Angelina S. Gustilo

REFERRAL MARKETING TECHNIQUES/STRATEGIES/CAMPAIGNS BEING CONDUCTED BY APPLE By: Angelina S. Gustilo May 29, 2017 8 Examples Of How Apple Generates Word-Of-Mouth All Over The World Everyone’s talking about Apple. News channels fight to be the first to report any news at all about the latest iDevice. Everywhere, people are verbally sparring in the war between the iPhone and every other phone out there. In cafes and coffeeshops around the world, fervent Mac users shoot judgemental stares and blast tweets about that one guy in the cafe using a Windows machine. This morning, I just tried to convert a friend to the Mac. Yesterday someone tried convincing me to get an Apple Watch. Why do people talk about Apple so much? Here are 8 examples of how the tech giant has gotten people talking about their brand accompanied by explanations and analyses. 1. By Proving iPhone Photos Are Good Enough For Billboards Apple has been running noncommissioned, found photos shot by iPhone 6 users as its latest advertising effort. Sourced from 77 photographers across 24 countries, the campaign is a testament to the capabilities of the iPhone 6’s camera – if it’s good enough to blow up on billboards, it’s definitely good enough for you. (See: The Sinatra Effect) Why People Talked About It: By showcasing the capabilities of the iPhone’s camera, Apple has made it simple to bring up the product whenever there’s a photo that needs to be taken, which, given the tendencies of our generation, would happen very often. What Would They Say? “This sunset is beautiful, hang on I gotta snap a picture.” “Put your phone away Clara, use my iPhone, haven’t you seen how incredible the camera is?” 2. By Making You Think About The iPod All The Time Apple’s iconic iPod commercials featured black silhouettes listening to their iPods (highlighted in white) dancing to popular tunes in front of brightly coloured backgrounds. The ads featured music from prominent musicians like U2, Gorillaz and Coldplay and were blasted across multiple platforms including TV, print and posters. Why People Talked About It: These ads were: 1. Stylistically Distinct 2. Everywhere It grabbed the attention of eyes and ears with bold visuals and catchy music and did so constantly by being around every corner. The ads stayed fresh in consumers minds, and thus conversations, all the time. What Would They Say? “Man those iPod ads are everywhere.” “They look pretty cool, think I should get one?” 3. By Making You Want A Mac To Be Your Friend “Get A Mac” was a series of successful TV ads that ran from 2006 to 2009. The campaigns featured skits starring personified versions of a Mac and a PC interacting in front of a plain white background, each beginning with the lines “I’m A Mac” “and I’m a PC”. Much of the campaign revolved around the clumsy, overly-polite, work obsessed and formally dressed PC running into problems. A laid back and casually dressed Mac would then chime in with an elegant solution to the problem. The central message was this: PCs are unstable; frustrating; malware-laden machines for the uncool. Macs, on the other hand, are stable, safe, designed to fit your lifestyle while being just as good at handling the “serious stuff” as a PC… So get a Mac and all your computer problems will go away. The campaign was a hit, spawning localized versions the world over and led to an immediate 39% spike in Macintosh sales. Why People Talked About It: Like most Apple commercials, the ad backed away from the standard tech commercial template of endless product specifications and features. It focused on entertaining viewers and delivering chuckles. Good emotions get people talking. The personified stories of Mac and PC gave viewers an image they could relate their own daily computer struggles/victories to. As people shared their problems (they always do!), the solution of getting a Mac could be organically slipped into a conversation. Another interesting result of the ad was Mac users adopting “I’m A Mac” to indicate their preference in computers. By creating a piece of popular lingo, Apple ensured their ads would be talked about. What Would They Say? “I was almost done with my spreadsheet when my entire computer just froze!” “Haha Shantay you sound JUST like PC from that Mac ad!” 4. By Filming A 60 Second Cinematic Masterpiece (That Was Actually A Commercial) “1984” was a cinematic ad that portrayed a dystopian future where computers rule over the populace directed by legendary sci-fi director Ridley Scott (Blade Runner, Alien). Accompanied by a solemn narration, Apple, represented by an athletic lady with a sledgehammer, dramatically runs through rows of people hypnotized by a video of an evil overlord figure and smashes the screen. Art director Brent Thomas explained the intent of the ad – “to stop America in its tracks, to make people think about computers, to make them think about Macintosh.” Audiences were so amazed by the ad that it  was broadcast on several news channels after the Super Bowl. $3.5 million of Macintoshes were sold in the weeks following the ad’s screening. Why People Talked About It: The ad had a cinematic quality quite unlike any other ad at that time. This blew audiences away – no one expected such quality from a commercial. Beyond shock and awe, “1984” addressed the great worry of the 1980s. As technology grew more pervasive in their everyday lives, people were worried about society becoming slaves to their computers. Apple’s answer? Fear not, here’s your beacon of hope, it’s called the Macintosh. What Would They Say? “Did you see the Apple advertisement last night? I can’t believe that was a commercial!”. 