Certainly, this is likely to happen at some point as the company confronts the burdens of stunning success in a relatively short period of time” (Forbes, 2012, p. 2).
Following the death of co-founder Jobs in 2011, Apple’s new management must take careful steps to maintain and grow its market. Strategic Variables Apple Inc. , now headed by CEO Tim Cook, still has the overwhelming customer loyalty it built under Jobs’ stewardship. Jobs was a major component in not only product and strategic development for Apple, but also was its highest-profile spokesman, often turning product introductions into major events.
Nearly a year after his death, however, customers still camped out in front of Apple stores in September 2012 to wait for the new iPhone. No other technology company has this type of overt showing of customer loyalty and support. To maintain this, Apple must continue to produce innovative, elegant products. In nearly all categories, other companies sell more products—smart phones, computers, tablets, etc. —yet it was Apple, not Samsung, Hewlett-Packard, Dell, or any other company that hit the heights Apple hit this year on Wall Street.
The fluctuations, not on Wall Street, but with consumer tastes must be taken into account for Apple to keep its lofty place. “Tech companies often rise and fall in 10- to 15-year cycles, [James Ragan, stock analyst with Crowell Weedon] says. Apple, too, faces unique risks, especially in the fast-changing world of technology. The smart phones segment, where Apple makes much of its money, is becoming a replacement business, Ragan says. And in tablets, in which Apple holds a commanding market share, competition is likely to heat up, he says” (Krantz, 2012, p. ).
The Term Paper on Apple Company
... world. Creator and history In 1976 Steve Jobs and Steve Wozniak created Apple Company. Jobs growth after several twists and turns. First ... the amount of the first four years. IPod products more and more important, this year, the company’s bottom line, accounting for ... to attract customers. “Jobs was fired the board of directors, in 1996 the second back to apple. Apple Story Apple the pursuit ...
Apple has, since its beginnings, been at the forefront of consumer technology. It introduced the first useable home computer, created a sensation with the Macintosh computer, an even bigger sensation with the iPod, and later the iPhone and iPad. Without the driving force of Steve Jobs, Apple’s leaders need to double their efforts to keep ahead of other technology companies. If one other company introduces a new piece of technology that captures the enthusiasm of the consumers the way Apple has, Apple may find itself faltering.
Pricing Strategies A pricing strategy is defined as “activities aimed at finding a product’s optimum price, typically including overall marketing objectives, consumer demand, product attributes, competitors’ pricing, and market and economic trends” (“Definition of Pricing Strategy”, 2012).
In the Simulation called Economics for Managerial Decision Making: Cost and Revenue Curves, the Company named Quasar created a new notebook called the Neuron. In this simulation it was up to all parties involved to decide how the Neuron was going to be priced.
Remembering when the Laptop first came out by Dell, this student priced it at $1,050 to start. This was deemed a good price. The actual cost of the item is not always the most important aspect of an item, rather how it is marketed either by bundling, where the item is being marketed geographically, how it is promoted, and even penetrating the market. Most of these terms are common sense terms, however penetrating the market is an important one. As seen in the simulation a few years after the Neuron was released the patent was no longer valid which allowed another company to copy the same technology to create the Ceres.
Initially advertising was talked about, four-hundred-million dollars was set aside for advertising and marketing, however, this student felt that spending all of that was not necessary rather using some non-price strategies may keep the cost of advertising down, which will be expressed later Due to the introduction of the Ceres which boast the same qualities as the Neuron. This student believes that one of three strategies may be used, premium pricing, which a higher price is used, especially when a brand is considered to be unique or different, this type of pricing is used typically when a company is secure in that there is no comparison.
The Essay on Skimming and Penetration Pricing
It is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time. The purpose of such strategy is to make higher profits within the short run period in order to recover the costs incurred in product researching, manufacturing, marketing etc. because such costs associated with the product are high. However this strategy ...
Next, is penetration pricing, this is what is charged for products and services, this is usually a considerably lower price “in order to gain market share”. After this happens, the price is slowly increased. The third is economy pricing. This is an unusually low price, with this “the costs of marketing and promoting are kept at a minimum”, this is usually done with products that are turned into “store brands”. In the case of the Neuron there is no “store brand” or generic brand.
Before the Ceres came out there was no comparison or competition for the Neuron. In this case this student feels it is in the best interest of Quasar to use the penetration pricing process. This will draw the consumer in, however Quasar cannot go so low that they are losing money, also Quasar does not want to get into a pricing war. Using the penetration cost along with non-pricing strategies such as advertising and marketing will help to keep Quasar and the Neuron on top. Non-Pricing Strategies
Quasar Computers was the first in the industry when it came to producing all-optical notebook computers. Regardless of the competition in the market, Quasar was the very first and they have been there from the very beginning to serve the consumer/business looking to utilize such technology. Thus, the company has been able to cultivate longer working relationships with its customers. The time that has surpassed is an advantage in itself and one that should be built upon. Such relationships indicate that there is a loyalty there to the brand.
Quasar may build on this loyalty by offering these customers an enhanced level of service and features that help make them feel as if they are a part of something. They might be able to create a kind of ‘family culture’ in its selling atmosphere where buyers also receive customer ID numbers and with this an avenue in which they may share information and interact with other fellow users over a secure network. This would add to the exclusiveness to having a Quasar computer. Apple is a good example to follow as well, as consumers willingly pay higher prices to urchase Apple products. This has to do with their particular non-pricing strategies that have made anyone who has an iPad, iPhone, Apple laptop computer, etc. ‘cool’. They have made Apple a status symbol and Quasar can do the same by updating design and overall appearance features and marketing on the ‘coolness’ of the product or its appeal to the business world and/or leisure activities. Marketing strategies, advertising, and constant product innovation and improvements make up the non-pricing strategies that I would recommend.
The Term Paper on Brand Personalities Ibm And Apple
Question attempted: Identify two brands within the same product category that project different images to the consumer. Discuss the different projected images by comparing and contrasting the two different brands. What techniques did the marketer use to create these images? How would you explain this deliberate attempt in the light of the self- concept of the buyer? Executive Summary " Products ...
They are the secret to Apple’s success and why nobody has been able to uproot them as they are now established as a cool status symbol that everybody wants to be a part of. Consider this passage from Oubina, Rubio & Yague (2007, page 1027, paragraph 2): Increasing distance from store brands by offering something new and improved through innovation or more for the money through simple improvements (e. g. , better package design), or by stressing brand image are two strategic options that Hoch (1996) identifies for manufacturer brands.
Innovation and advertising increase the objective and perceived quality of a brand, and the quality differential between the manufacturer brand and the store brand is decisive in the market share of these brands (Hoch and Banerji 1993).
Investment in advertising and innovation affects the brand equity (awareness, perceived value, brand loyalty and brand identity) positively (Aaker 1996) and consequently favours superior loyalty towards manufacturer brands, less price elasticity of demand and lower cross-price elasticity between manufacturer and store brands (Lal and Narasimhan 1996).
Based on this passage and the example of Apple, the non-pricing strategies that seem to be most effective and best in line with the technology industry are product design (in which Quasar may separate itself from the competition as patents protect product design from being copycatted), marketing and advertising techniques, and customer relationships that create an exclusiveness through the introduction of customer service numbers and avenues for users to interact with one another over a personalized Quasar network.
The Essay on Bang and Olufsen: Design Driven Innovation
The key concern identified in this particular case is that Bang & Olufsen are lacking a strong sense of management. Designers seem to be the forefront of business innovation and innovation management needs to be altered. The article identifies that the designers are making major decisions in terms of product development, and although this may seem effective, management should have an influence ...
