Good Bye Bloggers

  Well everything has to come to an end and unfortunately this is it for this blog. It was a pleasure to share my ideas and concepts about Apple with you, hope you enjoyed it. If you have any comments, they are more than welcome I will read them and take them into consideration for my future blogs. Well have a Safe ,Happy, and successful New Year.






 Your friend Jairo signing off.

Segmenting and Targeting Markets

You're The Target!!!!!!

     Apple is more than just a brand, its a lifestyle, part of growing culture of consumers who are artist, musicians, writers, photographers, and most of all innovators. The firm has positioned itself as a high end brand that offers beautiful hardware designs and also an amazing users experience. Apple targets a market that consist of people from their teens to their 40's that are interested in doing more with their technology than just the usual boring old stuff that other companies offer. Their product lines offer similar products that offer different benefits in order to prevent cannibalization. For example you can buy an 2GB iPod shuffle for $50 or an 160GB iPod Classic for $250; both mp3 players but they are design to satisfy different target markets. Apple has a multi-segment targeting strategy, meaning that they satisfy 2 or more different types of markets for example the young teen who likes to take pictures for fun to the professional photographer who takes pictures for a living. Both examples have one thing in common, the passion for creativity and art that makes the perfect mix with software like the Aperture 3 which offers the ultimate photographic experience.
     I think that Apple is be bringing back the mass marketing approach, they don't really concentrate their advertisements on certain groups of people, they try to include everybody. You can see all the iPod ads posted on the page that are meant to resemble you, see if you can find a silhouette that fits you. Apple is becoming a cult brand that has gained to respect of world wide users who share one thing in common, their love for Apple's innovation. And I say that Apple is going back to mass marketing because when you go in to an Apple retailer you can see people of all ages, cultures, social classes, and colors; like a small scale ethnic melting pot. The iPod has become a symbol of our modern digital music culture, and the iTunes store is now the 2nd largest music retailer in the U.S. Steve Jobs says that "if you make something great than anybody will want to use it", and that model has worked for them because they've never really invented anything but they made what some considered the best technology available; thus eliminating the need for an specific target market, because their products appeal to everyone.

    Apple offers amazing products that include hardware and software that just draw all different kinds of people into the market.( Their major hardware products are displayed in the page.) Software like the iLife '11 which allows you to manage your music, movies, and pictures, the Final Cut in case you want to make a whole length film, or the iWork, make you look at Apple products as essential to your life. Benefit segmentation works in 2 ways, first, it helps you segment your market and second, it advertises your product which makes people want to buy it; and s that's the point right? Apple in one of the most successful firms in the technology industry so however it is that they are segmenting the market , they are doing it right. (Look at the advertisement below)

Developing and Managing Products

 

  The secret behind Apple's success is their ability to keep on innovating the market with their new products. Apple is a company that never stops coming out with new ideas of how to make their products better and more efficient in order to satisfy the market's needs. Since the iPod's first introduction to the market in 2001, Apple has developed 22 different types of iPods; every one of them being superior to the model before. For Apple, innovation is a priority; the latest iPod Touch features 2 cameras and HD capability. Their products evolve with the market, and their worldwide recognized brand name gives them a competitive advantage that is hard to beat by their competitors.
   CEO and founder Steve Jobs is a visionary, he saw that before the iPod the mp3 market  only had devices that he descrives as" big and clunky or small and useless". He immediately ordered his hardware engineering chief Jon Robinstein to assemble a team to design the iPod's product line. The product development process took less than a year, always with the supervision of Mr. Jobs.The new product was introduced to the market on October 23rd, 2001; with the advertising campaign that fallowed the slogan "1,000 songs in your pocket". At first adoption of the iPod was slowed down because it was only compatible to Mac OS operating system;  this limited a large amount of early adopters from getting the revolutionary device. Apple saw the problem and developed iTunes to solve the it, allowing Microsoft users  to  finally be able to use  the iPod with their PCs.
   The iPod's life cycle  is now at its maturity stage but due to Apple's ability to perceive changes in the market it is still far aways from it's decline stage. The latest version of the iPod product line was released last September; by coming up with new and improved  products every year Apple creates a planned obsolescence that makes you look at your old iPod as useless (even if it's still in good conditions) and makes you want to get the new version as soon as its released. Without a doubt Apple has done its market research and strategic planning right in order to stay the competitive advantage that they hold in the mp3 market. It is Apple's ability of making new innovative products that surpass their competition, its incredible advertising campaign (which features silhouette of people like you and me listening to their iconic white ear buds) that has kept the iPod product line alive for almost a decade.

