Analyzing Customer Behavior and Marketing Strategies

Companies must deeply understand their customers to succeed in today’s fiercely competitive environment. With the emergence of globalization, market positions have become unstable. A company may perform well today, but a slight omission may lead to rivals overcoming it. As a result, companies must implement strategies to ensure they gain a competitive edge and overcome rival competition. To understand consumer behavior, there is a need to research the expectations and attitudes that shape this behavior. Consumer behavior is determined by an interplay of customers’ characteristics, products/services offered, and the specific situations customers find themselves in at any given time. Companies need to consider different aspects that influence consumer characteristics. Some of these factors include cultural background, technological trends, type of product offerings, the environment, and promotional activities applied. By conducting behavioral analysis, companies will determine how customers interact with their products. Having conducted behavioral analysis, companies will determine which marketing strategies they can leverage to gain a competitive edge. This paper will analyze Apple consumers’ behavior and the corresponding marketing strategy that will help Apple adapt, develop, and shape its products and services to suit customer expectations.

Research and Background

According to Aljafari (2016), Apple is a renowned American technology company known for its innovation capability. The company is mostly known for the innovation of computer software, smartphones, personal computers, mobile tablets, and computer parts. Today, Apple is one of the most recognizable brands in the world owing to its contribution to the technology space. Apple is known for being the first company to create the first commercial personal computer. Besides, the company is known for bringing the graphical user interface (GUI) into mainstream adoption. Specific products that have put Apple in the limelight include Mac computers which have kept evolving since they were first generated in 1984. Others include the iPhone, iPad, iPod, Apple Watch, MacBook, Apple TV+, and Airpods, among other products and services.

Two individuals played a significant role in establishing Apple Company in 1976- Stephen Wozniak and Steve Jobs. At the time, Wozniak was an intern at Hewlett-Packard (HP). Having developed a gaming motherboard, his first personal computer, Wozniak presented the design to his employer for consideration. However, HP turned down his proposal. He later turned to his high school friend, Steve Jobs to facilitate him in creating a new personal computer. They would later set up the first factory at Steve Jobs’s home family garage. The company’s first product was the Apple 1 which achieved minor success in the first year (Aljafari, 2016). The largest commercial success was registered with the creation of the Apple II, which would sell about 5-6 million units over the next 10 years. The company would later launch multiple successful products.

From 1980-1985, Apple started experiencing competition in the personal computer market from formidable players. One such player was IBM, one of the leading personal computer companies to date. The company launched its first computer in 1981 using parts acquired from Microsoft Company. IBM won instant support from the business community and overcame Apple’s Apple II PC (Aljafari, 2016). Apple’s PC competitors today include Lenovo, which is headquartered in China but has operations headquarters in the USA (Aljafari, 2016). Others include Dell and HP. Competitors in the smartphone segment include Samsung, Xiaomi, Vivo, and OPPO. It is worth noting that Apple Inc. does not dominate the smartphone or PC markets. However, the combined relative success in the two markets renders them successful. Although Apple has a primary market in the US, it has a significant global market.

Customer Behavior Analysis

Customer Journey

Awareness

Users must be aware that a product exists before it is successfully introduced in the market. Businesses typically leverage ad campaigns to create product awareness and Apple is not left out on this. Notably, ads are not the primary strategy Apple employs to attract customers (Anas & Vida, 2023). The company temporarily stopped advertising in 2007 when it launched its first iPhone. Apple’s awareness strategy leans toward media reviews and product placement to create a successful brand (Anas & Vida, 2023). Among others, the company leverages social media influence to create awareness. The company approaches social media influencers who pass a message whenever the company launches a new product.

Consideration

Having learned about a product’s existence, a customer compares it against rival offers. One of the factors that can influence decision-making at this stage is product pricing (Følstad & Kvale, 2018). However, Apple does not compete based on price. Instead, the company seeks a competitive edge by offering a value proposition. Apple focuses on performance features, aesthetics, and other aspects that improve customer value proposition.

Engagement

Next is the engagement phase where a customer interacts with the seller. This may occur in a physical store or online website (Følstad and Kvale, 2018). The customer begins to interact with a product in this phase. A company should eliminate any difficulties that may prevent a successful sale. Apple has made the process convenient as customers do not have to line up to purchase a product. Besides, the company facilitates payment through different payment methods.

