Marketing Aspect

Apple Inc.

Basic Customer Need A mobile telephone with built in camera; able to store music,
pictures

and videos; can download applications and use the internet. A music
storage device which can be used on the move. Some models able to
hold pictures and videos; some models able to browse the internet and
play games.

Apple TV is a device allowing the user to play high definition videos from

iTunes/youtube/their computer/etc on their television, in widescreen.

A computer, either laptop or desktop.

Target Market

Huge worldwide market with target consumers aged 12+. Specific

markets that are targeted include those who are willing to pay more for
Apple products even though there are plenty of cheaper options. People
who are really interested in being up to date with the latest technology,
and who want to be connected to the internet all the time to keep up
with the latest news. Music fans. Professionals who need to be able to
connect to the internet any time anywhere.

Products

A convergence of technologies e.g. An iPhone has a mobile phone, an

mp3 player and internet surfing capabilities.

-iPhone3G/iPhone 3GS
-iPod shuffle (available in a range of colours)
-iPod nano (available in a range of colours)
-iPod classic
-iPod touch
-Apple TV
-MacBook Pro/Air/mini
-iMac
-Mac Pro

Products have different flavours in respect to colour and hardware

specification. Specification is directly linked with price.

Price*

Premium price strategy

Pricing rarely fluctuates, products benefit from low depreciation value
iPhones, from £349
iPods (shuffle, nano, classic, touch), starting prices £46, £118, £193,
£152, respectively
Apple TV, £223
MacBooks (classic, Pro, Air), Mac mini, iMac, Mac Pro, starting prices

from £816, £918, £1174, £510, £969, £1940, respectively

Principle Promotional

Tools

1. Through Apple shops, supermarkets, and electronics shops.

2. Internet sales

Apple Marketing Mix

Introduction
Apple, Inc originated from the friendship and mutual interests of Steve Wozniak and
Steve Jobs. The Two collaborated in the development of the “Apple I in the early
1970s. The Apple I was a step ahead of most computers of the time featuring a use of
aTV as a display system and a cassette interface for recording programs.

After obtaining financing for the development of Apple II, the Apple Computer
Company was formed in 1970.As the growth of home computer use grew, Apple grew
with it. In 1980 the company issued its initial public offering of investment stock.

Apple next introduced the MacIntosh Computer in 1983 during the Super Bowl. The
computers desktop publishing features provided the foundation for future innovations
that have become standard for the company. Today Apple, Inc has more than 33,000
employees and revenues exceeding 42 million dollars.

Product

Portable Computers – including Mac products such as Mac Book Pro, iMac, MacBook
Air, Mac Mini, Xserve

Servers – including Xserve, Xsan, MacOS X Ser, MobleMe.

Accessories – including MagicMouse, Keyboard, Led Cinema Display.

Wi-fi Based Stations - including Airport Express, Airport Extreme, Time Capsule.

Developer – including Developer Connection, Mac Program, iPhone Program.

iPod – including iPod Shuffle, iPod Nano, ipod Classic.

iPhone – including iPhone3GS, iPhone3G, iPad.

iTunes – including movies, TV shows, audio books, games.

Periphal products – including Printers, Storage devices, digital videos and cameras.

Price

Apple is a premium brand computer that does not attempt to compete on price. The
company has reduced prices after some initial product launches. It uses skimming and
preimuim pricing strategies.

The AppleiPad is priced at a minimum of $499.

The Apple iPhone costs begin at $99.

The Apple iPod Classic is priced starting at $249.

The Apple iPod Nano costs $149.

The Apple Mac Book costs $999.

The Apple MacBook Pro is priced at $1199.

The Apple Quicktime Pro for Windows costs $29.99

Apples iPad pricing strategy includes the flexibility to lower the prices if consumer
response dictates such action. This would be consistent with a similar $200 price cut
on the iPhone in 2007.

In 2009 Apple announced a reduced cost pricing structure for iTunes - songs will cost
69 cents, 99 cents or $1.29. He said the "vast majority" of the songs will cost 69 cents.
Changes are said to be a response to a slower pace of music downloads.

Place

Apple, Inc Headquarters are located at is located at 1 Infinite Loop, Cupertino,

California.

The Apple Consultants Network includes independent professional service providers

and technology consulting firms that specialize in Apple and third-party solutions.
Certified on Apple technologies, these providers deliver on-site technology services
and support to home users and businesses of all sizes.

Apple service providers are certified technicians, who complete regular Apple training
and assessments, and offer repair services, and exclusive access to genuine Apple
parts.

They are located in Asia/Pacific, Africa, the Middle East Europe and Latin America.

Apple has over 200 retail stores worldwide including the US, UK and Canada. Apple
recently opened a new retail store in Shanghai China.

Promotion

Apple, Inc offers special discounts on refurbished MacIntosh computers, iPod Nanos,
and the 8GB iPod Touch. In each case a 1 year warranty is included on the all
products.

Apple, Inc authorized Training Centers are located throughout the U.S. each provides
instruction in Mac systems, Mac OS X, and Apple’s professional applications. A wide
range of certification exams and courses offer innovative learning opportunities for IT
and creative professionals, educators, and service technicians—delivered exclusively
by Apple Certified Trainers.

The Apple Consultants Network website provides a search tool allowing visitors to
locate nearby certified Mac product consultants in the U.S, Canada, and a number of
international locations.

The online Apple Store offers free shipping for orders over $50.

The online Apple store offers iTunes gift cards.

Apple provides a $100 rebate when you purchase a Mac or specific printers from the
online store.

Apple has packaged back-to-school offers, including some aimed at college students.

People

Stephen P. Jobs is the Chief Executive Officer of the Executive Board at Apple, Inc
Non Executive Board Directors include William V. Campbell, Millard S. Drexler, Albert
Gore, Andrea Jung and Author D. Levinson.

Key Senior Management team members include Timothy D. Cook, (COO), Scott
Forestall, Jonathan Ivey, (Industrial Design), Ronald B Johnson (Retail), Robert
Mansfield Mac Hardware Engineering), Peter Oppenhiemer (Chief Financial Officer),
Mark Papermaster (Devices Hardware Engineering), Philip W. Schiller (Worldwide
Marketing), Bertrand Serlet (Software Engineering), and D. Bruce Sewell (General
Counsel).

Some certified Apple service providers offer additional services beyond repairs and
parts such as such as data transfer, data recovery, upgrade services, and onsite
deployment and installation.

Every Mac, iPod, iPhone, and display comes with complimentary telephone technical
support for 90 days after your purchase and a one-year limited warranty. The
AppleCare Protection Plan extends your service coverage and gives you one-stop
service and support from Apple experts.

The AppleCare Professional Video Support gives you direct access to Apple's
Professional Video Technical Support team via telephone and email 12 hours a day,
seven days a week.

Physical Evidence

Apple Inc’s main website is located at http://www.apple.com

The Apple logo has evolved from its original depiction of Sir Isaac Newton under a tree
to the memorable rainbow apple to the present blue Apple with a bite taken out.

Process

Apple converts new customers and secures their loyalty through a corporate emphasis
on customer service.

Apple seeks to attract its target market through bold public relations events (such as
the MacWorld Expo) as well as advertising imagery which borrows from contemporary
modern art.

Apple has expanded its distribution channels in recent years including the addition of
Wal Mart.