Monday, October 10, 2011

Steve Jobs – A Balanced Opinion

 I've read a few articles about Steve Jobs these last few days. An Op-Ed Article by Mike Daisey, "Steve Jobs, Enemy of Nostalgia," was perhaps one of the fairest. Jobs is recognized for the genius and innovative leader he was, but he was by no means perfect or a saint.

Steve Jobs was a CEO admired by other CEOs. He had a keen eye for detail. Jobs saved the company from the brink and made it the giant it is today.

Many of Silicon Valley’s leaders regularly ask themselves “What would Steve do?” in an almost religious fashion when facing challenges, and it is a worthy mental exercise for confronting the fact of his death. I think Mr. Jobs would coldly and clearly assess his life and provide unvarnished criticism of its contents. He’d have no problem acknowledging that he was a genius — as he was gifted with an enormously healthy ego — but he would also state with salty language exactly where he had fallen short, and what might be needed to refine his design with the benefit of hindsight.


Mr. Jobs leaves behind a dominant Apple, fulfilling his original promise to save the company from the brink when he returned in 1997. Because of its enormous strength in both music sales and mobile devices, Apple has more power than at any time in its history, and it is using that power to make the computing experience of its users less free, more locked down and more tightly regulated than ever before. All of Apple’s iDevices — the iPod, iPhone and iPad — use operating systems that deny the user access to their workings. Users cannot install programs themselves; they are downloaded from Apple’s servers, which Apple controls and curates, choosing at its whim what can and can’t be distributed, and where anything can be censored with little or no explanation.

The Steve Jobs who founded Apple as an anarchic company promoting the message of freedom, whose first projects with Stephen Wozniak were pirate boxes and computers with open schematics, would be taken aback by the future that Apple is forging. Today there is no tech company that looks more like the Big Brother from Apple’s iconic 1984 commercial than Apple itself, a testament to how quickly power can corrupt.

Apple’s rise to power in our time directly paralleled the transformation of global manufacturing. As recently as 10 years ago Apple’s computers were assembled in the United States, but today they are built in southern China under appalling labor conditions. Apple, like the vast majority of the electronics industry, skirts labor laws by subcontracting all its manufacturing to companies like Foxconn, a firm made infamous for suicides at its plants, a worker dying after working a 34-hour shift, widespread beatings, and a willingness to do whatever it takes to meet high quotas set by tech companies like Apple.
......

Mr. Jobs’s magic has its costs. We can admire the design perfection and business acumen while acknowledging the truth: with Apple’s immense resources at his command he could have revolutionized the industry to make devices more humanely and more openly, and chose not to. If we view him unsparingly, without nostalgia, we would see a great man whose genius in design, showmanship and stewardship of the tech world will not be seen again in our lifetime. We would also see a man who in the end failed to “think different,” in the deepest way, about the human needs of both his users and his workers.

It’s a high bar, but Mr. Jobs always believed passionately in brutal honesty, and the truth is rarely kind. With his death, the serious work to do the things he has failed to do will fall to all of us: the rebels, the misfits, the crazy ones who think they can change the world.

Jobs also promoted Apple's "magical" products with a message of freedom, individuality, and of social responsibility. Attributes not exactly true of the company...Great job marketing, indeed.

*I've posted part of the NYT op-ed article. You can read the full article at: http://www.nytimes.com/2011/10/06/opinion/jobs-looked-to-the-future.html

Wednesday, October 5, 2011

Apple CEO and Co-Founder, Steve Jobs, Dead at 56


Steve Jobs, considered one of the greatest CEO's of his generation and a true visionary, passed away today – Wednesday October 5th, 2011 – at the age of 56, after a long battle with cancer.

Today the Apple home page simply displays a tribute for its former leader...

Friday, September 2, 2011

We The People: The Energy of Social Media Has Reached The White House

The energy of social media with the surge of marketing behind it has influenced the way many of us interact and communicate. Those in the marketing world have taken great advantage of the power of the tools of social media, but they have not been used trivially.
The term Social Media refers to the use of web-based and mobile technologies to turn communication into an interactive dialogue. Andreas Kaplan and Michael Haenlein define social media as "a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user-generated content." Social media are media for social interaction, as a superset beyond social communication. Kietzmann et al (2011) argue that “social media introduce substantial and pervasive changes to communication between organizations, communities, and individuals” (p. 250), enabled by ubiquitously accessible and scalable communication techniques.
Source: Wikipedia (In this case, I think a reliable and fitting source)
And now the energy of these forms of communication has reached the White House with a new program called: We The People.
Throughout our history Americans have used petitions to unite around issues they care about. We the People provides you with a new way to petition the federal government to take action on a range of issues. And if your petition attracts enough support, White House staff will review it, ensure it is sent to the appropriate policy experts, and issue an official response.
This program would allow any one of us to create and sign petitions online about the issues which we care most. If your petition gets enough signatures it "will be reviewed by the Administration and an official response will be issued." I would encourage everyone to check this out. You can read more details here.


