Advertising, Public Relations and Sales Promotion

Apple Company is counted among top ten innovative companies in USA. It is a branded company and is highly praised among all ages and races. The two main aspects that contribute to Apple Inc’s success are the quality of product and the local advertising, sales promotion, and the public relations.  

          

  Apple Company advertises aggressively and is shows their products down consumer’s throat, they put a lot of thought, effort, and time, not to mention money into ad and publicity campaigns. The advertisement of few minutes captures the attention of its target markets. It affects consumer’s daily lives, inform them about new products and services.  As the ad for iphone 5C (attached above) shows the featured new phone, various themes, the colorful image of the new phone, and most importantly involves all the different ages and races to convey the message that Apple tends to sale the product to everyone including all ages and races.

           

Apple Company uses two major types of advertising, which is: The institutional advertising and product advertising. Institutional Advertising- Apple Inc. uses institutional type of advertising to promote the corporation as a whole and its design, to maintain the company’s identity. As compare to the first commercial of Apple Inc that took place in the Super Bowl in 1984. It showed the Apple Company as in black and white color theme but promoted a unique idea “ THINK DIFFERENT”.

Where now, in 2013 the Apple Company changed its identity, became a brand, competitive company, and highly recommended company this all happened due to the strategy of institutional advertising. Now, Apple Company has a colorful image.

  The other type of advertising is the Product advertising. Unlike the institutional advertising, Apple Inc. also promotes the benefits of the new product invented and also those advertisements appeal to show the new features, quality, design, style, and advantage of better capacity as compare to old products and other competitive brands.

            After this huge comparison shown in the video clips, it can be said and easily agreed on that Apple products are beautiful, elegant, precise, and they are everywhere. Apple Inc does this through the advertising, which is done through every possible aspect to connect with the public and to introduce them to the upcoming new products. 

Apple spent about $200 billion on advertising of iphone 5C only. Apple advertise through television, internet, radio, billboards, posters, social networking websites( facebook, twitter), commercials, magazines, newspapers and many more ways. Every single advertising help the Apple brand create better public relations and attract more customers.

RETAILING- RITE AID VS. 99 CENT STORE.

      Rite Aid Corporation is one of the nations leading drugstore chains on the East Coast and the third largest drugstore chain in the USA. Rite Aid’s first store opened as thrift D Discount Center in Scranton, Pennsylvania, in 1962. And now Rite Aid has been extended to all over US. It approximately has 4,600 Rite Aid stores.

The Rite Aid I spot to visit is located at

2002 Avenue U

Brooklyn, New York 11229

(At the corner of avenue U and the OCEAN AVE).

Honestly, I  have visited this Rite Aid many times but this time , I went there with aspecific purpose to find out the reason behind the success and advantage of Rite Aid over all other stores like 99¢ store . I compared Rite Aid’s retailing techniques with the 99¢ store located right across from Rite Aid.

                                                              

 2000 Avenue U 

Brooklyn, New york 11229

1)   PLACE- Rite Aid is located right on the main street on the corner. This gives the store an advantage of attracting the customers passing by. Rite Aid’s name board attracts people due to the location. Rite Aid offers everyday’s products and services to help the customers lead to a healthier and happier lives. Rite Aid store itself is huge and for customer’s convenience provides them with driving spot. Where as, 99¢ is way smaller in size, does provide everyday products but not in big quantity nor doesn’t offer a lot of variety. 

 

       2)   PROMOTION- Rite Aid always has sales in different departments. It advertises the sales coupon the magazines. Rite Aid gives out a magazine advertising and article every weekend to prepare the customers maintain their budget for the following week and take out the coupons for the sales and to get advantage by using Rite Aid wellness card. Due to the wellness card and coupons together, the products can be purchased and very cheap price. On the other side, 99¢ doesn’t provide any discounts nor sends out the weekly magazines with coupons.

3)   PRODUCTS_ Rite Aid provides the customers with a wide range of the products. Not only it offers range of brands but also it sells the products in big quantities. Customers can easily purchase a wide variety of vitamins, beauty products, personal care items, basic household items, makeup, hair care products, and all kinds of candies and chocolates. 

                                                    Every products at Rite Aid is organized and has its own place. 

               

    

 Where in 99¢ store the products aren’t organized at all and nor are in wide variety.  

      The negative part in retailing of 99¢ store is that the products are placed outside the store for advertisement.

4)   PERSONNEL- In Rite Aid it's easy to find a staff around you, since they are always loading goods or cleaning and arranging something.Where in 99¢ store there is no uniform for the employees. And mainly the helper of the store is the cashier.

