Implementation of Chapters On Product

Implementations of
Chapters
ON PRODUCT
21/01/2010
School of Business FCCU
Bilal Aslam, Saba Azam, Sabahat Khan, Hamna Munim
“Apple” NEW IPOD

NANO
Marketing & Selling Skills
iPod nano
Presented to:
Asst Prof. Mannan Amin
(Marketing and Selling Skills BUSN 280)
24
iPod nano
Table of Contents
Our Product: Features......................................................................3-5
CHAPTER 1 Marketing: Managing Profitable Customer
Relationships..................................................................................6--9
Situation Analysis, Selecting Target Market/Marketing Strategies..........6-7
Promotion/Advertising............................................................................7
Below line promotions/Distribution Channels........................................8-9
CHAPTER 2 Company & Marketing Strategy: Partnering to Build
Customer Relationships............................................................ 10--19
Market Oriented Definition/SWOT Analysis.............................................10
Weaknesses/Opportunities....................................................................11
Threats................................................................................................12
Situation Analysis/External Influences...................................................13
Product Life Cycle/The X-Stage of Apple IPod.........................................14
Competitor Analysis..............................................................................15
Marketing Objectives............................................................................16
...............................................................................................................
Target Marketing Strategies/Marketing Mix...........................................17
Price/Advertising..................................................................................18
Transportation/Implementing, Monitoring & Controlling.........................19
CHAPTER 3 The Marketing Environment...................................20--21
Microenvironment/ Company/Suppliers/Competitors...............................20
Macro environment/Political/Cultural/Economic/Demographic.................21
CHAPTER 4 Managing Market Information...............................22--24
MIS/Internal Database/Marketing Intelligence/Marketing Research.........22
Exploratory Research/Casual Research/Descriptive Research/Online Data 23
...............................................................................................................
Observational and Ethnographic Research........................................23-24
CHAPTER 5 Consumer Markets and Consumer Buyer Behavior 25--27
Model Of Consumer Behavior................................................................25
Characteristics Affecting Consumer Behavior/Psychological Factors........26
...............................................................................................................
Types of Buying Decision Behavior/The Buyer Decision Process..............27
24
iPod nano
CHAPTER 7 Customer Driven Marketing Strategy: Creating Value
for Target Customers..................................................................28--31
Geographic Segmentation/Income Segmentation/Demographic
Segmentation.......................................................................................28
Psychographic Segmentation/Behavioral Segmentation/Occasion
Segmentation.......................................................................................29
...............................................................................................................
Multiple Segmentation Bases...........................................................29-30
Segmenting International & Business Markets/Target Market.................30
Undifferentiated & Differentiated Marketing/Marketing Objective...........31
CHAPTER 8 Product, Services & Branding Strategy.................32--34
Three Levels of A Product.....................................................................32
Product and Service Attributes..............................................................33
Product Line Decisions/Brand Equity......................................................34
CHAPTER 9 New Product Development & Product Life Cycle
Strategies....................................................................................35--40
New Product Development/Idea Generation/Idea Screening/Concept
Testing................................................................................................35
Product Concept/Business Analysis/Test Marketing................................36
Product Life Cycle/IPod Growth Strategies.............................................37
...............................................................................................................
Other Users/Current Users....................................................................38
Differentiation of the IPod Model Line...................................................39
IPod Product Line............................................................................39-40
CHAPTER 11 Pricing Products: Pricing Strategies .................41--42
Market Skimming Pricing/Market Penetration Pricing.............................41
Product Line Pricing/Geographical Pricing..............................................42
CHAPTER 13 Retailing & Whole selling.............................................43
Education Store/Business Store/Government Store/International Store....43
CHAPTER 15 Advertising & Public Relation................................44--45
Advertising Objective/Advertising Budget/ Advertising Strategy & Creative
Concept...............................................................................................44
Advertising Media/ Public Relation........................................................45
CHAPTER 17 Direct & Online Marketing: Building Direct Customer
Relationships..............................................................................46--47
24
iPod nano
Customer Database/Direct Mail Marketing/Catalog Marketing/Online
Marketing/B2C/B2B...............................................................................46
C2C/Marketing Website/Online Advertising/Web Communities.................47
24
iPod nano
Our Product: New iPod “Nano” by

Apple
Apple’s iPod has taken the world by storm. Nearly ubiquitous, it has
changed not only the way people listen to music, but it has
transformed its parent company Apple into an entertainment giant.
We’ll tie back to the Apple brand to dig deep into the notion that iPod’s
stunning success stems from it being specifically not an MP3 player.
Like Magritte’s surrealist painting of a pipe with the caption Ceci n’est
pasune pipe (This is not a pipe), the iPod is not merely an MP3 player.
It is a symbol which encompasses many grand ideas; ideas that involve
world change, and how cool we all can be if we are part of that change.
Apple’s careful and deliberate exploitation of this concept, comprising
an entire marketing ecosystem which nurtures that idea.
The Company is committed to bringing the best personal computing

and portable digital music experience to students, educators, creative
professionals, businesses, government agencies, and consumers
through its innovative hardware, software, peripherals, services, and
Internet offerings
Features:
iPod nano brings video to your music with the new built-in
video camera.
And for that extra kick: a larger screen and a polished
aluminum finish in nine brilliant colors.
24
iPod nano
Say you find yourself in the middle of an impromptu shopping cart
race. Or in the dining hall when colossal foods fight breaks out. Now
you can prove it really happened with the iPod nano video camera.
Shoot high-quality video in portrait or landscape — perfect for posting
on the web or emailing friends. iPod nano also includes a microphone
that captures clean audio you can listen to during playback on the
built-in speaker.
iPod nano now has a polished anodized aluminum finish in nine

electrifying colors. And a larger 2.2-inch color display for your
viewing pleasure.
Rock out with the new FM tuner. And two innovative

features — Live Pause and iTunes tagging — make it
smarter than the average radio.
VoiceOver speaks the names of songs

and artists. So you can navigate your
music without looking at the screen.
The new Pedometer counts every step you take. Or you can add
Nike+ shoes and a Nike + iPod Sport Kit. This makes your iPod nano
the perfect workout partner.
24
iPod nano
The built-in mic lets you capture a thought, a

reminder, a class lecture, or any audio recording you
want with Voice Memos.
Making music mixes has never been easier. Because now Genius does
it for you.
It’s even easier to

organize, browse, grow,
and share your digital
music and video
collection with the new
iTunes. And now you can
save items with a wish
list and enjoy iTunes extras
— bonus features on
select albums and movies —
like lyrics, photos,
interviews, and behind-
the-scenes media.
The combination of a low price, easy access to social media networks
and integration with an already established product makes the iPod
nano the most compelling pocket video solution to date
Apple is Innovative, a technology leader, and has world class customer

service
The focus of this report is on new Apple IPod product that has
created increasing demands in various outlets.
This product allows consumers to download not only their favorite
24
iPod nano
music but also books and other literature which can be read and
listened to. Additionally this Ipod can be used in your car and in
other mobile settings.
This report is about Apple which gives a brief description of this
product. Within this marketing report there is an insight of the
situation analysis of this product, marketing objectives, the target
market, marketing strategies that have been used and the
forecasted strategies, monitoring and controlling.
SITUATION ANALYSIS OF THIS PRODUCT

