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Chapter 5

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Chapter 5 Chapter 5 Presentation Transcript

  • CHAPTER 5 DISCUSSION QUESTIONS1) Read the Apple case on pages 112 & 113 and answer questions A-I.A) In the late 1970s what was the popular device for on-the-go music loves to play tapes of their favorite music?B) What was the first MP3 player?C) What slowed down the initial adoption of MP3 players?D) How did Apples iPod change the attitude of the MP3 market?E) How did Apple promote iPod versions to appeal to different market segments?F) How did the iPhone change consumers views of the benefits of cell phones playing music?G) Why did many early adopters of the iPhone feel betrayed by Apple?H) How did Apple respond to the customers who felt betrayed?I) Because consumer attitudes & preferences can change quickly in technology markets, what will Apple have todo to build on its successes?2) What does the economic-buyer theory say?3) What are the 5 economic needs stated on page 115?4) What is discretionary income?5) What is the difference between needs & wants?6) What are the 4 levels of consumer needs that are based on Maslows hierarchy of needs?7) What is the difference between attitude, beliefs, and expectation?8) What does "AIO" stand for?9) What is a lifestyle analysis?10) Singles & young couples seem to be more willing to try what kind of products & brands?11) What are empty nesters?12) What is a reference group?13) What is an opinion leader?14) What are the steps in the adoption process?
  • EFFECTIVE MARKETING STRATEGY PLANNING REQUIRES AREAL UNDERSTANDING OF CUSTOMERS & WHY THEY BUY AS THEY DO.
  • IN THE LATE 1070’S WHAT BECAME A POPULAR WAY FOR ON- THE-GO MUSIC LOVERS TO PLAY TAPES OF THEIR FAVORITE MUSIC—ANYWHERE THEY WENT? SONY WALKMAN
  • WALKMAN-RETAIL: JULY 1, 1979 – OCTOBER 25, 2010 (COMPACTCASSETTE TAPE EDITION)-RETAIL: JUL 1, 1979 – PRESENT (ALL OTHEREDITIONS)-UNITS SOLD: 220 MILLION-MAIN COMPONENT OF WALKMAN MARKETINGCAMPAIGN: -PERSONALIZATION OF THE DEVICE.-HAVING THE ABILITY TO CUSTOMIZE A PLAYLISTWAS A NEW & EXCITING REVOLUTION INTECHNOLOGY.-POTENTIAL CUSTOMERS HAD THE OPPORTUNITY TOCHOOSE THEIR PERFECT MATCH IN TERMS OFMOBILE LISTENING TECHNOLOGY.
  • IN THE LATE 1990’S, THE NEW MP3 FORMAT OFFERED QUALITY MUSIC FROM A SMALL DIGITAL FILE THAT PLAYED ON A COMPUTER OR PORTABLE PLAYER. WHAT WAS THE FIRST MP3 PLAYER?
  • DIAMOND MULTIMEDIA’S RIO-INTRODUCED: SEPTEMBER 15,1998-SIZE: 3.5” X 2.5” (DECK OFCARDS)-LCD SCREEN DISPLAYED TRACKNUMBER BUT NOT ARTIST ORSONG TITLE.-MEMORY: 32 MB (30 MINUTES OFMUSIC)-POWERED BY 1 AA BATTERY (8-12HOURS OF PLAYBACK TIME).-RETAIL PRICE: $200
  • WHAT SLOWED DOWN THE INITIAL ADOPTION OF MP3 PLAYERS?1) DOWNLOADING MP3 FILES -USERS HAD TO DOWNLOAD MUSIC FROM VIRUS-RIDDEN WEBSITES (NAPSTER)2) CONVERTING CD’S TO MP3 FORMAT -USERS HAD TO USE SPECIAL SOFTWARE TO “RIP” CD’S TO MP3 FORMAT.3) LAWSUITS -MUSIC COMPANIES CHARGED THAT SHARING DOWNLOADED MP3 MUSIC FILES WAS ILLEGAL.
