Apple I-PodDanelle Herman, Aaron Potts,

Stephanie Miller, Josh Marostica, Paige Daniels

HISTORY

• Apple was founded in 1976 by Steve Jobs and Stephen Wazniak

• They started off building simple computers in Steve’s bedroom and eventually transformed into the company they are today.

• Their company was named after Steve’s summer job, where he worked in an apple orchard.

iPod

• In 2001, Apple created a digital music playing device called the iPod.

• This product was extremely popular and helped Apple become one of the top competitors in the technology industry.

• The first generation iPod came with a 5GB hard drive and a scroll wheel that set it apart from other music playing devices

External Influences

• Cross-Culture Variations– Sales increase at a fast pace, international sales are a big contributor.

• Values– Self, Environment, and Other

• Changing American Society– Has become the “norm” for music players

Ethnicity

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5+

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Number of housholds

Number of homes

Number or iPods

Recommendation 1

• Apple should advertise and promote the iPod for more business related situations.

• Having new and different functions for the iPod will broaden the areas that it can be used in which will increase sales even more.

• The use of the iPod to train new employees, pod-casts, the distribution of information

Internal Influences

• Perception– Exposure

• Selective: Simpson’s, MadTV, Scary Movie 4• Voluntary: Stay-in-touch

– Attention• Stimulus Factors:• Address Adaption Level Theory• Situational Factors

– Interpretation• Affective interpretation• Expectation Bias• Figure-ground

Marketing Strategy

• Apple’s brand extension• Mac Computer• iPod: line extension

» iPod Mini, iPod Nano, iPod shuffle, iTouch

• iPhone• Apple TV

• Package Design » Simplicity, sophisticated, representative

• Co-Branding» Nike+

• Perceived fit

Recommendation 2

• Co-Branding• The Biggest Loser on NBC• 24 Hour Fitness

• Each contestant with an iPod• Image

• Working out• Endurance• Health • Achieving goals

Motives

• Manifest Motives– Small size– Large storage capacity– 2-inch screen– Sort stored and labeled music– Rechargeable lithium battery

• Latent Motives– Status symbol– Individual colors, 9 different– Personality– Fashion statement

Personality

• Brand Equity– Apple has created a name for itself– First digital music player available– iTunes

• Personality– Innovation– Creativity– Hip – Fashionable– Cutting-edge

Attitude• Affective– Feelings or Emotional Reactions

• Cognitive– Consumers beliefs about an object

• Behavioral – One’s tendency to respond in a certain

manner toward an object

Recommendation 3

• Celebrity Endorsements– Currently do not have any celebrity endorsers for

iPod– Celebrity endorsements change consumers

attitude toward the product– Boosts credibility and creates a desire for the

product

Outlet Selection

Four major determents• Outlet location • Perceived risk • Atmospherics• Sales personnel

Apple Store Best Buy Apple Website Other

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Purchase outlet

Sales Personnel

• Influence consumer’s decision by • Personal preference• Understanding of the product • Ability to distinguish key features

Recommendation 4

After speaking with a Best Buy sales associates it became apparent that Apple does not introduce their product at their distribution stores.

– Apple does not explain • The modifications they made to the new generation iPods• The distinguishing features have from the previous iPods • Effectively work the iPod

We recommend that Apple sends a iPod expert to all distribution stores. There they will explain the new features, any modifications, and how to properly work the iPod. This will help Apple consumer have a better understanding of the product they buy before purchasing it. This will eliminate post purchase dissonance.

E-Commerce

• Content• Simple colors• Product information• Easy Navigation

• Communication• Customer Support

• Commerce• Privacy Policies• Secure Transactions

Apple and the Environment

• Most of Apple’s efforts are directed towards their Mac computers– Changed packaging– Recycle iPods and the packaging- Asia, Europe,

and Australia

THE END