1. Assignment 1 – task 1
Evolution of Digital Marketing
Katie Miller
Student Number: 76217488
2. Section 1: Product
Figure 1: Lee, 2023
Figure 1 demonstrates the sleek and simple design of Apple's
products and the consistency in style across all product ranges.
Apple’s founders wanted to change the way consumers viewed
technology especially computers and they have successfully
done this by creating seamless and easy to use products that
follow the same style and systems, forming the Apple
‘ecosystem’.
Figure 2 shows the visual appeal of Apple products, the latest
desktop Mac computer being only 11mm thin and available in a
range of non-traditional fun colours, appealing to a range of
audiences. Apple is also known for its colour consistency
demonstrated by figure 5.
Additionally, it’s Apple's vast product range that makes it a
market leader, figure 4 shows just some of the hardware
products Apple produces. Apple began by developing the Apple
Computer 1 (Apple-1) in 1976, Apple now has 21 hardware
products on sale and over 70 current accessories and
peripherals, excluding software and operating systems.
Figure 3 depicts the history of the Apple computer from 1984 to
2020. This video clearly shows how Apple has developed their
products over time to meet the ever-changing requirements of
the consumer.
Apple has recently launched a subscription bundle service,
Apple One (see figure 6), providing users with access and
control their music streaming services, TV streaming, games,
news, fitness app and even additional storage in one convenient
package.
Figure 3: History of iMac 1984-2020 - YouTube
Figure 2: Sheth, 2021
Figure 4: BasicAppleGuy, 2021
Figure 5: Kelly, 2023
Figure 6: Easton, 2020
3. Section 2: Price
Figure 2: Smith, 2019
Apple's products are generally priced higher than its
main competitors as demonstrated by figure 1
(calculated by mean price).
Apple’s key pricing strategy is price skimming, when
they release a new product in a series for maximum
market rate, the product before that in the series,
becomes cheaper and viewed as the more affordable
model. As a result, Apple frequently gets labelled
‘mainstream luxury’, the standard models are positioned
in the middle of the market and the Pro/Plus models
sitting at the higher end, as shown by figure 2. This
strategy allows Apple to target a wide demographic yet
still be viewed as a more premium option.
Apple offers store credit for those who exchange their
old devices for new ones (see figure 3) encouraging
consumers to stay loyal to the Apple brand.
Apple offers discounts for college, school, university
students (see figure 4), encouraging younger consumers
to become invested in Apple products and the brand
from a young age in the hope that they will become loyal
consumers throughout their life.
Figure 1: Gershgorn, 2017
Figure 3: Apple, 2023a
Figure 4: Espósito, 2021
4. Section 3: Place
Figure 4: Illidge, 2023
Figure 1 depicts the distribution of Apple's stores globally,
as of April 2023. Apple has over 500 stores in 26 different
countries and is planning on introducing another 50 stores
by 2027 (Gurman, 2023).
The stores are modern and simplistic, mirroring the brands
image, allowing the products to be the focus. Figure 2 and
3 show how Apple uses its stores to showcase its products
as technologically innovative, through the sample products
showed on the benches in figure 2, and the stylistic
properties of the products in figure 3, reinforcing that Apple
is as much a brand of style and fashion as function.
Alongside Apple stores, Apple uses third parties such as
John Lewis and Currys PC World and network providers
such as EE, Three and Vodafone to sell their products. In
2022, it was reported that 62% of Apple’s sales came from
indirect channels such as third parties, wholesalers and
resellers (Cuofano, 2023). Apple harnesses these third
parties with established and large distribution networks to
their advantage, maximising their touchpoints with
consumers. Subsequently in 2022, only 38% of Apple’s
sales were generated by direct sales in Apple stores or on
their website.
The Apple website (see figure 4) has been developed with
user friendliness as key, it allows the consumers to
compare multiple products/models side by side to
effectively compare function and spec.
Figure 1: Buchholz and Richter, 2023
Figure 3: Peters, 2020
Figure 2: Apple, 2023b
5. Section 4: Promotion
Figure 4: Diaz, 2019
Figure 2: Carman, 2017
Apple uses keynote speeches (see figure 1) as a way of
launching its products and providing a sense of anticipation and
build-up, getting consumers excited and intrigued about new
product launches. For those that enjoy Apple's simplistic and
functional design, these speeches are a great way of
demonstrating the new improvements to technology, allowing
consumers to assess whether the new product meets their needs.
Figure 3 shows one of Apple’s most famous promotional
campaigns, the shot on iPhone campaign. The primary aim of this
was to demonstrate the quality of the new iPhone camera and
how it can rival professional equipment, emphasising the idea that
everyone can take professional looking images and videos with
the iPhone.
