

Apple inc. is identified by the bitten apple symbol which is known both domestically and globally.
As mentioned before, Apple brand consumers tend to be very brand loyal.
The products are slick and innovative, but shopping for the company's products, is also about creating a feeling of a certain lifestyle, creativity, simplicity and much more.

Apple's packaging and products always carry the company's symbol and the product name.
This holiday season, apple offers to customize any ipod as well as it's package with a free personalized  message.

Week 9- Sales Promotion & Personal Selling

The subject of sales promotion and personal selling is very interesting regarding to Apple.
Going back to the subject of Retailing, Apple's product tend to "sell themselves" for what they are- Innovatiove, interactive and have unique, slick design.
When a costumer visits a store he is able to sample the different products, whether its the iPhone, variety of iPods or the Mac computers.
Apple's team members are trained to assist and pass the important knowledge they have about the products the company manufactures.
Aggressive sales technique is not being used, but since they are there to help they may demonstrate the different products and direct each costumer to find what he or she is looking for.
The fact that the costumer is able to see and feel the benefits of the products prior to purchasing it,may increase sales and save the time needed to explain about the products and their benefits.
Apple is using special promotions and rebates as well;
The "Back To School" promotion, targeted students and faculty members, when buying a Mac they got a free iPod touch.
The company is building strong relationship selling, one don't need to have one of Apple's product to feel welcome in their store for example, but when becoming one, Apple will make sure you get the best service.
Through team members at the genius bar or the different workshops the company offers Apple is responsible for many loyal costumers and attracts more and more consumers every day.

Apple - iPhone 4 - This changes everything. Again.

More Advertising

Apple and AT&T announced that Ipads wi-fi and 3g models would be offered for sell at more than 2200 AT&T stores starting on the last week of October.
AT&T will offer costumers a pre-paid data plan with Apple easy on activation.
The data plan will be available without a term contract and will include access to at&t wi-fi spots.
Verizon will be selling the Ipad as well.
A deal with them means that Apple has been working on getting its products  with the company.
the next step might be launching the iPhone 4 and 5 with Verizon like many rumors heard in the past.

Week 8- Advertising and Public Relations

Apple has a high budget when it comes to advertising its products,yet in the last eight years apple had been decreasing its ad spending.
There are a few reasons to that:
-Apple's devices are well known, and the company's consumers tend to be very brand loyal.
For example, many IPhone users, will also use a Mac.That leads to-
-A word of mouth: a satisfied consumer spreads the word around and by that, bringing new consumers, saving Apple time and money.
- Apple has a recognisable brand name and the ads tend to be very memorable, even to those who don't use any of its products.

And why is that?
Apple advertises in a few media channels- TV, Internet, graphic newspaper ads and billboard signs.
Their ads and commercials are eye catching and memorable.
Billboards are always colorful and creative and TV commercials are fun and humorous, but can be controversial.

Executing the message
Apple uses a few different styles when it comes to advertising its products:
Spokesperson/Testimonial- Featured celebrities like Will Ferrell or Jeff Goldblum describing the benefits of Apple's products.
Humorous- The most known example would be the PC versus the Mac commercials- the hip, slick Mac as opposed to the overweight, slow PC.
Demonstration and Musical- Many TV ads combine the two by demonstrating the expected product benefits while playing a song.
for example- the Mac Air commercial that featured a song by an upcoming artist- Yael Naim.

Strong product benefits and strong advertising campaigns makes Apple a strong player in the competitive advertising market.

The Simpsons - Mapple Store

Week 7- Retailing

A visit to the Apple tore:

The apple store, especially in New York City, seems to be a destination store and must be visited by consumers visiting from around the world.
Many people will plan their visit to the store knowing they're not going to purchase anything necessarily, but will enjoy browsing and trying out apple's devices.

When it comes to apple, its all about the atmosphere in the store.
Design-
Usually in Manhattan, the stores are big in size and have two floors.
There is a high top roof , and glass windows.
The most noticeable color is chrome like,which gives a sense of sophistication and a 21 century apparel.   It is a color that relates to the products in the store- slick and unique electronics.
The products are displayed over wooden desks- the only "organic" looking thing in the store.
layout-
Divided by different departments according to the products- iPhone, iPods, Macs and accessories.
Prices are displayed next to each device.
There is product advertising throughout the store and in the background music is playing.
Service-
A big amount of team members are found around the store.They are recognized by their blue or black         t-shirt and a name tag.
When is comes to technical problems, the costumer will torn to the 'Genius Center'.
The process of being helped includes giving a team member details, like name and the technical problem.
The team member will then enter those details to an iPhone looking device and once the costumer is in the system, his name would be called whenever a store representative is available.
That given, makes the costumer feel he's getting enough attention and that Apple or its representatives are doing the best they can to fix the problem.
Checkout-
There is a regular checkout line,but usually when purchasing an iPod or a Mac, a team member will carry an iPhone looking device that can use as a register, when using a debit or credit card.

