Headquartered in Cupertino, California, Apple Inc. has experienced many challenges throughout its business history.

In 1997, the company’s share price was $3.30. By checking the price today, you can see unbelievable gains.

Apple regularly places very highly on lists of “most admired companies,” and to millions of consumers, the Apple brand embodies quality, prestige, and innovation.

Its ability to anticipate and fulfill customer needs has made the company the world’s most valuable publicly traded company, with a market value of about $1 trillion.

This ability has also established the company as a leader in retail stores for electronic products. Apple creates significant value for its customers with its finely tuned in-store experience.

Apple’s success can be attributed in part to its strong marketing mix consisting of product, distribution, promotion,

and price. Although Apple started out as a computer company, former CEO Steve Jobs had the foresight to redirect the company’s goal to consumer electronics by developing and protecting intellectual property and creating decentralized culture. The result was Apple’s expansion into new product lines within the electronics industry.

In 2001, Apple satisfied customers’ desires for portable music with the launch of the iPod—a portable music player that forever changed the music industry. The company also introduced iTunes, a type of “jukebox” software that allowed users to upload songs from CDs onto their computers and then organize and manage their personalized song libraries. Two years later, Apple introduced the iTunes Store, in which users could download millions of their favorite songs for $0.99 each online.

In 2007, Jobs announced that Apple Computer, Inc.

would be renamed Apple Inc., demonstrating the company’s grasp on the marketing concept. However, in order for a company to remain competitive, they must continually focus their efforts on planning and goal setting. Apple continued to expand their product lines as part of their strategic plan. That same year they introduced the iPhone,

which revolutionized the cellular phone industry. Apple did the same to the computer industry in 2010 with the introduction of the iPad. Under CEO Tim Cook, who has retained Jobs’ executive team, Apple released the Apple Watch, a smartwatch at the forefront of wearable technology.

While the iPod was not the first MP3 player and the iPad wasn’t the first tablet, these products are viewed as the industry standard, highlighting that you don’t have to be the first to succeed. The company has since introduced the HomePod, a smart speaker, and AirPods. Looking forward,

Apple is working on a self-driving car and incorporating augmented reality into its iOS to not only stay ahead of technology trends but also to support the growth of those industries. The company is also opening its first next-generation retail stores.

As Apple continued to introduce products, they developed and incorporated a creative tactical goal of evangelizing.

The concept of evangelism has been an important component of Apple’s culture, and this was particularly true under Steve Jobs. Corporate evangelists are people who extensively promote a corporation’s products. Apple even had a chief evangelist whose job was to spread the message about Apple and gain support for its products.

However, as the name evangelism implies, the role of an evangelist takes on greater meaning. Evangelists believe strongly in the company and will spread that belief to others,

who in turn will convince other people. Therefore,

evangelists are not only employees but loyal customers as well. In this way, Apple was able to form what it refers to as a “Mac cult”—customers who were very loyal to Apple’s Mac computers and who spread a positive message about Macs to their friends and families.

Apple has defined the future of retailing. The flagship retail store in San Francisco has massive doors that bring the outdoors indoors. A courtyard with trees provides a relaxed environment. Creative pros in the Genius Grove assist with music and service. Twenty percent of the space is just for education and entertainment. The store is designed to be a place to hang out and have fun. Apple has also announced plans to redesign many of its current retail stores as “town squares” where people can attend free in-store classes such a photography workshops,

music production classes, and iPhone editing tutorials.

This experience-based strategy elevates the Apple brand and its products, turning its stores into centers to learn,

gather, and create. Apple’s innovation as an experience based electronics retailer makes the company stand out as other retailers struggle.

Apple recognizes that in adopting the marketing concept it must satisfy not only its customers’ objectives but also its own, or it will not continue to be successful.

In order to support the efforts of the tactical goals,

Apple ensures its operational goals are set in place. One example is the design of the retail locations and the hiring of employees for these locations. Apple looks for retail employees who work well in its culture, and ensures that its retail employees make each consumer feel welcome.

Inside Apple retail locations are stations where customers can test and experiment with the latest Apple products.

Employees, who can directly influence customer satisfaction,

have been trained to speak with customers within two minutes of them entering the store. To ensure that its retail employees feel motivated, Apple provides extensive training,

greater compensation than employees might receive at similar stores, and opportunities to move up to manager,

genius (an employee trained to answer the more difficult customer questions), or creative (an employee who trains customers one-on-one or through workshops). All of this planning, which includes strategic, tactical, and operational goals, has contributed to Apple’s distinctive competence and success.

Questions for Discussion 

1. How has a market orientation contributed to Apple’s success?
2. Describe how Apple embraces the marketing concept.
3. How would you describe Apple’s strategy in the highly competitive consumer electronics industry?