Tuesday, May 10, 2011

Ch. 7 - Business Marketing

Apple products have not traditionally been aggressively marketed toward business and enterprise. Thus so far the thought and convention has been that Apple computers were more for the "creative types" and Microsoft was for business, this is all changing though. Apple is in much higher demand and growing in popularity and finally sees a market in enterprise and a chance to possibly compete with such titans as Microsoft, specially after the explosive popularity of the iPad.

According to a 2008 cover article in Businessweek, "The Mac in the Gray Flannel Suit," "In time, more and more office work will be done using Web-based applications, as opposed to programs stored on a hard drive. That trend erodes Microsoft's dominance in office applications and reduces the need for Windows hardware. (And Windows runs well on Macs with Intel chips.)" The article also says, "The Mac's popularity on campuses is soaring, according to Student Monitor. Of students that want a laptop, 42% say they want a Mac (up from 8% in 2003). They're especially popular with creative types companies want to recruit, and Mac fanboys may not put up with PCs at work." This was an article written in 2008. It was true then and even more true now.

With the iPad we can definitely start seeing the shift of Apple trying to appeal to business as much as the consumer, whereas in before the target was mostly the end consumer, as that was the core of Apple market. The business market has been one that Apple can no longer ignore, as it can bring enormous revenue.

The "If You Asked" iPad ad (one of the latest ads for the iPad) mentions the many ways the iPad is being used by parents, musicians, doctors, CEOS, teachers, and children.


The apps market has also proven itself incredibly profitable. Apps are not only made being marketed to appeal to the consumer, but also to the businesses. Apple wants businesses to make apps for the iPhone and iPad and to attract as many of these business to make apps for them rather then other competing platforms, such as android. This ad "The Story Behind the Apps" is clearly made to appeal to businesses that develop games and apps or for businesses to develop apps for Apple, and in true Apple fashion in the end displaying these big companies that work to develop Apps for Apple appeals to the consumer as well.

Saturday, May 7, 2011

Apple CEO Steve Jobs on the Foxconn Suicides

Interview with Steve Jobs at D8 conference in which he comments on Foxconn suicides (June 2, 2010)



Jobs told D8, "Foxconn is not a sweatshop." He also said "You go in this place and it's a factory but, my gosh, they've got restaurants and movie theatres and hospitals and swimming pools. For a factory, it's pretty nice."

Foxconn Employess Forced To Sign 'No Suicide' Pledge

This is a re-post of article "Foxconn Employees Forced To Sign 'No Suicide' Pledge: Report" by Mark Brown from Wired.com.


Employees at the Foxconn facilities in China are forced to sign a pledge, promising that they will not commit suicide. The new mandate comes after more than a dozen staff members killed themselves over a 16 month period.
This latest revelation comes from a new report that looks into the notoriously grim working conditions of the gadget manufacturing plant. Foxconn is hired by companies like Apple, HP, Nokia and Dell, to build their fleets of laptops, smartphones and tablets.


The firm has a reputation for depressed workers and suicides, with some plants even putting up “anti-suicide” nets to catch employees who throw themselves off buildings, or bringing in monks to exorcise evil spirits. The plant’s managers and companies like Apple have promised to improve conditions and wages.

“It is very troubling,” Apple CEO Steve Jobs said, when asked in June 2010 about the numerous suicides. “Apple does one of the best jobs of any company understanding the working conditions of our supply chain. We are all over this.”

Labor group Students and Scholars Against Corporate Misbehaviour (SACOM) went to the facility and interviewed more than a hundred employees in March and April 2011, to survey the current working conditions. The report found staff working overtime that exceeded the legal limit, endless back-to-back shifts and dormitories that feel like prison blocks.

Labor laws in China dictate that overtime should not exceed 36 hours per month. The report says that workers are usually subjected to 50 to 80 hours of overtime a month. In the Chengdu facility — where Foxconn employees put together the iPad — staff could expect a grueling 80 to 100 hours of overtime, on top of the 174 regular work hours.

Staff members interviewed said that working overtime was voluntary, but making up the extra hours was necessary to earn a regular salary.

A typical day for a worker at Chengdu consists of waking up at 6:45 AM for a 7:40 AM start at work assembly, before working all day until 8:00 PM. Staff are often bullied into moving directly from regular work into overtime hours without a break, and are often punished if they don’t.

Staff members — who aren’t allowed to talk, carry a mobile phone or even sit down — are not just punished if they mess up: they’re humiliated. “If they made [a] mistake, they had to write a confession letter and hand it to the supervisor,” the report says. “If the mistake is serious, the worker has to read the confession letter in front of his other colleagues.”

A spokesperson for the firm, Louis Woo, admitted to the Daily Mail that conditions can be rough. When asked about the humiliation of workers, Woo said, “It is not something we endorse or encourage. However, I would not exclude that this might happen given the diverse and large population of our workforce. But we are working to change it.”

SACOM has demanded that Foxconn and the technology companies that hire the plant change their policies. For the employees, though, they just want to be able to talk, to hold a normal social life or, in some cases, get their hands on the gadgets they make.”

“Though we produce for iPhone, I haven’t got a chance to use iPhone,” a worker from Guanlan said. “I believe it is fascinating and has lots of function. However I don’t think I can own one by myself.” A luxury gadget like that would cost a Foxconn employee around two months salary.

