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Apple I-PodDanelle Herman, Aaron Potts,
Stephanie Miller, Josh Marostica, Paige Daniels
HISTORY
• Apple was founded in 1976 by Steve Jobs and Stephen Wazniak
• They started off building simple computers in Steve’s bedroom and eventually transformed into the company they are today.
• Their company was named after Steve’s summer job, where he worked in an apple orchard.
iPod
• In 2001, Apple created a digital music playing device called the iPod.
• This product was extremely popular and helped Apple become one of the top competitors in the technology industry.
• The first generation iPod came with a 5GB hard drive and a scroll wheel that set it apart from other music playing devices
External Influences
• Cross-Culture Variations– Sales increase at a fast pace, international sales are a big contributor.
• Values– Self, Environment, and Other
• Changing American Society– Has become the “norm” for music players
Ethnicity
2
3
4
5+
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
Number of housholds
Number of homes
Number or iPods
Recommendation 1
• Apple should advertise and promote the iPod for more business related situations.
• Having new and different functions for the iPod will broaden the areas that it can be used in which will increase sales even more.
• The use of the iPod to train new employees, pod-casts, the distribution of information
Internal Influences
• Perception– Exposure
• Selective: Simpson’s, MadTV, Scary Movie 4• Voluntary: Stay-in-touch
– Attention• Stimulus Factors:• Address Adaption Level Theory• Situational Factors
– Interpretation• Affective interpretation• Expectation Bias• Figure-ground
Marketing Strategy
• Apple’s brand extension• Mac Computer• iPod: line extension
» iPod Mini, iPod Nano, iPod shuffle, iTouch
• iPhone• Apple TV
• Package Design » Simplicity, sophisticated, representative
• Co-Branding» Nike+
• Perceived fit
Recommendation 2
• Co-Branding• The Biggest Loser on NBC• 24 Hour Fitness
• Each contestant with an iPod• Image
• Working out• Endurance• Health • Achieving goals
Motives
• Manifest Motives– Small size– Large storage capacity– 2-inch screen– Sort stored and labeled music– Rechargeable lithium battery
• Latent Motives– Status symbol– Individual colors, 9 different– Personality– Fashion statement
Personality
• Brand Equity– Apple has created a name for itself– First digital music player available– iTunes
• Personality– Innovation– Creativity– Hip – Fashionable– Cutting-edge
Attitude• Affective– Feelings or Emotional Reactions
• Cognitive– Consumers beliefs about an object
• Behavioral – One’s tendency to respond in a certain
manner toward an object
Recommendation 3
• Celebrity Endorsements– Currently do not have any celebrity endorsers for
iPod– Celebrity endorsements change consumers
attitude toward the product– Boosts credibility and creates a desire for the
product
Outlet Selection
Four major determents• Outlet location • Perceived risk • Atmospherics• Sales personnel
Apple Store Best Buy Apple Website Other
2
6
3
7
Purchase outlet
Sales Personnel
• Influence consumer’s decision by • Personal preference• Understanding of the product • Ability to distinguish key features
Recommendation 4
After speaking with a Best Buy sales associates it became apparent that Apple does not introduce their product at their distribution stores.
– Apple does not explain • The modifications they made to the new generation iPods• The distinguishing features have from the previous iPods • Effectively work the iPod
We recommend that Apple sends a iPod expert to all distribution stores. There they will explain the new features, any modifications, and how to properly work the iPod. This will help Apple consumer have a better understanding of the product they buy before purchasing it. This will eliminate post purchase dissonance.
E-Commerce
• Content• Simple colors• Product information• Easy Navigation
• Communication• Customer Support
• Commerce• Privacy Policies• Secure Transactions
Apple and the Environment
• Most of Apple’s efforts are directed towards their Mac computers– Changed packaging– Recycle iPods and the packaging- Asia, Europe,
and Australia