Customer Relationship Management

We Are The Source Of Apple's Success

  Customer relationship management (CRM) a new marketing trend in which organizations try to get to us as individuals in order to satisfy our wants and needs more accurately. Apple uses information we provide them to enhance their products and services and to enhance their marketing. A customer exchanges information with the company in many different ways including points of sale, the web, promotions and any form you fill up with your information. In their privacy policy Apple explain how they threat our information, how they collect it, disclose it to, and what they do with it. CRM is a form of relationship marketing that is powered by us, because we are the source of Apple's success.

  Apple collects our information in many different ways, for example when you create an Apple I.d, register your products, online surveys, register for workshops at any of their retail stores and when you apply for commercial credit. They collect information that ranges from your name, address, phone number, and contact references, to your social security number. They store this information in data  bases that they use to research the market, analyse market segments, and target their advertising campaigns to the right target market.  Apple also uses this information to inform us about new products, events, software updates, paperless receipts and also to deliver their products when we order them online. The main idea behind Apple getting our information is to develop new products that meet our needs on a deeper level.

   Did you know that Apple uses “cookies” and other technologies such as pixel tags and web beacons to control the number and times we see an ad in our mobile devices. Well they use these technologies that track down what part of their internet page you saw so that they can improve their content or make it more efficient for you. They also track down your preferences and show you ads that go according to them. This CRM process helps them to figure us out as individuals and provide advertising that suits our needs and wants which is the base for good marketing. When you enter a sweepstakes, or any other contest Apple also collects that information to better administer the programs again. 

   Apple has been awarded the TRUSTe seal because they show "transparency, accountability and choice regarding the collection and use of your personal information." Apple treats information as personal and non-personal, they only disclose non-personal information to third parties for marketing purposes. Non personal information is information that doesn't have your name or any other way to associate you with it for example "occupation, language, zip code, area code, unique device identifier, location, and the time zone where an Apple product is used." This disclose this type of information to any of their associates at any time for the purpose of improving their products and marketing. Personal information is guaranteed to be stored and protected in data warehouses where it can only be accessed by authorized personnel. Apple's brand reputation backs their name and gives you a peace of mind when you share your personal information with them. 

    Apple's main goal is to keep you updated and informed with the company, they tell you how they use your information on their privacy policy so it'll be wise for you to read it. CRM is good for us as customers because we get products that fit our needs a little better just by giving them a little bit of information. Apple has been successful at using our information, that's why they are one of the leading companies in the world. If you want to update any of your personal information you have with Apple just go to www.apple.com/contact/myinfo. There you can access your Apple I.d and update your personal information just or just make sure is accurate to let them know you are an Apple consumer and that you are the reason for their success.

Integrated Marketing Communications part 3

Public Relations

If you are interested on what'coming next for Apple , watch this video.

    This is an example of public relations in which s Mr. Jobs tells us the public about what to expect from Apple in the coming months. They inform us of new product releases, software, statistics that show how the company is doing. These Keynote Addresses are great because  they make me feel that Apple cares about informing me on what they are planning to do in the future.
   All of the things Apple does to keep us informed and aware of their product are really working out because they are a very fast growing company that will only keep on growing. The way they integrate their marketing communications is amazing because they target such a broad market but yet they are successful at reaching us and making us buy.

Apple - iPod nano - New way to nano

Integrated Marketing Communications part 2

 A product's life cycle is very important to the way the firm applies their marketing mix. The iPod Touch is in the iPod product line  than the and at a different stage in its product life cycle than the new Mac Book Air. The Touch has reached its maturity stage which means its an established product that needs reminding and persuasive advertising in other to maintain and gain market share. Of course the iPod is the leader in the mp3 market due to its competitive advantage and the ability from the company to keep on developing new and improved products that form an planned adsolescence so that customers feel the need to buy a new iPod when they come out. Apple advertises the iPod line everywhere, from billboards like the one on the picture on top to videos on social networks like the one below. Look at the Ad on top, do you see the encoded message? Well they are trying to make you picture yourself with the with ear bugs dancing and being all happy, and all you need for that is a an iPod. The commercial below shows how the iPod has new amazing features like the 2 new cameras that enable you to Face Time and record HD videos and  also the video game capability that according to Steve Jobs has gotten them to #1 in the portable video game market. It is reminding how great the product is while persuading you to go out and buy it because its "All Kinds of Fun."

