Halo Effect an Organization Brand Extended Areas?

¶ … Halo Effect an organization brand extended areas? Why ? What risks affecting venture possibly tarnishing halo extended? Can situation a the Halo Effect resulted from iPod sales

The contemporary international business environment holds a series of strategies that companies use with the purpose of restructuring their operations and in order to gain recognition from the general public. The Halo Effect is presently used around the world by many corporations that are interested in improving their image. Marketing directors from these companies took advantage of the fact that the masses can be easily persuaded in appreciating a certain brand as a result of particular products that it sells and used these respective products with the purpose of boosting the companies' image. Apple is currently recognized as one of the largest producers of it-related products and one of the principal reasons for which it is appreciated by the general public is the fact that it uses iPods and iPhones as the image of the company.

Individuals who are familiarized with Apple are likely to agree that the price difference between an iPod and iMac is enormous. Even with this, many individuals who have initially bought iPods were inclined to continue to be loyal to Apple by buying other products that the company produces. This demonstrates that customers are likely to stay with the same brand when they want to buy other products as long as the brand provided them with a positive experience. The iPod is renowned for its resistance to wear and for the fact that it is a qualitative device as a whole.

PC owners are apparently influenced in buying a Mac consequent to interacting with Apple's products. Owning an iPod is likely to change an user's technological experience and the respective individual is probable to express interest in other products from Apple consequent to becoming acquainted with one of the cheapest products that the company produces. In comparison to other PC companies that use technology that equals Apple in performance or that are even better, Apple is more appealing as a result of the fact that it produces fashionable products and because it knows how to promote its merchandise. "Analysts say the popularity of Apple's iPod portable music player is having a "halo effect" and that many iPod fans, especially college students, are switching to Macintosh computers from Windows-based machines."(Platt, Hawser, Neville, and Bamrud).

Individuals normally use iPods because they can be adapted to fit a series of lifestyles and because one can virtually create a connection with these devices by personalizing them. All things considered, this device was revolutionary when it first appeared, as people had trouble changing from their CD-players to use iPods as a means to listen to music while on the go ("iPod Sales Rocket to" 24). Even with the fact that there were a series of other Mp-3 players at the time when iPod's appeared, these devices were marketed as being something different and as being everything that a person looks for in a music player. Apple wanted to influence customers into believing that iPods contained a very different technology and that practically everything that the company produced differed from mainstream technologies.

In certain cases, people are actually glad to see their old technology being unable to perform in accordance with present-day requirements because they want to replace it with products from Apple. Most people are significantly impressed as a consequence of using an iPod and come to express interest in products from Apple as a result. The fact that iPods are more difficult to use with a normal PC makes it even more appealing for individuals to want to buy products from Apple that they can use alongside of their iPods. The fact that iPods can be personalized makes it difficult for someone to want to buy products belonging to another company, as he or she cannot simply throw away their iPod in favor of using a normal music player.

It is surely difficult to determine whether the halo effect really exists, but evidence generated in the recent years proves that it is actually real. After Apple introduced the iPod in 2001 the company's profits went up significantly as more and more individuals expressed interest in the product. The company also produced and sold a significant number of Macintosh computers consequent to the moment when iPods were released to the market, as users started to appreciate Apple. "Apple's net income soared to $290 million, or 34 cents a share, up from $46 million, or 6 cents a share, during the second quarter of 2004" ("iPod's Halo; Music Machine" C11). Young people are considered to be mainly responsible for the positive effects that Apple experienced in the recent years. The fact that they realized that they could develop a more intimate experience with their iPods influenced them in wanting to own Macs, as they expected that these products would also provide them with a positive experience. According to its marketing directors, Apple is not necessarily a company that one chooses for the first time when he or she interacts with a computer. However, it is likely to be a company that people will want to use for a lifetime consequent to becoming acquainted with it ("iPod's Halo; Music Machine" C11).

Apple uses the iPod with the purpose of achieving a series of goals that other computer companies are unable to complete. The company managed to use iPods and iTunes in order to make it impossible for pirates to work and in order to sell music legally over the internet. "The iTunes music service, offering songs for downloading at around 79p each, generated sales of [pounds sterling]130 million." ("iPod Sales Rocket to" 24). Although other companies have also released innovative products during the recent years, the general public continues to remain loyal to Apple as a result of the experience that users have with products belonging to the company. With the iPhone emerging as a must-have device, conditions have significantly improved at Apple, as the company lives up to its tradition and focuses on presenting customers with ground-breaking products. After the moment when they were first introduced to the public Iphones started to be appreciated for their multitasking abilities and for the fact that one could virtually use them in a series of ways that they could not use a normal mobile phone (Mathieson 27).