How Apple Inc. adds Value to its Customers
Apple Company manufactures a variety of mobile phone tools in the United States. Mobile phones are devices that consumers use to communicate with friends and family from all parts of the world. The use of mobile phones for communication makes the product universal because communication takes place across the globe. The organization manufactures a product known as iPhone that has numerous uses other than communication. The firm created the product secretly during the purple project; Steve the director of the institution, selected ten thousand employees to work on this project as he guided them through various stages (Miser, 2013). Jobs turned his dream of inventing a product that exceeds customer requirements into a practical reality. People from all over the world have gained interest in the phone because of its unique design and features; consumers would wish to pay a high price in order to acquire the product. This gives the company an opportunity to market the good in the international market. The organization would sell a large number of iPhones and make high returns besides satisfying consumers beyond their expectations.
The outer part of the phone has a slim rectangular shape that offers consumers an opportunity to view more content on the screen than any other existing smart phone. An example of the effectiveness of iPhone is that a person can type, view the calendar, and the clock simultaneously on the screen. The body is made of aluminum that has a breadth of 7.6 millimeters and weighs one hundred and twelve grams. IPhone connects to the web through LTE wireless that has the fastest speed compared to 2G, 3G, and others. The product connects to all networks such that consumers from any country can use the phone to access the internet. This feature is one of the phone’s strength that makes it marketable in all states around the universe. The phone has an application that enables it to conserve heat and maintain the battery charge for a long period. High conservation of heat increases the life of the phone’s battery. This characteristic increases the phone’s durability consumers and consumer preference over product waste heat hence decreasing their battery life.
iPhone has a built-in camera that takes clear and attractive photos such that people who own the device have no need of purchasing a camera. Other in-built applications of the phone include video recorder, operating system, and maps beside others that are downloadable (O’Grady, 2009). The huge memory of the gadget enables it to run numerous applications simultaneously. The phone accommodates children because it hosts games and kids applications that are useful in educational development. Apple Company produces different colors of the gadget so that consumers can choose the color that they prefer. These features of iPhone increase the phone’s demand in local and international markets.
Customer value
Consumers value a product according to the utility that the good produces. Customers place a higher value to the product that satisfies their needs and preferences more than those that produce low utility; a product must have tangible and intangible benefits. Customers use the following factors to assess whether a product satisfies their needs: time, ease of possession, functionality, and place. A product adds value to customers if it meets the requirements of the four essentials (Krum, 2010). iPhone meets the four requirements, and hence it adds value to consumers, for example, it saves time for a person that does not know directions by providing maps of all places in the world.
Functionality
Functionality in marketing refers to the tangible benefits that customers derive from a good. These gains include durability, comfort, and ease of use. iPhone adds functionality value to customers because it is made of aluminum, which is a durable metal. The metal shines for long periods because it does not rust like iron, and it is not prone to wear and tear, which would make it dull and unattractive (Matsumoto, & International Monetary Fund, 2007). Aluminum also has a lightweight that makes the mobile phone portable from one location to another. Apple has made the gadget with durable paints that lose their shininess after being used for twenty years and above. The high quality paint and metal that makes the product attracts customers.
The battery of the device lasts for more than two years because the phone conserves heat. The phone also uses an A6 chip that utilizes a low amount of battery energy and is faster than other chips. The device has a camera that consumes low heat and light although it has a flash that may use large amounts of energy. The chip, battery, and camera of the device increase the durability of iPhone due to low consumption of energy. The camera enables customers to switch between video, camera, and audio; this feature increases the ease of use of the camera to consumers.
iPhone adds the benefits of ease of use to customers because they touch the part of the display menu that they want to make use of at a certain period. This is different from what was observed previously when mobile phones had keypads that were noisy and uncomfortable. The device offers a variety of methods of protecting information such as passwords and patterns. These are easy to understand and use because one chooses the technique that he or she is comfortable with and that which is not easy to forget.
Apple sells iPhone with a manual that teaches consumers how to make use of all applications. In case one does not understand the manual, the phone has an online manual that demonstrates how one can enjoy all aspects of the device. The device has an application that helps one to listen to a voice assistant to help the people who cannot get help online or from the manual. The voice assistant speaks in English, but a consumer can choose any other language.
iPhone has an iOS operating system that runs all applications, but a person may wish to add other operating systems to carry out different functions. The fast and unique operating system of the device catches the attention of new customers as well as maintaining customer loyalty of existing customers (O’Grady, 2009). All the above features that make the product functional add value to customers because they increase utility. Consumers from all parts of the universe may be conversant with these characteristics easily; hence, they can make use of iPhone as a communication and entertainment gadget.