Tuesday, May 3, 2011

The Word - Buy and Cellulite

Today in class we spoke of products that were "new to the world" and the challenges that a marketer encounters when having to market such new product. The discussion made me think of this clip...enjoy.

This is a segment from The Colbert Report on Comedy Central – a satirical political "news" program.

In this segment of "The Word" he says, "One of the secrets of sales is fulfilling the public’s need.The other secret is inventing the public’s need" and "If there is one sure way to financial security is inventing…insecurities " – Oh...How often satire and comedy are the best truth tellers!

The Colbert ReportMon - Thurs 11:30pm / 10:30c
The Word - Buy and Cellulite
www.colbertnation.com
Colbert Report Full EpisodesPolitical Humor & Satire BlogVideo Archive

Ch. 8 - Segmenting and Targeting Markets

Apple has combined strategies for selecting and segmenting target markets. Once again, I must say that Apple does not necessarily follow or fall into conventional business wisdom. This does not mean either that they take some cowboy approach to their marketing strategies – Apple uses conventional, proven to work strategies, unconventionally perhaps. While Apple is unique in many senses, they are not immune or ignorant to the "rules" of the market.

Apple uses strategies for segmenting markets such as demographic segmentation in the placement of their retail stores. There are 47 stores in California (the most in any state or any other one place) and while there are 14 in New York 4 of those are in the small island of Manhattan, making them the most concentrated. Here they are definitely focusing on a certain market. Apple has used a concentrated targeting strategy that has helped them position themselves as a niche and quality product. A limited product mix and small product lines have also worked to their benefit, which many might say goes against convention. And now this "niche" brand appeals to the masses. The most successful and most applied segmentation strategy has been psychographic segmentation, which appeals to our personalities, attitudes, motives, and lifestyles. Apple has aimed at being a "lifestyle brand" and this lifestyle appeals to Tweens to Boomers, low-income to high-income individuals, and all shape, race, and size.

Wednesday, April 27, 2011

In Depth: Apple Ad History and Study of Promotional Mix

I've entered another installment in the In Depth series – In Depth: Ad History and Study of Promotional Mix. I will go through the history of advertising, promotion, and marketing at Apple and the evolution of it. Starting with the text heavy and very informative ads of the 1970's to their most iconic and recognizable campaigns to the sleek ads of present.



The first installment will be the 1970's

Tuesday, April 26, 2011

Ch. 11 - Developing and Managing Products

Innovation…

Today Apple is clearly the “Most Admired,” the “Most Innovative," and the “Master at Design.” It seems that Apple and innovation are one of the same. The company and it’s products, particularly the iPad have been described as innovative, versatile, groundbreaking, revolutionary, magical…etc. These are not just words used by some clever marketing team at Apple (well…except for ‘magical’ that’s all Steve Jobs), these are words used by those reviewing the products and company.

Innovation is key to new product development and Apple has it nailed! Apple hasn’t necessarily developed products that did not exist before. The iPod wasn’t the first MP3 player, the iPhone wasn’t the first smartphone, and the iPad wasn’t the first tablet! So, what makes Apple so praised? What makes them so “innovative?” 

A Harvard Business Review article says that Greg Joswiak, Apple's vice-president for iPod and iPhone marketing told author in an interview, about Apple's general innovation philosophies. "An overarching theme, is that everything the company researches, develops, and releases is considered for how the tech and design might be reused in the future"

This is not just in esthetic design and compatibility, but also in functional design. While the iPad was a new product, its interface wasn’t new. The iPhone and iPod touch were already very popular products and the way one used an iPad is essentially the same way one would use one of these products, which made this new product much easier to undestand.


Apple is so admired today for it’s innovation, not just because of their products, but the innovative ways they are used and interacted with and all the other innovations they have sparked. Their products have been the catalyst and conduit for much other innovation, such as the many apps developed specifically for the iPad, which did not exist before.

Tuesday, April 12, 2011

Ch. 16 - Integrated Marketing Communications

"The ultimate goal of any promotion is to get someone to buy a good or service or...to take some action." The AIDA concept outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.

A= Attention
Apple gets our attention with imagery on their website, publicity, such as the keynotes and stories in largely circulated publications – as a highly anticipated product and being a company people and investors have their eye on, the iPad and iPad 2 where the subject of much publicity – and (to the good fortune of Apple) the many noncorporate blogs (such as MacRumors.com).





I= Interest




D= Desire





A= Action
Seems like Apple did a good job. The first generation iPad sold about 15 million. According to PCMag The iPad 2 has been popular worldwide; analysts estimated that roughly 500,000 units were sold in the first weekend, temporarily driving wait times up to five weeks. The iPad 2 also reportedly sold out overseas within 24 hours. "Digitimes estimates Apple sold around 2.6 million iPad 2s in March. Apple hasn't divulged any official numbers yet, but the company is expected to report sales data in its quarterly earnings call on April 20."

