Digital marketing on Apple Inc Example - Paper Example

Task One

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Apple Inc. is one of the worlds largest designers and developers of consumer electronics including the iPhone smartphone. The company was incorporated as Apple Computer, Inc. in 1977 with the trio of Ronald Wayne, Steve Wozniak, and Steve Jobs as its leaders. It was renamed to Apple Inc. in January 2007 and is now the largest technology company in the world CITATION Nik16 \l 1033 (Rawlinson, 2016).

Apple Inc. was initially focused on making and selling personal computers, but it has diversified over the years to include computer software, consumer electronics, and online services. Apple Inc. hardware product include; the iPhone, iPad, iPod, a smartwatch, and Apple TV. Its software includes the Safari Web Browser, MacOS, and IOS operating systems, while its online services include the AppStore, Apple Music, and iCloud. The company also has subsidiaries including FileMaker INC., Braeburn Capital, Beats Electronics, and Apple Energy that are involved in car production, fabless silicon design, and corporate venture capital provision.

As a public listed company, it operates on the NASDAQ and the Dow Industrial Average. The company is also the largest publicly traded company by market capitalization, and it employs over 115,000 full-time employees to help in its 478 retail stores in 17 nations CITATION Phi16 \l 1033 (Elmer-DeWitt, 2016). Besides the physical locations, Apple also operates the online Apple Store and the iTunes Store enabling it to reach a wider market. The company has grown its asset base to become the largest technology by total assets with a value of over $700 billion and revenues of over $200 billion every fiscal year which is over 1% of the United States GDP.

Despite receiving widespread criticism for its environmental and business practices as well as the labor practices of its partner companies that are deemed discriminatory, the company still enjoys a high level of brand loyalty, and as a result, it has been the most valuable brand for the last five years. Apple Store openings are usually filled with lines of ardent fans wishing to get their hands on the next Apple product, and this has been described as a deeply personal relationship. Apple makes high-end products which are touted as better quality and thus more expensive than those of other manufacturers, and for this reason, Apple customers are affluent and educated consumers who are willing to pay a premium price for superior products. The company has most of its sales in the American and European market although sales are growing in its Asian market. So far, over there are over 1 billion Apple products in the market CITATION Kin15 \l 1033 (King, 2015). Apple focuses most of its attention on its existing customer base by offering high customer engagement and growing its service segment.

Apple operates in multiple industries and thus has different competitors for most industries. However, since it has a sole focus on consumer electronics and especially smartphones, Apple has had Samsung and Huawei become its primary competitors as well as Google that produces the Android operating system. Google also challenges Apple in the Cloud Storage space, in entertainment media and applications, and looks to be a challenger in electric vehicle production. In the computer space, Apple competes with other PC producers such as Dell and HP as well as Microsoft for the computer operating system. The company has lately entered the mobile payment industry where it will compete with established companies like PayPal and Google.

B) Importance of Customer Focus

In todays marketplace, repeat customers spend on average is 67% more than new customers and make up for more value both in the short and long term, and there is thus a need to ensure that they are retained in the company. Customers are also a magnificent source of referrals and brand promotion and on average are more efficient marketers than sales associates, but will only refer their friends if they have a secure attachment to a companys brand CITATION Lan15 \l 1033 (Burgess, 2015).

Customer focus ensures that a company is constantly in search of new ways to add value to clients in a bid to retain them. Companies are thus able to do a real-time analysis of the clients wants and needs and be able to integrate them into the digital marketing campaign. Furthermore, by focusing on the needs of clients companies can create more customized content for the clients. Customers believe that businesses that create customized content are attempting to build strong relationships and end up trusting that brand, leading to more sales. A part of customizing content includes educating the customers more on the product which enables customers to get more value from a companys product and increase affinity CITATION Sha16 \l 1033 (Price, 2016).

Customer focus also provides a company with data on market trends and insight with which to be able to tailor an effective marketing campaign. It enables marketers to understand what channels will and wont work and how to leverage a companys strength to its advantage. Any gaps in advertising are recognized in time which aids in making the advertising campaign more effective. Companies are operating in a changing landscape where customer-centric companies are 60% more profitable than those not focused on the customer hence highlighting the need for customer focus in advertising.

C) Role and Purpose of Online PR and emails

Online PR has changed over the years and now includes social networks, social bookmarking, the use of photo and video sharing platforms, search engines, and own brand properties. Online PR is designed to enable a larger presence for the company and its products while also improving the experience for users.

