I remember reading about how many articles are written about the iPod in newspapers and magazines - about it being a cultural phenomenon and so on, these articles money (usually) can't buy - and they are much more persuasive than an advert can be on its own.
Also the value of Apples customers/fans is a huge asset - the value of free advertising this group generates must be astronomical. People who have been convinced to buy an Apple, then after using the product congratulate themselves on their choice - then go off and tell everyone that will listen how great the products are act as walking talking adverts - who are often very convincing when friends or relatives are asking for advice.
Also, using unique design such as the white earbuds and glowing Apple logo on notebooks brings the brand into the publics imagination - seeing the earbuds raises interest and deep down everyone wants to be popular and part of a trend, so after reading some of those previously mentioned articles and confirming that yes, you can buy cool, they go off and buy an iPod then continue this same idea to everyone who hasn't been convinced as yet..!
Being regarded as a small company that is the underdog to Microsoft no doubt also helps to generate positive feelings toward Apple as well.
Product:
Unique design, iconic status, seen as class leading in many cases.
Price:
High prices generate an immediate image of high quality and exclusivity, high prices for aftermarket care generate the assumption of good service even if you never use it. Being higher priced means you place a greater importance on the product and take greater care of it, meaning it stays in good condition and works as an advert for the company in itself - in terms of style and often longevity. Price skimming works to ensure that the products are initially bought by people with large disposable incomes - often people who have a nice car, a good house etc..which by relation adds a value to the product as it can be seen as something aspirational and highly desirable - something worth splashing that extra money on.
Promotion:
Immediately obvious adverts appealing to the senses, using bright colours and rhythm, and a contrasting theme of black and white to highlight the product - as well as to show the product using the bare minimum of words which often encourages you to find out more about the product yourself. Apple Stores that work as a tool to highlight Apples business ideals - excellent products, excellent design etc, and a shop on the high street is approachable to the masses - they don't have to look for it, its just there waiting for them to enter and have an impression cast upon them by the atmosphere/adverts/range of equipment/well informed staff/nice music etc - Apple stores are supposed to "hug you" as you enter them remember.
Placement:
As a product that can be regarded as cool, one of the most important groups for Apple to have their products seen with are celebrities. iPods were given out at The Golden Globes (or similar) and I'm sure other celebrities that fit in with Apples targeted demographic are often given freebies - which again, by relation, the products get some of the kudos associated with the person they are with. I've seen in the press Halle Berry, Ronan Keating, Scarlett Johansson, 50 Cent etc with iPods and this again is a walking advert as people wish to emulate their favourite celebrity - and if a person should be able to afford the best it can be regarded that they will have the best (even if they didnt have to pay for it) so again this can enhance the products image and convince the ordinary person in the street to consider one if they hadn't been affected by any of the other means of advertising/promotion.
I hope this helps a bit..