Time
Consumers gain time utility by accessing goods at the right time and place (McLean-Corner, 2006). The device adds utility to customers by saving time in a number of ways. First, students can use iPhone to carry out research because it offers internet services. This helps students to save the time that they would use to travel to the cyber and access internet services. The operating system of the apparatus enables students to use Microsoft applications such as word and excel that help a student to complete class assignments. A student may complete class assignments anywhere because iPhone is portable. There are online books that students can purchase and access using the apple product. This means that students who own the gadget do not worry about completing assignments. This reduces stress among learners, and it increases the concentration.
iPhone enables people to communicate to their friends by calling, writing text messages, accessing social networks such as facebook, and twitter. This characteristic is more useful to people who have international and local friends who live in different counties. It is difficult to meet with such friends regularly. A person may buy gifts online and request the online sales company to deliver the goods to friends who are located in far destinations. This not only saves time but also the cost that individuals would spend on booking flights.
An iPhone also helps people who travel to save time that they would spend on traffic especially if it is in a new location. This is because the apparatus has maps that show the location of every country and town. The maps show activities that take place in that location such as traffic, major buildings, and roads. One can estimate the time that it would take to arrive in another location; this is because the maps provide the distance and average time that a person would take to arrive there from different places. Drivers may find fuel stations by using the maps while tourists would use them to locate attraction sites and restaurants (Matsumoto, & International Monetary Fund, 2007). The above examples show that the product provides services to customers at a time when they need them without consuming much time and cost.
Place
Customers achieve place utility when they access goods and services at the right location through the right means. Ease of accessing a product also increases the location value of a customer. iPhone is a portable good that offers consumers a variety of reasons to value the item. Apple sells the product at all its distribution outlets in the United States; the channels are located in all regions of the country. Companies that sell products online also sell iPhone through their websites. Online purchase enables consumers to enjoy cheap delivery services.
The device may be sold in international markets by employing distributors in different countries. The distributors would supply the product in the local markets of different countries so that consumers do not have to travel long distances to purchase the mobile phone. The distributor would also sell the device to retail stores of different countries such as supermarkets. Mobile phone operators would also be included in the distribution list because they are located in places that are accessible to customers (Miser, 2013).
Apple may also contact companies that sell products online in different countries. The institution would enter into contracts with these companies so that they can sell iPhone on behalf of Apple. The product is packed in boxes that are ready and easy to carry for customers. This helps to save the time that customers would spend on travelling and waiting for the device to be packed.
The company may advertise the locations where the product is found in a country. This creates awareness to consumers so that they do not waste time researching on the distribution points of the good. The company may create mobile distributors to help reach consumers located in places where it is hard for the firm to build a permanent retail outlet. This helps to reach all groups of people in the society that are interested in enjoying the benefits of iPhone.
Possession
Possession utility comes about when ownership of the device is transferred from the seller to the consumer. This takes place during the purchase and delivery processes. The customer purchases the product first by paying for it, and then the seller delivers the goods. A seller should compensate customers in case they deliver spoilt goods because the purchase contract assumes that products are in order.
Apple transfers ownership of the mobile phone easily because the firm offers a variety of purchase methods. The company allows consumers to pay for goods through cash, credit cards, debit cards, online methods such as master card, PayPal, payoneer, and other methods that are available locally in different countries. This shows that it is easy to acquire the good; a customer needs to choose the method that is affordable to him or her. Distributors of the good execute the delivery process once they receive the payments and offer a receipt to the buyer.
Buyers also gain the value of possessing goods once they receive a warrant. This document guarantees the customer that the product is in order. The warrant offer consumers a chance to return the goods to the seller in case the goods are faulty (Miser, 2013). This certificate acts as a contact because it is binding to the seller. The distributor cannot sell faulty goods and run away with it because the consumer may sue him or her. iPhone sellers offer consumers warrants whenever they purchase the device. This creates customer loyalty to the company and its products.
Apple charges a high price for iPhone because the device has dynamic features that exceed customer expectations. Consumers pay the high price for the product because they know that the product is capable of performing numerous activities. People regard the high price of the product as cheap because it saves money that a person would spend on purchasing numerous apparatus.
Conclusion
iPhone is a mobile phone device that is produced by Apple Company. The mobile phone has a variety of applications that consumers use for different purposes. Buyers use the device for communication, research, playing games, locating places, and accessing the internet among others. The product has a variety of features that add value to customers, for example, it is durable because it is made of aluminum, a metal that does not corrode. The mobile phone offers internet connection, which help people to carry out research whenever they have projects. The gadget is portable hence students can research from anywhere; this reduces tension and worry. The availability of the product at all distribution outlets and online stores increases the utility of place to consumers. iPhone offers possession utility because customers can pay for the good through affordable means. Apple also offers warrants to the product to guarantee buyers that the mobile phone is in order. The features of the product and its ability to increase customer value make it marketable in international markets.
References
Krum, C. (2010). Mobile marketing: Finding your customers no matter where they are. Indianapolis, Ind: Que.
Matsumoto, A., & International Monetary Fund. (2007). The role of nonseparable utility and nontradeables in international business cycles and portfolio choice. Washington, D.C.: International Monetary Fund.
McLean-Conner, P. (2006). Customer service: Utility style : proven strategies for improving customer service and reducing customer care costs. Tulsa, Okla: PennWell Corp.
Miser, B. (2013). My iPhone. Indianapolis, Idiana, United States of America.
O'Grady, J. D. (2009). Apple Inc. Westport, Conn: Greenwood Press.
