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How Apple Uses Consumer Behavior Marketing to Win

August 14, 2019

119

Consumer behavior marketing is an essential ingredient in the current business climate. The companies that apply this
type of marketing well have a distinct competitive advantage that distances them from their rivals.

Consumer behavior research is the primary driver at the core of any good strategy. Research provides actionable insight
and ensures business success.

If you answer no to the following questions, this post is for you?

Are you applying consumer behavior marketing currently?

Have you conducted consumer behavior research within the last two years?
Do you have consumer behavior marketing in your marketing plan with well-de ned marketing strategies and
tactics?
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3/23/2020 How Apple Uses Consumer Behavior Marketing to Win - Stephen Zoeller's Marketing Blog

Are you achieving the maximum results for your organization?

Every business has a target audience and consumer behavior marketing provides the fundamental methods for
understanding your target. Consumer behavior research provides the underlying element that drives quality strategies and
ensures business results.

This quote de ning marketing sums up the importance of consumer behavior from David Meerman Scott
(http://amzn.to/28ROgIx), marketing authority, online marketing strategist, speaker, and best-selling author.

“Marketing is understanding your buyers really, really well. Then creating valuable products, services, and
information especially for them to help solve their problems.”

– David Meerman Scott

The organizations that have an intimate understanding of their target audience possess a competitive advantage over
those that do not. Establishing a one-to-one relationship and thorough knowledge of your target audience is a core
responsibility for business in the 21st century and beyond.

Regardless if you are B2B, B2C, B2G or a hybrid organization you have a target audience. The information in this post can
be applied to any business type.

This post focuses on Apple (B2C) employing consumer behavior marketing as a critical ingredient for their success.

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Consumer Behavior Marketing at Apple

Have you ever wondered why Apple is so successful? They were not the rst company to invent the personal computer,
portable music device, the tablet, the smartphone, software to download music, or the set-top box to name a few. Apple
has amassed a brand loyal following like no other brand backed by signi cant sales, market share, and pro tability. So,
how does Apple do it? What’s the secret behind their success?

Marketing using consumer behavior insight is how Apple succeeds. Even though Steve Jobs and Apple, did not use
consumer research in the initial development of most products, consumer behavior plays a huge role in their marketing
and ultimately the success of the company.  Once a consumer purchases a product or downloads iTunes Apple has
access to data the company leverages. Apple uses this information to gain signi cant insight into the consumer and what
drives purchase behavior.

Photo (http://wpinject.com/) by acaben (http://www. ickr.com/photos/35034346178@N01/541334636)

(http://creativecommons.org/licenses/by-sa/2.0/)For the sake of this post, we will focus on consumer behavior at a high-level

and how Apple communicates to detail how the company has gained a competitive advantage using consumer behavior
throughout its marketing.

The Wheel of Consumer Analysis

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Understanding concepts of consumer behavior at a high-level involves a framework to gain actionable insight from
consumer research. The wheel of consumer analysis provides a framework to study consumer behavior consisting of:

A ect and cognition

Consumer behavior
Consumer environment

(https://www.stephenzoeller.com/wp-content/uploads/2015/06/Wheel.png)

Research focused on the consumer provides speci c insight involving a ect and cognition, consumer behavior, and the
consumer environment that the company can use to reach its target audience e ectively guiding the knowledge structure
and decision process of the consumer.

Now let’s discuss the three areas of the framework.

Affect
In psychology, the a ective system is de ned as the way individuals respond to outside stimuli. The a ective system in an
individual is purely reactive and includes moods, emotions, and any other special feelings that may ignite a physical
reaction. According to Peter and Olson, “Because it can account for many of the responses that environmental stimuli elicit
from individuals, classical conditioning has important implications for marketing and consumer behavior”.

Apple and Affect

(CC by 2.0 http://bit.ly/10VMfXD)

For example, the brand assets especially the brand logo changed in 1998 is sleek and modern chrome color
(monochromatic) aligned with the direction that Steve Jobs had for the company upon his return in 1997. The new logo
repositioned the brand (https://www.stephenzoeller.com/target-market-segment-strategy-porsche/) e ectively for a
new century in the mind of the consumer retaining the shape of the apple and modifying the rainbow color to chrome
creating an a ective response from consumers’.

