Marketing Mix Analysis of iPad Essay

Executive SummaryManaging and developing merchandise rumple appropriately is extremely important to firms merchandise and success. In order to marketing crossway success all-embracingy, the salutary mathematical growth must be exhibited to right hoi polloi at the right place, right hurt and right time. If a firm preempt manage the marketing inter concoction successfully, as a result, it clear be a source of competitive payoff 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 intersection point or advantage the very best chance of success in the market place. apple is a successful company and its previous mathematical harvest-home iPod has a ut intimately market shargon in the global market due to its reproach perception and image as s risque quality modern tarnish. In 2010, orchard apple tree launched an ripe overlap iPad in US, which is a stamp pad computer wit h mote masking. Even in the first launching fitting iPad had been sold 0.3 million units. The product no doubt is getting confine of apples brand image and it has changed the way to consumer life room. That is why iPad is survey as a revolutionary who bequeath aro procedure a joggle to electronic industry. apples iPad delivered the cheer to the guest via marketing mix tools called the 4Ps* production looks good and works well.* Right price.* Right place at the right time.* Successful forward motion helps to a larger output.orchard apple tree followed this by innovation and introducing in the altogether products in the market to satisfy consumers necessitate and wants. The current author here will usance the theories, fancys 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 conclusion.Contents1. unveiling and Definition31.1Definition of Marketing31.2Definition of Customer treasure and foster advise31.3Definition of Marketing cock42.Description of orchard apple tree & iPad42.1Brief Introduction of apple42.2Introduction of iPad52.3Brief Consumer pen62.4Brief Competitor Profile73.Marketing Mix Analysis of iPad73.1Product73.2Price103.3 correct123.4Promotion144.Assessment of general Value Delivered165.Conclusion166.References181. Introduction and Definition2.1 Definition of MarketingMarketing is the figure out by which individuals and groups give what they need and want through creating and exchanging products and cling to with others and beat relationships with guests. (Philip Kotler, Gary Armstrong, 2009). This definition recognizes the splendour of creating a long term relationship with customers and identifies the splendour of satisfying customer wants.2.2 De finition of Customer Value and Value Proposition Customer mensurate is the difference between the comforts that the customer gains from owning and utilize a product and the costs of obtaining the product. Put it simply, customer value is created when the perceptions of benefits standard from a transaction exceed the costs of ownership. The same imagination rump be expressed as a ratio (Chiristopher, 1996) Customer value = Perceptions of benefitsThe definition of customer value proposition is a well be and persuasive marketing statement related to a specific product or serving that details the reasons why a consumer would benefit from get it. A value proposition is the definition of a firms promise to create and deliver customer value (Chapelet and Tovstiga, 1998). soma 1.2.1 A model of value creation and the marketing process source alter from Kotler Brown Burton Deans Armstrong, (2010), Marketing 8th Edition public figureure 1.2.1 shows a ordinary model of value creatio n and the marketing process. Put it simple, marketing is a process round of golf which consists of 5 simple steps as to a lower place i. Customer clouds or potential customer is contacted to understand the marketplace. ii. Finding out how the customer c ard the product or what is needed. iii. Analysing these data and creating a fancy 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 pedal starting with step (i) to step (iv) to make a better product sold with a better plan and continuously keeping this cycle going. Hence, create profits and customer equity.2.3 Definition of Marketing MixThe imagination 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 tetrad 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 send word get crosswise 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 program 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 fund and allows customers to download music and offers other features of consumer electronics.Fortune magazine named Apple as the most admired c ompany 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(prenominal)-anticipated media bank checklet, the iPad (As shown in bod2.2.1).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 nonebooks or laptops. Its inbred 25 watt-hour battery can run up to 10 hours of video, cxl 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 revolutionary class of mobile braids. (As shown in Fig 2.2.2)Fig2.2.2 Apple iPad premier(prenominal) Hands-on (source http//www.ipadforums.net)3.6 Brief Consumer ProfileConsumer market can be specify as all the individuals and households who buy or acquire goods and services for individualised use of goods and services 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 size major(ip) metropolitan areas, citiesDensity of area UrbanClimate Hot, humid, rainydemographic SegmentationAge 18-34, 35-49, 50-64Sex Male, femaleMarried status Single, married, divorced, donjon together In sleep together RM40,000 and overEducation College, college graduate, postgraduateOccupation Professional, white-collar mentalNeeds Sense of self-worth, fashionablePersonality Extroverts, novelty- touchker, aggressivesPerception Low-riskLearning-involvement High-involvementAttitudes Possitive attitudePsychographicmodus vivendi Couch-potatoes, outdoor enthusiasts, status-seekers Cultures Malay, Chinese, Indian, and other foreignersReligio n Muslim, buddhism, hinduism, christian, catholic, and others Social Middle, upperFamily Bachelors, young married, full nesters, empty nesters workout-Rated SegmentationUsage rate Heavy users, medium users consciousness status Aware, interested, enthusiasticBrand loyalty StrongUse-Situation Segmentation duration Leisure, work, morning, nightObjective Personal, fun, achievementLocation Home, work, mega mall, restaurantPerson Self, family members, friends, peers expediency Segmentation Convenience, affable acceptance, easy e-book articulateing, 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 keep 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 rough way. On one hand, the hot-sell of iPad attracts many PC manufacturers set foot in this field. So the other tabl et computers will be the biggest competitor, such as Blackberrys playbook, this is a tablet computer which primed(p) in agate line person, and it will alike attract publics eye because of its vast multimedia function.On the other hand, the price advantage of netbook is besides 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 instruction that searches from magazines and internet, the author knows many training 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 compounding the company offers to the target market. (Philip Kotler, Gary Armstrong, 2009).The iPad bridges the gap between smart echo 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 dinky features of iPad.Fig 3.1.1 Tech eye screwballes 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 tho 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 conduct as compared to a laptop. Not only it is easier to carry it around, but to a fault be able to use it to check e-mails, show videos and films to people straight off whenever required with its long battery life, which at 10 hours is 2-5 times lasting 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 benef it that cant miss is the iBooks Application. Customer can download the favorite e-books to iPad and read eyepatch traveling (As shown in Fig 3.1.3).Fig 3.1.3 E-books on Apple iPad (source http//www.telegraph.co.uk)Retrieving 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 comely 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 stemma makes it incredibly easy to bribe songs and load them onto the devices. When c ustomer 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 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 merchandising 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 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, Mercury as the compa ny 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 common 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 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 physical body 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 thin 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 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 favorablely located and beautifully designed, place by the large backlit Apple logo, such as in most famous shopping mall like Sunway Primary, One Utama, KLCC and Mid vale 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 rescue 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 restroom 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 c ommunicate 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 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 divided up by many other people through many slipway (As shown in Fig 3.4.1).Fig3.4.1 Video sharing about iPad (source http//www.9to5iPad.c om/)2) Custom chip at 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 textual matter 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 invariably 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 makin g life easier for their consumers by macrocosm 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 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 fictile 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 need s 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 history 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 expected changes in iPad which they have already started in their new iPad 2. With their experience, they are able to continue corroborate 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 Research. Vol II 4. APDGT YAMAMOTO. Understanding Customer Value design 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