• Overseas Influences: The breaking down of barriers between
countries can increase the sales of the new Apple Ipod, as more people
are made aware of the product.
• Demographic Patterns: Males and females from the age of
12years and over will be in favour of this product because of its new
innovation to be able to not only play music but also books and other
literature which would in fact appeal to them.
X- The stage that Apple Ipod is currently in.
Apple Ipod is currently in the growth stage, where more and more
people are aware and purchasing the product, increasing product
demand. Sales are growing rapidly and profits are rising quickly,
however competition is increasing as competitors are more cognizant
of the tactics of Apple ipod i.e. using new features to market their
product. During this stage there are also opportunities for wider
distribution, which will result in higher sales.
Identify Target Market
Selecting target market

• Apple IPod is aimed at young adults particularly those between the
age of 12-25
• It will appeal to both males and females
• Targeted at the niche market creating product desirability
• Middle/high class
24
iPod nano
• People who have a passion or interest in music and/or literature
• This is large enough to engender revenues and profits
Develop Marketing Strategies

Marketing Mix
Product
This product allows consumers to download not only their favourite
music but also books and other literature which can be read and
listened to. Additionally this Ipod can be used in your car and in other
mobile settings (refer to appendix A for product).
Positioning – aimed at the middle to high class, therefore product will

be positioned in department stores associated with prestige products.
This will create a strong, clear and consistent image of the product in
the consumer’s mind which is essential.
Branding – Apple Ipod will give consumer’s one year warranty to

assure consumers of the quality of the product. This will associate a
level of quality with the brand and will not only increase brand loyalty
and repeat services, but also sell products at a premium to
competitors.
Packaging – Apple IPod’s packaging will:

- Have product identification so easily separated from its competitors
- Product differentiation so it is unique
- using the most cost efficient method of packaging
this will make the product both functional and desirable to possible
consumers.
Price
Apple IPod will use cost base method to derive its prices. They will add
a 65% profit margin to the cost of the product to gain efficient
revenue.
Price and quality interactions –

- In this way, price creates perception of quality.
- High price attract an image of quality
- This will allow Apple IPod to increase its market share
24
iPod nano
Promotion
By promoting the Apple IPod this will satisfy the needs of the
customer’s and business. Consumers will gain better understanding of
the product and how it can satisfy their needs, but on the other hand
will help Apple Ipod increase their profits and market shares.
Advertising - Apple Ipod will spotlight on a successful advertising

campaign comprising of magazine and television advertisements
focusing on (refer to appendix B for magazine advertisement):
- The target market (teenagers and young adults)
- How often they want the target market to be exposed to the

advertisement
- When they want to reach their target market
- Most cost efficient methods to fulfill the above
By doing this Apple IPod will add value to their product by altering
consumer perceptions
Below-the-line promotions – Apple IPod will use a direct method to

induce customers to purchase their product by offering any IPod
accessory (refer to appendix C for accessories) per customer for half
the value price with every purchase of a new Apple IPod. This will allow
the business to directly measure the success of the campaign by
observing the sales rate of the promotional tool.
Place
Distribution channels – Apple IPod will use indirect distribution where
an intermediary organization will be involved in the process. The
intermediaries will provide functions such as:
 Fragmenting bulk supplies of inventory

 Give financial services to retailers
 Increase ease of customer purchase
This will assist Apple IPod as they can concentrate on other areas of
the business.
24
iPod nano
Transportation-Apple IPod will lease trucks in order to transport the
inventory to intermediaries. By leasing the trucks Apple IPod will
accumulate extra funds to utilize else were.
Warehousing – inventory will be kept in a warehouse close to the

intermediaries which will minimize transport costs.
Implementing, Monitoring and Controlling
Distribution Channels – Apple IPod will use indirect distribution

where an intermediary organization will be involved in the process. The
intermediaries will provide functions such as:
- Fragmenting bulk supplies of inventory
- Give financial services to retailers
- Increase ease of customer purchase
This will assist Apple IPod as they can concentrate on other areas of
the business
24
iPod nano
Market- oriented Definition for iPod

The new iPod nano, Now rocking a video camera, a polished anodized
aluminum finish, and a larger screen. Also making its debut: FM radio
with Live Pause. IPod nano brings video to your music with the new
built-in video camera.
And for that extra kick: a larger screen and a polished aluminum finish
in nine brilliant colors.
SWOT Analysis Apple
STRENGTHS
• There are enough financial resources that are allocated for the
operation of this product.
• Appealing to both males and females
• Good competitive skills
• Past products have had a good reputation
• Advanced key technology
24
iPod nano
• Product innovation skills
-Strong brand loyalty predicts return customers. It costs far less to

keep an existing customer than to lure in a new one.
- Simple, easy-to-use design and concise product range attract

customers (recall the Paradox of Too Much Choice).
WEAKNESSES
• The product has a narrow product line therefore unable to expand

into other markets
• High prices may push potential customers to competitors with

affordable prices
• Introducing a new product, when the niche market is already

controlled by other competitor’s
• Poor use of promotional strategy, as consumers were not properly

introduced on the products significant use.
- Limited product range, especially absence from low-end desktop and

notebook markets, limit potential market saturation and alienate some
potential buyers. While many users will buy used Macs, Apple receives
no profit from resale of used goods.
- General lack of regard for OSX and perceived higher costs make it
difficult to achieve wide-spread adoption in the business sector,
limiting potential market share.
OPPORTUNITIES
24
iPod nano
• Opportunity to capitalize financially
• Develop an admirable/exceptional goodwill that can have monetary

value in future
• Opportunity for fast market growth as parents may see this as an

educational device as it is able to read books.
• Growing market trend
- Poor public perception of Windows Vista allows Apple to push OSX as

an attractive alternative option for users.
- Success of Apple iPhone is a viable stepping stone for Apple to attract

new users who previously had not owned an Apple computer.
THREATS
• New competitors continually enter the market.
• The threat of not appealing to target market at all therefore

generating a loss as opposed to profit
• Entry of imitators
• Vulnerable to the business cycle
• Tough laws being placed on internet MP3 downloads
- Global economic situation is likely to reduce demand for higher-priced

consumer items. Since Apple offers no lower-end alternatives,
consumers will switch to other manufactures in the face of falling
incomes.
- Windows 7 seems well-poised to correct many of the flaws of Vista
24
iPod nano
and offer a "clean slate" for public perception, discrediting one of
Apple's major selling points (i.e., that it's not Vista).
Situation Analysis
Market Analysis
Internal Influences
• Management: Effective management is required for the training

and development of employees for the continue innovation of Apple
Ipod and for retraining sufficient funds during competitor introducing
new product.
• Capital Availability: Competition may cause mishap in the cash

flow. Sufficient funds must be available when competitors
unpredictably put forward their product in the market.
• Technological Adoption: Technology must be adopted to improve

overall efficiency. It must be integrated directly into operations (to
increase productivity), as well stay on date with the amounts of Ipod’s
ordered, made and delivered.
External Influences:
• Competitors: Competitors will regulate what, when, how and why

strategies will be adopted. The introduction of new products will
greatly influence Apple Ipod.
• Overseas Influences: The breaking down of barriers between

countries can increase the sales of the new Apple Ipod, as more people
24
iPod nano
are made aware of the product.
• Demographic Patterns: Males and females from the age of