In a 2008 study by Duke University, it was reported that the Apple monochromatic logo made individuals more creative
and stimulated the brain based on exposure to the logo. Apple does an amazing job of leveraging their brand assets such
as the logo and brand messages across all communication channels and products in its ecosystem.

Cognition
The cognitive system performs mental processes including understanding, evaluating, planning, deciding, and thinking.
Cognition is de ned as a consumer’s knowledge, meanings, and beliefs about Apple, in this case, based on experience
and retained memory. The feelings, moods, evaluations, emotions of the a ective system are related to the cognitive
system and e ect cognitive processes (knowledge, meanings, and beliefs).

The Major Functions of Cognition

The major functions of an individual’s cognitive systems include interpretation and the ability to process interpretations to
execute cognitive activities. Consumer decision-making consists of cognitive processes including;

Interpretation
Integration of knowledge

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Retrieval of product knowledge from stored memory used in the integration process

The insight obtained from consumer behavior research is critical in the development of e ective cognitive marketing
strategies that resonate with the target audience. An understanding of how consumers interpret marketing strategies, the
consumer integration process, and activation of product knowledge result in critical insight for Apple. Apple uses this
insight to market its products and retain their competitive advantage in the marketplace.

The consumer research Apple conducts related to cognition provides an understanding of how the target audience
acquires and stores memory along with other important memory factors such as shopping scripts or product schemas.
The types of knowledge (general or procedural) that the di erent marketing strategies and tactics activate are also
important elements that in uence marketing strategy.

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 Apple and Cognition

The company occupies a certain cognition based on Apple creating a context for their products focused on developing an
eye-catching, simple design, and ease of use for complex technologies resulting in signi cant bene ts for the consumer.
Apple also positions each product emphasizing its innovations and communicating di erentiated bene ts to its consumers
e ectively.

Consumer Behavior
According to Peter and Olson, leading authorities in consumer behavior marketing and authors of Consumer Behavior &
Marketing Strategy (http://amzn.to/28RL1kl), “Behavior refers to the physical actions of consumers that can be directly
observed and measured by others”. Understanding, analyzing, and in uencing consumer behavior leads to sales and
pro ts ultimately.

Apple and Consumer Behavior Marketing

Apple’s hardware devices are supported by the iTunes software. Hardware devices are purchased through online and
o ine retailers, and a limited number of retailers providing a tight vertically-integrated ecosystem. Using its integrated
channels including online, retailer point of sale, and iTunes, Apple captures detailed information about consumer behavior.

A detailed understanding of Apple’s customers allowed the company to analyze consumer behavior more e ectively.
Apple uses this insight to tailor products and brand (https://www.stephenzoeller.com/how-to-build-a-brand/) messages
that resonate with the target audience making products that work better and are simple to use.

Consumer Environment
A consumer’s environment is based on the social and physical attributes of the world around them that includes spatial
relationships, physical objects, and the social behavior of other individuals.

The physical environment including in uences such as reference groups and online and o ine retail environments also
have a large impact on Apple’s success. The Apple retail environment, word of mouth, product experience, and Apple’s
mission and values play a large part in uencing the purchase behavior of Apple products in the marketplace.

Apple and the Consumer Environment

A major supplier of big-box retailers, Apple has branded stores that are the number one competitor for these large
companies. The brand loyalty of Apple dominates the physical environment and therefore captures signi cant attention
and focus in the retail (consumer) environment.

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Apple and Other Retailers

To gain a competitive advantage in the physical environment, Apple uses strict control over key elements. Apple dictates
pricing and how their products are displayed with retailers and especially with big-box retailers.

Apple Branded Stores

To create a unique customer experience Apple uses branded stores. The Apple store creates an interoperability between
its hardware devices such as computers, tablets, smartphones, music players and watches that showcase capabilities
such as video, music, photography, apps, and software.

