AN APPLE A DAY
Very few people in America, if not none, don’t know of Apple, one of the most valuable companies in the world, on its way to becoming the first company valued at $1 trillion. Apple employs numerous strategies in its marketing campaigns, which blend in together to ensure the company keeps up sales, with the release of new devices. These include simplistic campaigns, appeal to different audiences and powerful narratives. However, one desirable technique that Apple uses to spike up sales pre-release, is the creation of mystery and buzz around its products. Before every release, Apple simply schedules a press conference and doesn’t disclose which device is up for release. Unlike other firms, Apple also goes on to keep its customers in the dark, not disclosing any information about the upcoming products, thus creating a mystery behind its release. This gets tech blogs and die-hard fans all around the globe talking about the anticipated product, creating a big buzz, and getting people fired up for the release. In some cases, Apple has gone on to “accidentally leak information and let rumors slip” regarding their products, just to get fans talking and speculating about the product. This spreads information about the products, and raises their popularity, leading to great customer yield when the products are actually released.
Apple’s marketing team uses the concept of the tipping point, by finding a proper reservation price, which, for them, is usually slightly higher than their competitors. Apple is able to create a buzz about their products, thus raising their popularity, spiking purchases well beyond their tipping point. Due to the numerous rumors about the new device, many people desire to have it, and this creates interest among their social groups. In turn, people think that a larger number of people will buy the product, as opposed to the actual number of people who buy the product once the product is on the market, creating some sort of illusion. This drives up Apple sales, towards the second equilibrium. This therefore ensures high yields for Apple, even at their higher price. By creating a product that is desirable to most customers, creating a buzz around it and creating the illusion of exclusivity and scarcity, Apple gets its sales way over its tipping point, capturing a large customer base and thus, achieving higher sales.
Link: https://www.forbes.com/sites/jaysondemers/2014/07/08/heres-the-simple-secret-to-apples-marketing-success/