"One On One" Program-
Apple offers a sort of tutoring within the store that helps consumers learn how to use apple's devices.
The program is offered to children as well.

Week 6- Consumer Decision Making

Apple psychological influence on consumer decision making:

When visiting one of the apple stores, a consumer's mind is stimulated with the sight of apple's innovative devices, the unique architectural design and the appealing costumer service offered.

Apple has it's way when it comes to draw costumers to the realization of their wants of a new sophisticated product that will fulfil the needs they didn't even know they had.
Consumers nowadays adopt technologically advanced products that supports their needs; the iPhone for example,can serve as a music player and a mini computer while operates calls and messaging service.

When it comes to advertising, Apple reflects it creative style to draw creative individuals.
Apple commercials features songs of well known or new artists, or uses complex animation.
Apple's logo reflects the company's name, and used to be in rainbow colours where nowadays apple uses chrome.
Products have a clean,thin,aesthetic design that appeal to many consumers.
Through strong advertising, Apple tries to "educate" people to think differently, and by that to get them to purchase its innovative products.

Apple's consumers tend to be very product loyal.
50% of Apple's consumers plan to buy another Apple product.
Apple offers a large variety of products that match different individuals with different budgets.
in addition, the products have the same architecture.
Therefore, costumers that are familiar with Apple's products will have no problem using a new device the company has launched.

Week 5- Global Marketing

Apple takes a bigger bite of the global market.

Before the iPhone came out, Apple had difficulties with becoming a global player.
Yet in the last quarter, Apple got 58% of its iPhone revenue outside the Americas region.
Apple introduced the iPhone 3GS in June 2009 in the United States, while the rest of the world, or 64 countries to be precise, had to wait until the following September.

The iPhone 4 was launched around the world in the past few days, only a short wait since it was first sold in the U.S.

One of the reasons Apple is launching the iphone throughout the world is the fact that in the United States, the smart phone is offered only through AT&T, so if you want one- you probably have one.
The main focus in the U.S. is upgrading and creating new improved products as opposed to other countries where the iphone is offered through different carriers.

Another reason for apple to strive through the different markets around the world is the competition it has with other smart phones available like the HTC for example.
Therefore, apple want create a "big bang" before others will do so.

Europe for example has many fast growing markets like France and Germany.
The iphone is bringing something new to a continent that was "ruled" mostly by Nokia.

In Israel, the iphone is launched in the 3 major phone carriers.
The marketing will focus on the new iphone 4, yet the prices for a 3GS phone will stay the same.
Each one of the 3 phone carries was committed to sale 60-80 thousand iPhones a year, which seems to be a reasonable amount since each company already sold 50 thousand devices already.

A few moths ago, apple had the same campaign for all three phone carrier companies.
This time every company should have their own advertising campaign.

Pricing- the iphone prices in Israel are higher than in different countries.
the device itself, the minute and there's an addition charge for using a 3rd or 4th generation (smart phone) device.

A few days after launching in Israel, it seems like there is no major hype and that people are not waiting in line to purchase the newest iphone.

Apple's social irresposibility

During the past year, Apple suffered from a few accusations regarding its factories in Asia.
At least eleven 15 year old kids were found working in 3 factories which supply Apple.
The company did not name the factories' name, but the majority of them is in China.

This is not the first time Apple is being accused with an issue regarding the labor force in its factories,
in the past Apple has been criticized for using factories that abuses workers,and where conditions are poor.
Apple revealed a report about sweatshop condition at its factories. 
Since last January, 10 workers has committed suicide by jumping from the roof of the factory building at Foxconn in southern China.
Even though Apple is presented as a environmental friendly and markets its products  "green" its been revealed that three factories were shipping hazardous waste to unqualified disposal companies.

For its defense, Apple says that child labor is not being used and their factories offer facilities like hospitals, theatres, restaurants and swimming pools.
As for the factories where the young employees comitted suicide, nets have been installed to prevent workers from jumping.

Week 4- The Marketing Enviroment

Technological factors

As we all noticed by now, apple inc. never stops evolving when it comes to inventing and improving  existing and new products in a highly competitive market.

When working on a new product, apple doesn’t conduct focus groups.

Steve Jobs says that apple's product development team tries to find out what are the consumer needs when it comes to technology changes-

"what don’t I like in my current device?"

"What technology can apple use to change that?"

"What would i like to own?"

For example- the iPhone; An innovative phone that contain the Mac features in it.

Apple has changed the way people think of technology in the past 30 years.

From apple 11- one of the first personal computers,tthrough the ipod and iPhone that changed the way we entertain ourself.