In Rite Aid the customer service alarms are placed near the products such as near the deodorants and are placed in very security.

Also, in Rite Aid there is staff wearing uniform of Rite Aid employee who can answer any question regarding products. They can also help the customers take off the product from the shelves. Where in 99 cent store the cashier is the staff itself and there is no uniform for them that distinguish them from the customers.

5)   PRICE- Rite Aid provides products in affordable prices and can help with discount through the wellness card.

Sometimes due the coupon and the wellness card+ and the sales the products can be purchased at very low prices.

  Where 99¢ has fixed prices plus always charges tax of  59¢ on every purchase.

I mainly liking purchasing things from Rite Aid because its cheap, and branded, and trust worthy.

CONSUMER DECISION MAKING

Why do people purchase Apple products and wait for the next innovative product?

            Apple Inc. is an innovative company that manufactures the products with promoting styles, durability, effective features, and easy to handle. As I read the chapter 6, I learned the term that explains consumer decision-making process, consumer behavior.

Apple Inc. is a premium brand company, which is recognized in the world. Its new products like iphone 5C, 5S are sold on retail price in many developed countries. Apple Company has an advantage of the quality and brand’s name over its competitors. Apple Inc. is ranked as one of the top technological company not only in US but also all over the world. When it comes to purchasing the Apple products, consumers are driven by social factors, cultural factors, and individual factors. Even though the products are bit expensive but people still balance to purchase them.

            Particularly, when buying the expensive products consumers generally follow the consumer decision-making process. I recently, purchased a new and first cell-phone in my life. During that time period I figured that I followed all the aspects of the process.

1)   Need Recognition- To stay in touch with my family and for calling purposes.

2)   Information Search- Iphones are sold widely around the countries and same like with galaxy. To reaserch which is more advanced and worth buying.

3)   Evaluation of alternatives and Purchase- Both of the cell-phones iphones and galaxy are new-featured, sold at high prices but due to new software IOS 7 took advantage over the galaxy.

4)   Postpurchase behavior- Iphones always satisfies its consumers. Just like for me as a consumer I expected few outcomes from iphone ,which it fulfilled. I wanted to have an option to text in my language other than ENGLISH. Where after my research I found out that galaxy doesn’t allow to text in certain language.

     The external stimulus of the consumers like me comes from a wide range of factors such as the continous innovation of the products. And to promote these productions, Apple advertise through all possible ways like from commerials, billboards, magazines, social media like facebook, twitter, youtube and many more. This advertising performs as a factor to spread the word around before the product is even launched. This forces the consumers to make the decision to purchase the new product from Apple Inc.

                        

DEVELOPING A GLOBAL VISION.

In chapter 5, we learned about the global marketing and impacts of multinational firms on the world economy. In previous chapter, a chart showed Apple Company to be on the second rank of the top ten innovative companies in the US. Apple Inc. is a worldwide well-known company. Apple Inc. make the products very much reliable, new-featured, uses beautiful material like aluminum, glass, advanced graphics, and very fast memory. This wide variety of qualities helps Apple.Inc marketing to expand in other countries too. An estimate count would be that Apple has around 28 stores in the UK, 28 in Canada, 231 in the U.S, and several stores in China, and many other countries. As a bottom line, Apple Inc has expanded their markets well beyond the United States borders.

   

            Apple Company is considered a multinational corporation. It develops their global business in stages. Apple Company has built its popularity in steps and still working on it through their new products like iphone4, 4S, 5, 5C and 5S. The steps involve of manufacturing of goods in other country, has evolved primarily Internet. This is the 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 but still needs to built stores in countries like Pakistan, where the products are being used but the retail stores aren’t present.

            A global marketing must consider the external environment. Apple Inc is a great example that operates with environmental factors, which include culture, language, demographics, political and economic structure and natural resources. Apple phones are manufactured with advanced features that handle the environmental factors of the other countries too. Like it has an option to operate iphones in other language other than English and through this positivity Apple Company develops a global vision and built its success.

THE MARKETING ENVIRONMENT

Although managers can control the marketing mix, they cannot control elements in the external environment.

      As we read chapter 4, we were introduced to the important decisions a company takes to have a unique impression on their buyers. Apple Inc. has always been producing innovative and ingenious products, which maintains their position in the external environment. Apple Inc. uses all forms of advertising like television, Internet, and social networking websites to attract the customers. Apple Company’s target market consists of all men and women of ages 13 and above.

