MODERN MARKETING the right brand , right package , right configuration , right channel , and right message — oftentimes in 140 characters or less .
The Penetration Master Apple is a master at penetration — from iPods to iPhones to iPads to its reinvented Macintosh line now better known as MacBooks .
Nowhere is this better substantiated then in the July 26 , 2011 , Bloomberg story , “ Apple Tops $ 400 Chases Exxon as World ’ s Most Valuable Company ,” which affirms Apple ’ s ascendancy and confirms that consumer taste has overtaken the needs of business as the leading force shaping technology .
Today , Apple is worth almost 615 billion US dollars , almost double Exxon Mobil , with other masters of Penetration such as Alphabet ( parent company of Google ), Microsoft , Amazon and Facebook not far behind Critically , Apple creates a pervasive environment that compels and drives the consumer to buy and matches it with unparalleled manufacturing and distribution prowess and exquisite industrial product design . And with Apple , it ’ s always about reinvention-led innovation - that ’ s its core essence , and the key attribute consumers associate with the brand .
Preference and Brand Reinvention In building or reinventing a brand , while differentiation may be a motivating factor , preference is even more crucial . Consumers will pay a higher price for the brands they prefer . Simply , affordability is not about price ; it ’ s about the value derived from the product or service by the consumer or customer .
This is particularly applicable to Apple , which uses an interesting method to drive value . Michael Gartenberg at Macworld . com discusses Apple ’ s approach :
The key to Apple ’ s success is that the company often takes the time to explain things to the consumer that no other vendor bothers to do . By keeping a laser focus on key features and introducing them one at a time over a period of years , Apple taught and evangelized everything the consumer needed to know to understand the iPad from day one . Without that foundation , it ’ s not likely the product would have been nearly the success it has been .
Conversely , other competitors like Dell and Lenovo have failed miserably because they weren ’ t as effective at story telling or at providing a successful hands-on retail experience .
Price Value and Brand Values Microsoft is , without a doubt , a behemoth . But consumers don ’ t brag about upgrading to Microsoft Office like they do about getting the newest iPhone or iPad . With Apple , it ’ s about a total experience , not a product . With Microsoft it ’ s about - well , it ’ s about attempting to reinvent itself . If any company has lost its way , Microsoft has . Its advertising pales when compared to Apple ’ s creativity and pervasiveness . The idea that Microsoft listens to its customers is greeted with scepticism , while Apple ’ s intrusiveness is welcomed - as a window into the new world .
For these reasons , as well as for many others , price should be communicated in context of other brand values - never in isolation . Consumers need reasons - functional and non-functional , rational and emotional - to buy a brand . And , these reasons must come from the brand positioning .
The New Rules of Marketing : Principle # 9 Penetration , preference , and pricevalue must be the key drivers of any marketing plan in today ’ s global marketplace . Why ? Penetration creates the pervasiveness for the product or service that stimulates purchase . Acceptability is not a differentiator . If you don ’ t know your company ’ s or your brand ’ s value proposition , you can ’ t determine new ways to leverage it or expand on it to create differentiation and drive preference . Lastly , emphasizing value creates a brand ; emphasizing price creates a commodity .
Timothy R . Pearson is founder and president of Pearson Advisors || Partners , a marketing management consulting firm serving Fortune 1000 and brand-driven clients ; a highly sought advisor to senior management and a frequent keynote speaker at industry conferences , at leadership meetings , and on the lecture circuit ; and author of the New York Times and USA Today # 1 best seller The Old Rules of Marketing are Dead : 6 New Rules to Reinvent Your Brand & Reignite Your Business . ( McGraw-Hill ) Visit www . pearsonadvisorsandpartners . com .
November 2016 ModernBusiness 47