Marketing Mix Analysis of iPad Essay Example for Free

merchandising Mix Analysis of iPad EssayExecutive SummaryManaging and developing marting mix appropriately is extremely important to firms marketing and success. In order to marketing crossroad successfully, the depend competent proceeds must be exhibited to right people at the right place, right price and right period. If a firm open fire manage the marketing mix successfully, as a result, it can be a fount of competitive advantage for firms. Each element of the marketing mix should be analyzed and if necessary, adapted to ensure that the right balance is achieved to give the product or return the very best chance of success in the market place. orchard apple tree is a successful connection and its previous product iPod has a noble market share in the global market due to its brand perception and image as s high quality innovative brand. In 2010, apple launched an innovative product iPad in US, which is a tablet computer with touch screen. Even in the first launching date iPad had been sold 0.3 adept million million units. The product no doubt is getting support of apples brand image and it has changed the way to consumer lifestyle. That is why iPad is thought as a revolutionary who result arouse a wave to electronic pains.Apples iPad delivered the value to the node via marketing mix tools called the 4Ps* Product looks good and whole caboodle well.* set price.* Right place at the right time.* Successful promotion helps to a larger output.Apple followed this by innovation and introducing new products in the market to converge consumers of necessity and wants. The current author here will use the theories, notions of marketing mix to analysis the iPad.The remainder of this essay is structured into five parts. It begins by defining marketing mix and its evolution. Second, it analyse the company, iPad, its competitor and consumer. Third, it illuminates the marketing mix by analysing iPad. Finally it ends with the overall assessment and c onclusion.Contents1.Introduction and Definition31.1Definition of merchandising31.2Definition of Customer treasure and Value Proposition31.3Definition of Marketing Mix42.Description of Apple iPad42.1Brief Introduction of Apple42.2Introduction of iPad52.3Brief Consumer Profile62.4Brief Competitor Profile73.Marketing Mix Analysis of iPad73.1Product73.2 scathe103.3Place123.4Promotion144.Assessment of Overall Value Delivered165.Conclusion166.References181. Introduction and Definition2.1 Definition of MarketingMarketing is the process by which individuals and groups obtain what they call for and want through creating and exchanging products and value with others and forging relationships with customers. (Philip Kotler, Gary Armstrong, 2009). This definition recognizes the importance of creating a long term relationship with customers and identifies the importance of satisfying customer wants.2.2 Definition of Customer Value and Value Proposition Customer value is the difference betwe en the values that the customer gains from owning and using a product and the cost of obtaining the product. Put it simply, customer value is created when the perceptions of benefits received from a transaction exceed the costs of ownership. The same psyche can be expressed as a ratio (Chiristopher, 1996) Customer value = Perceptions of benefitsThe definition of customer value proposition is a well defined and persuasive marketing statement related to a specific product or service that details the reasons why a consumer would benefit from purchasing it. A value proposition is the definition of a firms yell to create and deliver customer value (Chapelet and Tovstiga, 1998). name 1.2.1 A determine of value creation and the marketing process source Adapted from Kotler Brown Burton Deans Armstrong, (2010), Marketing 8th Edition physiqueure 1.2.1 shows a typical model of value creation and the marketing process. Put it simple, marketing is a process cycle which consists of 5 simple s teps as below i. Customer buys or potential customer is contacted to understand the marketplace. ii. Finding out how the customer liked the product or what is needed. iii. Analysing these data and creating a plan that includes goals, strategy and its marketing mix. iv. Implement the plan that delivers value to customer which results in the customers buying the product and creating customer delight. v. Repeating the cycle jump with step (i) to step (iv) to make a better product sold with a better plan and continuously safekeeping this cycle going. Hence, create profits and customer equity.2.3 Definition of Marketing MixThe concept of the Marketing Mix was first created by Neil H. Borden in his article called The concept of the Marketing Mix in 1964. In his article he explained the importance of a market to try to mix ingredients in their process in the market in order to be successful.E. Jerome McCarthy later grouped these ingredients into the four categories that are known as the 4 Ps of marketing (Product, Price, Place and Promotion).Product What does the customer want from the product/service? Price What is the value of the product or service to the buyer? Place Where do buyers look for the product or service?Promotion Where and when can get across the marketing messages to targetmarket? 