ALL KINDS OF FUN

Integrated Marketing Communications

Preface

            Promotion is essential for the survival and success of any product in the market place. Depending on the stage a product is on its life cycle a company most inform, persuade, or remind the customers that their product is relevant to them and that they should go out and buy it. A firm most also encode a message that a receiver most decode and if the message is right then the receiver will  go out and buy the product. Integrated marketing communications consist of making a perfect fit of a firms promotional mix which consist of Advertising, Sales Promotion, Personal Selling, And Public Relations. Apple has done  a great job at implementing a good promotional mix for all of their products that are at different stages in their life cycle; that's why they are very successful.

Introducing the new Mac Book Air

       In this ad Apple  is introducing the new Mac book Air, there is an encoded message in the video if you look closely. Apple is trying to tell you and show you that the new computer has amazing new features and is the most beautiful computer ever. They tell you that they integrated their most powerful computers with the mobile multi-touch devises that they have come up with a product that has no comparison. The engineers also expose all these great things like how little it weights, how amazingly tin it is, and also how strong they built it. The internet has changed the way advertising is done, Apple is adapting their Ads for the fast growing non traditional media audience. I found this video on their Website but it can also be found on YouTube, and if you Google it you'll definitely get it. The message I decoded from the Ad, was to go out and buy the new Mac because "its the future of computers" and it has so many features and its so affordable that thay are almost giving them away. The hidden message is to establish a competitive advantage in your head that makes you you the ne computer a superior to any other PC in the market. The Mac Book Air is a redesigned product that but so Apple is marketing it like a new product. They have gone back to the introductory stage where they inform you about the product to get you to buy it.

This is where the name "iPod"comes from.

2001: A Space Odessey

Product Concepts

Preface

( In order  for a marketer to create a marketing mix the first thing they need is a product. There are different types of consumer products, they go from convenience products that are cheap everyday things like soda and toothpaste; to specialty products that you are willing to die for like a new car. Companies must determine the line the new product is going to be in so that they can figure out how they are going to advertise it, package it and what their target market is going to be. Companies most also determine when they should modify their products in order to meet the consumer needs more accordingly, or they should plan an obsolescing which means that they'll modify a current product and so that those that have already been sold become useless to the consumer before they really need a replacement. Brands are very important for a company because that's the way people recognize their products and buy them, people develop brand loyalty and that gives you frequent buyers. Trademarks are also important because they are the symbols that identify a product, for example we can all recognize a Yankees (NY),a Coca Cola bottle, and the Facebook logo from a mile away. The way Firms package their products is very important because the package not only protects the product but also advertises it and informs the customer about the product. You need to make sure that the packaging is the adequate one for the place the product is being send to in order to avoid any damage to the product, the package also needs to be easy to store, ship, and stock so that wholesalers and retailers can be as happy with your product as they can be. In conclusion even the best product in the world can't be sold if it doesn't have a good brand backing it up and an attractive package.)

iPod

Vinnie Chieco came with name based on the movie "2001: A Space Odyssey" in which Dave (played by actor Keir Bullea) tells the spaceship's computer to "open the pod bay doors."

         Introducing a new product to the market can be very risky for any firm no matter how big or small; but Apple hit the target when they 1st introduced the iPod on October 23rd, 2003. The 1st iPod was 5GB, $400, and only compatible with Mac, the advertising campaign that was in place was called "1,000 songs in your pocket. It's been just over 7 years that Apple introduced this magnificent devise and since, they have introduced 22 different iPods and I'm sure they are working on the next already. Apple's ability to keep on reinventing the iPod making the design more beautiful each time around and the amazing new features that they have pioneered in the mp3 player market that makes you want to go out and buy the new version before the old one is broken; that is a perfect example of how Apple makes a planned  absolescence work. The iPod is a specialty product, that's why people are willing to pay alot more for an iPod than a regular mp3 player and won't replace it with any other music player. There are currently four products in the iPod's product line, the iPod shuffle, iPod nano, iPod touch, and of course the iPod classic. The iPod's white ear-buds have become an iconic symbol of the 21st century; they are manufactured by the Fostex Corp. in Japan. Without a doubt they key to success is to have a great product backed by a very well know brand, Apple.