            Mostly Apple Company targets:

1     Teenagers- to socialize with one another

2     College and universities students- to research for their studies

3   Business people – for dealing purpose and presentations for the business

4   Adults- fro everyday’s needs to contact others.

5    Kids- to enjoy the spare time playing games.

            Where, the Apple Company is advancing the products. The features of new technology like iPhone 5 and iPhone 5C develops the great interest for consumers and provides them with component lifestyles.

  Component Lifestyle is the practice of choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle. Component lifestyles have evolved because consumers can choose from a variety of goods like iphones, ipod, macbook, ipad and many more and many consumers have money to exercise more options.

            The increase in available technology and the proliferation of screen-based technological devices is having an impact on how Americans spend their time. Apple Company has taken advantage of this increase. They produce the laptops that are much easier to carry around and also save time. The iphones are advanced and have a lot new features as compared to the old ones.

             Demography is the study of people’s vital statistics, such as age, race, and ethnicity, and location.  These factors are significant because the basis of all market is people.  For Apple Company consumer buyer’s behavior is very much important because if the products and services provided by them is not satisfying the buyers then there is no point of the strategic planning of the company.

    Population is divided into different groups that are called Tweens, teens, generation Y, generation X, and baby boomers. 

      Apple Company has been successful in introducing the products in each and all of these groups. All groups are attracted to the new-featured products. Apple company designs and focuses on the desires and needs that all population will be attracted to regardless to their ages.  This is the only reason why Apple is considered as the top innovative company. 

ETHICS AND SOCIAL RESPONSIBILTY.

The chapter 3 exhibits the concept of ethics and the ethical behavior in business. Ethics are the moral principles or value that generally govern the conduct of an individual or a group. Ethics can be viewed as the standard of behavior by which conduct is judged. Ethics, then, consists of personal moral principles. Apple Inc.  is one of the well-known technology companies in the world. A company like Apple Inc has strong moral values, principles, and standards for the business.

            The basic moral principles that Apple employees follow in the business are as follows:

·      Apple Company expects total honesty and is perform in ethical behavior while making business dealings.        

·      Apple expects its employees to avoid situations where a conflict of interest might occur or appear to occur. If something really serious occurs then should react calmly.

·      Apple expects all the partners, employees to respect the confidentiality of Apple information not only people in company, but also the customers.

·      Apple expects its employees, including parties whom Apple does business with worldwide to maintain the highest standards of business conduct.

·      Apple expects and claims to deal all partnerships, dealing the same way, regardless to the social difference in different countries.

·      Apple conducts its business so that the communities in which we operate are benefited by our presence.

A model that suggests corporate social responsibility is composed of economic responsibility, legal , ethical, and philanthropic responsibilities and that the firm’s economic performance supports the entire structure is called Pyramid of Corporate Social Responsibilty.

      Social responsibility of Apple Inc business is growing around the world. According to recent surveys and magazine articles it can concluded that Apple id following all four components of Corporate Social Responsibility.  Apple has done a good job with their social and ethical responsibilities this year. Where in 2006, Apple Company conducted a thorough audit of one of Fox Conn’s manufacturing plants (Apple’s partners in manufacturing) that created iPods.

    News reporters suggested in one magazine that workers at the factory were being treated unfairly and forced to operate under sweatshop-like conditions for little pay. After the ten suicides at Chinese manufacturer fox Conn in 2006.

Apple has investigated and reported child labor violation, toxic conditions, and other violations of their code of ethics. They became more concerned and a better, societal, and responsible company.  

*Economic Responsibility- Every corporation economic responsibility is to be profitable. Apple is first in its class in this field. With revenues this year reaching almost double from last year (from 15.70 billion to 28.57 billion) and Iphone 5 (143% growth sales) and Ipads (183% growth sales) sales exceeding over 100% show Apple

as an ideal example of a company fulfilling its economic responsibility.

*Legal Responsibility- Apple has taken action against unethical conduct in its facilities. For this particular responsibility, Apple has stopped the use of underage labor in ten facilities including Fox Conn.

*Ethical Responsibility- Apple has eliminated dangerous working condition in two facilities and bribery in one facility.

*Voluntary Responsibility- Apple has done a tremendous job concerning environmental issues that range from toxic material removal from its products to the recycling and the use greenhouse gas emission.

 Not only is Apple exceeding the environmental impact of its products in a positive way. Apple Company has been always actively involve with its social responsibility, Its shows that not only is Apple an incredibly profitable corporation but a socially responsible too. 