Tuesday, April 5, 2011

Ch. 10 - Product Concepts

As I've stated before Apple is often in category of it's own when it comes to strategy, advertising, retailing, and products, additionally in the way consumers view Apple and its products. Apple products can not be quite completely pigeonholed into one specific type of product.

The new MacBook Pro - Called "the last notebook you'll ever need" by InfoWorld
An Apple product can be called a shopping product, because it is "more expensive than a convenience product and found in few stores," yet Apple products enjoy the status of specialty products. If one were to call a Mac a "computer," than it could be called a shopping product. It would be a heterogeneous shopping product, because the "prices, quality, and, features [of computers] vary so much." This could be said for someone that is concidering a Mac and might compare it to other computers, but to some to even compare a Mac to other computers would be blasphemy.   

The way Apple has been marketed and branded consumers do have this concept of an Apple product being a specialty product. Those that are Apple users, particularly Mac users are very reluctant to accept substitutes and Apple definitely has an exclusive image. Apple is "cool" – most importantly cooler than the "other guy" – Apple is quality, Apple is "magical" (as Steve Jobs loves to repeatedly tell us). The Apple stores help create this image. They almost have this boutique feel as any exclusive product would, and yet Apple products feel attainable. This is where Apple has achieved greatness and is the envy of many marketing professionals. Although Apple products are more expensive and have this very stylish, elegant, and upscale feel they still feel reachable and accessible to what one might call the "average" person. The products that have helped launch the brand into this status have definitely been the iPhone, iPod (in particular for it was the first Apple product to truly get Apple in everyones sight and hands), and now the iPad.

A magical and revolutionary product at an unbelievable price

Tuesday, March 29, 2011

Ch. 18 - Sales Promotion and Personal Selling

Marketing managers can use sales promotions to increase the effectiveness of their promotional efforts and to offer incentives to buy. Unfortunately for us (the consumer) Apple does not offer many promotions. Fortunately for Apple, they don't need to! Apple sales are pretty good without aggressive promotional campaigns.

Apple does offer some rebates. You can see current promotions they are offering on the company site. At the moment Apple is offering an online rebate for up to $100 dollars back on a printer with the purchase of a Mac and a mail in rebate of $30 back on iWork and MobileMe software. One of their more popular promotional campaigns has been the "Buy a Mac for college and get a free iPod touch" campaign, which usually runs from late May until mid September. Apple also offers education pricing – discounts for students and faculty. This is a great way to entice the student. A college student that uses a Mac during their time in school is more likely to stay loyal and want to use it for work later, as it will be the product they are most comfortable with.


Talking about sales promotion and personal selling and Apple it is of note to mention Apple sales personnel – Apple Specialist. While the personnel at the stores may not be aggressive sales people or may not fall under the definition of consultative selling, they are there to help you and help make the sale. The selling strategy at Apple is fairly unique and great. While one does not feel pushed to buy plenty of representatives are at the store to make the consumer feel more comfortable and informed about their high value purchase and to answer technical questions. While the Apple Specialist at a store may not be following up on a sale they do help build that relationship between Apple and the consumer that makes Apple customers so loyal.

Thursday, March 24, 2011

The Greatest Movie Ever Sold

A documentary about branding, advertising and product placement that is financed and made possible by brands, advertising and product placement.

From Sundance.org:
Acclaimed filmmaker and master provocateur Morgan Spurlock (Super Size Me) returns to the Sundance Film Festival with tongue-in-cheek perfection as he examines the world of product placement, marketing, and advertising by making a film financed entirely by product placement, marketing, and advertising.
We live in an age where it’s tough even to walk down the street without someone trying to sell you something. It’s at the point where practically the entire American experience is brought to us by some corporation. Utilizing cutting-edge tools of comic exploration and total self-exploitation, Spurlock dissects the world of advertising and marketing by using his personal integrity as currency to sell out to the highest bidder. Scathingly funny, subversive, and deceptively smart, The Greatest Movie Ever Sold shines the definitive light on our branded future as Spurlock attempts to create the "Iron Man of documentaries," the first ever "docbuster"! He may very well have succeeded.

Step Right Up – Media Remix

Here's a cool video I found for the Tom Waits song, "Step Right Up." It's a great use of other media with the song to convey the message.

The Large Print Giveth and The Small Print Taketh Away ~ Tom Waits

...Amazing! Moving on from ethics into advertising I wanted to post this Tom Waits Song, "Step Right Up." A song Tom Waits has called "an indictment of advertising." I thought it'd be an interesting song to share. Here's video of the song live with lyrics below...



