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.

Developing and Managing Products

New product- product new to the world, the market, the producer, the seller, or some combination of these.

Apple has three different types of new products. New-to-the-world products, additions to existing product lines, and improvements or revisions of existing products.
Their new-to-the-world products would be the first generation iPod that Apple released back in 2001, the original iPhone that was released in 2007, the iPad that was released in 2010. All of these products were new-to-the-world products, the world did not have any of these products before their release date.
Additions to existing product lines would be the iPod Nano, iPod Shuffle, iPod Touch, iPod Mini, iPod Video, iPod Classic (the first iPod). These products are additions to the iPod line of Apple. iPhone, iPhone 2, iPhone 3G, iPhone 3GS, iPhone 4, iPhone 4S, and iPhone 5 are all additions to the iPhone line. Now all of the products that Apple has made are improvements or revisions of the previous product. They have all changed but still carry the same idea on all items.

When it comes to Apple, they do not have any prototypes. most of the time, if the item has a defect or glitch, the consumer gets a brand new device from Apple, glitch free. Many of Apple's new released products have glitches in them. They are revised quickly and the revised product will have its own release date.

The advertising for Apple is what sells the product to the consumer. The advertising pulls all consumers in and persuades the consumer to purchase their product. Apple advertises everywhere.

Integrated Marketing Communications

Promotion- communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit response.

When any company wants to promote a product or the company itself, their main objective is to capture consumers that have not yet been apart of their company. They want to capture the eye of the other consumer, i.e, people who have not owned their products.

Apple has grasped the attention of many people worldwide with their products. Whether it is with their laptops, phones, or music players, Apple has grasped many people. Apple has a competitive advantage when it comes to its consumers. Many of Apples consumers are very competitive when it comes to the products Apple produces. The consumer will believe that Apple products are the best products that have been created. No other company can create a product that will come close any of Apple's products.

Apple uses advertising, public relations, sales promotion, and personal selling as a part of their promotional strategy. Whether you see iPhone ads on the train, billboards, television, newspaper, emails, or internet, its only Apple advertising their products to their consumers and potential consumers. They advertise all over the world to get as many consumers in as possible. Their ads are usually very eye catching. When advertising on television they use a celebrity to show that if celebrities have the product you should also. The other ad Apple uses on television is the hand that demonstrates how easy it is to use the product. The hand is usually used to advertise their iPhones.
When new products are released, Apple items usually have glitches. Whether its the camera goes on and off on its own, or you lose service by touching a certain part of the phone. Consumers usually go straight to calling Apple tells them their complaints. Public Relations deals with how the public reacts to the products of Apple, how the public should not be experiencing glitches with their glitches.

I am currently doing my homework on my MacBook Pro. Of course I did not purchase the laptop, my boyfriend did. I only wanted the laptop because my brother had it first and it looked so beautiful. Most people who do not have a MacBook say it is just a regular laptop, but others who do say differently.

As I was contemplating on which laptop to get because my previous one was messed up, my brother told me that the MacBook was the way to go. The memory is outstanding, its sleek look makes it easier to carry, the screen is clear as ever and it does not get any viruses. Of course I was not sure because there was no way i had the money to buy a Macbook. I got my boyfriend to buy it for me. My older brother sold the laptop to me (not his of course). He should work for Apple with the way he describes their products and how well they work.

Product Concepts

Apple has several products that they offer to consumers. All of Apple's products have to do with technology. Apple's product mix includes laptops, phones, iPads, iPods, and headphones. When Apple advertises their products, they have a different way of advertising each product. With their laptops they compare a PC to a Mac. When they advertise for their phones, all they show is a hand that smoothly demonstrates what the phone can do and how well it work. Also, when advertising their iPods they usually show how they have changed in size and how easy it is to use the newly innovated product.
Apples products are far from being an unsought product. All of their products are well known throughout the world because of their advertisements. Their advertisements reach out to everyone who is aware and up to date on technology.

