Sunday, October 24, 2010

Chapter 17 - Advertising and public relations

Apple is one of the worlds widely known brand. Apple shells out a ton of money for advertising. In 2009 apple spent $501 million, according to the 10-k file. All of this is money is very little compared to its competitors. Microsoft spent $1.4 Billion in 2009 and DELL spent $811 million on ads. For some reason though i can't remember most of these ad's. As Apple's advertisements are very creative and catchy and  you tend to not forget an ad.
  1. The ads are memorable. Apple spends its money on creative, producing a few clever ads rather than a lot of forgettable ones. Those Get-a-Mac ads are marketing events in their own right, picked up on YouTube and re-played again and again at no extra cost to Apple.
  2. The ads are well-placed. Apple pays a steep premium to be seen during the World Series or on the back of glossy magazines, but it stays away from the low-cost media where its competitors pour so many of their ad dollars, either directly or through co-op ads. You don't see AT&T  advertising the iPhone in newspaper fliers; Apple doesn't want anyone else promoting its products.
  3. The Apple brand speaks for itself. Apple is the 20th most recognizable brand name in the world, up there with Coca Cola, IBM and McDonalds. "The Apple brand is the most supported within its industry," according to Interbrand, "and among the most iconic of relatively young brands in the world."
  4. Apple Stores are their own best advertisement. 
  5. Word of mouth.Apple users tend to be intensely loyal. If you buy one Apple product your most likely going to buy another one, and by you telling people about your satisfaction your basically helping out Apple Sales for free.

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