Apple's promotional techniques are often simple but striking as
demonstrated through figure 4, a billboard advertisement where
the only text is the name of the product with the logo.
Figure 2 is a screenshot of Apple’s Instagram profile. Like with
much of Apple's advertising, its social media only shows
campaigns which are shot on the iPhone by Apple themselves or
by their consumers rather than using direct product description
and promotion. This helps create a sense of community across
their social media platforms and their content often includes
environmental initiatives, social and community projects, and
individual talents.
Figure 3: Carter, 2020
Figure 1: Griffin, 2020
6. Section 5: Process
Figure 4: Apple Support, 2023 Figure 2: Pullen, 2015
Figure 3: Gilbert, 2019
Figure 1: Sumra, 2016
Increasingly, customers are buying less into individual
products themselves but rather the whole brand and
everything that comes with that including, the buying
process, post purchase support, communication with the
brand, the brand image and more.
A key example of Apple's process innovation is it’s in-
store Genius Bar. This acts as a customer service tool,
encouraging footfall into stores and providing intimate
face-to-face representation of the brand. As seen in
figures 2 and 3, consumers can book an appointment
with an expert at their convenience to help with any
enquiries.
Apple also has a support area on its website (see figure
1) where consumers can come for assistance, which
directs them to relevant help articles or an expert to
speak to. These support features are available via an
app (see figure 4) increasing the accessibility of Apple’s
support and customer service, from any location.
Apple also uses Twitter as a customer service tool,
customers can tag @Applesupport in their tweets for
immediate and direct support – this highlights how Apple
is trying to reinforce their community identity, both in-
store an online.
7. Section 6: Physical evidence
Apple has flagship stores all around the world which are usually
architecturally designed to be a visitor attraction as well as a fully
functioning store, such as Apple's Istanbul store in figure 3 and it’s
Shanghai store shown in figure 4. The Istanbul store almost mirrors
the design of the iPad. Although the exterior of the stores may vary,
the stores interiors remain a constant, simple and easy to navigate.
Apple’s physical stores are a place for people to try and test
Apple’s physical products in real-time and experiment with whether
the products are for them. The stores also have free Wi-Fi so can
they be seen as a ‘community hub’ for Apple users.
The Apple logo is one of the most identifiable aspects of the brand.
The branding is so simple that it cannot be confused. Figure 1
shows the evolution of the logo from 1976 to the present day.
Since 1977 Apple’s logo has been simple, sleek and easy to recall
and a key design feature in most of products, packaging and
stores. This logo acts as a hallmark of a luxury and a quality
product or service.
It’s Apple’s physical assets that help build its high-end brand
image, with architecturally innovative stores to sleek and easy to
use website design and high quality and functional packaging (see
figure 2). Apple have recently reduced their product packaging by
50% (Forbes, 2020) as a way of being more environmentally
friendly.
Figure 2: Warwick, 2020
Figure 1: Anisimova, 2022
Figure 3: Stone, 2014
Figure 4: Gebel, 2019
8. Section 7: People
Figure 1: Newcomb, 2016
Apple has over 161,000 employees, whereas one of its closest
competitors, Samsung, have over 270,320 employees (Vailshery,
2023). Even with fewer employees Apple’s revenue per employee is
higher than all other tech companies (Vailshery, 2023).
Additionally, as figure 5 shows, Apple employs 90,000 Americans
across all 50 states (Apple Press Release, 2019).
Apple encourages their employees to be advocates of the brand and
in return Apple provides them with discount such as 25% off their first
Apple product range in any line then a subsequent 15% off the
second, further enforcing brand loyalty and advocacy as
demonstrated in figure 1.
Apple has high expectations of its employees, both in terms of their
technical knowledge and how they interact with customers. Figure 4 is
a video outlining Apple’s customer service approached aptly named
A.P.P.L.E which spells out the steps expected for customer service:
• A - Approach customers with a personalised, warm welcome
• P - Probe politely to understand the customer’s needs
• P - Present a solution for the customer to take home today
• L - Listen for and resolve any issues or concerns
• E - End with a fond farewell and an invitation to return
However, Apple has not been without people scandals in the past
(see figure 2). In 2011, it was reported that Chinese workers were
being forced to work excessive overtime and under strict rules in
order to meet consumer demands for Apple products (Chamberlain,
2011), raising question about how ethical the brand really is.
Figure 4: Apple's Retail
Secret: Full Service Stores
– WSJ
(Kane and Sherr, 2011)
Figure 2: Merchant, 2017
Figure 3: Macro, 2023
Figure 5: Apple Press Release, 2019
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11. References
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