An Introduction to Apple Computer, Inc.

Apple's recent success in the marketplace is founded on a philosophy that derives its insights at the intersection of technology and consumer values. Apples unique, defiant, and sophisticated philosophy is all about revolutionizing lifes experiences; convergence of digital consumer electronics and the personal computer. Apple is focused on the individual. Things dont have to be arduous. They can be fun. Smile Microsoft, because the revolutions going to be televised.

An Overview of Apple
Apple was founded in 1976. It is a relatively young company; a company with its own unique philosophy as to the way things ought to be. Apple exerts significant creative influence on the technology industry. Today, the company has three major products: Mac computers, iPod music players, and the iPhone. In addition to these offerings, the company also offers operating systems, developer tools, and database software. In 2006, approximately 40% of Apples sales came from international operations. Apple is a global brand; ranking 33 in BusinessWeeks 2007 Top 100 Brands ranking. Hows that for brand awareness? In the 1980s, rather than licensing the Mac operating system to PC makers, as Microsoft did, Apple chose to be the sole producer of its Mac Hardware. Today, Apple differentiates itself by stressing it is the only company that designs the hardware, the software, and the operating system; we stand alone in our ability to innovate beyond the status quo.

Marketing at Apple
The marketing team at Apple places intense focus on leading-edge hardware and software technologies; the building blocks that will help Apple to define and deliver the new and innovative solutions customers will want. Needs are basic human requirements, and wants are the fashion by which needs are satisfied. So how does Apple go about understanding customer needs and wants? Eric, a product marketing manager at Apple, explains that he spends much of his time speaking and interacting with customers, fundamentally, Apple is about creating innovative products Apples products often elicit en emotional response and connection with customers that is extremely unique and very rewarding. But Apple is not just about asking the customer what they want, and then giving it to them. Life is not always so easy. For one thing, customers can not always articulate their needs. On another note, companies may not always be capable of fulfilling customers stated needs. This is business. And companies are in business to make money. In order to do this, companies may have to develop some new capabilities and/or convince customers that their view of the world is also theirs. Apple does both; employing technology-push and market-pull strategies. Apple is an innovator, and innovation is often a technology-push. But Apple also emphasizes customer requirements, something that is best served with a market-pull philosophy. Thus, Apple takes into account what customers demand, but it also innovates by providing solutions that go beyond simply the stated requirements; meeting their customers real needs. The iPod is a good example of this, an

elegant method of promoting individual choice. Apple exerted a great deal of effort in researching the consumer perspective. This enabled them to relate product attributes to customer values; giving Apple an edge over the competition; some competitors have added additional product features, such as a radio tuner, to their products", in an attempt to "out-feature" Apple, but "Apple has been cautious in adding features. This may be because they had a clear understanding of what product attributes customers would value". Apple firmly believes the personal computer is at the center of an evolving lifestyle; the digital lifestyle. Integration, innovation, ease of use, and high-quality user interfaces will be key elements to providing solutions for the digital lifestyle.

AppleCare
Satisfaction is the outcome of comparing perceptions to expectations. Its been said that Apples products elicit an emotional response and connection with customers. But is this emotional response translating into loyalty? The answer seems to be a resounding yes, Apple customers are distinguished by their fierce loyalty to the brand, and can be considered as a subculture of consumption. Apple appears to place a great deal of emphasis on managing the customer experience. Its website offers video tutorials to explain the power and potential of products such as their iPod, iPhone, etc. In addition, there are various forums in which customers can participate with other fellow i-users. Customers can also get in touch with Apple to share experiences. There are also plenty of self-help items to address commonly asked questions. Behind all of this is AppleCare, a dynamic organization with a direct impact on customer satisfaction. Apple has a dedicated division to service their customers, we are a customer focused and driven team who enjoy the problem solving aspect of our work. Apple customers also have available to them the AppleCare Protection Plan. This is a fee-based service that typically includes three years of phone support and hardware repairs, dedicated web-based support resources, and user diagnostic tools. Accompanying the launch of the iPod phenomenon was a transformation in the way Apple delivers and manages the customer experience, Apple Computer is among the top rated technology companies for customer satisfaction, according to a new report released by research firm Satmetrix Systems. As of late, however, customer satisfaction ratings at Apple have decreased, its not easy to manage quality and customer satisfaction when a company quickly has to increase production or provide service to a larger number of customers.

Convergence of Consumer Devices and the Personal Computer

References
1. Nick Wingfield, But will Apple See a Boost?, Wall Street Journal, April 28, 2005, pp. B1 +. 2. The 100 Top Brands, BusinessWeek, August 6, 2007. 3. The iPod phenomenon: identifying a market leaders secrets through qualitative marketing research, Journal of Product and Brand Management, Volume 15, Number 4, 2006, pp. 239 249. 4. http://www.macworld.com/news/2006/07/11/satisfaction/index.php 5. Apple Computer Inc., Form 10-K, 2006. 6. http://scribb.typepad.com/marketonomy/2005/06/apples_core_pos.html 7. http://arstechnica.com/journals/apple.ars/2007/06/28/internal-apple-stevenote-iphone-ipods-withos-x-and-off-the-charts-macs-in-the-pipeline 8. http://www.ipodobserver.com/story/33383 9. http://money.cnn.com/2005/02/23/technology/personaltech/apple_new/index.htm 10. http://www.businessweek.com/magazine/content/05_12/b3925608.htm 11. http://marketingapple.com/ 12. Apple (www.apple.com)