Ch. 4 - The Marketing Environment

             Be able to understand marketing environment is an important skill for companies to success, especially for companies like Apple. As a global technology company, Apple has to think more about external marketing environment than internal. According to the book, the factors within the external

environment that are important to marketing managers can be classified as social, demographic, economic, technological, political and legal, and competitive. On the other hand, business internal environment is controllable for managers through the creation of the marketing mix. However, external environment is uncontrollable. It keep changing and reshaping by the environment.

            When Apple introduced Ipod it was not a new market, MP3 players had existed for some time without being a big success but customers’ preferences were changing rapidly. After that, Apple quickly saw a new market and created music store, iTunes, which sold millions songs though web. Soon Apple was making big money on Ipod and iTunes. That’s a good and appropriate case for managers to know the importance of understanding external environment of social factors.

            As mentioned before, Apple is a global company, so it requires Apple must have global vision to discover global market. Joining China to WTO creates opportunity as well as threat for Apple.  Lower investment barrier and market barrier gives opportunities for Apple to take advantage of low cost labor as well as getting potential market. On the other side, similar opportunities are also available to competitors.  When competitors move its plant into China and become more efficient, Apple has to respond or will get cost inefficiency disadvantage over competitors.

            In order to gain global market, Apple keep opening its retail store around the world. It opened 33 new brick-and-mortar stores during 2012, 28 of which were outside the U.S., bringing the total number of worldwide Apple Stores to 390. In addition to this, Apple will keep opening up to 35 new retail stores in 2013. For economic consideration, Apple prefers to choose developing countries to expand its business. For example, most recently, the company opened the doors to its largest Asian outlet at the Wangfujing mall in Beijing, China.

Ch 3 - Ethics & Social Responsibility

    Ethics refers to well-founded standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, and benefits to society, fairness, or specific virtues. Ethics is different from law, which consists of unwritten rules people have developed for our interactions with one another. Ethics and social responsibility are part of elements that companies need to have in order to achieve companies’ goal and further development. 

Ethics in Business

         A company or a businessperson has obligation to be honest with customers, to broader social and philosophical questions. One the other hand, fairly treat and respect its employees also is an indicator to demonstrate a company’s ethical behavior.

Steps to make ethics and social responsibility work for you.

1.   Set goals (what do you want your company to achieve?).

2.    Decide what cause you want to align yourself with (analysis the cause- effect).

3.    Choose or set a nonprofit organization to partner with (cooperate with developing a partnership).

4.    Design a program, and propose it to the nonprofit group.

5.    Negotiate an agreement with the organization.

6.    Involve employees.

7.    Involve customers.

Apple’s Ethical and Social Responsibility Challenges

·      Foxcoon worker abuse scandal: Although Apple did not directly involve exploitation of workers, it indirectly supported Foxcoon’s unethical behavior that caused those employees’ economic and physical lost. As a global giant electrical company, Apple has obligations and rights to negotiate with its suppliers about treatment of employees.

·      Product quality: Apple’s brand hinges upon product quality, so mistakes can create serious ethical dilemmas. Once consumers purchase the product, the company has responsible for the after-sale services. For example, after Iphone4 introduced, consumers began to complain of reception problems. The problems were caused by antenna interference that occurred when users held the phone a certain way.  Apple must take regarding product quality. Consumers view product quality as inseparable from Apple. Hence, a mishap in this area could damage the brand’s strength.

·      Privacy: privacy is another major concern for Apple Inc. In 2011 Apple and Google disclosed that certain features on the cell phones they sell collect data on the phones’ locations. Consumers and government officials saw this as an infringement on user privacy.

·      Sustainability: the company admits that the majority of its emissions come from its products. In 2009 Apple stated that its operations contributed to 9.6 million metric tons of metric gases being released. While 2percent came from its facilities, 97 percent came from the life cycle of its products.

Ch.2 - Strategic Planning for Competitive Advantage

       The firm’s orientation is production orientation that focuses on what the company can do best and what can their engineers design. However, since the competition of the technology market grow, the company slightly changes the firm’s production orientation to market orientation. Right now, the company more focuses on customers wants and needs in order to satisfy them rather than just focuses on what the company management and engineers think should be produced.

Apple Inc’s mission statement is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.

SWOT Analysis:

Strength:

1       .     Keep inventing and improving products

2       .     Strong and well known brand name

3       .     Strong financial performance

4       .     Owning retail stores

Weakness

1       .     High price

2       .     Decreasing market share

3       .     Doesn’t get high marks for treatment of foreign workers

4       .     Haven’t come out with revolutionary product for several years.

5       .     Following product design from other companies

Opportunities

1.     Strong product demands in developing countries

2.     Reducing price to gain market share

3.     Unlocking App for free download

Threats

1. Intensive competition with Samsung, Google and Microsoft

2.  Foreign business policies and regulation

3. Global economic slowdown

Competitive Advantage

     

    Apple owns a lot of its loyal consumers than other brands. Basically, it will guarantee that the company will occupy curtain amount of market shares. In addition, the company has some special customer services and programs that keep its consumers participate in product discovery and education. It will help the company’s long-term relationship with its customers in right direction.

Objective

To increase market shares and keep innovates competitive products.

Target Market

Attracting potential customers who are swinging in current market and focusing on developing countries.

Marketing Mix

Product: allowing customer upgrade their products after two-year warranty with addition curtain amount of money.

Place: making products available in majority counties at same time and available online shopping globally.

Promotion: taking 5% discount for all students and instructors.  Makes special limit time discount for the company’s Apps.

Price: keep reducing the previous version product price after the new product release.

Ch. 1 - Overview of Marketing (Brief History and Mission Statement)

The Company background and history

        Apple Computer Inc. is a multinational electronic company that designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. The Company also sells and delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store. The Company sells its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. Apple was established by Steve Jobs and Steve Wozniak on April 1, 1976, with released of Apple I, and the company began to take off on 1977 when the Apple II deputed at a local computer trade show.  The company wasn’t run well during last two decades until 21^st century when the company introduced several core products such as Ipod, Iphone, and Mac OS X.

The Company Mission

        "Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them." It was widely reported that a famous quote from Steve Jobs in the 1980's was the Apple company mission statement. However, I think it was Jobs’ personal mission and that showed his passion and desire about design and technologies. The more appropriate mission of the company is that committed to bringing the best user experience to its customers through its innovative hardware, software, peripherals, and services. In addition, I think another mission of the company is that want to show the world that the company is the best company of understanding technology.