Apple’s Marketing Strategy: How the Company Creates Value for Its Customers

1. Introduction

Apple is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. The company’s hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, and the HomePod smart speaker. Apple’s software includes the macOS and iOS operating systems, the iTunes media player, the Safari web browser, and the iWork productivity suite. Its online services include the iTunes Store, the iOS App Store and Mac App Store, Apple Music, and iCloud.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976, to develop and sell personal computers. It was incorporated as Apple Computer, Inc., on January 3, 1977, and was renamed as Apple Inc., on January 9, 2007. Multinational corporation Apple Inc. has been a dynamic force in both the technology industry as well as in mainstream popular culture. The marketing strategies of Apple have played a large role in establishing the brand as one of the most valuable in history. From cutting-edge product design to focused value proposition to consistent target audience messaging; each step of Apple’s marketing has been carefully considered to create customer loyalty that extends well beyond rational purchase decisions. This essay will explore some of these key marketing strategies used by Apple with a view to understanding how they have contributed to making Apple one of the most recognizable brands globally.

2. Company profile

Apple Inc., originally founded as Apple Computer Inc., is an American multinational technology corporation headquartered in Cupertino California that designs manufactures and markets consumer electronics personal computers and software products The company’s best-known hardware products include Macintosh computers iPod music players iPhone smartphones iPad tablet computers professional audio equipment AirPort wireless networking equipment and Time Capsule data storage devices; its consumer software includes macOS operating system iTunes media player QuickTime multimedia framework Safari Web browser iLife creative suite iWork productivity suite Logic Studio Final Cut Studio Aperture image manipulation program MainStage music creation sampler Motion graphics software Number video editing application Pages word processing documents Keynote presentation program Notes note-taking application Xcode integrated development environment Java Application Environment for Mac OS X Dashboardwidgets tamagotchi-style applications
iAd mobile advertising platform iCloud online service
Apple was founded on April 1st 1976 by Steve Jobs Steve Wozniak and Ronald Wayne to develop sell personal computers The company was incorporated January 3rd 1977 and was renamed as Apple Inc on January 9th 2007 after losing a trademark lawsuit to Gravix Creations
Apple went public on December 12th 1980 at 22 50 per share generating more capital than any IPO since Ford Motor Company in 1956 In 1983 Jobs lured John Sculley away from Pepsi-Cola to serve as CEO During that time period between his ousting fromApple In 1985 and his eventual return in 1996 he started NeXT Computer which designed workstations aimed at academia businesses While at NeXT he purchased Lucasfilm’s computer graphics group which would eventually lead his return to Pixar In 1986 he recruited Jean-Louis Gassée away from Honeywell where he had been heading up their European computer operations to run Macintosh operations In 1987 IBM had created its own notebook calledthe ThinkPad Gassée refused believing that every Macintosh should be portable so he left to formBe Incorporated In 1989 Apple purchased NeXT for 427 million dollars which brought Jobs back to Apple As the new CEO he was determined to revitalize the company’s sagging fortunes
In order to do so he focused on streamlining the product line by discontinuing several models of Macintosh The ones that remained were redesigned around a PowerPC chip jointly developed with IBM and Motorola This new hardware plus the next generation operating system software code-named “Rhapsody” would eventually allow Apple to phase out the Macintosh operating system altogether in favor of Rhapsody’s Mach kernel which ran on top of a layer providing compatibility with existing Mac applications In 1998 he brought back one of his proteges Jon Rubinstein to head up the hardware engineering team and also put him in charge of the Macintosh Division
Jobs also hired Tim Cook who had previously been CEO at Intelligent Electronics and had served as Chief Operating Officer at Compaq Computer Corporation During that time Apple had quietly acquired many small companies to create a portfolio of software technology that would be used in future products Sometimes these were purchase outright while other times they were talent acquisitions where only the employees were brought over to Apple The largest acquisition came in 1997 whenApple purchased Next Software Inc for 427 million dollars In December 1996 Gil Amelio who had taken over as CEO from Sculley was ousted by the board of directors after shareholder value had declined by 70% during his tenure
Jobs became interim CEO and began changes that would turn the company around He scrapped over 70% of the projects that were underway reduced inventory reorganized the manufacturing process and cut over 3 000 jobs He also focused on getting new products out more quickly by setting shorter deadlines and using more direct communication with suppliers Once again he streamlined the product line this time spinning off the Newton MessagePad handheld computer into its own subsidiary called Newton Inc
In addition he discontinued several less popular Macintosh models revamped the iMac line with colorful transparent enclosures and lowered prices The result was incredible increasing market share from 3 2% in 1997 to 8 2% in 1999 and 12 1% in 2000 Under Jobs’ leadership Apple released a succession of increasingly powerful laptops culminating in the titanium PowerBook G4 which was released in January 2001
The marketing strategy that Jobs employed has been described as “reality distortion field” where fanatical devotion to an idea is combined with willful ignoring of facts to maintain a level of excitement about a product This was evident when Jobs unveiled the original iPhone at Macworld 2007 and said that every feature on it had been ” integrated into one breakthrough device” while omitting the fact that it did not have 3G data support or built-in GPS functionality
This approach was taken again when he introduced the iPad saying ” It’s so much more intimate than a laptop and so much more capable than a smart phone” while omitting the fact that it could not make phone calls
Despite these omissions both products were highly successful selling millions of units In fact each successive version of both products has outsold its predecessor In 2010 Apple overtook Microsoft to become the world’s most valuable technology company with a market value of 222 billion dollars