Step right up, step right up, step right up
Everyone's a winner, bargains galore
That's right, you too can be the proud owner
Of the quality goes in before the name goes on
One-tenth of a dollar, one-tenth of a dollar, we got service after sales
You need perfume? we got perfume, how 'bout an engagement ring?
Something for the little lady, something for the little lady
Something for the little lady, hmm
Three for a dollar
We got a year-end clearance, we got a white sale
And a smoke-damaged furniture, you can drive it away today
Act now, act now, and receive as our gift, our gift to you
They come in all colors, one size fits all
No muss, no fuss, no spills, you're tired of kitchen drudgery
Everything must go, going out of business, going out of business
Going out of business sale
Fifty percent off original retail price, skip the middle man
Don't settle for less
How do we do it? how do we do it? volume, volume, turn up the volume
Now you've heard it advertised, don't hesitate
Don't be caught with your drawers down
Don't be caught with your drawers down
You can step right up, step right up
That's right, it filets, it chops, it dices, slices
Never stops, lasts a lifetime, mows your lawn
And it mows your lawn and it picks up the kids from school
It gets rid of unwanted facial hair
it gets rid of embarrassing age spots
It delivers a pizza, and it lengthens, and it strengthens
And it finds that slipper that's been at large under the chaise lounge(2) for several weeks
And it plays a mean Rhythm Master
It makes excuses for unwanted lipstick on your collar
And it's only a dollar, step right up, it's only a dollar, step right up
'Cause it forges your signature
If not completely satisfied, mail back unused portion of product
For complete refund of price of purchase
Step right up
Please allow thirty days for delivery, don't be fooled by cheap imitations
You can live in it, live in it, laugh in it, love in it
Swim in it, sleep in it
Live in it, swim in it, laugh in it, love in it
Removes embarrassing stains from contour sheets, that's right
And it entertains visiting relatives, it turns a sandwich into a banquet
Tired of being the life of the party?
Change your shorts, change your life, change your life
Change into a nine-year-old Hindu boy, get rid of your wife
And it walks your dog, and it doubles on sax
Doubles on sax, you can jump back Jack, see you later alligator
See you later alligator
And it steals your car
It gets rid of your gambling debts, it quits smoking
It's a friend, and it's a companion
And it's the only product you will ever need
Follow these easy assembly instructions it never needs ironing
Well it takes weights off hips, bust, thighs, chin, midriff
Gives you dandruff, and it finds you a job, it is a job
And it strips the phone company free take ten for five exchange
And it gives you denture breath
And you know it's a friend, and it's a companion
And it gets rid of your traveler's checks
It's new, it's improved, it's old-fashioned
Well it takes care of business, never needs winding
Never needs winding, never needs winding
Gets rid of blackheads, the heartbreak of Psoriasis(3)
Christ, you don't know the meaning of heartbreak, buddy
C'mon, c'mon, c'mon, c'mon
'Cause it's effective, it's defective, it creates household odors
It disinfects, it sanitizes for your protection
It gives you an erection, it wins the election
Why put up with painful corns any longer?
It's a redeemable coupon, no obligation, no salesman will visit your home
We got a jackpot, jackpot, jackpot, prizes, prizes, prizes, all work guaranteed
How do we do it, how do we do it, how do we do it, how do we do it
We need your business, we're going out of business
We'll give you the business(4)
Get on the business end of our going-out-of-business sale
Receive our free brochure, free brochure
Read the easy-to-follow assembly instructions, batteries not included
Send before midnight tomorrow, terms available
Step right up, step right up, step right up
You got it buddy: the large print giveth, and the small print taketh away
Step right up, you can step right up, you can step right up
C'mon step right up
(Get away from me kid, you bother me...)
Step right up, step right up, step right up, c'mon, c'mon, c'mon, c'mon, c'mon
Step right up, you can step right up, c'mon and step right up
C'mon and step right up

Wednesday, March 23, 2011

In Depth: Global Marketing and Ethics

I have put up another In Depth article: Global Marketing and Ethics.

This article was inspired by the finding of a report called "The Other Side of Apple" when doing research about ethics and Apple Inc. I was kind of shocked at what I found. This is a must read!

In Depth: Ethics in Business Today

This is my first "In Depth" article: Ethics in Business Today

I have posted about ethics at Apple. Ethics in business and the implications of it is a topic that really interest me... This article includes some more in depth thoughts on the place of ethics and morality in the business environment today, not necessarily pertaining to Apple, but business in general, particularly big business in today's global market.

Introduction of "In Depth" Pages

I would like to keep my blog posts brief, but at times I can get a bit long-winded. I can also be quite opinionated. Sometimes certain things just inspire much thought and word. For that, I have created a new section on my blog called "In Depth" (you can find the link to these pages in the side bar). In these pages, when so inspired, I will discuss certain topics In Depth...

Tuesday, March 22, 2011

Ch. 17 - Advertising and Public Relations

There might be some out there that may think Apple doesn't need advertising – Apple is an incredibly popular and successful company. Well, this doesn't happen by accident. Products don't just sell themselves, no matter how good they are. While Apple might have great products, a good ad and/or publicity campaign can do wonders for sales. While we may not think of Apple as one of those companies which advertises aggressively and is shoving their products down our throat, they put a lot of thought, effort, and time, not to mention money into ad and publicity campaigns.

Apple has had many iconic ad campaigns, including: the 1984 Superbowl commercial, which I've posted about previously, the "Think Different" campaign of the 1990's, and in the 2000's the "iPod People" and the "Get a Mac" campaigns. I have touched on these before and will post a history of Apple ads to take you through the evolution with detail and the great creativity at Apple – what has ultimately put them in the position they are today.

