In my assignment I will be describing and comparing the different marketing techniques used by Apple and Virgin. Arguably 2 of the largest companies in the world, run by 2 of the richest men in the world, employing tens of thousands of people each with revenue in the billions. Apple and Virgin are 2 larger than life companies with the best marketing techniques in the business.
Company A: Apple Company B: Virgin
• Product Development - Brand extension
• Diversification - Market development
• Relationship marketing - Brand building
Product development is when you produce new products for existing customers. Apple does this by introducing products that include upgrades or updating existing product knowing people who own the old version will want to update it. Some of the advantages of using this technique is that you can respond to customer needs and wants as they change, because you have existing customers you can take surveys and questionnaires, etc… to keep with the market and consumer demand. The result of this is customer loyalty and high demand for Apple products. This technique has proven to be very effective for the company and could be considered their main marketing technique.
Diversification is the development of new products for new markets. Apple has done this with the introduction of the iPad, iWatch etc…I think Apple choose to diversify because they have excess capital so there is little risk. The result of this diversification has been increased brand value, entering new markets and being able to compete with the biggest companies in these markets. Diversification has proven very effective for Apple as it is a trusted brand consumers will tend to buy most of the products they sell.
Relationship Marketing is when a business builds a relationship with its customers promoting brand loyalty. Apple does this by offering new products to existing customers first. They can get these new products by going to the Apple store and giving them your iCloud id number. Customers can go to a phone shop and get a new discounted iPhone by exchanging their old ones. This gives customers the impression of individual importance. I think Apple use this technique so that when they introduce new products it is much easier to persuade existing costumers to buy it as consumers have trust and respect for the brand. The result is high consumer demand, brand loyalty, etc.
Brand extension is when a firm marketing a product with a well known brand uses the same brand name to market a different product. Virgin has done this many times, starting with a record selling store to a record making company etc. Now they have many businesses by the name Virgin (trains, airlines, festivals etc.). I think Virgin chose this technique because the company enjoys taking risks and wants to continuously venture into new markets. The effects of Virgin brand extension are many including globalisation and increased brand value. The result is that they are now world renown which creates trust with consumers.
Market development is when existing products are sold to new customers. Virgin has done this via globalisation (e.g. Virgin Atlantic). This has allowed them to reach new markets (including space, mobile, travel, airlines, etc.). Market development is a good technique to use because if a product succeeds in a certain market it has shown promise and the risks are not as high when venturing into new markets. Although there are some problems with culture and language barriers. The result is as said before, globalisation etc. Some of the effects due to market development are growth and branding.
Brand building is when you enhance a business’s equity through direct advertising and indirect advertising such as supporting a charity and event sponsorship. Virgin