By producing and designing their own products, apple is able to come out with innovative, unique ideas,

 and avoids being refused to do so by factories or product designers.

By dreaming up their products, apple managed to beat the record industry, computer electronic, movie industry and music and video production.

Apple believes in creating a few product that will perform exceedingly well

Steve Jobs says as simple as that-

"If you make something really great, then everybody will want to use it."



Country of origin

Jacket-China
Tank Top- Bangladesh
Leggings-U.S.A
Underwear- Vietnam
Flip flops-Brazil

week 3- Ethics and Social Responsibilty

apple inc. is aiming to be an environmentally responsible company.
from the manufacturing  to the recycling stage, apple takes "green" actions to ensure its willingness to be environmental friendly.

Manufacturing-
apple designs smaller thinner products and uses recyclable materials.
the working conditions are safe, workers are treated well and the goal is to reduce toxic, harmful substances.

Transportation-
apple uses smaller packaging techniques, that reduced the amount of space needed in each shipping pallet and saves more flights and gas.

Product use-
all of apple's products are design to be energy efficient as possible.
since apple designs both the hardware and software of its products it has more control and is able to achieve its wanted efficiency.

Recycling-
apple's recycling approach starts in the manufacturing process.
the materials are highly valuable to recycle.
apple has conducted recycling programs in 95 percent of the countries their products are being sold.

Facilities-
apple is making innovative products and make sure to be environmentally responsible in all of its facilities- retail stores, offices,labs etc.
apple offers bio diesel commuter coaches for its employees and engage them to use public transportation.

apple believes that with every purchase we make a difference on the environment, that's why its being highly engaged in creating green friendly products.

addition to week 2- strategic planning

As it seems, this winter,Verizon, the us largest carrier is going to get apple's smart phone- the iPhone.
The rumors say that the iPhone will be available for purchase atVerizon this holiday season or in January 2011.
A specific date hasn't yet been decided.
As it seems, apple is looking to expand its presence with another u.s wireless network operators.
Apple wants to grow in the market, and to do so the iPhone must be sold to another carriers.
At&T has about 90 million subscribers, Verizon will add 93 million potential iPhone costumers to that mix.
Another rumor is that the white iPhone might be released when the iPhone is being launched by Verizon.
it is possible that apple is holding the iPhone 4 from Verizon until the release of its 4g network.
many resources like Bloomberg, and Thestreet have reported the the release should be around the 2010 holiday season.

week 2- strategic planning

To reflect the company's expansion to the age of personal digital devices apple came out with the ipod in October 2001.

The company believed that other existing music devices, for example- the mp3that used to be very popular at the time, were bulky and flash memory based, while apple's plan was that the ipod will contain a small hard drive and a unique aesthetic look.

The first ipod used a 5 GB hard drive, a large high resolution display polymer battery, and the most recognizable aesthetic feature of the device - the scroll wheel.
The scroll wheel made it very easy to navigate between playlists, song and volume control.

Many reacted to the new device with hostility and criticism –the innovative scroll wheel and because of its high price $400.
But very soon after, came the ipod hype.
More and more consumers were attracted to the easy to use, clean design device and became loyal users.
With it ability to sync the device with a PC, more and more people purchased an ipod.
The next step was the opening of the itunes store which allowed to purchase songs and other files legally online.

Since October 2004, the iPod line has dominated digital music player sales in the United States.
In his pitch said Steve Jobs (founder) , as he leveraged the success of the iPod, was very simple: Apple products work, and if you buy more than one, they work better.

apple's social network-Ping

A new social network-this time, by apple!
The site will share musical likes among users, and will focus on the artists and the fans that loves them.
Fans can "follow" thier favorite artist,learn what and where they are playing it.
Fans can also "follow" othe friends on ping, learn what music they like and even preview and buy songs through itunes.
So far, reviews are mixed about ping among collage students. some are not sure whether they should add a third network to their favorits.

Brief company history

apple inc is an American multinational corporation that design and markets consumer electronics, computer software, and personal computers.

As of August 2010, the company operates 301 retail stores in ten countries, and an online store where hardware and software products are sold.
apple computers inc. was established on April 1st  1976 in Cupertino California.
on January 2007, apple changed it's name to-apple Inc. to reflect the company's ongoing expansion into the consumer electronic market in addition to it's traditional focus  on personal computers.

apple's philosophy is to maintain an aesthetic design as well as distinctive advertising campaigns.
Fortune magazine named Apple the most admired company in the United States in 2008, and in the world in 2008, 2009, and 2010.The company has also received widespread criticism for its contractors' labor, environmental, and business practices.

missiom statement

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, and iLife and professional applications. Apple is also spearheading the digital music revolution with its iPod portable music players and iTunes online music store.