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Apple Inc marketing strategy

Apple Inc. Marketing Strategy


Product Strategy:

Professional and Educational Market: Apple position itself as a niche player in laptop industry and concentrate on the professional segment. It has considered how to leverage its small market share to its advantage. The Mac's best features, better graphics, trendy design, and ease of use are what corporate purchasing managers value the least. The corporate market is looking for adequate functionality with minimum price. The fact that the Mac versions of Outlook, Word, or Excel don't offer much functional differentiation from their laptop equivalents makes it even hard for Apple to compete in this market.


Digital Content Creation: Apple, given that it excels in combining software, hardware, and industrial design to create elegant products that make digital entertainment seem fun. Already Apple's iMovie, iPhoto, and iTunes programs are the most intuitive way to manage content on a computer. Such software is turning the Mac into a digital warehouse and routing station. It has become a device for users to send music from the Internet into MP3 players. Alternatively, transfer photos from a camera onto a Web page.


High Quality Digital Product: With the Apple Standard being adopted as the Industry standard and Apple becoming the major supplier of digital software to the Consumer Electronics industry Apple is in a unique position to leverage its design and innovation capabilities to make high quality digital products for this market. Apple can then use the differentiation strategy to command premium for its products based on the quality and features. They would then become a niche player in the upper and premium end of the digital products market.


Pricing Strategy:

Apple Mac used skimming pricing strategy for its marketing strategy, because it believes that price creates perception of quality, and by using skimming pricing strategy it would attract an image of high quality. However, pricing strategy allows Apple Mac to increase its market share, since they are providing the high value production.


Promotion & Advertising Strategy:

In order to gain the understanding of the product, Apple Mac uses the mainstream promotion platform to delivery the information to the consumers and reaches their target market.


Apple Mac decides to target professional, teenager and young adults as their target customers. Therefore, Apple Mac creates its advertising campaign with scientific, professional, stylish and fashionable elements respectively.


Distribution Strategy:

Apple is using two major distribution channels to reach the end-user. Direct distribution: Apple established the retail stores in different regional location; it displays the product and provides the information and support to the end-user directly. Indirect distribution: Apple used the intermediary organization to Fragmenting bulk supplies of inventory, provides the financial services to retailers and Increase ease of customer purchase, beside, Apple minimize the transport costs by monitoring and operating a warehouse close to the intermediaries.


Apple Inc. Corporate Strategy:


Product differentiation

Product differentiation is a viable strategy, especially if the company exploits the conceptual distinctions for product differentiation. Those that are relevant to Apple are product features, product mix, links with other firms, and reputation. Apple established a reputation as an innovator by offering an array of easy-to-use products that cover a broad range of segments


Strategic Alliance

A massive reversal occurred in 1997 and 1998. In 1997, Jobs overhauled the board of directors and then entered Apple into patent cross licensing and technology agreements with Microsoft. (Linzmayer, 289-90) In 1998, Jobs stated that Apple's strategy is to "focus all of our software development resources on extending the Macintosh operating system. To realize our ambitious plans we must focus all of our efforts in one direction." (Linzmayer, 293) This statement was in the wake of Apple divesting significant software holdings (Claris/FileMaker and Newton).


There is economic value in strategic alliances. In the case of Apple, there was the opportunity to manage risk and share costs, facilitate tacit collusion, and manage uncertainty. It would have been applicable to the industries in which Apple operated. Tacit collusion is a valid source of economic value in network industries. Managing uncertainty, managing risk, and sharing costs are sources of economic value in any industry.


Dell Inc. Marketing Strategy


Product Strategy:

Dell's unique approach to manufacturing separates the different processes so that Dell is not reliant on singular production or supplier's chain for equipment production. However, there is no segregation of the different products and services but in separating, the components enabled it to target the customers based on the regions in which the products are manufactured. By assigning, each regionalized production center particular component for production not only has diversified the risk of concentration of labor and production costs but also depending on particular infrastructure.


Pricing Strategy:

According to Dell's official website, Dell is using customer based pricing strategy, it charges the local level price refer to the affordability of the regional customer, since it cuts down the power of supplier and lower the price pressure. Moreover, Dell provides the technical support and after sales service to consumer without charges additional costs. Thus, Dell differentiates itself with the other competitors via the valuable price.


