Apple

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APPLE- Assignment

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Table of Contents
How has Apple developed extreme loyalty among consumers that has resulted in an almost cult-
like following?.......................................................................................................................................3
Describe the role of Apple stores as an important part of marketing? ..................................................5
What will Apple need to do to maintain product innovation and customer loyalty?............................5
References .............................................................................................................................................6

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How has Apple developed extreme loyalty among consumers that has resulted in an almost
cult-like following?
Apple is quite familiar of what all it has to sell & who its clients are, so it can benefit from proper
marketing mix. It understands its brand well, so the pricing, promoting & placement (distributing)
of goods is easier for Apple to attain its marketing objectives. The business has been using the
strategy of introducing products with a big bang, and promotion by emotional purchases (Baines,
Fill and Page, 2008). The buyers perceive Apple goods to be status symbol & an important
element of people’s personality. Due to its marketing policies, Apple has turned out to be highly
accepted and flourishing brand all over the globe. This brand can be linked with the innovation,
status & quality.
The ability of Apple to attain huge loyalty in clients has been because of a grouping of numerous
aspects, together with the leadership attributes of late CEO Steve Jobs, a communal customs of
passion and modernization, and the ground-breaking goods for which Apple has turn out to be
identified. Apple has moreover mastered core research and improvement proficiencies that have
permitted the organization to make an interpretation of its mechanical capacities into items that
purchasers need and ready to shell out a premium cost to get.
Outlining items from the client's perspective, its items appeared to reverberate with purchasers.
The organization effectively embraced a market orientation in which it had the capacity to
assemble insight about clients’ present and future requirements for specific components - even
ahead of the clients they were aware that they required them.
Strengths
Apple has been discharging inventive hardware items that resounded profoundly with clients. For
example, the formation of iPod and iTunes addressed client issues for an effective approach to deal
with and listen to a lot of music on the go.
The organization's product strategy is in light of ground-breaking outlines, convenience, and
consistent mix. Apple has made exceedingly effective items, as well as what purchasers' longings
for yet-to-be discharged and supposed items. Apple actualized its marketing idea by apparently
providing items to customers that are best in class and altering its commercial ventures. Apple
appears to realize what customers need before the buyers really know. The iPod and iPhone were
made prior to individuals even comprehended what an advanced music player or a cell phone
were. Not just do they offer these things the organization offers top of the line PCs to its clients.

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Apple advertises its PCs having the best PCs available those element awesome components that
different organizations can't coordinate.
Modernization: Apple, which became noticeable quality under the visionary leadership of Steve
Jobs, has got a skill for being in front of the quick moving innovation bend. This was remarkably
clear when the organization propelled its initial iPhone and iPad, portable Internet gadgets.
Keeping in mind inquiries wait about if CEO Tim Cook has the enchantment feel of his
unbelievable antecedent, it is trusted that inventive new items will remain a sign of Apple.
Weaknesses
Premium Pricing: Apple's computing gadgets are commonly out of the pricier ones available,
despite the fact that the organization did try to develop into the huge valued section when it started
its downsized iPhone 5C cell phone in September’ 2013. This extravagance positioning has led it
to be troublesome for Apple to build huge advances abroad, in nations where the stresses on
customary buyers are impressive. It likewise makes the organization defenceless against price-
rivalry from South Korea's Samsung as well as from cutting-edge OEMs.
The demise of Steve Jobs: Apple had the achievement throughout the years due to Steve. He is
broadly perceived as an alluring and configuration-based pioneer of the PC insurgency, and for his
persuasive profession in the PC and shopper hardware areas, entering into one industry then
another, from PCs and cell phones to music and cinema. What Steve Jobs had done can’t be
recreated for Apple.
Opportunities
Market-Share development: in spite of a significant development shoot in the so many years
earlier, Apple still has lots of opportunity to expand its share of the usual computing. It presently
has an approximately 1/5th of the worldwide PC/tablet segment, however this figure could be
growing in the upcoming times, particularly since the business gets positioned in China and the
other parts of the Asia/Pacific section.
Beats Electronics: In the month of August 2013 there was a huge contract among Beat
Electronics & Apple. The corporation looks to have remunerated an immense price tag, it appears,
providing in 2013 Beats’ assets were of worth, together with its high-end headphone connections
and flowing music services, at approximately $1 billion. It has improved the goodwill of Apple &
the Beats’ electronics element should turn out to be supportive as it comes to making & improving

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the iWatch and similar smart, mechanisms to be worn. Apple can exploit these to keep up its
position of the segment’s chief innovator and its brand loyalty.
Threats
Competition: This is the fundamental risk to most tech teams, in view of the determined item
cycles. Apple is particularly powerless to reducing its prices and face competition from cheaper
products from China and somewhere else. Cannibalization is has been a worry too, with the
organization keeping on growing its stage of Smart Internet gadgets. Surely, this might be a kind
of the aspects that can be harmful for iPad deals of late.
Gross Margin Pressures: These could originate as of ventured up rivalry, item deficiencies, or
increasing costs for the part of products. An unfavourable blend move far from the predominant
iPhone line could likewise reduce benefits. This may clarify why the organization is attempting to
widen its collection of service-oriented offers and high-margined programming.
Describe the role of Apple stores as an important part of marketing?
Apple stores lead the idea of retail in an altogether new course. Apple officials continually search
for approaches to enhance stores, improve client servicing, and expand the period that clients
spend inside the Apple store. The whole lot in the store is precisely designed to adjust as per the
brand image of Apple. Apple stores are a spot where clients are able to buy and have fun. Client
service is likewise vital to the Apple store’s goodwill. Every worker has been trained widely and
has to talk with a client when they stroll in the store. The store owners & employees play a major
role in brand building & customer service. The Apple Store is the face of the organization and has
maximum impact on the buyers & potential buyers. In 2011 the organization introduced iPad docs
with the goal that clients can utilize them to talk to the customer-service agents of Apple (Apple
marketing strategy, 2014). They modified the strategy from the client looking for any agent, to the
agents looking for the client. Subsequent to the triumphs of the Apple stores, many of Apples’
contenders are attempting to immolate their retail form.
What will Apple need to do to maintain product innovation and customer loyalty?
Apple has got producers and Intel chips a large portions of its items such as the iPad and iPhone,
yet Apple pioneers are familiar with the customer hardware business at each level, which no other
contender. Apple has an exceptionally perpendicular value chain (Steve, 2015). Most shopper

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gadgets organizations don't make their own segments, and basically improve by using parts from
distinctive producers. Apple is generally known for making lot of its machinery & parts on its
own. To retain the loyalty of customers & be innovative Apple has to create any unbelievable and
latest product which would bring astonishment to each of the competitor, however it’s very
difficult since this industry is getting better step by step and it’s rare to perform something fresh.
They will need to innovate latest creations. Earlier Apple was known only for making PCs then it
entered phone’s segment, then IPad etc...So, there has to be a new segment this time, which users
are not aware of yet.
Apple can also focus on the luxury segments only, delivering specialized products for high-income
groups.
References
 “Apple marketing strategy”, 2014 extracted from
http://www.vertygoteam.com/apple/apple_marketing_strategy.php [Assessed on 17th Aug’ 2015].
 Baines, P, Fill, C. and Page, K. (2008) Marketing, Oxford University Press: Oxford.
 Steve, C. (2015). “Marketing Apple” extracted from
http://www.vertygoteam.com/apple/apple_marketing_strategy.php [Assessed on 17th Aug’ 2015].