The sole purpose of marketing is to get more people to buy more of your product, more often, for more money. That’s the only reason to spend a single nickel, pfennig, or peso. If your marketing is not delivering consumers to the cash register with their wallets in their hands to buy your product, don’t do it.(Lenskold, 2003)
Marketing metrics consists of numeric data that allow marketers to evaluate their performance against organizational goals. When you can measure what you are speaking about and express it in numbers you know something about it, but when you cannot measure it, your knowledge is of meagre and unsatisfactory value (Farris,2006).
Let’s assume I buy an IPhone today. Apple, which is the company with a long-term marketing perspective, is insightful enough not to attribute that action to, say, a single ad campaign. The company understands that the cult like following which apple has now is due to the marketing influences over the years and, not a direct reaction to the commercial I saw last night. Marketing by numbers will buy us short-term success, but expecting to ignite the public’s imagination using a metrics-driven marketing approach is a long shot.
Going by financial metrics Apple is the most valuable brand with a value of 154.1 billon US dollars and a revenue of 233.7 billion$ second only to Walmart (Forbes.com, 2016). In its annual report, Apple claimed it believed in “ongoing investment” in “marketing and advertising which is critical to the development and sale of innovative products and technologies.” The company reported record profits of $53.4 billion on turnover of $233.7 billion. The company gradually increased its marketing spending every year from 691 million in 2010 to 1.2 billion last year, and dramatically increasing by 50% to a record $1.8 billion this year which is still less than 1% of its turnover. The increase in profits prove that their marketing strategies have been working over the years. Apple ranks 33rd in marketing spending in the world which if compared to pampers which shells out 8.3 billion on sales of only 10.4 billion seems astounding.
Apple Stores which are the most visible places that sell the company’s products receive help from the online App Store, Authorized retailers, Telecom companies and Fulfilment services in increasing the physical availability of the product. Thus, Apple’s marketing mix consists of different types of online and physical distribution channels which gives a boost to its physical availability metrics.
The Apple brand according to what people perceive it, is adored with strong levels of association to words like ‘cool’ ‘awesome’ ‘love‘, ‘design’, ‘creative’ and ‘innovation’ pooled with ‘quality’, ‘sleek’, ‘simple’ and ‘style’ etc., makes it clear why Apple commands such high levels of brand loyalty and continues to create enormous anticipation for each new product launch.
According to a Morgan Stanley Research study carried out, Apple has a 90 percent brand retention rate, significantly higher than its competitors Samsung, LG etc. (BetaNews, 2015). They score full marks on Memory metrics here as apple today can boast of IPhone, IPad and IPod, being compared to a smartphone, tablet and an mp3 player respectively, whereas they should be compared to similar products of other companies.
The average Apple user is a 25 to 39-year-old female, has a job in media and publishing or marketing with more than £1,000 disposable cash. She’s likely to live in the most expensive regions of the UL: London, central Scotland or along the south coast (Reilly, 2014). This kind of lifestyle pretty much sums up the relevant customer profile metric of an average apple product user.
Apple can attribute its success on how the products work together to make everything in our life work that bit better which itself makes a very good long term marketing strategy.
BetaNews. (2015). Apple has brand loyalty that most companies can only dream of. [online] Available at: http://betanews.com/2015/04/09/apple-has-brand-loyalty-that-most-companies-can-only-dream-of/ [Accessed 23 May 2016].
businessinsider.com, (2016). [image] Available at: http://www.businessinsider.com.au/apple-users-vs-android-users-according-to-yougov-profiles-2014-11?r=US&IR=T [Accessed 23 May 2016].
Campaignlive.com. (2016). Apple ad spend rises 50% to record $1.8 billion. [online] Available at: http://www.campaignlive.com/article/apple-ad-spend-rises-50-record-18-billion/1370742 [Accessed 23 May 2016].
Farris, P. (2006). Marketing metrics. Upper Saddle River, N.J.: Wharton School Pub.
Forbes.com. (2016). Forbes Welcome. [online] Available at: http://www.forbes.com/powerful-brands/list/ [Accessed 23 May 2016].
Lenskold, J. (2003). Marketing ROI. New York: McGraw-Hill.
Lowensohn, J. (2012). Analyst: Apple’s ‘lifetime’ customers locked in and lovin’ it. [online] CNET. Available at: http://www.cnet.com/news/analyst-apples-lifetime-customers-locked-in-and-lovin-it/ [Accessed 23 May 2016].
Reilly, L. (2014). Apple People And Android People Even Eat Different Foods. [online] Business Insider Australia. Available at: http://www.businessinsider.com.au/apple-users-vs-android-users-according-to-yougov-profiles-2014-11?r=US&IR=T [Accessed 23 May 2016].
statista.com, (2016). [image] Available at: http://www.statista.com/statistics/267728/apples-net-income-since-2005/ [Accessed 23 May 2016].
statista.com, (2016). [image] Available at: http://www.statista.com/statistics/273480/number-of-apple-stores-worldwide-since-2005/ [Accessed 23 May 2016].
top10great.com, (2016). [image] Available at: http://top10great.com/top-10-apple-products/ [Accessed 23 May 2016].
trulydeeply.com, (2016). [image] Available at: http://www.trulydeeply.com.au/brand-identity/graphic-design-melbourne-apple-microsoft-brand-association/ [Accessed 23 May 2016].
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