1. An Introduction to Apple Computer, Inc.
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Apple's unique, defiant, and sophisticated philosophy is all about revolutionizing life's experiences;
convergence of digital consumer electronics and the personal computer. Apple is focused on the
individual. Things don't have to be arduous. They can be fun. Smile Microsoft, because the
revolution's going to be televised.
An Overview of Apple
Apple was founded in 1976. It is a relatively young company; a company with its own unique
philosophy as to the way things ought to be. Apple exerts significant creative influence on the
technology industry. Today, the company has three major products: Mac computers, iPod music
players, and the iPhone. In addition to these offerings, the company also offers operating systems,
developer tools, and database software.
In 2006, approximately 40% of Apple's sales came from international operations. Apple is a global
brand; ranking 33 in BusinessWeek's 2007 Top 100 Brands ranking. How's that for brand
awareness?
In the 1980's, rather than licensing the Mac operating system to PC makers, as Microsoft did, Apple
chose to be the sole producer of its Mac Hardware. Today, Apple differentiates itself by stressing it
is the only company that designs the hardware, the software, and the operating system; "we stand
alone in our ability to innovate beyond the status quo".
2. Marketing at Apple
The marketing team at Apple places intense focus on leading-edge hardware and software
technologies; the building blocks that will help Apple to define and deliver the new and innovative
solutions customers will want.
Needs are basic human requirements, and
wants are the fashion by which needs are
satisfied. So how does Apple go about
understanding customer needs and wants? Eric,
a product marketing manager at Apple, explains
that he spends much of his time speaking and
interacting with customers, "fundamentally,
Apple is about creating innovative products...
Apple's products often elicit en emotional
response and connection with customers that is
extremely unique and very rewarding".
But Apple is not just about asking the customer
what they want, and then giving it to them. Life is not always so easy. For one thing, customers can
not always articulate their needs. On another note, companies may not always be capable of fulfilling
customers' stated needs. This is business. And companies are in business to make money. In order to
do this, companies may have to develop some new capabilities and/or convince customers that their
view of the world is also theirs. Apple does both; employing "technology-push" and "market-pull"
strategies.
Apple is an innovator, and innovation is often a "technology-push". But Apple also emphasizes
customer requirements, something that is best served with a "market-pull" philosophy. Thus, Apple
takes into account what customers demand, but it also innovates by providing solutions that go
beyond simply the stated requirements; meeting their customers' "real needs". The iPod is a good
example of this, "an elegant method of promoting individual choice". Apple exerted a great deal of
effort in researching the consumer perspective. This enabled them to relate product attributes to
customer values; giving Apple an edge over the competition; "some competitors have added
additional product features, such as a radio tuner, to their products", in an attempt to "out-feature"
Apple, but "Apple has been cautious in adding features. This may be because they had a clear
understanding of what product attributes customers would value".
Apple firmly believes the personal computer is at the center of an evolving lifestyle; the digital
lifestyle. Integration, innovation, ease of use, and high-quality user interfaces will be key elements to
providing solutions for the digital lifestyle.
AppleCare
Satisfaction is the outcome of comparing perceptions to expectations. Its been said that Apple's
products "elicit an emotional response and connection with customers". But is this emotional
response translating into loyalty? The answer seems to be a resounding yes, Apple customers are
"distinguished by their fierce loyalty to the brand, and can be considered as a subculture of
3. consumption".
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With such spec, users will certainly expect a sensible size of display screen image. You can play lots
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Apple appears to place a great deal of emphasis on managing the customer experience. Its website
offers video tutorials to explain the power and potential of products such as their iPod, iPhone, etc.
In addition, there are various forums in which customers can participate with other fellow i-users.
Customers can also get in touch with Apple to share experiences. There are also plenty of self-help
items to address commonly asked questions.
Behind all of this is AppleCare, "a dynamic organization with a direct impact on customer
satisfaction". Apple has a dedicated division to service their customers, "we are a customer focused
and driven team who enjoy the problem solving aspect of our work".
Apple customers also have available to them the AppleCare Protection Plan. This is a fee-based
service that "typically includes three years of phone support and hardware repairs, dedicated web-based
support resources, and user diagnostic tools".
Accompanying the launch of the iPod phenomenon was a transformation in the way Apple delivers
and manages the customer experience, "Apple Computer is among the top rated technology
companies for customer satisfaction, according to a new report released by research firm Satmetrix
Systems". As of late, however, customer satisfaction ratings at Apple have decreased, "it's not easy
to manage quality and customer satisfaction when a company quickly has to increase production or
provide service to a larger number of customers."
Convergence of Consumer Devices and the Personal Computer
Apple believes in the convergence of consumer devices and the personal computer. There is a new
lifestyle evolving, the digital lifestyle. Style is what the company is all about, and in this context,
Apple is an innovator. The fundamental building blocks of the Apple experience are not innovations
or inventions by themselves. Rather, Apple's recent success in the marketplace is founded on a
philosophy that derives its insights at the intersection of technology and consumer values.
References
Nick Wingfield, "But will Apple See a Boost?", Wall Street Journal, April 28, 2005, pp. B1 +.
The 100 Top Brands, BusinessWeek, August 6, 2007.
"The iPod phenomenon: identifying a market leader's secrets through qualitative marketing
research", Journal of Product and Brand Management, Volume 15, Number 4, 2006, pp. 239- 249.
http://www.macworld.com/news/2006/07/11/satisfaction/index.php
Apple Computer Inc., Form 10-K, 2006.