  • HOW DID APPLE’S IPOD CHANGE THE ATTITUDE OF THE MP3 MARKET? APPLE OFFERED AN INNOVATIVE MARKETING MIX THAT ADDRESSED THE NEEDS OF THE TARGET CUSTOMERS1) ITUNES OFFERED LEGAL DOWNLOADS OFSONGS AT A REASONABLE PRICE & WITHOUT THERISK OF VIRUSES.2) FREE ITUNES SOFTWARE MADE IT EASY TOORGANIZE DIGITAL MUSIC ON A COMPUTER &TRANSFER TO THE IPOD.3) IPOD WAS DESIGNED TO BE STYLISH, PLAY AHUGE NUMBER OF SONGS, & EASY TO USE.4) APPLES ADS MADE CONSUMERS AWARE OF ITSNEW CONCEPT & MOTIVATED THEM WITH THEPROMISE OF “A THOUSAND SONGS IN YOURPOCKET.”
  • IPOD-RELEASED: OCTOBER 23, 2001-STORAGE: 5GB-UNITS SOLD WORLWIDE: 300,000,000 (OCTOBER 2011)
  • WITH INCREASED COMPETITION, HOW DID APPLE PROMOTE IPOD VERSIONS TO DIFFERENT MARKET SEGMENTS?
  • HOW DID THE IPHONE CHANGE CONSUMERS VIEWS OF THE BENEFITS OF CELL PHONES PLAYING MUSIC?1) COLORFUL TOUCHSCREEN DISPLAY2) WEBSURFING3) COOL HANDLING OF MULTIMEDIA DOWNLOADS
  • IPHONE-RELEASED: JUNE 29, 2007-STORAGE: 4GB OR 8GB-UNITS SOLD: 100 MILLION(MARCH 2011)-APPROXIMATELY 378,000IPHONES SOLD EVERY DAY.-APPROXIMATELY 371,000BABIES BORN EVERY DAY.
  • NOT ALL OF APPLE’S MARKETING STRATEGY DECISIONS HAVE BEEN SUCCESSFUL. WHY DID MANY EARLY ADOPTERS OF THE IPHONE FEEL BETRAYED BY APPLE? A COUPLE MONTHS AFTER THE IPHONE HIT RETAIL FOR $600, APPLE DROPPED THE PRICE TO $200. HOW DID APPLE RESPOND TO THE COMPLAINTS?OFFERED $100 STORE CREDITS TO CUSTOMERS WHO BOUGHT THE PHONE FOR $600.
  • ECONOMIC BUYERS “PEOPLE WHO KNOW ALL THE FACTS & LOGICALLY COMPARECHOICES TO GET THE GREATEST SATISFACTION FROM SPENDING THEIR TIME & MONEY.” RED LASERFREE SHOPPING APP THAT ALLOWS USER TO SCAN BARCODE OF ITEM & COMPARE PRICES ELSEWHERE.
  • STAGES A CONSUMER GOES THROUGH WHEN MAKING A PURCHASE1) NEED RECOGNITION2) INFORMATION SEARCH3) EVALUATION OF ALTERNATIVES4) PURCHASE5) POST PURCHASE BEHAVIOR INFLUENCES ON THE CONSUMER DECISION PROCESS1) ECONOMIC NEEDS2) PSYCHOLOGICAL VARIABLES3) SOCIAL INFLUENCES
  • ECONOMIC NEEDS
  • ECONOMIC-BUYER THEORY-STATES THAT CONSUMERS DECIDE WHAT TO BUY BASED ONECONOMIC NEEDS WHICH ARE CONCERNED WITH MAKING THE BESTUSE OF A CONSUMER’S TIME & MONEY—AS THE CONSUMER JUDGESIT.EXAMPLES OF ECONOMIC NEEDS:-PRICE-CONVENIENCE-VALUE DISCRETIONARY INCOME-WHAT IS LEFT OF INCOME AFTER PAYING TAXES & NECESSITIES.
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