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Marketing Anoop Muraleedharan Nomso Ebonwu Remon Hanna Sabir Dsoki Sana Haq (apple.com)

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Introduction <ul><li>Market Analysis </li></ul><ul><li>Theory </li></ul><ul><li>Buyer Behaviour </li></ul><ul><li>Segmentation </li></ul><ul><li>Marketing Mix </li></ul><ul><li>Recommendation </li></ul>

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Definition of Marketing “ Marketing is the process of the planning and executing the conception, pricing, promotion and distribution of ideas… and satisfy individual and organizational objectives” Brassington (2006)

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PEST Analysis <ul><li>Political factors </li></ul><ul><ul><li>Regulations </li></ul></ul><ul><ul><li>Tax policies </li></ul></ul><ul><li>Economic factors </li></ul><ul><ul><li>Current international recession </li></ul></ul><ul><li>Social factors </li></ul><ul><ul><li>Lifestyle </li></ul></ul><ul><ul><li>Cultures </li></ul></ul><ul><li>Technological </li></ul><ul><ul><li>Apple iPhone 3G no longer just mobile phone </li></ul></ul>

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Porters Five Forces Porter (1980)

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SWOT Analysis (Apple iPhone 3G) <ul><li>Strengths </li></ul><ul><li>Brand & Style </li></ul><ul><li>User base </li></ul><ul><li>Rich UI </li></ul><ul><li>First mover </li></ul><ul><li>Sensors </li></ul><ul><li>Wi-Fi </li></ul><ul><li>Weaknesses </li></ul><ul><li>No UMTS </li></ul><ul><li>Limited distribution channels </li></ul><ul><li>Missing features </li></ul><ul><li>High price </li></ul><ul><li>Opportunities </li></ul><ul><li>Combining mobile and computing </li></ul><ul><li>Migrate people to Apple </li></ul><ul><li>New social device </li></ul><ul><li>Distribute iTunes content </li></ul><ul><li>Port existing apps </li></ul><ul><li>Threats </li></ul><ul><li>Similar devices </li></ul><ul><li>Highly developed market </li></ul><ul><li>Nokia & Sony, </li></ul>

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Value Chain Porter (1985)

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Value Chain Analysis for iPhone 3G Components Design Build OS / UI Apps Branding Marketing Sales User Billing Network

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THEORY

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BCG Matrix

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Product adoption process <ul><li>Source: Kotler, Armstrong, Saunder & Wong (1999) </li></ul>

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Product lifecycle <ul><li>Source: Jobber & Fahy (2003) </li></ul>

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Ansoff’s growth matrix <ul><li>Henry(2008) </li></ul>

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Consumer Behaviour

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<ul><li>Analysis and understand buyer`s behaviour </li></ul><ul><li>Consumer is the heart of the marketing environment </li></ul><ul><li>The main users of I phone are individual consumers </li></ul><ul><li>Consumers needs and wants are differ from one to one </li></ul>

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Process <ul><li>The decision making process </li></ul><ul><li>Consumer undertake to decide the purchase </li></ul><ul><li>iPhone 3G launch with new features because people knew the problems of I phone </li></ul><ul><li>iPhone 3G try to influence consumers in different ways , like providing information's through online and multimedia </li></ul><ul><li>Increased technology aspect is highlighted </li></ul><ul><li>Faster internet , user-friendliness , reasonable price </li></ul>

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Factors that affects buying <ul><li>PEST analysis </li></ul><ul><li>Culture factors </li></ul><ul><li>Spotted the difference between the cultures and cultural needs </li></ul><ul><li>Psychological factors, needs motivations, personality, perception, belief etc. </li></ul><ul><li>Maslow`s hierarchy of needs </li></ul><ul><li>Importance to factors like social benefits, brand characteristics and entertainment than financial terms </li></ul>

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Segmentation, Targeting and Positioning

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Levels of segmentation <ul><li>Mass marketing </li></ul><ul><li>Segmenting market </li></ul><ul><li>Niche market </li></ul><ul><li>Smartphone </li></ul><ul><li>Micromarketing </li></ul>

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Segmenting consumer markets: <ul><li>Geographic segmentation </li></ul><ul><li>Demographical segmentation </li></ul><ul><li>Geo-demographic segmentation </li></ul>

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Geographic segmentation

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Adopted from appleinsider.com

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Adopted from appleinsider.com

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Segment strategy <ul><li>Undifferentiated marketing </li></ul><ul><li>Concentrated strategy </li></ul><ul><li>Market coverage strategy </li></ul>

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<ul><li>Positioning </li></ul><ul><li>Repositioning </li></ul><ul><li>Perceptual mapping </li></ul>Targeting :

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Adopted from Jdpower.com

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Adopted by JDPower.com

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Marketing Mix

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The marketing mix <ul><li>A marketing mix is generally a term used to describe a combination or blend of tactics used by organisations or companies to market their products or services to a particular target customer group. (Jobber D, 2004) </li></ul><ul><li>Product </li></ul><ul><li>Price </li></ul><ul><li>Promotion </li></ul><ul><li>Place </li></ul>