12years and over will be in favor of this product because of its new
innovation to be able to not only play music but also books and other
literature which would in fact appeal to them.
Product Lifecycle
X- The stage that Apple I pod is currently in.
Apple I pod is currently in the maturity stage, where more and

more people are aware and purchasing the product, increasing
product demand. Sales are growing rapidly and profits are rising
quickly, however competition is increasing as competitors are
more cognizant of the tactics of Apple I pod i.e. using new
24
iPod nano
features to market their product. During this stage there are also
opportunities for wider distribution, which will result in higher
sales.
Competitor Analysis
Competitor No.1
Competitor Name Rio Carbon (5GB) I river H10
What are the product objectives?

Increase sales of this product by 10% by the next year. To be the
leading supplier of MP3 players in all markets in which the company
operates.
What is the products current strategy?

Sell off the products at competitive and profitable prices and maintain
customer satisfaction To top competitors product technology by
innovating the current product
What are its strengths?

Rio Carbon offer their product at affordable prices which appeal to
consumer’s while maintaining strong quality The I river H10 out
classes the competition in the features that they offer to consumer’s
What are its weaknesses?

The Rio Carbon is a new competitor in the competition and therefore it
may be difficult for them to gain market share because of the unknown
brand loyalty The I river H10 comes at a very costly price which may
lead customer’s to purchase competitor’s products at an affordable
price
How does the Apple IPod match up against the other products?
The Apple iPod is much more popular because the market is aware of
their product giving them an advantage over Rio Carbon although Rio
24
iPod nano
Carbon is a new competitor which may intimidate Apple IPod with their
associated low costs. The Apple iPod is much more popular because
the market is aware of their product giving them an advantage over I
river H10 although I river H10 has been receiving outstanding reviews
on their excellent use of new technology which may be a threat to
Apple IPod’s sales.
Marketing Objectives
The various marketing objectives that will assist in the

achievement in the overall product goal are:
• To be the leading supplier of MP3 players in all markets in which the

company operates
• Increase in sales by 20%
• Increase in revenue by 20%
• Progressively increase market share by at least 15% within the year.
• Expanding distribution to department stores by 10%
• Increasing brand awareness to 60% of potential customers
• To expand existing markets by 10% in the next quarter. A promotion

campaign will be introduced to encourage present buyer to increase
the use of the product.
Identify Target Market
Selecting target market
24
iPod nano
• Apple IPod is aimed at young adults particularly those between the
age of 12-25
• It will appeal to both males and females
• Targeted at the niche market creating product desirability
• Middle/high class
• People who have a passion or interest in music and/or literature
• This is large enough to engender revenues and profits
Target Market Strategies

Apple iPod has adopted the differentiated market for their products as
its products are characterized in age, gender and desire for image.
Apple ipod is used by young adults and teenagers and for both male
and female.
Developing Marketing Strategies
Marketing Mix
Product- This product allows consumers to download not only their

favorite music but also books and other literature which can be read
and listened to. Additionally this iPod can be used in your car and in
other mobile settings (refer to appendix A for product).
Positioning – aimed at the middle to high class, therefore product will

be positioned in department stores associated with prestige products.
This will create a strong, clear and consistent image of the product in
the consumer’s mind which is essential.
Branding – Apple IPod will give consumer’s one year warranty to

assure consumers of the quality of the product. This will associate a
24
iPod nano
level of quality with the brand and will not only increase brand loyalty
and repeat services, but also sell products at a premium to
competitors.
Packaging – Apple IPod’s packaging will:

- Have product identification so easily separated from its competitors
- Product differentiation so it is unique
- using the most cost efficient method of packaging
This will make the product both functional and desirable to possible
consumers.
Price
Apple iPod will use cost base method to derive its prices. They will add
a 65% profit margin to the cost of the product to gain efficient
revenue.
Price and quality interactions –
- In this way, price creates perception of quality.
- High price attract an image of quality
- This will allow Apple iPod to increase its market share
Promotion
By promoting the Apple iPod this will satisfy the needs of the
customer’s and business. Consumers will gain better understanding of
the product and how it can satisfy their needs, but on the other hand
will help Apple IPod increase their profits and market shares.
Advertising
- Apple iPod will spotlight on a successful advertising campaign
comprising of magazine and television advertisements focusing on
(refer to appendix B for magazine advertisement):
- The target market (teenagers and young adults)
- How often they want the target market to be exposed to the
advertisement
- When they want to reach their target market
- Most cost efficient methods to fulfill the above
24
iPod nano
By doing this Apple iPod will add value to their product by altering
consumer perceptions
Below-the-line promotions
– Apple iPod will use a direct method to induce customers to purchase
their product by offering any iPod accessory (refer to appendix C for
accessories) per customer for half the value price with every purchase
of a new Apple ipod. This will allow the business to directly measure
the success of the campaign by observing the sales rate of the
promotional tool.
Place
Distribution channels
– Apple IPod will use indirect distribution where an intermediary
organisation will be involved in the process. The intermediaries will
provide functions such as:
- Fragmenting bulk supplies of inventory
- Give financial services to retailers
- Increase ease of customer purchase
This will assist Apple iPod as they can concentrate on other areas of
the business
Transportation
– Apple iPod will lease trucks in order to transport the inventory to
intermediaries. By leasing the trucks Apple iPod will accumulate extra
funds to utilize else were.
Warehousing
– Inventory will be kept in a warehouse close to the intermediaries
which will minimize transport costs.
Implementing, Monitoring and Controlling

