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.
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.
...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
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!
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.
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...
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...
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.
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.
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.
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.
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.
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.
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.