Advertising Age (AdAge.com) recently named Apple "Marketer of the Decade!"And with good reason, Apple has done a great job of appealing to the masses, building great loyalty among customers – any marketer's dream – and touching on something allusive as our emotions and "coolness." Apple understands that consumer perception is heavily influenced by displaying who uses a product and in what context. A great example of this is product placement of Apple products. In 2009 Apple products were in 18 of the 44 films that topped the box office (that's 41%) and in 2010 they were in 10 of the 33 (30%) number one films of the year! Not to mention they are featured in countless popular tv shows, such as 30 Rock, Heroes, Dexter, Sex and the City...

  
Mac in hit film Twilight
Mac in popular TV show Sex and the City

Wednesday, March 16, 2011

First iPad 2 Sold

Apple had an exciting weekend in retailing. The iPad 2 was launched on Friday and most stores were sold out the same day!

Here is some footage of the first iPad 2 sold...

Tuesday, March 15, 2011

Pictures from my Visit to Apple Stores

Apple Store – SoHo
Inside SoHo store

SoHo Store - Only in New York! Yes..That guy is wearing mannequin legs on his head!

Theatre in SoHo store where they hold free workshops

Family oriented – Kid friendly stations
Apple Store – 5th Ave
Apple Store 5th Ave – Never closes! 
Crowded Store on Sunday at 10:30pm
People crowded around to get a chance to play around with the iPad 2
iPad 2 in black and white

Genius bar at Apple store – experts there to help you


Beats by Dr Dre – $300 Headphones! Sheez


Variety of Products - Software and Games 



Ch. 15 - Retailing


Apple retail stores are all owned and operated by Apple – they are chain stores. There are more than 300 worldwide, and 4 of them are located here in NYC. The stores offer an outstanding level of service, including free workshops, one to one membership service, and the genius bar. The Apple Store (Apple’s online store) is also very popular, as it is accessible worldwide and convenient. Online or by phone one can also customize Apple products. Apple retail stores can be classified as specialty stores. “Consumers usually consider price to be secondary in specialty outlets. Instead, the distinctive merchandise, the store’s physical appearance, and the caliber of the staff determine its popularity.” Apple stores are most certainly fine tuned to cater to the Apple consumer and to embody company brand image and ethos. The stores, I would say, also add to the feel of exclusivity.

The Apple stores’ motto is: “Come to shop. Return to learn.” I visited the Apple stores in SoHo and 5th Ave to see for myself.Similar to the marketing mix, there is a retailing mix – the 6 Ps: product, place promotion, presentation, and personnel.

In the store you can find ALL products Apple, including all iPod models (nano, touch, shuffle, etc.), iPhones, Macs (iMacs, Macbooks, Macbook Air), Apple TV, and of course the iPad 2, which they were completely sold out of. They also sell accessories, such as covers, headphones, laptop pouches, and complementary products such as printers and speakers. Not all accessories and complementary products are Apple brand. One can find Apple products in other retail stores, but Apple stores will be the only ones where one could find everything and anything Apple. Apple stores are well known, as they have even become tourist destinations here in NYC. All Apple stores in NYC are conveniently located, none being more than 3 blocks from a train stop and also in high traffic areas. The flagship store in 5th Ave is right by Central Park and open 24hrs, 365 days a year! It NEVER closes! Many tourists go to visit the store in particular, as it is definitely a destination store. The stores have a very welcoming atmosphere. The design of the stores is as sleek and sophisticated as the products are. At the 5th Ave store there must have been about 40plus employees there, one does not feel hovered over, but if you have any questions there is always an Apple specialist near by. The displays are sparsely laid out on big tables and very easy to interact with. All computers, phones, and pads are always on and have Internet connection, so you can fully experience the product. The sound in the store is soft; the music is soft rock and classics rock. There are no abrasive colors in the store and a lot bright and natural light. All employees wear blue shirts to be easily recognized. The personnel at the stores is very attentive and knowledgeable. They even offer free workshops and you can come to the genius bar where knowledgeable Apple employees will help you troubleshoot and with any problems or questions you might have.

Overall, Apple definitely offers a unique shopping experience. Actually when I bought my Mac about 1-2 years back, the staff was very helpful and attentive. I was not in school yet, but brought a friend who was to get the student discount they offer (at the time they were also offering a free iPod touch! :), they gave me no hassle over that. Also, because I wanted to upgrade the hard drive, I had to order online. Instead of sending me home to do it, they assisted me through the process in store. I was very happy with the service.

Monday, March 14, 2011

Apple Advances and Gains in Mobile PC Device Market Because of iPad

If the iPad is categorized as traditional laptop, Apple is the largest mobile PC seller in the US, and the third largest worldwide. The "iPad effect" is shaking up the mobile computing market.

Only accounting sales of the first generation iPad as of late last year, Apple shipped 6.3 million mobile PCs worldwide. This put Apple in third place globally after HP and Acer, with 12.4% market share.

Without the iPad, Apple's mobile PC market would be 4.8%, ranking #8. The iPad already outsells the Mac and is expected to displace PC sales in the future. Steve Jobs and other Apple representatives would call this the coming of a post-PC era.