Apple iPod Company will change because of the new added features to
the product range. For its success, Apple iPod Company must impose
24
iPod nano
several key changes. Production needs to be on time and meet the
quota demanded from wholesalers. It must also be efficient so as not
to build inventory stocks and inventory prices. The marketing needs to
be motivated and knowledgeable about the product. The forms of
promotion such as advertising must be attracting and enticing to the
target market to get the greatest amount of exposure possible for the
product. This will ensure the success of the product in the stores.
Distribution of the product must be efficient. This problem has already
been taken care of with convenient transport routes to commercial
areas and transport already being arranged.
All companies have to struggle with problems that they cannot control;
we call them micro- and macro- environments.
1.Microenvironments:
Microenvironment includes all the actors close to the actors the
company that affect its ability to serve its customers. Such as the
company, suppliers, intermediaries, customers, competitors and
stakeholders.
Company
- In Apple all the employees from the top management to the
line managers and its subordinates work towards the mutual goals set
by the board of directors and under the company’s motto.
Suppliers
- Apple has a trusted chain of suppliers.
Competitors
- Apple is the leading Electronic Inc. Company. Dell, Pen
Pad, Blackberry has a high competition with Apple Inc. Company and
others within the same price range and china mobile made copy of
Apple
iPod.
The Company’s Macro Environment
24
iPod nano
 Demographic forces:
Changes in the demography of the world affects the utilization of
the product. The worlds skyrocketing population has now been
controlled to some extent like in china and some other countries;
this provides opportunities to the head of the family to spend on
luxuries for their children. Hence creating market for products like
iPod nano.
 Economic forces:
Economic forces like consumer buying behavior and spending
patterns have changed. People have started giving value to items that
bring relief, some leisure, and some happening time for themselves.
 Technological forces:
The changing technology towards easy, light, handy, objects /
devices has given opportunities to the company to introduce I Pods for
the consumers seeking pleasure. I POD nano more advanced than
simple I Pod, trendier and advanced in specifications.
 Political forces:
As such no laws directly hit the launching of the product in
consumers markets of Pakistan.
 Cultural forces:
Changing culture of the region including consumer’s preferences
and behaviors has created a market for IPOD nano in Pakistan.
People are more towards such products, seeking leisure for their
children by providing them luxury items. Old aged people also
influenced by the changing culture are at times encouraged to buy
an IPOD.
24
iPod nano
Marketing Information system (MIS):

MIS distributes the marketing information and helps mangers use it in
their decision making. IPOD NANO has achieved great success in their
MIS
as they interact with their customers to gather the accurate
information of their wants in an iPod. Firstly, Apple, iPod nano
develops needed information from internal company database,
marketing
intelligence activities, and marketing g research. Then with the help of
MIS they analyze information to put it in the right form for making
decisions and managing customer relationships.
Internal Database:
Electronic collection of consumer and market information obtained
from data sources within the company network.
Apple, IPod nano have many sources to its internal databases such as
they can have it from their accounting department which prepares
financial statements and keeps detailed records of costs, sales, and
cash flows. The apple, iPod nano database contains detailed customer
information data on internet, phone, point-of-sale.
Marketing Intelligence:
The systematic collection and analysis of publicly available information
about competitors and developments in the marketing environment.
Apple, IPod nano is spontaneously doing the job of marketing
intelligence. They exactly know how to deal with intelligence game.
Facing determined marketing efforts by competitors. Nano are now
taking steps to protect their own information.for.eg they conduct
widespread competitive intelligence training workshops.
24
iPod nano
Marketing Research:
Marketing research is the systematic design, collection, analysis, and
reporting of data relevant to a specific marketing situation facing an
organization.
The marketing research of iPod nano helps the marketers understand
customer satisfaction and purchase behavior. It also helped them to
assess market potential and market share or to measure the
effectiveness of pricing, distribution and promotion activities.
Like all other products nano has also been through the process of all
kinds of market researches to make it popular and demanding in
the market. These researches includes:-
Exploratory Research:
Marketing research to gather preliminary information that will help
define problems and suggest hypotheses.
Descriptive Research:
Marketing research to better describe marketing problems, situations
or markets, such as the market potential for a product or the
demographics and attitudes of consumers.
Casual Research:
Marketing research to test hypotheses about cause and effect
relationships.
IPod nano has all these qualities which a successful product should
have it are a complete package for anybody. After enjoying the
achievements of previous versions of IPod nano , Apple used its
Secondary (second hand information) and Primary (first hand
information) data to launch its new iPod nano alone with the new
feature of a camera.
Online Data:
IPod nano has all its online data that means computerized collections
of information available from online commercial sources via internet.
Observational and Ethnographic Research:
24
iPod nano
Observational and ethnographic research can help to find and to get
the information which people are unwilling to give. A wide range of
companies now use ethnographic research which involves sending
trained observers to watch and interact with consumer in their “natural
habitat “IPod nano” is the best example of this as there are some
ethnographic researchers for this doing silent observations on their
customers.
Special issues the iPod nano marketing researchers face,

including public policy and ethics issues.
Some marketers (iPod nano) face special marketing research

situations, such as those conducting research in small business, on
profit, or international situations. Marketing research can be conducted
effectively by small business and nonprofit organizations with limited
budgets. International marketing researchers follow the same steps as
demonstrate researchers but often face more and different problems.
All organizations need to respond responsibly to major public policy
and ethical issues surrounding marketing research including issues of
intrusions on consumer privacy and misuse of research
findings………………..
24
iPod nano
I – POD NANO by Apple (Approx: 14000/- to

15000/-)
Features:
o MP-4 player
o Direct recording
o Accelerometer
o Touch pad
o Shuffle system, Shake, random selection of songs etc.
o Memory 8-GB
MODEL OF CONSUMER BEHAVIOR
24
iPod nano
Marketing & Other Buyer’s Black Box Buyer Responses

Stimuli Consumers seeking IPod nano is apple is
IPod Nano Approx: Rs leisure while jogging, the only choice in the
14000/-to 15000/- walking, passing time market, available with
Electronic Super Store. in a park because iPod limited dealers.
nano is handy and Purchase timings can
Bill boards, hoardings,
trendy, hence people be any day of the
Internet
following trends will month because the
Price not affordable for get attracted more product is not for
lower/middle class towards iPod nano. financially lower class
Technologically people.
attractive product.
Culturally fast waiting
for their Cash Inflows.
Characteristics Affecting Consumer Behavior
Cultural Factors
Changing cultural factors / values of our society will cause people to
buy the product. People might go for experiencing a new product and
then gradually it would become a part and parcel of their lives during
some of their activities.
Social Factors
IPod nano is a product for upper middle class and up, whose social
needs have been met and are heading towards esteem needs as
described in the Maslow’s hierarchy of needs.
Personal Factors
Age and life-cycle stage: I Pod NANO seems attractive for young,
24
iPod nano
college going students, high school students at large, but can be
appealing to old age retired people as well who are mostly at home, go
for a walk in the evening, and pass much time in parks rejuvenating
their old times, they might like to watch / hear old songs making them
recall old / nice times. Consumers with personality traits of adopting
new and better products, self-concept of being trendy and brand /
product conscious would definitely be attracted towards I Pod Nano.
Psychological Factors
Motivation: Motive or drive to buy a product can arise due to the