5. By Making Celebrities Appear Incredibly Normal – Just Like You! To show off the capabilities about the iPhone’s voice activated virtual assistant, Apple hired popular celebrities Samuel L Jackson and Zooey Deschanel to star in a series of videos. The videos were simple and showed Jackson and Deschanel going about a relatively normal day, utilizing Siri to make their chores easier. Why People Talked About It: The ads relied on star power. If Jackson and Deschanel were replaced with ordinary people the ad would have been a phenomenal flop. Showing the normalcy of celebrity life made it easy for viewers to relate to the stars and feel significant. When people have good emotions, they share. What Would They Say? “It’s so weird watching THE Samuel L Jackson prepare for dinner.” 6. By Delighting Customers Through Incredible Customer Service Apple has a consistent track record of incredible customer service. A quick Google search brings up quite literally hundreds of customer service stories from happy customers from no question asked 1-1 replacements to out of warranty repairs. Here’s my favorite story, previously featured in our previous post about generating word-of-mouth through delighting customers: A man dropped his brand new Macbook and cracked its screen. Upset, he ponies up some cash and heads to the Apple Store to get it repaired.  An Apple staff member takes his Macbook to the back of the store to examine the damage only to return moments later with a grin saying: “Sir, it seems like I might have dropped your laptop when checking it out, I’m afraid we’ll have to replace it with a new one, if it’s OK with you.” And they did. Why People Talked About It: Customers love sharing delightful experiences. Through impeccable staff training, Apple has turned their Apple stores into word-of-mouth generating machines where customers enter and walk out as evangelists. What Would They Say? “Dude I love Apple so much; they replaced my broken iPod for free!” 7. By Creating (Possibly) The Simplest Ad Ever To showcase the thinness of the newly released Macbook Air, Apple ran a TV and print ad consisting of a single shot of the Macbook air slipping out of a slim manilla envelope. The powerful visual made the headlines of numerous popular tech publications. Why People Talked About It: The visual was a clear and impressive demonstration of the slimness of the Macbook Air. Because of its simplicity, the story made for great small talk. The more condensed a story gets, the more likely it’ll get talked about. What Would They Say? ” Oh my goodness this is incredible… the Macbook Air fits into an envelope!” 8. By Letting You Know It’s All Going To Be Okay FaceTime Everyday were a series of TV commercials that featured people communicating with friends and loved ones over FaceTime. Focusing on the actors rather than the product (an iPhone 5), the ad demonstrated the emotional power of visual communication. The ad ends with the line, “Everyday, more people connect face-to-face on the iPhone than any other phone.” Why People Talked About It: Apple got people talking about their product by latching onto an issue that people are constantly thinking and talking about. In an effect similar to the “1984” commercial, Apple addressed the global concern that technology was ruining interpersonal communication. The ad was a reassuring pat on the back that humanity was going to be okay. What Would They Say? “Does technology really divide us though? I mean, just look at FaceTime.” Here’s a quick recap of Apple’s methods of creating chatter: 1. Demonstrate Your Product Capabilities In An Impressive Way 2. Be Unavoidable, Be Everywhere 3. Relate Your Products To Your Customer And His/Her Friends 4. Break The Rules Of An Advertising Format 5. Use Star Power In An Unconventional Way 6. Delight Customers 7. Create A Story That’s Easily Shared 8. Ease Your Customer’s Worries Marketing Strategy of Apple Inc – Apple Marketing Strategy Apple is the largest brand in the technology industry in terms of its revenue generated as well as its brand ranking. It is not a surprise to many because Apple has time and time again presented products which were ground breaking and which revolutionised the market. Apple has given us many delights over the years including the Macbook, the Ipod, Iphone, Ipad, Iwatch, Itunes and others. And due to its excellent product and differentiation, it is close to the heart of many techie enthusiasts. Here is the Marketing strategy of Apple Segmentation targeting and positioning of the brand There are three major segments which Apple targets. It generally uses lifestyle segmentation as Apple is the most premium brand out there. The segment is usually the urban population with enough buying power for purchasing Apple products. These are people who are early adopters in life but the brand equity of Apple is such that even laggards have started adopting the products. In the Marketing strategy of Apple, it has three target groups 1. One is the music lovers who are targeted by the Apple Ipod and Itunes. 2. Another target the professionals or even teenagers who are targeted for Apple Iphone, Tablets, Macbook and other such gadgets which can be used by anyone, irrespective of age. 3. And third is the crowd which can use their other products and services like Apple TV and Apple Iwatch. They also use Ibooks, Apple pay etc. Apple being the world’s number 1 brand has the topmost mind positioning and there is no doubt that when someone talks about Smartphones or Laptop or Tablets, Apple is the first brand that comes to mind maximum number of times. Mission in the Marketing strategy of Apple Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad. Vision in the Marketing strategy of Apple We believe that we are on the face of the earth to make great products and that’s not changing. We are constantly focusing on innovating. We believe in the simple not the complex. We believe that we need to own and control the primary technologies behind the products that we make, and participate only in markets where we can make a significant contribution. We believe in saying no to thousands of projects, so that we can really focus on the few that are truly important and meaningful to us. We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot. And frankly, we don’t settle for anything less than excellence in every group in the company, and we have the self- honesty