Brand

  

             Apple is a very well know brand not only in America but also around the world, the original apple brand mark was designed by co-founder  Rod Janoff. A picture of Sir Issac Newton, there is a phrase on the that reads “Newton… A Mind Forever Voyaging Through Strange Seas of Thought … Alone;” it only lasted a year. The second brand mark designed by Rod Janoffthey  is the iconic colorful Apple logo, that lasted from 1976-1978. The brand mark was a bitten apple that symbolized knowledge and lust, it was a contrast between the company's knowledge and the colorful rainbow that was not in order. Steve Jobs said that they just wanted the green on top "because that's where the leaf was." He also said that it humanized the company and gave it a playful look. The third mark brand is the Monochrome logo was adopted by the company in 1998, less than a year after Steve Jobs returned to Apple. the change was right because Mr. Jobs wanted to reinvent the company that was then falling apart. The new monochromatic logo gives the company a more high tech look without taking the globally recognize bitten  apple. There is an Apple logo printed in everyone of Apple's products, it gives their products the name and respect of one of the most universally know brands. It was only right that Apple changed their logo because the back of an iPhone would not  looked as great with a little colorful apple. Apple has develop an amazingly high brand equity so that's why it is important that Apple's displays it in all their products, if you see an Apple you know it'll work.

Sales Promotion And Personal Selling

 Holiday Sales 

( Sales, Sales, Sales where should we do our shopping this holiday season? Sales promotions are short-term incentives that motivate consumers to buy a product immediately either by lowering the price or by adding value. How many of you have ever used a coupon, or a rebate? How many loyalty programs are you enrolled in? Do you enjoy free sampling? And today with the internet being more available than ever how many of you have used an online discount code? How many store credit cards do you have in your wallet? All these are common forms of customer sales promotions around us. During the holiday season firms try to make us shop compulsively by having all these sales around us or giving us a premium in exchange for our business; BEWARE OF THE SALES!!!!!!. )

Say it with an iPod.

                                                    Apple is not usually the cheapest brand in the market but this holiday season they are rewarding you for being a good customer. They are engraving your iPod or iPad for free so that you can make it even a more special gift. They also offer gift wrapping and free delivery with orders that are more than $50, this is a great way for them to promote their products during this holiday season. You don't even have to leave the commodity of your home when you can shop on line Just click on the link (after you finish reading my blog of course) http://store.apple.com/us*******************************************************************************************************************************************

      Rebates, how many times have you had a rebate in your hand? Well rebates are a another form of sales promotion; money back on a purchase. Firms give you these rebates because they know that most of us just postpone all the paper work it takes for later, and never actually get it done. Apple has a few rebates that they are offering at this time and here is the link (http://www.apple.com/promo/)where you can check them out, maybe you qualify for some money back and not even know.

                         Apple also offers a back to skool program that runs from late May to early September. If you buy a Mac they'll give you a free iPod touch. What they don't mention is that you have to pay for the iPod up front but and then the'll give you a $200 rebate, and the iPod is not the latest. There is also an education discount for certain colleges and K-12 schools where you sign up and get about $100 off any purchase, unfortunately BMCC is not on the list:( 

I took this picture during my retail
visit!!!!

Store Information

Address:

767 Fifth Ave.New York City, NY 10153(212) 336-144

      (P.O.P) "Point of purchase display is a promotional display set up at the retailer's location to built traffic, advertise the product, or induce impulse buying." You see I think that the Apple retailers are P.O.P's  all year long, the store in Fifth Avenue is amazing. Even you are not planing to go to Apple that day, the store just says "look come in and shop". Another P.O.P that Apple just has all year long is their products displayed in the store. They advertise and let you sample at the same time making it a great experience to visit their store. 
      The truth is that Apple doesn't need sales or coupons or rebates, they have products that work and satisfy customer wants and needs. It is nice for them to at least give us something in return for the business we give them. Did you know that you can get free head phones if you bring your old ones back? And you can also get an USB cable in case yours brakes. All you need to dois go to any of the retailers and ask them very nicely.

Advertising And Public Relations Part 2

Hey Bloggers here are some of the commercials from the Apple's

2006 - 2010 "Get a Mac" advertising campaign.

Dear Blogger

      Thanks for visiting :) I will really appreciate if you leave comments, suggestions, and tips on how to make my blog better. This blog is for you, is me tell you what my point of view in certain topics about the Apple company.

Advertising And Public Relations

Are you Mac or a PC?