2. Description of Apple iPad3.4 Brief Introduction of AppleApple Inc., founded in 1976, is an American multinational connection which is best-known for its hardware and software products. The hardware products are Macintosh, iPod, iPhone and iPad. One example of the famous software of Apple is iTunes, a proprietary media player application that works with iTunes introduce and allows customers to download music and offers other features of consumer electronics.Fortune magazine named Apple as the to the highest degree admired company in the US in 2008, and in the world from 2008 to 2012.3.5 Introduction of iPadOn January 27, 2010, Apple introduced the much-anticipated media tablet, the iPad (As shown in design2.2.1).Fig 2.2.1 Introduction of iPad (source www.apple.com)The iPad measure 9.7 inch wide screen display with multi touch screen with 1024 x 768 resolutions which is lighter and thinner than any other notebooks or laptops. Its internal 25 watt-hour battery can run up to 10 hours of video, 140 hours of audio playback and one month on standby as Apple claims. Steve Jobs stated that, with the introduction of the iPad, Apple had opened a market for a new class of wandering devices. (As shown in Fig 2.2.2)Fig2.2.2 Apple iPad First Hands-on (source http//www.ipadforums.net)3.6 Brief Consumer ProfileConsumer market can be defined as all the individuals and households who buy or acquire goods and amour for personal consumption and consumer buying behavior can be defined as the buying behavior of final consumers, individuals and households who buy goods and services for personal consumption (Kotler, 2009). Table 2.3.1 shows the analysis of market segmentation for iPad.SEGMENTATION BASE SELECTEDSEGMENTATION VARIABLESGeographic SegmentationRegion West Malaysia, east MalaysiaCity sizing Major metropolitan areas, citiesDensity of area UrbanClimate Hot, humid, rainyDemographic SegmentationAge 18-34, 35-49, 50-64Sex Male, femaleMarried status Single, married, divorced, backing together Income RM40,000 and overEducation College, college graduate, postgraduateOccupation Professional, white-collarPsychologicalNeeds Sense of self-worth, fashionablePersonality Extroverts, novelty-seeker, aggressivesPerception Low-riskLearning-involvement High-involvementAttitudes Possitive attitudePsychographicLifestyle Couch-potatoes, outdoorsy enthusiasts, status-seekers Cultures Malay, Chinese, Indian, and other foreignersReligion Muslim, buddhism, hinduism, christian, catholic, and others Social Middle, upperFamily Bachelors, young married, full nesters, empty nesters Use-Rated SegmentationUsage rate Heavy users, medium usersAwareness status Awa re, interested, gung hoBrand loyalty StrongUse-Situation SegmentationTime Leisure, work, morning, nightObjective Personal, fun, achievementLocation Home, work, mega mall, restaurantPerson Self, family members, friends, peersBenefit Segmentation Convenience, social acceptance, unclouded e-book reading, value-for-the-money, service Table 2.3.1 Market segmentation for iPadFrom analysis above can see that most of Apples users are high-end clients who have the strong purchasing power, easily accept new technology and they are very loyal to Apple.3.7 Brief Competitor ProfileApple iPad bring threats and impact to PC industry in nigh way. On one hand, the hot-sell of iPad attracts many another(prenominal) PC manufacturers set foot in this field. So the other tablet computers will be the biggest competitor, such(prenominal) as Blackberrys playbook, this is a tablet computer which located in business person, and it will besides attract publics eyeball because of its vast multimedia fun ction.On the other hand, the price advantage of netbook is also a challenge to iPad. After all compared with traditional computer, iPad may not a necessity. To some business and professional people, they will choose the traditional notebook rather than iPad.3. Marketing Mix Analysis of iPadAccording to the information that searches from magazines and internet, the author knows many information of iPad. The author here will use the theories, concepts of marketing mix to analysis the iPad.4.8 ProductProduct means the goods-and-services combination the company offers to the target market. (Philip Kotler, Gary Armstrong, 2009).The iPad bridge over the gap between smart phone and laptop, it offers equivalent range of features and functions that a computer does. It has internet capabilities running on both Wi-Fi and 3G. Some of the features are discussed previously. Fig 3.1.1 shows its tech specs.Access to Apple Apps Store which has over 300,000 applications and to iTunes are attractive features of iPad.Fig 3.1.1 Tech Specs for Apple iPad (source http//www.apple.com)Value delivered to customer1) Convenient to defend and Easy to UseCompared to functionalities and