current circumstances. Consumer, who has knowledge about the
current scenes of terrorism, social unrest, violence etc., would like to
get relaxed and away from the worries at least for some time in a day.
At this very point the consumers would never like to carry a mobile
phone even so that they can have their own time not being disturbed
by anyone. This drive can direct the person seeking satisfaction of the
need. Consumers in need of iPod nano would then like to learn about a
product to satisfy their need.
The features of iPod nano as mentioned at the very beginning are quite
diverse, it is easy to use touch system, MP-4 player having memory of
8 GB. It has accelerometer inside that moves the direction of the
picture with the movement of the iPod nano. It has direct recording
system and shuffle system; shake the iPod nano and it plays the
songs / videos randomly.
Types of Buying Decision Behavior
Complex buying behavior does not actively apply on iPod nano, reason
being that the product is highly self expressive, its purchase does not
involve big market search due to its availability on limited stores and
largely of a single brand i.e., Apple.
What can be a bit confusing for people can be the choice between an
iPod nano and an Apple I-Phone????????????
The Buyer Decision Process
24
iPod nano
Need Recognition: need for a product other than mobile
phone, easy to
carry & handle, trendy, latest, good brand
i.e., an I-Pod
Information Search: visit to an I-Pod store, other electronic

super stores,
internet, news papers, magazines.
Evaluation of Alternatives: No alternative brand like Apple.

Consumer can get confused in buying an
Apple I-Phone or an Apple iPod nano.
Purchase Decision: Consumer finally decides to buy an iPod

nano. Factors like attitude of others won’t interfere between purchase
intention and purchase decision, because the purchase decision of the
consumer is based on his-her own need recognition / satisfaction.
Secondly unexpected factors like expected income, expected price etc
would not affect the purchase decision at large because the consumer
has sufficient cash flows to fulfill his/her esteem needs.
Post-purchase Behavior: Post purchase behavior will also be

positive because the level of satisfaction derived from actually using
the product would match the expected level of satisfaction perceived.
This is very much evident because the features of iPod nano are self
expressing. Hence cognitive dissonance shall might be in few cases
only and that also very low.
MARKET SEGMENTATION
1. GEOGRAPHIC SEGMENTATION
IPod nano is ready to serve the Asian Markets too. Initially it was
designed for the western world, where people give a lot of
importance to their leisure time, their psychological health and
the ways to spend their time in a relaxed manner.
24
iPod nano
Hence the product is supposed to serve our part of world as well
due to the reason that people around us have started changing
their lifestyle, people are now more exposed to new and better
products.
2. DEMOGRAPHIC SEGMENTATION
IPod nano is basically to serve the youngsters (age from 12 to 20)
but its popularity amongst the old aged is even more. The
veterans of our society who have served for years and years,
retired from their services but not by their minds…… want to live
a psychologically healthy life. People at the age of 60 to 75 may
easily handle iPod nano.
3. GENDER SEGMENTATION
Its segmentation with respect to gender is almost equal for male
female. This is because of the fact that the changing world
dynamics have brought many balances w.r.t to male female
discrimination regarding the products like iPod nano.
4. INCOME SEGMENTATION
The product is for high income groups in Pakistan, while in the
western world an average income group can also afford this
product. In a country like Pakistan iPod nano is termed as a luxury for
the kids / youngsters (b/w 12 to 20 years of age) for the person who is
earning a good amount can afford this provided his / her other
necessities are being met without any effort / struggle. For the old
aged people who own their own house, a car, and are financially
independent may easily buy the product.
5. PSYCHOGRAPHIC SEGMENTATION
IPOD nano is for the market segments based on social class and
lifestyle. The product itself is a status symbol in a country like
Pakistan. Although not extraordinary expensive, it catches the
eye and shows a class, a lifestyle of the beholder. It shows that
24
iPod nano
the user prioritizes its leisure time and gives value to the
personal relaxation, likes to remain isolated, away from the
worries of the world.
6. BEHAVIORAL SEGMENTATION
Using iPod nano requires a cultured behavior. Anybody having a
penny to spend, having time to relax must not buy such a
product unless he / she is knowledgeable about it, has the
attitude towards using products that are sophisticated and
require the right response after using the same.
7. OCCASION SEGMENTATION
Any person who loves to travel frequently, is a tourist, or any
such person who intends to travel long distances taking long
hours… may get an idea to buy an iPod nano since he /she got
bored during recent journey. Moreover wanted most of what he
used to get being at home, (listing to music, recording the
cheerful sound of birds in a dense forest, getting away from his /
her loneliness).
8. BENEFIT SEGMENTATION
The consumers seek different benefits from the product and the
market for iPod nano can be segmented with respect to the
benefits being sought by the people of different ages like (12 –
20, or middle age to 45, or 60 – 75)
MULTIPLE SEGMENTATION BASES

For any product there can be multiple segmentation bases. For iPod
nano the possible segments can be;
24
iPod nano
a. Geographic Segment: Both western and the eastern world.
For Pakistan big cities like Karachi, Lahore and Islamabad.
b. Demographic Segment: young (12-20 years) old age (60-75
years)
c. Income Segment: high level income generating group in the
developing countries like Pakistan.
d. Psychographic / Behavioral Segment: I Pod NANO seems
attractive for young, college going students, high school
students at large, but can be appealing to old age retired people
as well who are mostly at home, go for a walk in the evening,
and pass much time in parks rejuvenating their old times, they
might like to watch / hear old songs making them recall old /
nice times. Consumers with personality traits of adopting new
and better products, self-concept of being trendy and brand /
product conscious would definitely be attracted towards I Pod
Nano.
SEGMENTING BUSINESS MARKETS

The product iPod nano is a consumer product and hence its
segmentation on the basis Business Markets is merely difficult; but
there are always exceptions and its utility for the business market can
also be identified.
SEGMENTING INTERNATIONAL MARKETS

IPod nano is an international product, consumers get benefit from it
wherever they are. It is giving them utility in west as well in the east.
But launching IPOD nano in Pakistan is on a limited scale due to the
economic and political factors and also the law & order situation of the
country poses threats for the success of such leisure items.
TARGET MARKET
The target market for IPOD Nano is based on the segmentation already
discussed above (multiple segmentation basis).
24
iPod nano
UNDIFFRENTIATED MARKETING
Undifferentiated Differentiated Concentrated

Micromarketing
(Mass) (Segmented) (Niche)
(Local or Individual)
Marketing Marketing Marketing Marketing
targeting broadly targeting
narrowly
I POD Nano I POD Nano
The arrow shows that the marketing technique for I POD Nano is
now shifting from concentrated (Niche) marketing towards
Differentiated (Segmented) marketing.
DIFFERENTIATED MARKETING
I POD Nano is for a specific segment or segments of the consumer
market rather than for the mass market, strictly because of the
features of I POD Nano, its price, its only Brand in Pakistan (Apple), its
utility for the consumers, the benefits sought by the consumers etc.
Broadly the general, economic, political and legal condition of the
country does not allow mass marketing of the product.
MARKETING OBJECTIVE
The marketing objectives of iPod for Apple Inc as follows:-
--To establish as market leader in creating and manufacturing

innovative products in industry
24
iPod nano
--To enable Apple Inc to satisfy, fulfil and equipped the consumer’s
personality and lifestyle needs as well to increase Apple popularity as
an icon in digital lifestyle product
--To establish as market leader in portal music player sector by
increasing market share
--To enable the Apple Inc revenue from iPod Business Division to
increase to 63% by year 2015
PRODUCT: I – POD NANO by Apple (Approx: 14000/- to