The Apple branded stores leverage product knowledge and complementary services. The in-store experience includes
one-on-one tutorials, product repairs, and workshops to provide an unparalleled customer experience.

The complementary services enhance the value proposition because if a customer can operate a new purchase then
customer satisfaction will increase. Apple uses this among many other devices to dominate in the physical environment.

Apple and the Digital/Mobile Environment

The iTunes software developed by Apple has transformed the way people consume media. The new consumption
methods for music, video, photography, and apps has allowed Apple to rule the digital and mobile landscape. Apple’s
focus on the customer experience takes data from iTunes and other sources. The data is used to update the software and
lock in brand loyalty.

Apple’s strategic presence in the retail, digital, and mobile landscape demonstrates how Apple captures and holds the
consumer in the physical environment.

Apple’s obsession with consumer behavior and customer experience drives provides the central focus for the company.
Consumer behavior marketing explained using the wheel of consumer analysis provides a context to explain Apple’s
success. The way that Apple communicates its marketing messages using an integrated marketing communications (IMC)
(https://www.stephenzoeller.com/why-use-an-integrated-marketing-communications-approach/) approach provides the
complementary method for Apple to achieve success.

How Apple Communicates

Golden Circle Theory

Simon Sinek’s Golden Circle theory (http://amzn.to/28WpASE) of how successful organizations communicate describes
why Apple’s marketing communication resonates with its target audience. The central idea of the golden circle theory is,
people do not buy what a company does, people buy why they do it.

Photo (http://wpinject.com/) by Cea. (http://www. ickr.com/photos/33255628@N00/4657383798)

(http://creativecommons.org/licenses/by/2.0/)

The Golden Circle theory provides evidence of how most companies communicate in an uninspiring manner. Most
companies typically communicate by stating what they do, how a company is di erent or better, and the expectation from
the company of a behavior, such as a purchase.

The Golden Circle theory focuses on the following elements:

Why as a central focus in the inner circle

The How is the next outer circle
The What is the outermost circle

The why is the cause, purpose, or belief of the organization, according to Sinek, very few companies know why they are in
business. Sinek cites Apple’s former CEO Steve Jobs vision of design and simplicity guiding how Apple does things and
what they produce.

A sample marketing message Sinek gives from Apple states,

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3/23/2020 How Apple Uses Consumer Behavior Marketing to Win - Stephen Zoeller's Marketing Blog

“Everything we do, we believe in challenging the status quo. We believe in thinking di erently. The way we
challenge the status quo is by making our products beautifully designed, simple to use and user-friendly.
We just happen to make great computers. Want to buy one?”.

Shared Beliefs
Apple’s method of communicating provides consumers’ with trust, con dence, and a set of shared beliefs inspiring people
to make a purchase from the company. The how refers to the actions a company takes to bring the beliefs into reality. The
what are the resulting actions, such as the services, products, culture, marketing, and employees.

As a result of its marketing communication strategies, consumers have con dence they are purchasing a quality product
whether, it is a Mac, iPhone, iPad, iPod or iTunes software. The shared beliefs between Apple and consumer’s along with
positive product and service experiences are critical in establishing the brand (https://www.stephenzoeller.com/building-
a-brand-dog sh-head-craft-brewery/) in the mind of the consumer.

Please click play on the video below to view Simon Sinek (http://amzn.to/28WpASE) explaining his Golden Circle Theory
in his famous Ted Talk.

…ders inspire action | Simon Sinek

 Conclusion
Consumer behavior marketing is a core competency of any successful organization in the current business environment.
The primary driver at the core of any good strategy is consumer behavior research providing actionable insight and
ensuring business success.

Regardless if you are B2B, B2C, B2G or a hybrid organization, you have a target audience. The information in this post can
be applied to any business type.

Apple provides an excellent case study of an organization that uses consumer behavior marketing. Apple is an example of
how research leads to successful marketing strategies and tactics. The result is a distinctive competitive advantage that
drives meaningful business results.

The Golden Circle theory explains how Apple and other companies successfully communicate in a way that resonates
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Me their target audience.

This post gives you the fundamental concepts of consumer behavior marketing and the Golden Circle theory to help
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