Apple Inc. is a leading technology company founded in 1977 that develops, manufactures, and markets consumer electronics and software products. It operates over 300 retail stores worldwide and has annual sales of $65 billion. Apple differentiates its products through continuous innovation, introducing numerous new products lines over the years like the iPod, iPhone, iPad, and accessories. It employs a marketing strategy focused on product design, competitive pricing, strong distribution through its own stores and online channels, generating hype around new products, ensuring high customer satisfaction, and cultivating developers for its platforms.

1. Institute of Specialized
Economics and Finance
BUSINESS CONCEPT
Lect urer Morn Nerot
THE MARKETING
STRATEGY OF
APPLE
TEAM WORK
SEM CHANNARATH HENG CHANREAKSMEY LAY SOKHEANG
EOUK NIMOL OL CHINEANG CHEA SOCHEATA
CHHOULEAKHENA CHAN CHENDA CHAY SREYNOUCH
Year I, semester I
2012-2013

2. OUTLINE
• About the company
• Product
• Price
• Place
• Promotion
• The Marketing Strategy

3. ABOUT THE COMPANY
 Apple Inc. is a California corporation founded in 1977 by Steve Job.
 Now, Apple Inc. operates 301 retail stores in ten countries, and an online store .
 As of May 2010, Apple is one of the largest companies in the world and the most
valuable technology company in the world, having surpassed Microsoft (Linz
Mayer, 1999).
 As of September 2010, Apple had 46,600 full time employees and 2,800
temporary full time employees worldwide and had worldwide annual sales of
$65.23 billion.

4. ABOUT THE COMPANY
 In a short period of 33 years, it has been grown to be a world well-known brand.
 Fortune magazine named Apple one of the most admired company in the United
States in 2008, and in the world in 2008, 2009, and 2010, standing an important
place in the fast-moving technology world.

5. PRODUCT
 New Product Development
• Numerous product ranges that provide product lines to attract customers have been
introduced throughout the years since 1983, for example, portable computers, servers,
accessories, Wi-Fi based stations, developer, iPod, iPhone, iPad, iTunes, peripheral products
and more.
• Consequently, the Company has come up with newer versions of its product lines with similar
characteristics that are also updated from time to time. For instance, in the iPhone portfolio
range, Apple initially came out with the iPhone 3G, then iPhone 3GS ,iPhone4, iPhone 4s, and
iPhone 5.

6. PRODUCT

7. PRODUCT
 Product Differentiation
• Launching the iTunes marked the beginning of Apple’s new strategy of making the Max the
hub for the “digital lifestyle” and also launched the iTunes Music Store online in 2003.
• The iPod was then introduced and it “changed the way people listen to music”.
• Apple continued their innovative streak with advancements in flat-panel LCDs for desktops
and improved notebooks in years 2002 and 2003.
• In order to satisfy consumers’ favor, Apple Inc. has their product line for the iPod.
• AppleCare offers a range of support options for the Company’s customers.

8. PRICE
 The company has reduced prices after some initial product launches.
 The retail pricing control by Apple is somewhat limited and, like many other products, the iPod
has been subject to considerable discounting particularly in the one intermediary channel of
distribution.
 From Apple’s perspective, discounting usually only eats into the margin of the retailer, not the
company itself.
 Another pricing strategy used by Apple Inc. was launching a low-price version of an existing
product targeted at price-sensitive consumers.

9. PLACEMENT
 there is direct distribution though Apple stores located in many countries and accessed on line.
Apple, Inc.
 There is direct distribution though Apple stores located in many countries and accessed on line.
Apple, Inc. This is where there is a retailer between the manufacturer, Apple, and the consumer.
 The Apple Store (80 000 references) is a large hypermarket. With shelves and products inside.

10. PROMOTION
 Personal selling
• This form of promotion is most relevant to the Apple exclusive and authorized retailers.
• Staff are trained to have a high level of product knowledge and are completely focused on
the sale of Apple’s range.
 Advertising
• Apple has used a range of media advertising to promote the iPod. Electronic, print, the Internet and
alternative media (such as billboards and bus shelters) have all been used.
• Advertising costs are expensed as incurred. Advertising expense was $691 million, $501 million and
$486 million for 2010, 2009 and 2008, respectively.

11. PROMOTION
 Cross promotion
• This involves the use of one product to support another.
• One of the clearest examples is provided by the iPod cross promotion of the rock group U2
and its album ‘How to dismantle an atomic bomb’.
 Internet
• 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 and also offers iTunes gift
cards.

12. THE MARKETING STRATEGY
 Success by design
 Pricing
 Distribution
 The hype
 Customer satisfaction
 Developers and apps

13. REFRENCE
• Silverman, Dwight. “Tech Blog.” 6 Aug. 2008. Chron.com. 11 Nov. 2008.
http://blogs.chron.com/techblog/archives/2008/08/the_price_difference_between_
• Apple.com (2007) HOMEPAGE.RETRIEVED ON SEPTEMBER 20, 2007, from http://apple.com
• BODDIE, J. (AUGUST, 2005) BEHIND APPLE'S STRATEGY: BE SECOND TO THE MARKET.RETRIEVED
ON SEPTEMBER 20, 2007, from http://hbswk.hbs.edu/archive/4970.html.
• Blythe,J. (2008) The Official CIM Course book: Marketing Essential. UK: Elsevier
Jobs,S. Apple’s CEO (02/03/2011) Apple’s Keynote, USA: San Francisco.
Kotler,P. Armstrong,G. Saunders,J. Wong,P. (1999) Principles of Marketing Second European Ed.
New Jersey: Prentice Hall Inc.
LearnMarketing.net, (n.d.) Consumers’ Buying Process, *Internet+
http://www.learnmarketing.net/consumer.htm [Accessed on 13/03/2011]
MarketingTeacher.com, (n.d.) Apple’s Marketing Mix, *Internet+
http://www.marketingteacher.com/case-study/apple-case-study.html [Accessed on 10/03/2011]
Dr. Willan, M., (08/03/2011) CIM Marketing Essentials [Lecture], LSBF: London

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PARTICIPATION
&
WELCOME FOR ALL QUESTIONS