15000/-)
Features;
o MP-4 player
o Direct recording
o Accelerometer
o Touch system
o Shuffle system, Shake, random selection of songs etc.
o Memory 8-GB
i. Consumer Product
ii. Specialty Product
iii. Unique characteristics
iv. High price
v. Branch identification
vi. No comparison of Brands in Pakistan
vii. Special Purchase effort is made
viii. Giving high level of satisfaction to the consumer
ix. Very few outlets for the product _ rather exclusive
distribution,
THREE LEVELS OF A PRODUCT
24
iPod nano
o Core benefit: (paying price for buying good leisure time)
o Actual product:
 I POD Nano MP-4 player by “Apple”
 Direct recording
 Accelerometer
 Touch system
 Shuffle system, Shake, random selection of songs etc.
 Memory 8 – GB/16- GB
o Augmented product
 Warranty of parts and workmanship
 Instructions on how to use a device
 Quick repair services when needed.
 Toll-free telephone # and website to us if any problem
or question arises.
PRODUCT & SERVICE ATTRIBUTES
PRODUCT ATTRIBUTES: The features, style, and colors etc. of

IPOD Nano are visible on the packaging. The design of IPOD Nano is
skin deep and can be accessed through actually using the product or
seeing the demo.
BRANDING: I POD Nano of “Apple” is a known brand
PACKAGING: Packaging is safe for the device to be carried without

being damaged; shows the features of it and is quite attractive.
LABELING
24
iPod nano
PRODUCT SUPPORT SERVICES
o Telephones to the buyers / consumers about the performance
of the product
o It is also necessary to assess the value of current services and
to obtain idea for new ones.
o A mix of phone, E-mail, fax, Internet chat boxes, and the
likewise are used to provide support services for the
satisfaction of the consumer.
PRODUCT LINE DECISIONS

No alternative brand like Apple. Consumer can get confused in buying
an Apple I-Phone or an Apple I-Pod Nano.
Other popular brands may include Nokia 5530
---Music phone ---Touch screen
BRAND EQUITY
“APPLE” IS A KNOWN BRAND WITH A POWER TO CAPTURE CONSUMER
PREFERENCE AND LOYALTY.
24
iPod nano
New Product Development Strategy

Apple Computer Inc. has created two product development teams
organized around its most prominent products, the Macintosh
computer and the iPod music player. A separate product
development organization could help Apple organize a developer
community around the iPod; there are a lot of independent
development projects bringing additional capabilities to the iPod.
Idea Generation
They are ideas around which you launch new marketing campaigns
because they separate your business from the competition. These are
ideas such as the technology involved in the iPod, which decimated the
handheld radio/CD/cassette player in the personal audio device
market.
Idea Screening
Idea screening is which counts your steps so they dropped the idea of
jus software update but in fact they also introduced new features like a
small video camera and pedometers and then the fist idea was to
introduce iPod nano with a radio and then another was that fm radio
24
iPod nano
should be with live pause technology so the idea of simple radio was
screened and the live pause radio was selected.
Concept Testing
Testing new product concepts with a group of target
consumers to find out if the concepts have strong consumer
appeal. In IPod Driving Test Pod Tutor puts the knowledge you need to
pass your Driving Theory Test, including the official DSA Driving Theory
Test Questions on your iPod. Driving Test Pod Tutor is the first and
only service that enables you to prepare for all the elements of your
Driving Theory Test, using your iPod and iTunes, with over 5 hours of
audio and video content.
Product Concept
The world’s most popular music player now gives you even more to
play with. IPod nano brings video to your music with the new built-
in video camera. And for that extra kick: a larger screen and a
polished aluminum finish in nine brilliant colors.
Business Analysis
IPod is indeed a revolutionary product, and that it will drive an
industry-wide move away from flash memory based players. At the
same time, though, they argue that the iPod's high price combined
with its small user-base will ensure that it remains a niche player
once the inevitable iPod clones hit the streets.
Test Marketing
The stage of new-product development in which the product and
marketing program are tested in more realistic market settings. The
24
iPod nano
Apple IPod this will satisfy the needs of the customer’s and business.
Consumers will gain better understanding of the product and how it
can satisfy their needs, but on the other hand will help Apple IPod
increase their profits and market shares.
Advertising
Apple Ipod will spotlight on a successful advertising campaign
comprising of magazine and television advertisements
Product Life Cycle

The course of a product sales and profit over its lifetime, it involves
five distinct stages: product development, introduction,
growth, maturity and decline.
IPods were first introduced in 2001 and has since grown into a
recognized cultural symbol. Designed and marketed by Apple
Computer, iPod is a brand of digital audio/video players that stand
apart from the rest due to their user friendly interface and sleek
design. Customers can carry their entire music collection and more in
their pockets. Although Apple Computer already had a huge following
of loyal customers, the iPod has created a new generation of Apple
fanatics that simply cannot get enough of the iPod and all of the iPod
attachments that have since developed.
IPod Growth Strategies:

Sales can only come from 3 sources:
 Non-users of product category
24
iPod nano
 Competitors’ customers
 Firm’s current customers.
Saturation occurs when the market can no longer expand from the
addition of non-category users. Often, an industry shake-out occurs
from firms switching focus from attracting new category users, to
stealing competitor’s users. Weak firms are pushed out of the
industry and a competitive equilibrium results. Capturing sales
from competitors' users becomes increasingly difficult. A much greater
focus is then placed on extracting more sales from current customers.
A firm can revolutionize a mature product (making current obsolete) to
start a new life cycle.
The number of consumers, who don’t own a PMP but potentially would
buy one, is dwindling. If a consumer hasn’t purchased a PMP by now,
the likelihood of purchasing one in the future is relatively low. With 140
million iPods sold and likely more than 200 million total PMPs sold, it’s
increasingly difficult to keep expanding the market to new users. Yet
the market will continue to expand, albeit at a much slower rate.
In sum, Apple can’t depend on new users to supply the sales volume as
in previous years.
The new Touch has the potential to expand the market since it’s not
exclusively a music/video player. For those with little interest in music,
then the web browsing, e-mail, and PDA features may be attractive.
Other’s Users- use competitors’ products: Increase market

share.
Apple’s iPod has more than 70% of the unit share of the PMP
market. That number has held steady for past several years. With
such a large share, Apple has already taken business from its
competitors, thus less remaining to take now. The iPod has roughly
90% of the market’s dollar, thus competing devices are the most
part cheaper and target more price sensitive consumers. Apple just
recently cut iPod Shuffle prices from $79 to $49 making iPods
more competitive among lower-priced devices. I expect Apple
24
iPod nano
may slightly increase its market share, but not to an extent large
enough to boost sales growth significantly.
Current Users- iPod owners: influence to buy multiple devices / buy

