Business Marketing

Business Marketing- The marketing of goods and services to individuals and organizations for purposes other than personal consumption.

  When companies sell their products to an organization, it is an example of business marketing. The organization it is selling its product to would be using the product for business needs. The example used right in the beginning of the chapter states "the sale of a PC to your college or university is an example of business marketing." PC's are being used in colleges and even elementary schools more and more each day. Many businesses are have sold PC's to these schools increasing their business markets. When the schools purchase these PC's they are using them to teach the children the curriculum required, not only for fun and games.
Not only do schools have PC's but business companies and other organizations increase business marketing when purchasing other products from a business to increase revenue in the main business.

  In order to distinguish a product from a being a business product or a consumer product, you must know the intentions of what the product is going to be used for. For example, an Apple Mac Book can be both a business product and a consumer product. A business product because if it is being used in a school or company to help a company increase revenue or help children in school, but also a consumer product because when it is purchased and being used at home for homework or for games then it's for the consumer to enjoy, not for business use. Now you can use your own personal Mac Book and use it at work and at home and it can be both at the same time. iPads are also business and consumer products. In many businesses, such as in my job, buyers and coordinators are constantly coming in taking notes and showing employees new ways to increase sales through their iPads. They are also being used for leisure time, i.e reading, playing games, and shopping. Many of Apples products can be used or distinguished as business and consumer products.


Strategic Alliance/Partnership- A cooperative agreement between firms.
  Apple has a strategic alliance with BestBuy. Apple has its own retail stores around the world where they sell their products for full price. BestBuy is in contract with Apple which means they can sell Apple's products in its stores as well. Apple gets a portion of the profit BestBuy makes off of Apple's products. Being that BestBuy is a very big electronic store, Apple made a wise decision in joining forces with them. If the consumer wanted to buy an Apple laptop off of BestBuy but wanted to compare prices with Apple, they wouldn't be able to because BestBuy is not able to tell how much less they would be paying compared to Apple.

Segmenting and Targeting Markets

A market is made up of people or an organization with needs or wants with the ability and willingness to buy. If the person or organization lacks any part of this, it is not a market.

When creating all of his products, Steve Jobs was slowly segmenting his products. He was segmenting his products by consumers. Who were they used for? Were they made for students, offices, colleges, elementary schools, college staff or for creativity? Most of Apple products share similar product needs. They are easy to use and now have iOS. They have also created each product to have a specific use; iPhone (Apps), iPad (Reading), iPod (listening to music).

Apple segments their products by demographics. Includes age, gender, income, family life cycle.
The products that Apple creates are made easy to use. When creating these products; whether it is a phone, computer or media player, the company just want the device to be sold. The demographic segment that most likely purchase these products are members of Generation Y (people born between 1979 and 1994). This generation makes purchasing decisions based on peers. They like to know how well the product works, what better way to know how they work then to ask a person who already has it? Generation Y is also aware of how companies market their products so they don't always pay attention to them. They are into brand names that everyone knows of, but get tired of new items they have purchased very quickly.
Generation X (people born between 1965 and 1978) are not brand loyal. They want items that will give them an experience. Many people born between these years don't really find to think that Apple is useful. Many actually feel that Apple is pointless and people who have their products wasted their money on nonsense.

Apple also makes its product somewhat difficult to purchase. Income segmentation is a huge factor for Apple. The prices that Apple has on its products affects the choices consumers make. Whether you have a family or not. If you don't have a family, it may be easier for you to purchase an iPhone, iPad, or iPod, as oppose to those who do have a family. Those who have families have to make choices as to whether to buy a $200-$700 phone, $200 media player, or a $400 reading device. Families pay a huge part on Apple as well because most kids do want the latest electronics but may not be able to have it because their parents have other priorities.