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Product <ul><li>The I Phone is a modern revolutionary tool which utilizes the latest technology (3G) cellular /Wi-Fi networks around the world. It utilizes the most advanced operating system for a mobile phone (os x), which can access the very best in applications whilst being able to multi task. </li></ul><ul><li>The I Phone has a most modern interface based on a large multi-touch screen and innovative software which allows the user to control the phone by the touch of a finger. </li></ul><ul><li>The IPhone comes with a sleek, simple design measuring just 54”24”, with a display screen measuring 3.5” and 480x320pixelshas the best graphics for video playback and gaming </li></ul>

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Product Life Cycle <ul><li>There is no introduction as the I phone 3G is an upgrade of the I phone. </li></ul><ul><li>Product quality is maintained and additional features and support services may be added. </li></ul><ul><li>Pricing is maintained as the firm enjoys increasing demand with little competition. </li></ul><ul><li>Distribution channels are added as demand increases and customers accept the product. </li></ul><ul><li>Promotion is aimed at a broader audience. </li></ul>

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Place <ul><li>The place involves the use of distribution channels, channels of intermediaries, outlet location, wholesale and retail, access to market place and selling directly to the customer through media like the internet. </li></ul><ul><li>The I Phone went on sale on June 29 th 2008 in the US through apples retail and online stores. Apple sells the I Phone through major telecommunications providers around the world. For example the I Phone is sold through the O2 network in the UK and the T-Mobile network in Germany </li></ul>

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Price <ul><li>There are 2 simple affordable service plans which come with the I Phone 3G on the O2 network, at £45 and £75 contract offers. </li></ul><ul><li>On any offer below those stated the customer will have to pay £99 for the 8GB and £159 for the 16GB memory capacities. </li></ul><ul><li>Available at a retail price of £349.99 for the 8GB and £399.99 for the 16GB memory capacities. </li></ul>

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Promotion <ul><li>Apples first point of sale is through its really innovative products with its emphasis on the stylish design, the good quality and the devices functionality. </li></ul><ul><li>Through memorable advertisements on all the types of media and the internet, apple has been able to assure customers that the I Phone is really the device that has been well worth the wait. </li></ul>

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Recommendations <ul><li>The iPhone 3G price </li></ul><ul><li>The iPhone 3 G product – seems very fragile, the camera, timely upgrades </li></ul><ul><li>The iPhone 3G place – Other markets especially in Africa and Middle east </li></ul><ul><li>The iPhone 3G promotion – More incentives for the I Phone potential customers. </li></ul>

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Bibliography <ul><li>Advertising slogan (2006) available from http://www.adslogans.co.uk/hof/hofindx1.html (accessed 1st of December, 2008) </li></ul><ul><li>Baldwin, S.(2008) available from http://www.nytimes.com/2008/12/08/technology/personaltech/08link.html?_r=1 ( accessed 5 th of December, 2008) </li></ul><ul><li>Brassington, F. And Pettitt, S. (2006) Principles of Marketing , 4th edition, McGraw-Hill, United Kingdom </li></ul><ul><li>Dubois, P. Jolibert, A. and Muhlbacher, H (2007) Marketing Management , a value-creation process, Palgrave Macmillan </li></ul><ul><li>Henry, A. (2008) Understanding Strategic Management , Oxford University Press Inc, p2 </li></ul><ul><li>iPhone 3G, available from http://www.o2.co.uk/iphone?cm_re=consumerarea- _-leftbox-_-iPhone3G (accessed 2nd December, 2008) </li></ul><ul><li>iPhone available from http://www.apple.com/iphone/ (accessed 2nd December, 2008). </li></ul><ul><li>Jobber, D (2004) Principles and Practice of Marketing , 4th edition, McGraw-Hill, United Kingdom </li></ul><ul><li> </li></ul><ul><li>Jobber, D, and Fahy, J (2003) Foundations of Marketing , McGraw-Hill, United Kingdom </li></ul>

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Bibliography <ul><li>Kay, J. (1993) Foundations of Corporate Success : how business strategies add value, Oxford, Oxford University Press </li></ul><ul><li>Kotler. P, et al (2001) Principles of marketing, 3 rd edition, Italy Kotler, P. et al (1999) principles of marketing , 2nd Edition European edition, Italy </li></ul><ul><li>Martin Christofor (1995) Marketing and Introductory Text . Macmillan Press Ltd, p3 </li></ul><ul><li> </li></ul><ul><li>Pearson, G. (1999) Strategy in Action: strategic thinking, understanding and action </li></ul><ul><li>Porter, M (1980) Competitive Strategy: Techniques for Analyzing Industries and Competitors, the free press, A Division of Macmillan, Inc, p4 </li></ul><ul><li> </li></ul><ul><li>Wilson, R.M.S, and Gilligan, C. (1997) Strategic Marketing Management, 2nd Edition, London </li></ul><ul><li>Taylor, P. Allison, K. and Parker, A. (2008) Apple’s 3G iPhone aims to dominate smart phones, The Financial Times Limited. Published: July 9 2008 19:59 | last updated: July 9 2008 19:59) </li></ul>

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Thank You!