Mac Book Pro

  (October 20, 2010 Apple held a Keynote address hosted by the one and only Steve Jobs;  few amazing points were made during this presentation. Tim Cook, Apple's Chief Operating  Officer said that there are around "50 million Mac users, Macs hold 20.7% of the retail market share in the Unite States, that means that 1 out of every 5 PCs sold is a Mac. In fact, according to Mr. Cook 33% of the Apple's total revenue comes from the Mac; that's over $22 billion. With the prices of a Mac Ranging from $699 for the Mac Mini to $5,999 for the Mac Pro, I can tell you that Macs aren't  cheap at all. Again Apple is sales their brand and they don't need to be the low cost competitor in the market because they have one of the biggest competitive advantages there is: Customer satisfaction;  The American Customer Satisfaction Index named them #1 for the 7th year in a row.)

    So did you think of the question I asked you before? Well I'm a PC. Macs are very expensive, more expensive than lets say a Dell PC, so then Why do you keep on buying them?

The 2 "girls" in the picture represent a
home movie made with each respective
computer.

      Perhaps because of the "Get a Mac" advertising campaign that Apple launched in 2006. In America this campaign featured actors John Long as a Mac and John Hodgman as a PC that was using a Windows operating system. In the 24 TV Commercials John Long would present himself as a Mac and John Long as a PC, and then they'll go on where they'll show a scenario where the "Mac" would out perform the PC in every way. The advertising appeal in this situation targets young modern people, as well as quick, efficient, and creative people. Apple used comparative advertisement to promote their product, with the hopes that more people will notice that Macs are better than PCs and then go out and buy them. It work, according to Mr.Cook the revenue of Macs in the last fiscal year have tripled compared to those in 2005.




        To Apple reaching the right target market has been their key to success. In Japan the same advertising campaign is played by actors Jim Kaleagiri, and Kataro Kobayashi. People will identify themselves with members from their own culture, that's why Apple also used English actors for the ad in the UK. David Mitchell played the Mac and Robert Webb Played the PC.
  In April 2010 the get A mac advertising campaign came to an end, and the new campaign started; "Why you'l love a Mac". The new campaign is a product advertising campaign because it promotes the benefits of the Mac rather than compare them to a PC, like the old one did. You can check this new campaign at http://www.apple.com/why-mac/.

The New Mac Book Air

WOOOOOOW It's Amazing. Watch this video!!!!!!!

Retailing part 2

Apple Retail

 (Retailing is the most important part of marketing because is where you get to see if your marketing mix is effective. Retailers can be broadly classified as independent retailers, chain store, and franchises. There are many different types of retail operations that go from department stores, specialty stores, supermarkets, drugstores, convenience stores, discounts stores, super-centers, warehouse membership stores, off/price retailers, factory outlets, and restaurants. The new age of technology has developed new ways to retail products such methods include automatic vending, direct retailing, telemarketing, and online retailing. A retail marketing mix that consists of 6 P's: product, place, promotion, price, presentation, and personnel has to be developed by retailers in order to achieve successful sales. In addition the location and atmosphere is crucial to the overall impression that the store gives to the customer. Layout, decor, surroundings, music, displays, employees, sounds, odors, and fixtures have to satisfy the needs and expectations the target market.)  

                                   

Store Information
Address:103 Prince Street
New York City, NY 10012
(212) 226-3126

       


       The Apple store in Soho is located at one of the most prominent Lifestyle shopping centers in the city. Soho is a densely populated urban community  in lower Manhattan, N.Y.C. Located on Prince street right around the corner from retailers like American Eagle, Levis, Prada, Guess, Banana Republic, H&M, Adidas, Hollister, Express, Forever 21, Kid Robot, Bape, Armani Exchange, and many many more you can conclude that the store is there for an obvious reason. The store is located on a 2 story building which seems to have been a post office; it has a very classic structure and fits right in with the surroundings. 
      The store in Soho is just one of the four Apple chain retail stores in the city; there are a total of 231 retail stores in the United States alone, and more than 300 world wide. The Apple stores have become famous for their grand openings which draw 1000s of people because of the a new product being released, free prices, or just for the fun of going to see "The new Apple store".

Inside the Apple store in
Soho.

      The Soho retail store displays their products in large modern wood tables that give the customer a chance to get a feel of the product. There are alot of "blue shirt guys" ready to assist you and answer every question you have on any of their products. The items are displayed with an information card next to them that includes price, models, and any additional information on the product. In the second floor the Genius bar is there to help you with any software or hardware problems you may have.(For privateness reasons I was not allowed to take pictures of  the 2nd floor of the store:) Apple uses the market basket analysis by positioning accessories right under the products as shown in the pictures above.  In my opinion Apple has one of the best concepts of electronics retailing in the market, their stores are so nice , their team is highly trained, product assortment and location is awesome, and they give out free headphones if you ask nice enough and return your old ones.