STRATEGIC PLANNING FOR COMPETITIVE ADVANTAGES

“A good strategic plan can help protect and grow the firm’s resources.”

Apple Company is the world’s famous and successful company. It is a multinational company who manufactures electronics and sells computer hardware and computer software. One of the reasons behind the success of such admirable and reputed company is their strategic planning. Strategy planning is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.  Apple Inc.’s goals and objectives are the main reason that has contributed towards the success of this company.

GOAL-

The goals of this company are as follows:

     •     To provide the best and upgraded product.

     •     To maintain investor support.

     •     To ensure that the company has a long-run profitability, production and service.

            OBJECTIVES-

·      To expand the sales of product to whom it is not introduced yet.

·      To produce products that are full of enjoyment and service.

·      To become the best company in the mobile device companies.

·      To expand the production rate and have high demand of the products.

All three objectives are very important to Apple Company. Since, Apple Company is world wide known that explains the it can also considered as Strategic Business Units(SBU). Strategy Business Units means that large companies may manage a number of very different businesses.

        

    Where there is large amount of businesses, demand and success, there also comes the challenges and hard time but other competitive companies. Apple Company takes a lot of advantage over other companies like Nokia, Blackberry, Microsoft and other because of their cost, service and production techniques. Followings are the SWOT analysis of the Apple Inc.

               STRENGTHS:

According to the SWOT analysis 2013 the strengths of Apple Company are that it has been considered as the leading innovator in mobile device technology. It is a branded and reputed company. This year Apple Company has the strong financial performance somewhere like ($10,000,000.000 cash, no debt, and gross profit margin 43.9%). The most important is the strong marketing and advertising teams.

            WEAKNESSES:

“Every story has two sides to it”. Just like that where the company has strengths it also has the weaknesses. Such as the set-up amount or price of the product may not be very affordable to many people. Incompatibility with other different OS can give a disadvantage

to the Apple Company. The other weakness can be the decreasing market shares and most important any defect of new product can result in failure.

             OPPORTUNITY:

                  The best opportunity that Apple Company has is the new products will increase Apple’s market’s share and will strengthen firm’s competitive advantage. As it’s a known fact that Samsung is the main competitor for Apple Company, its also the only provider of application processors for Apple’s products. The growth of sale will give the good opportunity to expand firm’s shares. Apple could expand its range of iCloud services and software as the demand for cloud-based services is expanding.

               THREATS:

Companies cannot get opportunities but it can also get threats. Apple Company’s threats could be the rapid technological change, which means that the interest of buyers can change anytime and result as a failure. Another threat can be the tax increase, price pressure from Samsung over key components, and most important if the competitors move in online music marketing. This can be a threat and loss of companies profit.

COMPETITIVE ADVANTAGE

As I was reading the chapter 2, I realized that Apple Inc plays a major role in our everyday’s life. This satisfaction of buyers gives the company the advantage over other companies. If the product is sold more that means the company is doing a good deal of work and are making the buyers satisfy. Other then that the variety of production techniques, flexibility of prices, and better customer value has been giving Apple Company the advantages.

MARKETING STRATEGY is the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets. Apple Company involves of Target Market Strategy, Marketing Mix and most important 4 P’s.

TARGET MARKETING STRATEGY: When it comes to target market strategy for Apple Company. The first target is always the teenagers because for many reasons like they use the Apple products for socializing, for entertainment and etc. The next target would be a college and universities student, which use these products for their daily homework and assignments. The use of Apple products like laptop, iPad makes their lives flexible. Next comes, the business people, who are very keen to use these products for presentation, business purpose and for dealing reasons. Last are the adults, they use Apple products to stay in touch with each other and have a little enjoyment in live by socializing with others.

FOUR P’S: Apple Inc. uses all four P strategies to accomplish their goals and objectives. The four P’s are Product, place, promotion, and pricing strategy.

         Product Strategy- The products manufactured by Apple Inc. are more flexible, easy of carry, less time consuming, and are well designed and are always better then the last product.

         Place Strategy- When you see a long running line outside of a store that means it’s the Apple store. Apple stores are located at easy and approachable places where people can reach quickly and buy their desired product.

   

   Promotion Strategy- The first promotional tool for Apple Company’s promotion is advertising. Heavily in areas Apple promotes the products, new managing changes at any television network, technology magazine and all over the Internet and apps.

        Pricing Strategy- The last is the pricing strategy of Apple Company. The products are not really cheap and less priced. They are sold in high prices but according to surveys the purchase of products with high prices is worth of spending money and satisfies people.