Retention

This is a post-purchase phase where a business implements strategies to retain its customers. A wide body of research shows that the cost of attaining a new customer is five times that of keeping a current customer. Apple has been largely successful in retaining its customers. About 92% of its customers stick with an Apple product when they upgrade. One of the reasons for this positive performance is due to the integration across different Apple products. For instance, a user can use an Apple watch to find a lost iPhone. Also, the company provides exclusive customer support through Apple Care.

Factors that Influence Customer Decisions for Apple

Psychological Factors

According to Qian (2023), four psychological factors influence purchase decisions; perception, learning, attitudes and beliefs, and motivation. Apple creates a need in the customers’ minds to garner increased sales. These psychological strategies influence whether they will make a purchase or not. Firstly, learning creates a memorable experience in customers’ minds, encouraging a return purchase. Whenever there is an interaction between a customer and company staff, the company tries to create positive experiences to encourage future sales (Qian, 2023). For instance, Apple advertises to create memories about positive experiences, eliciting purchase interest. Also, perception influences sales. Apple’s electronic devices have a thin body and a big screen that attracts fashion-sensitive customers.

Cultural Factors

The American market consists of multi-cultures characterized by creativity and freedom. The company incorporates these aspects while innovating (Qian, 2023). Apple expresses creativity creation by manufacturing fashionable devices that appeal to the American culture.

Social Factors

One social aspect that influences the usage of Apple products is peer influence. Whenever someone sees their peers within their social circle using an Apple product, they are also likely to acquire one. Peer influence is partly behind the company’s sales success.

Marketing Strategy

Marketing Mix (4Ps)

Apple’s Products

The product segment of Apple’s 4Ps includes technology products and online services. The company is adding to its product mix and will soon include non-IT products. The electronic devices segment includes iPhone, iPad, Mac, and wearables and home accessories (Dong et al., 2023). On the other hand, the online services market includes advertising, AppleCare, digital content, cloud services, and digital payment platforms.

Place/Distribution

This 4P element refers to venues or places from where the company distributes its products and services to its target market. One such place is company-owned physical stores where customers can walk in and purchase an electronic device. The company also leverages online websites where customers can purchase its products from the comfort of their homes. Thirdly, the company partners with third-party resellers who sell on the company’s behalf. Some of the third-party resellers include Walmart and Amazon. Finally, the company partners with telecommunication companies such as T-Mobile which incorporates iPhone units into its services, which can be accessed on a subscription basis.

Promotion

Promotion refers to the process of communicating a product’s presence to customers. This is important because, without awareness, a company cannot make sales. Some of the strategies applied in this phase include personal selling, sales promotion, and public relations.

Regarding personal selling, Apple’s experienced employees in stores offer individualized encounters that assist clients in understanding how products meet their needs. Conversely, trade-in programs, discounts, and time-limited incentives, along with sales promotions, promote purchases and foster consumer loyalty. Finally, on public relations, Apple’s robust media presence and product launch events reinforce its brand image by creating excitement and buzz around new products.

Pricing

The company primarily uses the premium pricing strategy, where products are priced above typical market prices. This pricing strategy appeals to high-end customers. It helps the company optimize profitability (Dong et al., 2023). For instance, iPhones are way more expensive than competitive smartphones, including Samsung. Additionally, Apple uses the freemium pricing strategy, where customers can access a service freely but are required to pay a recurring fee to access additional features.

Alignment with Consumer Behavior

Apple recognizes that its customers prefer stylish products. The company has incorporated this into its production process by producing fashionable products with an appealing appearance. For instance, iPhones have a thin body and a large screen to create an aesthetic feel. Also, Apple’s products appeal because they integrate different functionalities into the same device.  Apple offers customer support services through the AppleCare feature to retain and engage customers.

Competitive Advantage

Apple participates in a fiercely competitive industry with high buying bargaining power. Apple keeps in mind the fierce competition in the industry to stay ahead of competitors.  The company leverages innovation to gain a competitive edge (Aljafari, 2016). One of the company’s competitive advantages is that it provides software and hardware for its products. For instance, iPhone users can access the Apple Music application from where they can play music. Besides, iPhone users can purchase Airpods to improve their music experience.

Additionally, Apple leverages its premium pricing and quality to target middle to upper-income demography. This target audience has money to spare for Apple’s premium pricing (Aljafari, 2016). In return, the company offers quality and high-performance features to appeal to the audience.  Middle-class to upper-income individuals are willing to spend highly to get quality.

Apple leverages big data and artificial intelligence to gain customer insights. Subsequently, it recommends features a customer may need. For instance, based on a customer’s search history, the App Store recommends applications the customer may need next. Additionally, products like the Apple Smartwatch provide information about customers’ daily activities and health information. The company uses this information to diversify its collection of products, thus gaining a competitive edge.

