2. Learning Outcomes
1. Understand and
be able to apply
the Product Life
Cycle.
2. Apply the Product
Life Cycle to your
coursework.
3. Product-the ipod
• So what is at the
heart of this
marketing triumph?
• Not only is the iPod
making huge profits
(probably more than
$1,000 million in
2005), but its
reputation is making
more people buy
Apple computers.
4. iTunes
• The iPod was
launched in 2001,
but it was only the
establishment of
iTunes in 2002 that
made sales start to
move.
8. iPod Marketing Mix
• Product: quick product
development, from iPod
2001, to iPod Mini 2003,
iPod Photo 2004 to iPod
Shuffle 2005. As with all
its competitors, the iPod
is made (very cheaply) in
China, so the key to its
success is the stylish
design, not high quality
manufacture.
9. Price
• Price: always startlingly
high; at launch, the iPod
was over £200; even
today the iPod Mini 2 is
£139, whereas other MP3
players can cost as little
as £20. Apple has
managed the business
dream of achieving
market penetration at
prices that skim the
market.
10. Place
• Place: nothing new
here; Apple have
distributed the iPod
through the normal
mixture of department
stores, electrical shops
and on-line retailers.
• Are ipods sold in
supermarkets?
11. Promotion
• Promotion: brilliant and
lavish use of posters and
TV, featuring one of the
all-time great images, the
‘silhouette’.
• So what will happen next
to iPod? Sony and Nokia
are desperate to win
some of this incredibly
profitable business. Why
carry a mobile phone and
an iPod, if you could get
them combined into one?
12. Product
1. Describe your product or service.
2. Describe the Product Life Cycle
3. What makes your product or service
different from others?
4. Where is your product or service on the
Product Life Cycle?
5. How does the Product Life Cycle help
you?