Apple Marketing Strategy: A Brief Overview

Apple marketing strategy is based on the founder Steve Jobs’s philosophy that customers do not always know what they want. Accordingly, instead of conducting marketing researches to identify customer needs and wants, the multinational technology company prefers to install innovative features and capabilities in their products, making customers to want Apple products.

Apple is a unique company in a way that it is a design firm, a media platform, a publishing company, a software powerhouse and a computer manufacturer – all at the same time. The world’s largest IT company by revenue has been able to avoid price wars with competitors by emphasizing its unique value proposition in its marketing communication messages. Apple’s value proposition is “beautiful design that works right out of the box with ever-smaller packaging”[1]

As illustrated in figure below, Apple advertising budget has been increasing consistently since the takeover of Tim Cook as CEO in 2011 to reach a record of USD 1.8 billion in 2015. Interestingly, Apple chose not to disclose the amount of its advertising spending during the financial year of 2016 in its annual report.  This is possibly due to further increasing advertising spending of the business and willingness of the management not to share the data with its competitors.

Apple marketing strategy

Changes in Apple advertising expense[1]

Apple 7Ps of marketing is marked with a particular focus on the product element of the marketing mix and the company’s segmentation targeting and positioning initiatives are aimed at targeting users of premium products. Moreover, marketing communication mix of Apple Inc. places greater emphasis o’n print and media advertising and personal selling in Apple Stores and the company rarely uses sales promotions as part of its marketing strategy.

Apple employs viral marketing strategy with an impressive level of effectiveness. The most notable Apple marketing videos such as commercial video clip titled ‘Think Different’ and Apple’s first Macintosh commercial from 1984 have been watched in social networking sites more than one million times with positive implications on Apple’s brand image. Product placement also plays a substantial role in Apple’s marketing strategy and the most memorable cases of Apple’s product placement relate to movies Transformers 4, Birdman, The Verge, Birdman and Boyhood.

Apple Inc. Report contains a full analysis of Apple marketing strategy. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. Moreover, the report contains analyses of Apple leadership, organizational structure and organizational culture. The report also comprises discussions of Apple business strategy, ecosystem and addresses issues of corporate social responsibility.

 

Apple Inc. Report

 

[1] Patel, N. (2018) “7 Key Strategies That You Must Learn from Apple’s Marketing” Neil Patel Digital, Available at: https://neilpatel.com/blog/7-key-strategies-that-you-must-learn-from-apples-marketing/

[2] Source: Business Insider, Available at: http://www.businessinsider.com/apple-stopped-disclosing-ad-spend-2016-11

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