 When Apple's products have glitches when they are first released, they give you a brand new product that was innovated so you can enjoy what you purchased initially. Apple modifies their products to the point where it is easy to use for anyone. The always want to make sure that the product will last long for the consumer, and is also easy for anyone to use. Apple gives their products a style/look that attracts their consumers more to their products. Their products are usually very slim and sleek, that it attracts new and existing consumers.

Apple has a signature trademark to their name. Once you see the bitten apple you know that the item belongs to Apple. They have the bitten apple placed on their products where it can be seen by others instead of the owner of that product.

Sales Promotion and Personal Selling

When any company has sales promotions it usually has a greater effect on consumers. Consumers tend to be more attracted to the item being sold.

When purchasing any Apple product directly from the Apple store, the items are always full price. No discounts, no coupons or anything. Of course when you are purchasing from the Apple store, the items are a lot more expensive. Apple sells it products to BestBuy for a cheaper price. Bestbuy sells the products of Apple at a lower price than Apple of course. If you are purchasing from BestBuy, sometimes they show the price you will pay if buying the item from the Apple store itself. Sometimes, on the website it says they are not allowed to show the price difference from the Apple store because it goes against there contract.

Apple is always trying to lure in new consumers. By comparing their products to other consumer products, they always inform their current consumers about ho well their products work, of course they know that, that's why they have purchased their products. As they try to lure in new consumers they want to show you what Apple products are capable of and why they are better than any other product. If you are looking to buy a laptop in BestBuy, not necessarily a MacBook, they have laptops out so the consumer can test the items out. They use sampling in stores so the possible consumer can determine whether or not to purchase the item.

Sometimes people buy items to buy items. They don't necessarily need the item but just want to have the item. When I decided i needed a new laptop because me Dell had a virus, I did not know what laptop I should turn to. Of course, my brother has a MacBook. He stated that MacBooks are a lot better because they do not get viruses and are a lot faster than any other laptop. I really did not care for the MacBook at first but as I went laptop shopping with my boyfriend, I was determined to buy a MacBook. The look of the laptop is beautiful. The speed is very quick and it does not catch any viruses. The amount of memory the laptops can hold is incredible and it never slows down. Of course I did not buy a $1,600 laptop for myself, my boyfriend bought it for me. I was determined to get the laptop because my brother sold the idea of it to me and being able to use it in person at the store was even better. The purchase of the laptop was based on Personal Selling by my brother.

Advertising and Public Relations

Advertising - one-way mass communication about a product or organization that is paid for by a marketer.

Public Relations - the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concerns, and executes programs to gain public understanding and acceptance.

Apple advertises in all ways, through television, phone companies, newspapers, and online. The way Apple advertising brings their consumers in to what pay close attention to what the product has to offer. Most of the time they are able to catch the attention of their target market and have them purchase any product they are advertising. When Apple is advertising on television, they make sure to do it in a smooth manner. They show how light weight their products are, how fast it is to access any app of even browse the web.

When Apple advertises they use the objective, Product Advertising. They take the newly made item that they will release and advertise it to bring in more consumers. Since Apple has already made a name for themselves in the technology department they do not need to use institutional advertising, which is advertising to promote the company as a whole. Apple has already made their company big enough so the whole world could know about them. When using product advertising, Apple goes into depth about their products. They want to inform you on how well their newly made product works and its benefits to you as the consumer. Their product advertising shows how well and fast their internet browser works, how quick and easy it is to go from one app to another. Apple has done very well in using Product Advertising. When Apple does advertising, their slogan or theme is "Think Different." By using that slogan they are trying to inform the consumer or future consumers that Apple is very advanced in technology that it makes their products different than anything else out in the market.

When an Apple product has a problem or a glitch when it is first released, the company will gladly take the item back and give you a brand new one. They want to make sure that their consumers are always 100% satisfied with the product and service provided. Apple is always trying to figure out how to overcome problems with their devices just in case the device does get a glitch. Being one step ahead is how Apple is always figuring out how to solve problems or create new products.