Marketing Mix Analysis of iPad Essay

Executive SummaryManaging and developing trade mix appropriately is extremely important to trustys food marketing and success. In point to marketing product successfully, the right product must be exhibited to right people at the right place, right equipment casualty and right time. If a firm give the bounce manage the marketing mix successfully, as a result, it butt end be a source 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 service the very best chance of success in the market place.orchard apple tree is a successful union and its previous product iPod has a high market share in the global market due to its brand perception and image as s high quality innovative brand. In 2010, orchard apple tree 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 million units. The product no doubt is getting backing of apples brand image and it has changed the way to consumer lifestyle. That is why iPad is thought as a revolutionary who will arouse a wave to electronic industry.orchard apple trees iPad delivered the harbor to the guest via marketing mix tools c alled the 4Ps* Product looks good and works well.* Right price.* Right place at the right time.* victorious promotion helps to a larger output.Apple followed this by innovation and introducing new products in the market to satisfy consumers needs and wants. The current causality hither will use the theories, concepts 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 enemy and consumer. Third, it illuminates the marketing mix by analysing iPad. Finally it ends with the everyplaceall assessment and conclusion.Contents1. gate and Def inition31.1Definition of selling31.2Definition of Customer Value and Value proposition31.3Definition of Marketing jumble42.Description of Apple & iPad42.1Brief Introduction of Apple42.2Introduction of iPad52.3Brief Consumer Profile62.4Brief Competitor Profile73.Marketing Mix Analysis of iPad73.1Product73.2monetary lever103.3Place123.4Promotion144.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 need and want through creating and exchanging products and value with otherwises and forging relationships with guests. (Philip Kotler, Gary Armstrong, 2009). This definition recognizes the importance of creating a large term relationship with clients and identifies the importance of satisfying node wants.2.2 Definition of Customer Value and Value Proposition Customer value is the difference mingled with the values that the customer gain s from owning and using a product and the costs 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 idea 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 detail the reasons why a consumer would benefit from purchasing it. A value proposition is the definition of a firms promise to create and deliver customer value (Chapelet and Tovstiga, 1998). shape 1.2.1 A model of value creation and the marketing process source Adapted from Kotler Brown Burton Deans Armstrong, (2010), Marketing 8th Edition material body 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 steps as below i. Customer buys or pote ntial 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 platform 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 beginning with step (i) to step (iv) to make a better product sold with a better plan and continuously keeping this cycle going. Hence, create dinero 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 4Ps 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 corporation which is best-known for its computer 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 store and allows customers to download music and offers other features of consumer electronics.Fortune magazine named Apple as the most 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 trope2. 2.1). image 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 gauze-like 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 mobile 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 service for personal breathing in 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). circuit card 2.3.1 shows the analysis of market segmentation for iPad.SEGMENTA TION BASE SELECTEDSEGMENTATION VARIABLESGeographic SegmentationRegion West Malaysia, east MalaysiaCity size Major metropolitan areas, citiesDensity of area UrbanClimate Hot, humid, rainyDemographic SegmentationAge 18-34, 35-49, 50-64Sex Male, femaleMarried status Single, married, divorced, living 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, outdoor enthusiasts, status-seekers Cultures Malay, Chinese, Indian, and other foreigners theology Muslim, buddhism, hinduism, christian, catholic, and others Social Middle, upperFamily Bachelors, young married, full nesters, empty nesters determination-Rated SegmentationUsage rate Heavy users, medium usersAwareness status Aware, interested, enthusiast icBrand allegiance StrongUse-Situation SegmentationTime Leisure, work, morning, nightObjective Personal, fun, achievementLocation Home, work, mega mall, restaurantPerson Self, family members, friends, peersBenefit Segmentation Convenience, kindly evaluateance, easy e-book evinceing, 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 both(prenominal) way. On one hand, the hot-sell of iPad attracts galore(postnominal) PC manufacturers set foot in this field. So the other tablet computers will be the biggest competitor, such as blackberrys playbook, this is a tablet computer which located in melodic line person, and it will besides attract publics eyes because of its vast multimedia system function.On the o ther hand, the price advantage of netbook is also a challenge to iPad. After all compared with traditional computer, iPad may not a necessity. To whatsoever 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 bridges 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 code to Apple Apps Store which has over 300,000 applications and to iTunes are attractive feat ures of iPad.Fig 3.1.1 Tech Specs for Apple iPad (source http//www.apple.com)Value delivered to customer1) Convenient to Carry and Easy to UseCompared to functionalities and performance, it is surprised that iPad weighs only 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 easy to transport as compared to a laptop. Not only it is easier to carry it around, notwithstanding also be able to use it to check e-mails, show videos and photos to people instantly 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 denotationOne 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)Retrievi ng books to read on ibooks application on iPad is simply easy. Browse through the e-bookshelf on the iPad, choose one 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 flip is awesome flip it with finger and looks alone like a real book.3) Excellent Service for CustomerWhats more, 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 media browse much faster, it is easi er 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 Device for Environment justificationThe iPad is make of recyclable glass and Aluminum and the packaging material is recyclable & the packing is efficiently done. It is not using Arsenic, PVC, bromine fire, Mercury 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 contribution to environment protection. Fig 3.2.1 shows how green is the i Pad.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 access 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) exist 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 consumers. (Philip Kotler, Gary Armst rong, 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 and 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 image 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) Golden Service for Apple LoyaltyWhen customer are on the go, the Apple Store app is the best way to research, 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 Company had been promoting the iPad with the help of social media campaigns and multi-channel m edia 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 ratiocination 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 import 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 sacramental manduction 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 craved 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 move 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. meet 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. The company has manufact ured 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 advertised 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 has made a dent in the h istory of tablet business domain and the first successful product. This has also ignited the demand for new and improved 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 pass judgment 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 of Advertising Re search. 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