performance, it is surprised that iPad weighs entirely 1.5 pounds. It is very thin and sleek measuring only 0.5 inches.This lightweight iPad is very useful for business trip, making it slowly to transport as compared to a laptop. Not only it is easier to carry it around, barely also be able to use it to check e-mails, show videos and photos to people at a time whenever required with its long battery life, which at 10 hours is 2-5 times longer than a notebook (As shown in Fig 3.1.2).Fig 3.1.2 E-mail and photo function for iPad (source http//www.cnbeta.com)2) Easy for E-Book ReadingOne benefit that cant miss is the iBooks Application. Customer can download the favorite e-books to iPad and read while traveling (As shown in Fig 3.1.3).Fig 3.1.3 E-books on Apple iPad (source http//www.telegraph.co.uk)Retri eving books to read on ibooks application on iPad is simply easy. Browse through the e-bookshelf on the iPad, choose one statute title wish to read and click, the book opens in front. Customer can view the book in portrait or landscape, and the way the pages turn over is awesome flip it with finger and looks scarce like a real book.3) Excellent Service for CustomerWhats to a greater extent, the service of iPad is very nice. Apple has its own key service iTunes. Customer can get this value to enjoy the all kinds of internet resources such as music, video and applications (As shown in Fig 3.1.4).Fig 3.1.4 iTunes on Apple iPad (source http//www.ipadforums.net guardian.co.uk guardia guardia)The iTunes online store makes it incredibly easy to purchase songs and load them onto the devices. When customer wants to watch or listen, they neither need to search from the CDs nor television channels. What they need to do is just opening the iTunes, all they want is in iTunes, it let the med ia browse much faster, it is easier to sort. 4.9 PricePrice is the amount of money customers have to pay to obtain the product. (Philip Kotler, Gary Armstrong, 2009).The iPad is priced starting from $499 for 16 GB storage to $829 for 64GB storage and 3G connectivity. In detail, tab 3.2.1 shows the price of iPad selling in Malaysia.iPad 16G 32G 64GWi-Fi RM 1, 549.00 RM 1, 849.00 RM 2, 149.00Wi-Fi + 3G RM 1, 999.00 RM 2, 299.00 RM 2, 599.00Tab 3.2.1 Selling price of iPad (source http//www.apple.com guardian.co.uk guardia guardia)Value delivered to customer1) Eco-friendly subterfuge for Environment ProtectionThe iPad is made of recyclable glass and Aluminum and the packaging material is recyclable the packing is efficiently done. It is not using Arsenic, PVC, bromine fire, quicksilver as the company has restricted the use of harmful chemicals.With such price, customers are not buying the fashionable device only, more importantly, they are making component to environment protection . Fig 3.2.1 shows how green is the iPad.Fig3.2.1 How green is the iPad (source http//sortable.com)2) Flexible Price as Actual NeedsThe iPad price varies according to its storage capacity and the internet regain capacity, which leads to reducing the initial cost on the first ever tablets based on customers actually needs and application (As shown in Fig3.2.2).Fig3.2.2 Price and configuration of the iPad (source http//www.apple.com)3) Cost Saving with Maxis Bundled PackageIt is available on Maxis bundled packages with a 24-month contract based on different types of iPad internet plan (As shown in Fig 3.2.3). By doing so, the price of iPad has been dropped down from RM450 to RM950. The plan is much more attractive not only for those who cant afford to pay for the high price, but also for some of the SME to extend their business.Fig 3.2.3 Maxis iPad Bundled Packages (source http//www.maxis.com.my) 4.10 PlacePlace includes company activities that make the product available to target con sumers. (Philip Kotler, Gary Armstrong, 2009).Apple started selling the iPad not only from its official websites, but also retail outlets and Apple Store.Value delivered to customer1) Easy Walk-in Location for PurchaseThe iPad can be purchased from Apple Store, Apple Premium Reseller and Apple Authorized Reseller located in Malaysia.All shops are conveniently located and beautifully designed, identified by the large backlit Apple logo, such as in most famous shopping mall like Sunway Primary, One Utama, KLCC and Mid Valley in Selangor, even in Melaka,Penang, Sabah and Sarawak. The value is so easy for customer to come and have a journey on iPad (As shown in Fig 3.3.1).Fig 3.3.1 Apple shops in MalaysiaIn each shop, customer will be able to find dedicated Apple-trained and Apple-certified Mac experts who can come up with the right solution for you.2) Time-Saving Online OrderApple iPad are also available on internet for the customers on Apples website. Online purchase is the easiest a nd time saving way for most of them (As shown in Fig 3.3.2).Fig3.3.2 Online Apple store for iPad (source http//www.apple.com)On the website, the Apple explains the number of features and benefits of iPad. This adds the value to the consumers as convenience is a value that people appreciate and