Transcript 7 Functions of Marketing

7 Functions of
Marketing
iPhone
5
Promotion
Why Apple Thinks
iPhone 5 is
Revolutionary
• New ear bud design
• iOS6 software
• 18% thinner, 20% lighter than
iPhone 4S
• 4-inch Retina display
• LTE wireless technology,
ultrafast connectivity and
battery life
• A6 chip = better, faster, longer
graphics
Promotion
• Uses simple style,
avoids major
language
complications
• Video advertisement
includes key
members of Apple,
available to view
online
• Ads promote major
changes, points that
attract buyers
Distribution
• iPhone 5 is
everywhere, easy
for customers to
purchase
• Online deliveries
shipped by large
companies such as
UPS and FedEx
Staples
Other
Authorized
Retailers
London Drugs
Best Buy
Future Shop
Cellular
Service
Providers
Apple Store
(Online/In
Stores)
Selling
• New CEO, first iPhone
released under
guidance of Tim Cook
• Production plant
leaks and fans create
social hype prior to
release
• Social Hype = Word
of mouth, a powerful
selling method
• People see friends
with iPhones = Switch
over to iPhone 5
Selling
• Celebrities like
Rihanna, Jessica
Alba, Olivia Wilde
are all iPhone
users =
encourages fans
• Already a well
established brand,
has loyal fans
• Very “enthusiastic
“ staff, iPhone 5
line ups were
similar to a party
Pricing
Comes in White and
Black
• $699 +tax (16GB)
• $799 +tax (32GB)
• $899 +tax (64GB)
Prices vary with mobile
contracts
Special prices for
students and education
related purposes
Marketing Information Management
Ratings
• Tech Radar: 4.5 / 5
• Cnet.com : 4/ 5
-> Overall, average ratings
• Apple shares fell 1.3%
• Analysts predict a sale of
10 million iPhone 5s
• Sold more than Nokia
Lumia
• Can be purchased in 100
countries by end of year
• TV ads will boost sales
during holidays
Marketing Information Management
iPhone Users
Female
43%
Male
57%
• 42% of iPhone users
were between 25-44
• 18% were 17 or
younger
• Sold over
5,000,00
0 phones
on first 3
days
Marketing Information Management
• However, selling 5
million is not a huge
improvement
• Chart shows that
sales between
iPhone 3Gs – iPhone
4 grew 70%
• Sales between
iPhone 4 and iPhone
4S grew 135%
• Sales between
iPhone 4 and iPhone
5 grew only 25%
Marketing Information Management
CONFLICT WITH
GOOGLE MAPS
• Google refused to
give iPhone 5 turn
by turn navigation,
available to
Android
• Unpleased, Apple
made their own
map which failed
and gave distorted
3-D photography
Marketing Information Management
iPhone 5
Galaxy Note 2
• 8 Hour Talk Time
• 326 ppi
• 16 Hour Talk Time (3G)
• 267 ppi
• Smaller, but better quality
• Design more popular
• Almost indestructible case
but prone to scratches
• Better software and
hardware integration
• Mobile system “polished”
and “perfected”
• Large resolution, less crisp
• Too large for the pocket
• Innards protected by thin
plastic that pop out easily
• Better “specs” (hardware)
• Good for multitasking, similar
to PC
Product/Service Management
Online Service
• Apple website easy to navigate,
organized answers to common
questions/ issues
• Customer service available by phone
or online
• Offers “Apple Care”, premium
support and coverage (prices vary for
devices)
• Special service for business owners
In-Store Service
• Pro: Very good service, friendly staff
• Con: Too busy, customers must wait
in order to receive service
•
•
•
Stores allow customers to test
products
Offers iPhone accessories from
external companies
Genius Bar for 1 on 1 service, book
appointments
Finance
Various mobile companies
offer different plans
Rogers
(Minimum 3 Year Contract)
16 GB – $179.99
32 GB – $279.99
64 GB – $379.99
Sources say 16GB
iPhone 5 costs $167.50
to build, if sold for
standard price a
$481.50 profit
7F Assignment
• With a partner you need to find a consumer
product of your choice (other than an apple
product) and create a similar PowerPoint
describing the 7 Functions of Marketing for
that product.
• Provide researched details for each function.
• Print as a handout to turn-in and be prepared
to present the following day.
• You will have 2 days in class to work on.
• Get to work!