new device more frequently
IPod owners represent the largest source of potential sales. They

outnumber competitors’ users and non-users likely to purchase a PMP
in the near-term. Apple’s sales strategy will increasingly focus on
selling more iPods to current owners since they represent the largest
source of potential sales growth. Motivating current customers to buy a
new iPod more frequently and/or buy multiple units are the primary
methods for boosting sales among current iPod owners.
PMP devices aren’t similar to printer ink, where more usage leads to
more sales. Since usage doesn’t cause product consumption, the
replacement cycle is longer. Speeding up the replacement cycle is
more difficult than other products whereby it’s advised to “change
every 3,000 miles” or “lather, rinse, and repeat” and “best if used by x
date.” Device enhancements from adding new features and expanded
capabilities speed up the replacement cycle. A number of iPod owners
buy a new generation model because of better features even when
their current device works fine. Innovation is key driver in the
replacement cycle for this type of product new enhancements has to
be so compelling to motivate the upgrade. There is little need to have
more than one PMP device since a user can only listen to one device at
a time. Since devices are highly portable, there isn’t a need to buy
multiple devices for use at different locations.
Differentiation of the iPod model line encourages the purchase of

multiple iPods. The introduction of the Touch and reduction in size and
price of the Shuffle has reduced overlap of features. This may lead to
iPod owners purchasing an additional model since the functionality is
different.
24
iPod nano
IPod Product Line
Primary Attributes of iPod Models
--Touch- PDA w/ internet & wide screen video
--Classic- massive storage
--Nano- video w/ size and price
--Shuffle- size & price
One of Apple’s key strengths is innovation and the ability to

improve its products in short time. This is evidenced by the 5
upgrades to the Classic model since originally introduced in late 2001.
There have been 5 generations of the “Mini or Nano” model since
2004. The advances in functionality have been very significant, all one
has to do is compare the Touch to an early iPod model. The iPod took a
giant leap with the Touch. The display is much larger than other iPods
and includes touch screen navigation. Touch iPods also include WiFi;
users can access the web, e-mail, and utilize the widgets to grab
updated weather, stock prices, maps, as well as watching You Tube
Videos. It also has PDA applications, such as calendar and notes, as do
other iPods, but the Touch’s QWERTY keyboard significantly enhances
functionality. The evolution of the iPod line creates a higher possibility
that an iPod owner would want more than one model. For example:
Touch for PDA/internet, Classic as repository to store all content, Nano
(or more likely a Shuffle) for carrying a small device (during exercise).
The iPod potential market is expanded by the Touch’s new

capabilities, which may attract new consumers who had little interest
buying a device strictly for music and video. Current iPod owners may
buy a Touch for its PDA and web functionality. When third party
applications arrive in June, the Touch will be revolutionized into an
entirely new device as it will receive a massive boost in capabilities.
The first iPod models only differed in capacity. In 2004, a smaller
model “mini” was added at a significantly lower price point. Being
just music players (later video added), consumers would choose an
24
iPod nano
iPod based on desired capacity and price. Most likely, that would be
the only model he/she would need/want. The introduction of the Touch
changes that scenario with its PDA and web browsing attributes. The
Shuffle’s diminutive size, measuring 1 in x 1.5 in and weighing ½ oz,
make it ideal for physical activity. Priced at $50, it’s attractive to
current and non-current iPod owners.
Market-Skimming Pricing
Setting a high price for a new product to skim maximum
revenues layer by layer from the segments willing to pay the
high price; the company makes fewer but more profitable sales.
This strategy is often used to target early users of a product/service
because they are relatively less price sensitive than others. Early users
24
iPod nano
are targeted either because their need for the product is more than
others or they understand the value of the product better than others.
In any case, this strategy is employed only for a limited period of time
as a way to recover most of the investment of a product. According to
Koehler (1996), the skimming price strategy is a high price strategy
which provides a healthy margin but risks a depressed sales volume.
Since high prices also attract piracy, protection costs against piracy
basically eat up margins. In the case of Apple, the buyers are not
attracted by pirated versions of products because of the image of the
brand linked to the snobbism of the “members of the Apple
family”.
Market-Penetration Pricing
Setting a low price for a new product in order to attract a large number
of buyers and a large market share. The new 3G iPhone, which
includes important business features such as access to Microsoft
Exchange, is going to roll out on July 11, 2008 with a price tag of $199.
This means that the iPhone’s price will be roughly equal to that of any
new Treo or Blackberry unit; in some instances the iPhone is actually
cheaper than the alternatives. The new, low price and the addition of
key enterprise features mean two major things for Apple:
 The 3G iPhone’s first target is the business user; there are a lot of
technical and infrastructural issues that might prevent businesses
from adopting the iPhone en-masse immediately, but the
iPhone’s features and price all fall within the same range as
competing products offered by Palm and RIM. Apple is gunning
for the business user.
 The 3G iPhone’s price will drop from $199 to $99 at some point in
the future, this much I can guarantee. When the iPhone’s price
does drop the phone will be adopted en-masse by the general
consumer market. Every ratty 12 year old with a $5/week
allowance will be running around with an iPhone. This time Apple
is setting its price low and its volume high, gunning for the
common man instead of the zombie fan.
24
iPod nano
Product Line Pricing

Setting the price steps between various products in a product line
based on cost differences between the products, customer evaluations
of different features and competitors prices. Which iPod is right for
you? Compare the differences between models to find your perfect ...
Earphones with Remote and Mic, Dock Connector to USB Cable.
Price. 2GB $59. 4GB $79. 4GB $99. 8GB $149. 16GB $179.
A portion of the proceeds from every (PRODUCT) RED.... Let your iPod
do the talking.
Geographical Pricing
Setting prices for customers located in different parts of the country or
world. With the iPhone SDK, third party developers will be able to build
native applications for the iPhone with a rich set of APIs, including
programming interfaces for Core OS, Core Services, and Media and
Cocoa Touch technologies. The iPhone SDK will allow developers to
create amazing applications that leverage the iPhone’s groundbreaking
Multi-Touch™ user interface, animation technology, large storage,
built-in three-axis accelerometer and geographical location technology
to deliver truly innovative mobile
24
iPod nano
There are four different types of stores of IPod all over the world
 Education store
 Business store
 Government store
 International store
In Education Store, Apple offers special education pricing on Apple

iPod, software and select third party products to College Students, or
Teachers, Administrators and Staff of all grade levels.
Business Store of Apple is the istore which offers you the ipod and
only apple apple products.
The Apple Store for Government offers powerful desktop and

portable computer solutions at special prices for government agencies
and employees.
There are 36 International Stores. In Pakistan iPods’ are available