for which they will pay more than the actual price.3) luxurious Service for Apple LoyaltyWhen customer are on the go, the Apple Store app is the best way to look into, personalize and buy products from Apple and get the most out of customers visits to the Apple Retail Store for Apple loyal fans. Fig 3.3.3 shows what can do with the Apple Store app on the iPhone or iPod touch from search to pay.Fig3.3.3 Apple store apps for iPhone and iPod Touch (source http//www.apple.com)4.11 PromotionPromotion means activities that communicate the merits of the product and persuade target customers to buy it. (Philip Kotler, Gary Armstrong, 2009)Apple order had been promoting the iPad with the help of so cial media campaigns and multi-channel media strategy.Value delivered to customer1) Multiple Channel for Better Understanding of iPadThe online promotion by Apple on Facebook, YouTube and other related websites approaches to the consumers added more value to the decision of consumers of buying iPad. Same like in stores all the information is available online for customers. Customers can download brochure from its website for their convenience.When Apple announced the idea of iPad, most fans write blogs and share through internet. Customer will see them and many videos about iPad, some of them are made by Apple and some are made by other people. These blogs and videos are shared by many other people through many ways (As shown in Fig 3.4.1).Fig3.4.1 Video sharing about iPad (source http//www.9to5iPad.com/)2) Custom Engraving of iPadApple had offered free iPad engraving from its online store, allowing customers to add a personal touch to the tablet in time for the holiday seasons (As shown in Fig 3.4.2). Customers are given the option to engrave up to 2 lines of free text on the back of an iPad after selecting an iPad model and any desired accessories from the online store.Fig 3.4.2 Website about iPad engraving (Source http//store.apple.com/)3) Free Delivery for On-line PurchaseWhen purchasing the iPad online from Apples official website, customer will get the value of free delivery. Just wait for 3-4 business days, the product will be arrived on hand safely. 4. Assessment of Overall Value DeliveredApple has always placed a major emphasis on the marketing and the brand awareness of its products. The iPads advantage is that they offer several different features in one product. Converging all the new technology into one product is the route apple is seeking. Its making life easier for their consumers by being able to conduct many applications in the one product.Apples iPad followed all the 4Ps of marketing mix to deliver the high level of value to the customers. T he company has manufactured an iPad using strong in-built applications. The gadget permits people to work and entertain anytime anywhere, as a value of experiencing its easy and convenient use. It provides value to customers through a huge number of features which helps in saving time and energy. Adding more to customer value the price of iPad is competitive and flexible in the market as discussed above. It publicize on T.V., newspapers, magazine, radios and also on internet, which makes people have clearer understanding in various channel. It provides value by available at all the apple stores and website.From the iPads 4Ps analysis, we can easily see the difference of it, and can answer the question why people buy it which seems unnecessary product. Apple iPad satisfy their needs and this delivers the value as a product and service in terms of features, style performance, durability, quality, reliability and design to the customer. 5. ConclusionApple iPad is a new product which h as made a dent in the history of tablet business domain and the first successful product. This has also ignited the demand for new and modify tablets from Apple and other competitors.Apple has used the 4Ps of marketing in a very efficient and proper manner, so that added the value to the customers decisions of purchasing iPad. When Apple introduced iPad, they intended to come across the consumers wants and demands which would satisfy to their lifestyles. Apple in future which demands more innovative products and the company still need to adapt to expected changes in iPad which they have already started in their new iPad 2. With their experience, they are able to continue strengthen its position in the industry.6. References1. Philip Kotler, Gary Armstrong. (2009). Principles of Marketing. (7th Edition). Australia. Pearson. 2. Kotler Brown Burton Deans Armstrong. (2010). Marketing (8th Edition). Australia. Pearson. 3. Borden, N. H. (1964). The concept of the Marketing Mix. Journal o f Advertising Research. Vol II 4. APDGT YAMAMOTO. Understanding Customer Value Concept Key To Success. pp. 547-552. 5. Chapelet, B. and Tovstiga, G. (1998), Development of a research methodology for accessing a firms business process-related technologies, International Journal of Technology Management, Vol. 15 Nos , pp. 10-30. 6. Apple Annual Reports, 20107. www.apple.com8. www.maxis.com.my