One way in which online PR helps is that it allows companies to respond to queries and suggestions easily. Businesses cannot respond to the numerous customer claims in real time through for instance; phone conversations, and thus online PR including social media, blogs, and emails can be used for responding to customer queries. Customers can also be able to serve themselves through applications like mobile apps and online stores which makes it more convenient CITATION Ros14 \l 1033 (Beard., 2014). Additionally, by having items cataloged online customers have a broad range of products to choose from and can shop from the comfort of their homes.

Another way of enhancing the customer experience is by using the emails and online sites to send relevant and targeted messages to consumers. While some of these messages could be advertisements showing the customers new products, other messages are educational such as to inform the user of new product features. Consumers are also able to get pertinent information on time with which to make better decisions. Additionally, online PR channels such as mobile applications and websites are a good source of tracking customer data and identify trends with which to be able to better cater to the clients needs CITATION Rog16 \l 1033 (Rogers, 2016). All these aids in creating a more personalized experience for the client with the result of having satisfied repeat customers.

Task three

One (a)

Implicitly the world of technology, digital marketing, and social media continues to have a significant influence on how entities behave socially, behave as consumers and how business is conducted. In this regard, a company that does not conform to the new era of marketing and communications is vulnerable or runs the risk of losing. In the modern world, today, it can be connoted that new technologies such as mobile, social media and analytics are maturing rapidly in the economic landscape. On this note, the new technologies are utilized by consumers and employees with Facebook having more than a billion users and six billion mobile phones. Therefore, employers in the diverse industries are challenged by the mystifying new digital options.

Undoubtedly, there are benefits accrued to digital marketing and are highlighted as follows: -

With a solid digital marketing strategy, companies can compete regardless of their size. Also, the cost of marketing using the mode is reduced.

Companies can also mature their brand when they target the needs and adding value to the target audience. Additionally, there is increased exposure using digital marketing channels such as social media.

Apple Inc. is one of the largest brands in the tech industry, and this is regarding both revenue and brand. It has established a market position in the sector through the production of revolutionary products. In this respect, it can be connoted that Apples marketing mix has created a fan base which lines up for hours on end immediately the business entity has released a new product throughout its social media channels- the maturation of a brand. The online vision of Apple can be linked to its overall business strategy founded on learning consumer behavior. On this note, Apple utilizes dedicated websites that showcase Apple products and Apple marketing. From right designs and utility, Apple has created a competitive advantage and managed to transform its buyers or customers into brand ambassadors. Also, Apple does not engage in price wars and only offers justifications for their prices. In the same vein, the company can be said to utilize the unique value proposition which is a marketing approach founded on getting juice through all the social media platforms. The strategies employed are cost-effective and do not require substantial investments. It can be highlighted that a company can choose to use a lot of cash in creating PPC advertisements on Google and Facebook in an endeavor to create a brand image and increase sales. However, this is not the case with the Apple Company.

One (b)

It can be denoted that Apple utilizes two separate online approaches which can be continually recommended: product placement and the creation of a buzz from positive reviews by the various media channels.

The creation of a buzz

It can be highlighted that companies go to great lengths in an endeavor to safeguard their products during the development phase. Before the release of a product, Apple builds up media conversations and creates a suspense of its product before eventual release. The organization stokes the buzz without provision of any information. The speculation through the media and blogs creates free consumer interest. Therefore, the group has established relationships with the influencers in the industry. Also, Apple has gone ahead to create a culture that has attracted a brand community of fans who remain loyal to the organizations innovativeness and coolness. In so doing, Apple can be connoted to use this approach as a public relations mechanism directed at enhancing and maintenance of its customers. The created brand culture by the corporation has matured customers who would line up for its products for hours on end.

Product placement

Apple utilizes celebrities and favorite shows to place its products, and this is achieved through modes such as its free trial program in exchange for positive testimonials. The testimonials are published on the websites and links created that lead back to the Apple site. A study has highlighted the fact that ninety-two percent of customers trust the recommendations they are given by friends and family while seventy percent of other consumers that publish them online. This confidence can be aligned to the creation of brand benefit attributed to social media. From this online public relations approach, Apple can maintain a positive light on its products and thus, support and enhance the organization's customers.

One (c)

In expressing the process element in the digital marketing mix, use of email and online public relations are considered.

PR

One of t...