Promotion & Advertising Strategy:

Dell targets the households and university students as it target segment, it advertises through several tools such as university posters, magazines, newsletters, and websites. Moreover, its promotion strategy are On-line model, direct mail order, catalogues, Premier Pages, special training and certifications, editorials, reviews, sales reps, and awards.


Distribution Strategy:

Dell has been able to affect the location strategy aspect of its marketing campaign. As its products are always available at the nearest dealers' customers develop trust for the "local Dell" thereby achieving the objective of gaining their trust in Dell products and services, and forming a large and diversified consumer base.


Dell is using direct modes in compressed product production lines, supplemented by online purchase at great development of its direct sales model.


Dell Inc. Corporate Strategy:


Competitive Strategy

While many of its competitors are working feverishly to develop the next generation of technology, Dell has been waiting. To date, the firm's strategy has been to recreate technology. In many cases, companies that do their own R&D are able to stay ahead of the industry through the development of new products. Putting more emphasis on R&D has some potential benefits. Through increased R&D spending, Dell may be the first to introduce products to market and establish first mover advantage. Dell's recognizable brand name would allow it to expand into new products and potentially create insurmountable barriers to entry for its competition. However, an increased emphasis on R&D would distance the company from its core competencies. Increasing R&D changes its focus from mass customization of mature products to smaller batches and product introduction and growth. Additionally, it would force the company from its direct sales model, as new products require multiple distribution channels to ensure they are available to customers as quickly as possible. Currently Dell's strength is the sales of mature products through mass production, bringing quality and price without the cost of R&D.


Global Positioning

There is also the issue of global positioning. Dell's consumer base is not a typical American or Canadian but a wide range of customers from Asia, Latin America, and Europe as well each with distinct needs and requirements. The difference in corporate culture as well as professional attitudes towards IT products and services create a difficult need/requirement profile that would be challenging for Dell. As more and more consumers in developing regions like China, Brazil, France, and India grow to appreciate computerized environment, they also have complex needs. This way Dell would have a difficult time to incorporate a pervasive marketing strategy. Instead, it should maintain differential but integrative marketing strategy so that the company has a niche in each of the markets in which it manufactures products.


Hewlett-Packard co. Marketing Strategy


Product Strategy:

From the product perspective, HP offers a wide range of product set, such as HP EliteBook Notebook PC, HP ProBook Notebook PC, Essential Notebook PC, HP Mini, HP Compaq Notebook PC, Mobile Thin Client etc, from mini-sized to wide-screen and from multifunctional to professional, thus, it diversified itself and gives a wide range choosing options to customers. On the other hand, HP provides the best after sales service to its customers, which is three-year warranty free, which is almost the longest warranty in the industry.


Pricing Strategy:

HP pricing strategy is similar to Dell, it charges the pricing refer to the affordability of the regional customer, it alsouses the promotional pricing to incent the customers to buy more than one product. HP is currently offering several discounted, free, and bundled products and services to customers to implement the promotional pricing strategy.


Promotion & Advertising Strategy:

HP is using mainstream media to assist its promotion campaign to reach its target market. On the other hand, HP emphasis the after sales service, therefore, it tries to build the considerate image through its promotion campaign. The main promotion strategies are sales force training, personal selling, sales promotion, public relations & publicity. The main advertising strategies are magazines, newsletters, and websites.


Distribution Strategy:

HP is using the traditional business to consumer distribution channel, such as manufacturer, wholesaler, and retail. Moreover, HP has a consumer electronics store to connect the customers and manufacturer directly, by using consumer electronics store would lead to a lower price for a product purchasing.


Hewlett-Packard co. Corporate Strategy:


Customer Relationship Management

HP product or service can call for advice- enables the organization to keep costs to a minimum. Where necessary, the organization will send out an expert to repair- it is reputed that in its efforts to be as efficient as possible, HP believes that Building a relationship with enterprise customers could be a problem. When Enterprise businesses choose a supplier, they will consider the sellers future abilities to satisfy its needs and they will not focus exclusively on the seller's immediate capabilities and inducements (Jackson 1985).


Human Resource Management

HP approaches to employees is one of the most renowned things about the organization their relaxed, informal culture, combined with many benefits, training and support sets them apart from many competitors. Motivation is key in getting your workforce to achieve their potential, and Hewlett Packard is well aware of this: "We believe that when an excellent performance is acknowledged and rewarded, people are more motivated and work smarter"

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