I suspect the iPad 2 and any subsequent generations will be just as popular as the first. Tablets will only get more popular worldwide, particularly in more developed nations, as people want to always 'be connect' and a tablet is an ideal device for that – a smart phone is too small and limited and a laptop has to be launched on and can be heavy. Also, many people really only use computers for sending and checking email, entertainment, and light work, a tablet device might seem more attractive to these consumers then a whole laptop...and the iPad will certainly be the tablet of choice.

Tuesday, March 8, 2011

iPad Drives Recommerce Industry

The recommerce industry, or buying things back, has gotten more and more popular with electronics and their fast upgrades, and the iPad is one of the industry's most popular products.

Gazelle is one of the big names in the recommerce industry. Gazelle buys gadgets back refurbishes or recycles them and than sells them for a profit. I went through their very easy process to get a price for an item and a 16GB iPad with WiFi (the cheapest iPad that was going for $499) with slight wear and tear will get you $240! Kristina Kennedy, Gazelle's director of Brand and Communications, said that with the announcement of the iPad 2, the iPad has been one of their biggest products ever. Kennedy also said that this has also helped boost the entire industry, as people signing up for buy-back programs for their iPhones has almost doubled in the last few days. And these are definitely sought after products in the recommerce industry.

In addition Best Buy and Ebay have also launched buy-back programs. Best Buy offers 50% of the price you payed up to 6 months after purchase – their pricing depends on the time the item was bought.

These buy-back programs are a great idea, especially with the nature of technology today, as things upgrade so fast. Not only these products are being reused and have created a new kind of industry, but they help drive the industry for new versions, as more people might have the opportunity to afford the upgrade.

I actually sold an old laptop to cashforlaptops.com some time back. I got $50 for an iBook 3G with a fried motherboard. It was better than nothing, considering it didn't even turn on. Plus I felt better that it wasn't just going to end up in a landfill.  

Ch. 6 - Consumer Decision Making

It is very important to know how consumers behave and make decisions. Understanding how consumers make decisions can help us better serve and compete in the market. When making a decision of whether to buy, not to buy, and what to buy the consumer generally follows the consumer decision-making process. This post might be a bit longer than my usual, but I wanted to thoroughly explore the process regarding Apple.

The first stage is need recognition. Many electronics are things people want and not necessarily need, but many have become more than that. They have become needs.Through external stimuli, such as the popularity of Apple products among peers, their recommendations, the perceived superiority of the product, and the slick design wants and needs are created.

After recognizing a need or want consumers will search for information about the product. There are many ways a consumer may search for information. The information search can be external, internal, or both. When thinking of buying an Apple product many consumers search for internal information, such as previous experience with the product. Apple consumers are very loyal. Many people upgrade their iPhones as soon as the next generation is out, because they have had a positive experience with the previous generation and are often anticipating the new features in the next generation as soon as they get the current one. The iPad 2 is already greatly anticipated. According to a few blog post I read and a Huffington Post story I read, there is already a man in Texas camping out to be the first to get the iPad 2! Consumers may also seek external information. This might be recommendations from friend. The external information may also be market-controlled. Apple is in the fortunate position of being a trusted company. Consumers will trust what Apple tells them. Apple communicates greatly with their customers with their keynotes. These keynotes make people feel well informed, like they really know the product.

After getting information, the consumer is ready to make a decision, to help make that decision the consumer may evaluate alternatives. Apple is in the unique position of being an industry standard, particularly with their iProducts. That is to say, one wouldn't generally think, 'I'd like to buy an MP3 player,' but rather 'I want to buy an iPod,' alternatives are almost moot. Apple product are in a category of their own.

Next in the process is purchase. Luckily for Apple, people are purchasing A LOT of their products! At the iPad 2 keynote event Steve Jobs announced that about 100 million iPhones had been sold and about 15 million iPads!

Finally, when buying products consumers expect certain outcomes from the purchase. How well these expectations are met determines whether the consumer is satisfied or dissatisfied with the purchase. This is postpurchase behavior. By the man I mentioned earlier already waiting for the new iPad and the expected madness for the iPad 2, I would say consumers are pretty satisfied with their Apple purchases. In addition, because of the high demand for Apple products, iPads have greatly booster the recommence industry, which I will post about shortly.

Wednesday, March 2, 2011

iPad 2 Extended Ad

Hot off the presses iPad 2 extended ad and see the iPad Smart Cover in action!




Also, short clip of Steve Jobs introducing the iPad2

iPad 2 Unveiled!

Breaking News!!!

New iPad 2 Available March 11 and in 26 other countries by March 25!!!

Today Apple introduced the next generation of the iPad – the iPad 2!
  • The new iPad is thinner than the previous, even thinner than the iPhone 4
  • It has a faster dual-core A5 processor
  • It has rear and front facing cameras useful for Facetime video chat
  • Will be availabe in 2 colors – black and white
  • It will be available at the same starting price of $499 as the previous iPad
  • Plus Apple has introduced a great new Smart Cover for the iPad


This news is so hot off the presses there aren't even videos of the conference that Steve Jobs personally attended to introduce the product (even though he's been on sick leave) out there yet! I will post as soon as I find one. In the meantime take a look at this Wall Street Journal article introducing the product.