to admit when we’re wrong and the courage to change. And I think regardless of who is in what job those values are so embedded in this company that Apple will do extremely well. Tagline – “Think Different” is one of the best slogans in the tech industry. Many people assume that Apple launched the slogan “Think different” in response to IBM’s slogan “Think”. However, since 2002, Apple stopped using the slogan in its marketing. But from time to time, the slogan has bounced back on Apple’s website or in their marketing and it has never left the mind of Apple loyal consumers. Competitive advantage in the Marketing strategy of Apple Apple has several competitive advantages over its competitors 1. Superior technology products – Macbook and Iwatch are clearly leaders in their market space because of the OS and the technology used. 2. Brand equity – Apple has repeatedly taken the top spot for its brand equity and has a cult following since ages. 3. Revenue over time – Apple has deep pockets due to its high margins. 4. R&D – A major competitive advantage of Apple is the amount it spends on R&D keeping its eyes on the future rather than on the present. BCG matrix of Apple When plotting the BCG matrix of Apple, the product portfolio of Apple is clearly divided into four parts. 1. The Cash cows are products which are existing since ages and which cannot be challenged in the current market conditions and have a majority market share when the global data is referred – These are Macintosh, Iphone, Iwatch (50% market share in 2015) and Itunes (a solid support service to all Apple products) 2. The stars are Ipad and Ibooks where there is a lot of competition and Apple has to invest a lot to keep these businesses on top. 3. The question mark is Apple TV which has low market share in an industry which is showing great potential and might grow at a rapid pace in the future. 4. The dog is Ipod because although it has a high market share, the industry itself is rapidly degrowing because Smartphones have replaced Ipods. Distribution in the Marketing strategy of Apple Apple has a very smart retailing setup. It has around 450 stores within the US. And these retail outlets are such that they are more focused in helping the customer and making him comfortable with using Apple rather then selling the product and stuffing the product down customers throat. Apple has also introduced the Apple Genius Bar, which a store walk in service center and can help any customer in problems they are facing in MacBook or Iphone or Ipad. Overall, the company owned Retail and Service outlets are great. Along with company owned stores, Apple has set trade partners like Ingram Micro and Redington which are responsible for the sales and distribution of the brands. These trade partners will buy in bulk from the brand and then distribute the product in the market. Thus, besides its own retail stores, Apple is found present in other modern and premium retail stores. These stores are covered by its retail partners. The Online E-commerce presence of Apple is fantastic. Most E-commerce portals promote the brand themselves because they know that the brand is in huge demand. Besides this, there is very less price penetration in Apple, and hence the channel partners and E-commerce portals are happy too as they don’t have to fight on price.  from the home page itself. The combination of retail, distribution and E-commerce gives a complete market reach to Apple. Brand equity in the Marketing strategy of Apple Apple has the highest brand equity in the world as of 2016 and it is the topmost ranked brand in the world. The brand worth of Apple is 118.9 billion dollars. The brand has done a lot to reach this brand equity, but a major contributing factor was its ability to give hit products back to back, and to reach across the globe with these excellent products. The combination of both with the excellent marketing communications of the brand help Apple reach the highest brand equity possible. Competitive analysis in the Marketing strategy of Apple Although on a company level there is very less competition for Apple, on product levels, there is repetitive competition for each of its individual products. Ipad faces competition from Samsung tablets, Iphone faces major competition from Android based phones, Macbook is facing stiff competition from Dell which also has superior products. The unique services offered by Apple such as Itunes also face competition from other online music players which are cropping up every day. Ibooks faces strong competition from Amazon and even Apple TV faces competition from Fire TV of Amazon. Samsung gear and other smart watches are rising competitors to Iwatch although Iwatch still holds a majority market share. Promotions in the Marketing strategy of Apple Apple is one of the most elegant advertisers as can be seen from any of its print ads in newspapers. You will commonly find Apple ads to be clear and crisp in their message. Their background will be white and there will be a splash of colors on the print ad introducing the product or differentiating the product. And that is one major strength of the brand. Apple has so many differentiation points that it can have a slew of ads, all targeted towards differentiating the products that it is offering. Not only the print ads, even the video ads do the same. They tell you one point which highlights the product features. And here is a simple image made by Apple to differentiate between PC and Macintosh. Look at the clean and to the point copy. Overall, the advertising and promotions of Apple are used tenfold when there is a new product launch. The hype created is so much that you just can’t ignore it. And this hype is continued until the product becomes a success. As the number of products with Apple is less, it is no doubt that it wants each one of its product to be a hit. This was the Marketing strategy of Apple. The Brand can teach a lot to marketers with regards to differentiation, brand building and most importantly – Innovation.