7 Functions of Marketing

iPhone5

Promotion

Why Apple Thinks iPhone 5 is Revolutionary

• New ear bud design• iOS6 software• 18% thinner, 20% lighter than

iPhone 4S• 4-inch Retina display• LTE wireless technology, ultrafast

connectivity and battery life• A6 chip = better, faster, longer

graphics• Panoramic photography

• Uses simple style, avoids major language complications

• Video advertisement includes key members of Apple, available to view online

• Ads promote major changes, points that attract buyers

Promotion

• iPhone 5 is everywhere, easy for customers to purchase

• Online deliveries shipped by large companies such as UPS and FedEx

Distribution

Staples

London Drugs

Future Shop

Apple Store (Online/In

Stores)

Cellular Service

Providers

Best Buy

Other Authorized

Retailers

• New CEO, first iPhone released under guidance of Tim Cook

• Production plant leaks and fans create social hype prior to release

• Social Hype = Word of mouth, a powerful selling method

• People see friends with iPhones = Switch over to iPhone 5

Selling

• Celebrities like Rihanna, Jessica Alba, Olivia Wilde are all iPhone users = encourages fans

• Already a well established brand, has loyal fans

• Very “enthusiastic “ staff, iPhone 5 line ups were similar to a party

Selling

Comes in White and Black• $699 +tax (16GB)• $799 +tax (32GB)• $899 +tax (64GB)Prices vary with mobile contracts

Special prices for students and education related purposes

Pricing

Ratings• Tech Radar: 4.5 / 5• Cnet.com : 4/ 5-> Overall, average ratings

• Apple shares fell 1.3%• Analysts predict a sale

of 10 million iPhone 5s• Sold more than Nokia

Lumia• Can be purchased in

100 countries by end of year

• TV ads will boost sales during holidays

Marketing Information Management

• Sold over 5,000,000 phones on first 3 days

Male57%

Female43%

iPhone Users

• 42% of iPhone users were between 25-44

• 18% were 17 or younger

Marketing Information Management

• However, selling 5 million is not a huge improvement

• Chart shows that sales between iPhone 3Gs – iPhone 4 grew 70%

• Sales between iPhone 4 and iPhone 4S grew 135%

• Sales between iPhone 4 and iPhone 5 grew only 25%

Marketing Information Management

CONFLICT WITH GOOGLE MAPS• Google refused to

give iPhone 5 turn by turn navigation, available to Android

• Unpleased, Apple made their own map which failed and gave distorted 3-D photography

Marketing Information Management

Marketing Information Management

iPhone 5 Galaxy Note 2

• 8 Hour Talk Time• 326 ppi

• Smaller, but better quality• Design more popular• Almost indestructible case

but prone to scratches• Better software and

hardware integration• Mobile system “polished”

and “perfected”

• 16 Hour Talk Time (3G)• 267 ppi

• Large resolution, less crisp• Too large for the pocket• Innards protected by thin

plastic that pop out easily• Better “specs” (hardware)• Good for multitasking, similar

to PC

Online Service• Apple website easy to navigate,

organized answers to common questions/ issues

• Customer service available by phone or online

• Offers “Apple Care”, premium support and coverage (prices vary for devices)

• Special service for business owners

In-Store Service• Pro: Very good service, friendly staff• Con: Too busy, customers must wait in

order to receive service

• Stores allow customers to test products

• Offers iPhone accessories from external companies

• Genius Bar for 1 on 1 service, book appointments

Product/Service Management

Various mobile companies offer different plans

Rogers (Minimum 3 Year Contract)

16 GB – $179.9932 GB – $279.9964 GB – $379.99

Sources say 16GB iPhone 5 costs $167.50 to build, if sold for standard price a $481.50 profit

Finance