3. Marketing mix

The marketing mix is a foundation model in marketing. The marketing mix has been defined as «the set of marketing tools that the firm uses to pursue its marketing objectives in the target market». Thus, the marketing mix refers to four broad levels of decision making, which all needs to be taken into consideration when developing a product or launching it on the market. The four Ps of the marketing mix are: product, price, promotion and place.

4. Value proposition

A value proposition is a promise of value to be delivered, communicated and acknowledged. It is also a belief from the customer about how a product or service will create value for them. This value proposition has to be strong enough to get customers to switch from competitors to your product or service.
Apple creates value propositions through its innovative products and services. The company always strives to offer the best user experience possible, whether it is through its hardware, software or online services. Apple’s products are easy to use and offer a wide range of features that appeal to a wide range of consumers. In addition, Apple’s customer service is legendary, and the company goes above and beyond to take care of its customers.

5. Positioning

Positioning is about differentiating your product or service in the market in order to compete effectively and occupy a clear, distinctive and valued position in the minds of your target customers.
Apple has positioned itself as a premium brand that offers high-quality products and services. The company’s products are often priced at the higher end of the market, but consumers are willing to pay more for an Apple product because they know they are getting a quality item that will last them a long time.

6. Target group

A target group is a segment of the market that a company decides to aim its marketing efforts and ultimately its products or services at.
Apple’s target group is fairly broad. The company offers products for everyone from individual consumers to businesses and education institutions. However, Apple’s core target audience is young, affluent professionals who are early adopters of new technology.

7. Promotion

Promotion is the communicating of offers – persuasive communications – by means of advertising, public relations, personal selling, direct marketing, point-of-purchase display, packaging, etc., to create brand awareness, increase demand or improve product availability.
Apple uses a mix of all these promotion channels to create demand for its products. The company is one of the most prolific advertisers in the world, and its iconic ads have helped make Apple one of the most recognizable brands globally. In addition, Apple uses public relations to generate positive media coverage for its products and services, and it has an extensive network of retail stores where customers can experience its products first-hand.

8. Place

Place refers to getting the right product in the right place at the right time and at the right price.
Apple has made sure its products are available where its target customers are likely to be looking for them. The company has an extensive network of retail stores around the world, as well as an online store that makes it easy for customers to find and purchase Apple products. In addition, Apple products are available from a variety of third-party retailers such as Best Buy and Amazon.

9. Packaging

Packaging is the process of designing and producing packaging for a product or service. It includes everything from the materials used to the graphics and branding on the packaging.
Apple’s packaging is clean and minimalistic, which reflects the company’s design philosophy.


Apple's main marketing and branding strategies include product design, advertising, and public relations.

Apple's marketing and branding have evolved over time to focus more on the company's values and image, rather than just its products.

Apple's marketing and branding strategies have a strong impact on consumers, creating a loyal customer base that is willing to pay premium prices for the company's products.