Tuesday, March 1, 2011

Ch. 5 - Developing a Global Vision

Apple is definitely pushing their international strategy. Apple Mac computers have not been big sellers outside the US, mainly because of the higher price of these computers, which can be outside the reach of many of those in international markets. On the other hand products such as the iPhone have done great abroad. iPhones help Apple target price-sensitive developing markets, where the company’s premium products may not yet have fully established a customer base, at the same time building brand loyalty abroad.

Apple has rolled out the iPhone 4 much sooner than before in foreign markets. The shift shows how important overseas sales have become for Apple, which struggled before the iPhone to become a global player. Apple got 58% of its revenue from outside the Americas region in the last quarter!

It is a great strategy for Apple to have a global vision and strive for globalization. Apple has been building its overseas presence with its Apple retail stores. At the end of 2010, 62 of the 283 were international. Apple has said that over half of the 40 to 50 new stores it plans to open this year will be overseas in cities such as London and Shanghai.

Tuesday, February 22, 2011

Ch. 4 - The Marketing Environment

Apple's target market is not as cut and dry as those of other companies. Apple surely knows that their products are pricey. There must also be a profile typical of the person who buys a Mac or other Apple products. This person probably has a bit of disposable income, is 12-35, also professionals in media and design are drawn to the brand. But Apple also knows that people will sacrifice for a “better” product or luxury product. Apple has historically targeted everyone, or rather, the individual, rather than a whole. I found a great example of this in a Macintosh selling guide from 1984 (picture below). While this may be an old guide, this is in many ways still company strategy. Apple products are for people, for all. This consistent company disposition has served them well to being attuned to changes in environment and the component lifestyles of people today. People today are no longer defined by their professions and Apple would hope to appeal to the individual and their vast array of needs rather than those of simply their profession. Apple particularly appeals, not necessarily to the artist, but they aim to appeal at the creative side of all of us and our individuality.

Macintosh is for people: Most personal computers are aimed at specific segments of the computer market. But Macintosh is different. Because Macintosh is for people.

Thursday, February 17, 2011

Bottled Water - One of the Biggest Marketing Schemes Ever!

DO NOT DRINK BOTTLED WATER! DRINK YOUR TAP WATER. GET A FILTER!
AND WATCH "TAPPED" DOCUMENTARY.

Because of class discussion today, I wanted to post of the many reasons why bottled water is a hazard to overall heath of the population and environment.

  • 40% of bottled water comes from municipal sources (tap water). Bottled water companies mine municipal sources FOR FREE and basically sell tap water that you could be getting by turning on your faucet back to you.
  • The effects of producing the plastic bottles this water comes in is immense on communities that are close to these plants as well as the entire public and the environment.
  • Tap water is VERY well regulated, as municipal water has to adhere to strict government regulations. Bottled water, despite all their advertising that would suggest purity, has no regulations. We just assume because it is packaged and advertised as pure that it is good and even better then tap water, which is absolutely not the case. The lack of imposed regulation and the addition of PET plastic packaging and processing actually makes bottles water less safe than tap water.
  • "If you eliminate the scourge of bottled water, you'll be eliminating one of the biggest problems facing our environment."
  • Bottled water may have a place in certain situations, but there are issues around bottled water that make it unsuitable for regular use and those issues need to be emphasized because bottled water is becoming a big contaminant of our environment

The best option is to drink tap water. New York tap water is very safe. If you are still concerned, get a filter and drink filtered tap water. Use a reusable bottle. There are countless reasons why this is better....For the communities which are having their water supply pillaged, for your heath, the health of others, for the environment...

For more extended information I recommend you watch the documentary "Tapped." I've posted a trailer for it, but you can view the whole thing free on Hulu (link for it is below):

http://www.hulu.com/watch/192680/tapped?c=News-and-Information/Documentary-and-Biography

You can also get more info on the Tapped website: http://www.tappedthemovie.com/


Wednesday, February 16, 2011

Greenpeace Guide to Greener Electronics

The Greenpeace guide to Greener Electronics ranks the 18 top manufacturers of personal computers, mobile phones, TVs and games consoles according to their policies on toxic chemicals, recycling and climate change.

In this list Apple is in place 9 out of 18, with a score of 4.9 out of a possible 10.
Apple scored very well on the toxic chemicals criteria, such as now being free of PVCs, but they score poorly “for the minimal information it provides about its future toxic chemical phase-out plans” and secrecy.

Greenpeace said in their statement about the company:
Apple is so well-branded it might come as a surprise to some to know that the company historically scored low points on the Guide to Greener Electronics for a lack of transparency and unwillingness to report on its environmental policies. It might be the best branded electronics company, but this doesn’t absolve it of responsibility.

Art Created By Apple Fans for "Green My Apple" Campaign

When the Greenpeace "Green My Apple" Campaign was launched Apple fans were urged to send letters to Steve Jobs and create their own art to help the cause. Here are some of the best ones (well...at least some of the ones I liked best)....