in the big stories like Makro, hyper star etc
24
iPod nano
Advertising
Apple has used a variety of advertising campaigns to promote its iPod
portable digital media player. Two new campaigns from Apple feature
real Apple consumers. The new iPod campaign features a variety of
real consumers, from a student to an old people. Each explains how
they use the iPod to help them with real everyday problems while
visually demonstrating on the iPod. The second campaign is for the
new iPod Touch. This campaign does not feature a consumer, but was
created by a consumer from stock footage and gained a viewer ship on
You Tube. Apple began running this spot last weekend nationally as
the launch spot for the iPod Touch.
Advertising Objective
I believe the target market for the iPod to be from middle school ages
to adults. That would mean everyone who has access to and knows
how to use a computer. The iPod is for those persons who like to listen
to music, take pictures, and have easy access to what they enjoy most.
Downloading music is rapidly growing and those that like to have the
latest music want it easy and fast. That is what the iPod is capable of.
Advertising Budget
It's a bundle. Apple Computer spent $287 million on advertising in
its last fiscal year, up nearly 40 percent from the $206 million it
spent a year earlier. And the company spent $193 million in the year
before that, according to its annual report but in Pakistan we hardly
find any advertisement of iPod.
Advertising Strategy and Creative Concept

"Think Different" was an advertising slogan created by the New York
branch office of advertising agency TBWA\Chiat\Day for Apple
24
iPod nano
Computer during the late 1990s. It was used in a famous television
commercial and several print advertisements. The slogan was used at
the end of several product commercials, until the advent of Apple's
Switch ad campaign. Apple currently does not use the slogan, and their
commercials usually end with a silhouetted Apple logo and sometimes
a pertinent website address. Even today, Think Different remains an
intrinsic part of Apple's identity, alongside flagship products like the
iPod and iMac. The use of the phrase, "Think Different", however,
has ceased.
Advertising Media
How iPod suits into a particular lifestyle an iPod billboard

showing hip hop, music loving youngsters.
Public Relation
Apple IPod should introduce a public relations scheme to improve the
relationship between the company and their markets. Rather than
advertising which is aimed at improving the public image of Apple
IPod, a public relations is aimed at increasing a business’s sales.
24
iPod nano
Customer Database
Apple has a detailed database of its iPod customers. It collects
information with surveys and with the help of the feedback and sales
that are done either on the istore or from the Apple.com website.
Direct Mail Marketing

Apple iPod nano does direct mail marketing by sending new offers and
promotion letters to the customer who subscribe for it because most
people think it a disturbance.
Catalog Marketing
Apple iPod nano print, video and electronic catalogs are also mailed to
the customers who are actually interested in getting them from apple.
Online Marketing
Apple IPod does a lot of online marketing on apple.com & on a lot of
other websites. As you can see its ads in the form of banner ads and
text ads on many different websites.
Business to Consumer Online Marketing (B2C)

Business to consumer online marketing is done in case of ipod nano by
apple as it advertises the ipod on its official site and many other
websites in the form of banner ads and text ads.
Business to Business Online Marketing (B2B)

Apple also markets its ipod nano to different business for its
promotion like Amazon.com and Wal-Mart are also one of its biggest
24
iPod nano
retailers. In Pakistan such example if done by apple, can be Macro,
Metro and Hyper Star etc.
Consumer to Consumer Online Marketing (C2C)

In Pakistan consumer to consumer online marketing of iPod nano can
be seen on websites like bellacity.com and hafeezcenter.com. In case
of iPod nano it is mostly done for used ones.
Marketing Web site

The marketing web site of Apple iPod nano is apple.com. This is the
official website of apple and it actually advertises the product and also
helps for online sales and services etc.
Online Advertising
Online advertising can be seen a lot on the internet for the apple iPod
nano. This happens on the apple official website as well as on the other
sites. Google ads can also be a good example and it also advertises
for apple iPod nano.
Web Communities
Web communities for apple iPod nano are present almost everywhere.
You can find them on the apple.com site and also on social
gathering websites like facebook, myspace & orkut etc.
24

Implementation of Chapters On Product

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Implementation of Chapters On Product

Загружено:

Авторское право:

Доступные форматы

Implementations of

“Apple” NEW IPOD

Our Product: New iPod “Nano” by

The Company is committed to bringing the best personal computing

iPod nano now has a polished anodized aluminum finish in nine

Rock out with the new FM tuner. And two innovative

VoiceOver speaks the names of songs

The built-in mic lets you capture a thought, a

It’s even easier to

Apple is Innovative, a technology leader, and has world class customer

SITUATION ANALYSIS OF THIS PRODUCT

Selecting target market

Develop Marketing Strategies

Positioning – aimed at the middle to high class, therefore product will

Branding – Apple Ipod will give consumer’s one year warranty to

Packaging – Apple IPod’s packaging will:

Price and quality interactions –

Advertising - Apple Ipod will spotlight on a successful advertising

- The target market (teenagers and young adults)

- How often they want the target market to be exposed to the

- When they want to reach their target market

- Most cost efficient methods to fulfill the above

Below-the-line promotions – Apple IPod will use a direct method to

 Fragmenting bulk supplies of inventory

Warehousing – inventory will be kept in a warehouse close to the

Implementing, Monitoring and Controlling

Distribution Channels – Apple IPod will use indirect distribution

- Fragmenting bulk supplies of inventory

- Give financial services to retailers

- Increase ease of customer purchase

Market- oriented Definition for iPod

SWOT Analysis Apple

• Appealing to both males and females

• Good competitive skills

• Past products have had a good reputation

• Advanced key technology

-Strong brand loyalty predicts return customers. It costs far less to

- Simple, easy-to-use design and concise product range attract

• The product has a narrow product line therefore unable to expand

• High prices may push potential customers to competitors with

• Introducing a new product, when the niche market is already

• Poor use of promotional strategy, as consumers were not properly

- Limited product range, especially absence from low-end desktop and

• Develop an admirable/exceptional goodwill that can have monetary

• Opportunity for fast market growth as parents may see this as an

• Growing market trend

- Poor public perception of Windows Vista allows Apple to push OSX as

- Success of Apple iPhone is a viable stepping stone for Apple to attract

• New competitors continually enter the market.

• The threat of not appealing to target market at all therefore

• Vulnerable to the business cycle

• Tough laws being placed on internet MP3 downloads

- Global economic situation is likely to reduce demand for higher-priced

- Windows 7 seems well-poised to correct many of the flaws of Vista

• Management: Effective management is required for the training

• Capital Availability: Competition may cause mishap in the cash

• Technological Adoption: Technology must be adopted to improve

• Competitors: Competitors will regulate what, when, how and why

• Overseas Influences: The breaking down of barriers between

• Demographic Patterns: Males and females from the age of

X- The stage that Apple I pod is currently in.

Apple I pod is currently in the maturity stage, where more and

What are the product objectives?