Apple Marketing Strategy

You must have observed that Apple products are becoming increasingly popular among the population. But how has the company managed to do this? It is a result of their marketing techniques. 

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    Apple Inc., previously known as Apple Computers Inc., was founded by Steve Jobs and Stephen Wozniak in 1976. The company started with the manufacture of personal computers and have made significant changes in the industry, making them one of the top innovators in the industry. The company is headquartered in Cupertino, California, United States. The company's product range now includes personal computers, mobile phones, TVs, and tablets.

    What are the marketing techniques used by Apple?

    Apple uses a variety of marketing techniques (see Figure 1 below). Some of the key techniques are as follows:

    Mystery around products: Apple does not reveal much about the new product specifications and information. This way, people get excited about the product and build anticipation. This is one of the best marketing tactics used by Apple.

    Creating an experience: Customer experience is very important for Apple and holds it in high regard. The brand makes sure that its customers have a good and unforgettable experience while shopping with them. They make sure that every customer touchpoint such as their online, and retail stores, the ads and the products themselves feel like an experience for the customer.

    Keeping it simple: Apple keeps its marketing and product options simple. They use simple language understandable by the general public in their advertising. The product designs and parameters are simple and do not overwhelm the customers. Despite the simple language, they successfully convey the specifications of the products, and how they help to simplify your life.

    Customer retention: Instead of attracting new customers by offering discounts, Apple focuses on retaining existing, loyal customers by providing them with amazing customer service. The customer service gets back to a customer with negative feedback within 24 hours.

    The NPS index: Apple uses the Net Promoter Score (NPS), which measures the willingness of customers to recommend a company's products and services. This way, salespersons do not up-sell or cross-sell to customers that are not interested in buying other products. This prevents customers from leaving the stores frustrated and unsatisfied.

    Apple Marketing Objectives

    What are some of Apple's marketing objectives? Although the company has many marketing objectives, the overarching Apple marketing objectives are:

    • Focusing on values,

    • Having a long-lasting impact on customers,

    • Understanding the target market.

    Let's take a look at each objective and how they contribute to Apple's marketing strategy in more detail.

    What is Apple's strategic marketing plan?

    Listed below are a few of the strategic plans Apple follows that provides them with a competitive advantage.

    Focus on value: Apple focuses on their Unique Value Proposition (UVP). Apple is not afraid to price its products based on their value. They market the UVP of their products, how they improve the aspects of their customers' lives and quote the price for it. Loyal customers see the worth and readily pay the price.

    Captivating visuals: Apple uses very appealing images. Images help to exchange more information than text. The visuals have a longer-lasting impact on customers and are easier for them to recall the product.

    Understanding the target market: The company understands its customers' needs and incorporates them into every one of its new products. Providing what the customer wants is what helps Apple to retain its loyal customers.

    Check out our explanation of Market Segmentation, Targeting and Positioning as a reminder of this topic.

    Analysis of Apple's marketing strategy

    Apple has a very innovative way of marketing its products. Products are the main focus of Apple's marketing strategy (see Figure 2 below).

    Take a look at our explanation on the Marketing Mix to revise the concepts mentioned below.

    Product mix: Apple has many products such as the MacBook, iPad, iPhone, Apple TV, iPod, Apple watch, digital content, software, accessories, and cloud services. This shows the diversification of the brand. The company is also continuously innovating its products range.

    Place or Distribution: Apple's marketing mix strategy channel takes advantage of both online and offline distribution channels. They sell their products through channels such as Apple Store locations, company-owned websites and online stores. The corporation's strategic distribution plan also includes telecom companies such as Verizon, AT&T, etc that deal with iPhones. Some authorized resellers also sell through online stores such as Amazon or eBay.

    Promotion: The company promotes their products through advertisements, sales promotions, personal selling, and public relations. Apple products are advertised on various prominent websites. Sales promotions take place at stores or are performed by authorized sellers. Personal selling is the technique of providing customers with product-specific information to ultimately convince customers to purchase the product. Lastly, public relations help the company in building its brand image.

    Pricing: The pricing of Apple products are based on two main strategies - Premium pricing strategy, and Freemium pricing strategy.

    Premium pricing strategy basically refers to providing the products at a premium price, which means at a price higher than the usual prices in the market. Apple products are more costly than competitors' products. But this is not a threat for the company as their products are unique as a result of innovation, and also because they are a premium brand.

    Freemium pricing strategy is the option where customers can get certain Apple products or services for free, but have to pay more to access some advanced features. This is a combination of “free” and “premium” pricing.

    What is the importance of Apple's marketing strategy?

    An important aspect of Apple's marketing strategy is direct marketing. This is the method of marketing products or services directly to the target audience. The company has invested and partnered with companies to boost its direct marketing strategies and advertising. The company primarily focuses on reaching its customers via emails and informing them about new products.

    Apple's marketing strategy is important as it has made the company immensely successful in making it one the most valuable brands, and is quite different from the marketing strategies of its competitors. They have managed to build a huge customer base that has been loyal to the company for years. They proved that product innovation is key and that they take customer satisfaction very seriously. Despite the premium pricing, Apple Inc. products are becoming increasingly popular due to their quality and innovative uniqueness. Knowing the purpose of the brand and sticking to its vision and values has helped the company better communicate with its customers.

    Apple Marketing Strategy - Key takeaways

    • Mystery around products, creating an experience, keeping it simple, customer retention, and using the NPS index are the marketing techniques used by Apple.

    • Focus on value, captivating visuals, and understanding the target market are important aspects of Apple's strategic marketing.
    • Apple has a diverse product mix.
    • Apple's marketing mix strategy channel takes advantage of both online and offline distribution channels.
    • The company promotes their products through advertisements, sales promotions, personal selling, and public relations.
    • The pricing of Apple products are based on two main strategies - Premium pricing strategy, and Freemium pricing strategy.

    References:

    https://www.apple.com/newsroom/

    https://www.apple.com/uk/apple-events/

    http://panmore.com/apple-inc-marketing-mix-4ps

    http://panmore.com/apple-inc-swot-analysis-recommendations

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    Frequently Asked Questions about Apple Marketing Strategy

    What types of marketing does Apple use? 

    Apple's marketing mix strategy channel takes advantage of both online and offline distribution channels.  

    what are apple's marketing strategies? 

    Mystery around products, creating an experience, keeping it simple, customer retention, and using the NPS index are the marketing techniques used by Apple.

    What is Apple's strategy for success? 

    Apple's strategy for success is:

    1. Product innovation

    2. Quality products

    3. Better communication with customers

    4. Distribution through online and offline channels

    5. Promotion through advertisements, sales promotions, personal selling, and public relations

    6.  Premium pricing strategy, and Freemium pricing strategy.  

    Does Apple use direct marketing? 

    An important aspect of Apple's marketing strategy is direct marketing. This is the method of marketing products or services directly to the target audience. The company has invested and partnered with companies to boost its direct marketing strategies and advertising. The company primarily focuses on reaching its customers via emails and informing them about new products. 

    Test your knowledge with multiple choice flashcards

    What is not a marketing technique employed by Apple?

    What are the pricing strategies employed by Apple?

    What factors allow Apple to set premium pricing?

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