Reflection and Critical Thinking

To a great extent, Apple meets customers’ expectations and desires. One of the company’s outstanding strengths is its innovativeness. Apple’s products like the iPhone, Mac, and iPad are considered some of the most innovative products in the industry. These products signify quality in terms of performance and functionality. Additionally, the integration of different performance features into a single device improves user experience. For instance, an iPhone user can access iCloud storage, Apple Music, and App Store. This integration of performance features helps the company retain its customers. Also, the post-sale customer experience ensures that customers receive support on how they can use the company’s electronic devices and online services. This ensures customers stay loyal to the company since they know the company cares about their experience.

However, from the analysis, it has emerged that Apple prioritizes middle to upper-income customers. Although this strategy helps the company make huge profits, it excludes low-income consumers. Apple should consider diversifying its product range to include affordable offers to cater to the needs of low-income consumers. Apple should also consider expanding its services segment. the company will offset market losses in the technology products segment by increasing service offers.

References

Aljafari, A. (2016). Apple Inc. Industry Analysis Business Policy and Strategy. International        Journal of Scientific & Engineering Research, 7(3), 406–441.   https://www.ijser.org/researchpaper/Apple-Inc-Industry-Analysis-Business-Policy-and-            Strategy.pdf

Anas, M., & Vida, V. (2023). Strategic Marketing Plan for APPLE Inc.             https://seaopenresearch.eu/Journals/articles/NIS_21_7.pdf

Dong, H., Zhang, J., & Han, Y. (2023). The Successful Marketing Strategy of Apple. Advances in             Economics Management and Political Sciences, 40(1), 104–109.    https://doi.org/10.54254/2754-1169/40/20232003

Følstad, A., & Kvale, K. (2018). Customer journeys: a systematic literature review. Journal of      Service Theory and Practice, 28(2), 196–227. Emerald. https://doi.org/10.1108/jstp-11-      2014-0261

Qian, X. (2023). Analysis the Factors That Cause APPLE Products to Thrive with Even a High    Price by the Regression Model. Proceedings of the 4th International Conference on      Economic Management and Model Engineering, ICEMME 2022, November 18-20, 2022,          Nanjing, China. https://doi.org/10.4108/eai.18-11-2022.2326757

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Overview:
For this assignment, you will be introduced to a real business that will serve as the focal point for various marketing analyses throughout the semester. The goal is to understand the company’s approach to customer behavior and marketing strategies, which will lay the foundation for future assignments on segmentation, targeting, market research, and more.

Objective:

• Conduct an in-depth analysis of the company’s marketing strategies and its understanding of customer behavior.
• Demonstrate your ability to research and apply marketing principles to a real-world business.
• Develop your professional writing skills through a well-organized, formal report.

Company Selection:

• Topic:
  • Apple

Assignment Guidelines:

1. Research and Background:
   • Provide a brief overview of the company: history, products/services, key markets, and competitors.
2. Customer Behavior Analysis:
   • Discuss the customer journey for your retailer
   • Analyze the key factors that influence customer decisions for this company (e.g., social, personal, psychological, and cultural factors).
3. Marketing Strategy:
   • Examine the company’s marketing mix (4Ps: Product, Price, Place, Promotion).
   • How does the company’s strategy align with customer behavior trends? What tactics are they using to engage and retain customers?
4. Competitive Advantage:
   • Discuss the company’s competitive advantage in its industry. What sets it apart from its competitors?
   • How does the company leverage customer insights to maintain or improve this advantage?
5. Reflection and Critical Thinking:
   • In your opinion, is the company effectively meeting customer needs and desires? Why or why not?
   • Identify any gaps in their strategy or areas for improvement based on your analysis.

Deliverables:

• Length: 1,925-2,000 words
• Format: Professional report (APA format, double-spaced, 12-pt font)
• Research Requirements: At least 3 credible sources (e.g., academic articles, industry reports, news articles)
  

  Analyzing Customer Behavior and Marketing Strategies

Evaluation Criteria:

• Demonstrated understanding of company background, history, key markets, and competitors (25 %)
• Demonstrated understanding customer behavior (20 %)
• Demonstrated understanding of the 4Ps (20 %)
• Demonstrated reflection and critical thinking (20 %)
• Writing quality, organization, and adherence to APA format requirements (15 %)

This assignment will serve as a foundation for future assignments so ensure that your analysis is thorough and well-supported by evidence.