Accessories

      Apple also retails online where their website is just as efficient as their retail stores. You can buy any item, Pay by credit card, and have it delivered straight to your door. The website is easy to use, I had just as good of an experience shopping online and going to the store. The website of the store in Soho is http://www.apple.com/retail/soho/ , There you start shopping now.


        PICTURES I TOOK  AT THE STORE. 

iPod Touch

iPod Nano

iPad

iPod Classic

iPhone 4

Please swipe your card :)

Retailing part 1

At The Apple Store In SoHo.

(Right side)

The Apple store in Soho
(front)

       I'm at the Apple store in SoHo blogging from an iPad. The customer service is great, there is soft pop music in the background, the feel to the store is really empowering, you can try any of their products which are laid out in modern wood tables around the store. The store is great and there is a person waiting to help you at every turn. There is no really concrete smell to the store but the atmosphere is very high tech, modern, and hands on. I've been asked if I need any help 4 times by four different people and I've only been in the store about 10 minutes. The sales representatives are great, knowledgeable, well mannered, and very helpful. You can tell that they are well trained just by the way they are able to answer people's questions about the products. I also got new headphones for free so my visit to the Apple store was a total success.

iPad displayed at the store

     Just from getting a feel of the iPad I'm considering to buy one in the near future because of it's versatility and design. Two thumbs up to the Apple store at SoHo, it truly lives up to my expectations based on my visits to the other Apple stores in NYC:)

Consumer Decision Making

(As a marketer your job is to sell your products, in order to be successful at it you must know you customer as deep as possible. Consumer decision making refers to the many ways a customer can act before and after buying a product and how marketers can adapt their marketing mix and planning according to the desires and needs of customers. Before a customer buys anything they can undergo a series of 5 steps that begin with a need recognition, information search, evaluation of alternatives, purchase, and post purchase behavior; these five steps are not always performed in order. The consumer decision making proses is shaped  by social, psychological, cultural, and individual factors. All customers are different but in all the differences you have to find similarities based on the way they go about making the only decision that is important to you; their decision to buy.)

.Targeting Your Customer Efficiently.

"iPod, If you don't have one you are a loser"

    You can go out and buy an mp3 player for a fraction of the price that an iPod cost, but why don't you? Apple manages to charge us hundreds of dollars for their products because they have successfully marketed their product to us.(by "us" I refer to any one who owns an iPod of any generation) They are definitely not the low cost competitor in the market but they have surely learned how to promote their product's efficiency and beauty.

    The consumer decision making process begins by us recognizing something that we want and don't have. 
   
   For example if you are walking down the street and you see the advertisement on the right that reads "iPod, If  you don't have one you are a loser" then a need for an iPod is created because nobody wants to be a loser. Specially if all your friends have an iPod and you are the only one that doesn't. Apple can already be know brand to you and you have heard lots of great things about it but you'll need to find out more about iPods to see which model satisfies your needs and your pocket. Then you will go on and research and ask your friends about their iPods and find out that there are 4 types of iPods that range from $50 to $250, you can only afford a shuffle. You go out to one of the Apple stores and you end up buying the iPod Touch for $229 wasting all the money you have saved for your mother's birthday present. 

    You have decided to buy the iPod based on the fact that your friends told you iPod are great but in case you didn't notice Apple also pushed you to buy by minimizing your cognitive dissonance also know as doubts. Apple gives you a one year limited warranty that you ca see at http://images.apple.com/legal/warranty/docs/ipodisight.pdf . There you can see that Apple guarantees replacement of any product if there are any factory malfunctions. The Genius bar in every Apple retail store helps you if you have any problems or questions regarding your device. This gives you a sense of security when you go buy an Apple product. 
      

        You come home with your brand new iPod and you decide that you did the right thing because you got the best iPod there is and all your friends will be jealous.Then you start feeling guilty about wasting money that you needed for something else. You decide to ignore those thoughts and think to yourself that buying  the iPod has been the best decision you ever made.
  
     Your decision was affected by your morals and values, maybe if you feel bad enough you'll return the iPod the next day. Most of us display our belongings to try to establish our status and help our self esteem. We also block out thoughts that go against what we want to believe, that's called selective distortion. 
         In conclusion, we buy the iPod and not buy a cheap MP3 player because Apple has  successfully understood the process every buyer goes through buying a new product. With that understanding they have targeted all different types of people and made our decision a little easier.