Apple Inc. Online channels The horizontal integration of Apple products is enhanced by the downloadable facility provided by their online stores. It enables complementary products such as Apple Store, iTunes to be access at anytime with customers downloading 85 billion Apple Store items in 2014 (Green 2016). Additionally, online stores provide easy access to hardware products for customers not situated near a store or time poor. Non Apple Retail Outlets Retailers and wholesalers of Apple products serve to make products available across sectors that hold a large product variety, such as JB HiFi and Officeworks. Apple enhance the store experience and sales in these channel partners by positioning and displaying merchandise for maximum promotional …show more content…
Dell uses its sales force to directly liaise with business customers to provide complete solutions to IT requirements. The complicated nature of the product range and the need to design solutions requires specialist assistance. Additionally, channel partners can bring specialist and industry wide distribution capabilities, as with Dell’s channel partner Ingram Micro that has distribution networks in the IT field all over the world including 31 branches in India (Dell Launches 'Dell Storm ' Channel Strategy to Strengthen Its Commercial Business in 100 Cities Acro. 2014). Direct Shipped to Customers The role of the direct to customer channel model to provide efficiencies and cost control. The use of intermediaries can add extra costs that decrease competitiveness (Rosenbloom 2013, p.195). The biggest advantage of Dell’s model is the ability to customise the product because of its direct relationship to cost control. As the product is ordered to suit the customers price range and feature requirements, it is accepted that the item will need to be assembled, which allows minimal inventory and just in time supply manufacturing (Bhasin 2016). Integration of …show more content…
In today’s marketplace the experience that a customer encounters whilst purchasing a product can be as important as the functionality of that product. Modern consumers are more savvy about products, marketing and required levels of customer service. It would be assumed that the product is functionally sound and has the appropriate desirability. Therefore, the critical factor in satisfying a consumer is the purchase and post purchase experience. The accessibility of the product is important, so the product get to the customer in a timely manner. The placement of the product with retail partners, that have exposure to mass markets, is an essential element first step. Importantly, this may be difficult for a new player in the market unless they have a niche product, a lower price point or are already established in other markets. Retailers will normally have established agreements that make it difficult to take on new suppliers unless these circumstances present
...ck and mortar stores and online stores. All these products flow through the same supply chain before they gets customers. However, JB Hi-Fi’s distribution is not thoroughly horizontally integrated. For example, customers could not order a product online and pick it up in a brick and mortar store. Even though JB Hi-Fi did not try to vertically integrate its distribution channel since it is only a retailer, it still tried to offer its customers with best services and efficiency by strengthening its cooperation with its suppliers. For example, customers could check the status of their order through the website of JB Hi-Fi which has integrated information from delivery companies. Customers could also order products that are not in stock since JB Hi-Fi could quickly place an order to its suppliers and have it quickly delivered after it reaches the warehouse of JB Hi-Fi.
Pelton, L. E., Strutton, D. & Lumpkin, J. R. 2002, Marketing channels: a relationship management approach. McGraw-Hill Irwin: Boston, p. 387.
Despite the odds and in only fourteen years, Apple has managed to build a highly successful retail chain that is in high demand domestically and globally. In Figure 1, the number of Apple stores worldwide tallies to 463 as the end of 2015 approaches. Why
...ber of buyers for all three products. In fact, Apple recently passed the 10 billion mark in music downloads from the iTunes store illustrating the massive number of buyers and purchases that these buyers are making from the iTunes store.
Dell's strengths were oriented around listening to the customers, responding to the customers, and delivering what the customer wanted. The direct relationship was first through telephone calls, then through face-to-face interactions, and now through the internet. It has enabled them to benefit from real-time input from real customers regarding products and future products they would like to see developed. The company also doesn't use reseller or retail channels because every computer is built-to-order, which allows less inventory. The direct model allows them to take the pulse of whatever market and provide the right technology for the right customers.
This makes Apple more desirable in the eyes of the human consumer. Not only does Apple have dominance of the technology world but it also has a large sum of profit it makes over being a dominant force that consumers flock
Apple company consumers connect with the actual model quite totally. Duplicate acquisitions are widespread. They feel an extremely powerful addition for the model as it portrays an extremely distinct graphic. It helps make them feel that they are moving using the transforming movements given that they unique a good Apple company product or service. Quite a few Apple company customers occasionally look at the Apple company product or service the most liked property or perhaps state they really like the actual model given that they acquire quite mounted on that. Apple company features made itself to become a model how the consumer will surely have the pleased in addition to ongoing relation using. The Apple company practical knowledge has produced more deeply attitudinal ad...
Overall, Apple has a creative way of marketing to the millions of people over the world. Their creative marketing coupled with their unique product meshes together to form a multi-billion dollar company. If Apple keeps using their exclusive style of marketing to a younger “hip” generation then they will be Apple customers for life.
Leveraging multi-channel customer management may also strengthen the link between product type and retail type (Verhoef et al 2007), which is one of the JB Hi-Fi’s identified weaknesses. JB Hi-Fi’s
Since its launch in the mid '90s, Dell's e-commerce business has been a poster child for the benefits of online sales, says Aberdeen Group analyst Kent Allen. The company's strategy of selling over the Internet -- with no retail outlets and no middleman -- has been as discussed, admired and imitated as any e-commerce model. Dell's online sales channel has proven so successful, says Allen that the computer industry must ask: "Does the consumer need to go to the store to buy a PC anymore?"
emerging or new market. It can originate from new technology or new market opportunities (Eliashberg, J., Lilien, G. L., & Rao, V. R. 1997). Literature defines product development as exploiting an untapped market opportunity and turning it into a value product for customer satisfaction. Development and introduction of a new product requires extensive research on understanding customer needs, market structure, emerging trends and analysing the internal & external competitive market environments. To evaluate customer satisfaction previous researches provide strong relationship between customer satisfaction and product quality, product features and value for money. ***
Apple sells its products and resells third-party products in most of its major markets directly to consumers and SMBs through its retail and online stores and its direct sales force. Apple has over 400 retail stores and operates in more than 10 countries. These individual retail stores are the best locations to sell the iPod Nano as 30% of total net sales is through direct distribution (Investors - Apple , 2013). The Apple retail stores have become a physically location for customers to try out new products, talk to an Apple representative in person, and gain insight on technical maintenance. These retail stores can be found at high-traffic locations in quality shopping malls and urban shopping districts.
We claim that it is the customer's entire experience with us that determines his or her declaration of satisfaction. We say that this experience is not objective at all but totally subjective. It is the customer's call. That call is based upon the customer's perception of the experience. This perception is his/her interpretation of the value received played back against his expectations.
Apple keeps product SKUs simple, the salespeople inside the stores have the in depth knowledge of the products. Just think that when you enter an Apple store and one of the sales staff greets you, you’re not asked, “How can I help you?” Rather they ask, “What would you like to do today?” They satisfy you by going to the heart of any technology user’s question, any question related to the technologyand the user is interested in.
This strategy was carried out by selling via phone, fax and direct sales, instead of selling through retail stores. Not only this approach differentiated Dell from other competitors at the time, it also reduced its operating costs as it did not have to rent expensive retail space. In addition, Dell’s strategy of selling customised computers allowed it to hold only a small amount of inventory, which reduce...