Marketing strategy and the Apple iPod's market transformation

Principals of Marketing

Throughout history a wide variety of products have been introduced, which are having a tremendous impact on the way everyone is living their daily lives. One such example of this can be seen by looking no further than the I Pod. As this small device, began to redefine the way that everyone listens to music.

Part of reason for this, is because the digital music jukebox provides a wide selection of songs that can be listened to in format that is user friendly. At the same time, it is taking the idea of selling various songs individually to increase the overall bottom line of the company. This is significant, because it is showing how marketers were able to create a one of a kind product that can be used to generate a new way that everyone could listen to music.

At the heart of their basic strategy, was to offer merchandise that could address the needs of consumers. This was accomplished by: providing affordable downloadable music and augmenting them with effective marketing strategies to increase demand. Once this occurred, it meant that a shift has taken place in the industry. As, more people began to use the product to be entertained in comparison with the traditional CDs that many were purchasing. This gave them a choice of those songs that they liked and they could ignore the ones deep inside an album that they never listened to. At which point, a shift occurred inside the industry that helped the company to redefine the marketplace. To fully understand how this took place requires examining the social, psychological, ethical and political factors that were having an impact on the industry. Together, these different elements will provide the greatest insights about how managers were able to market the product to a wide variety of segments. Over the course of time, this would create a transformation inside the sector itself.

The Principals of Marketing the I Pod

The basic strategy that was used for marketing the I Pod was to create an alternative product that was addressing the demands of consumers. In this case, they wanted something they could utilize that would be able to offer them an affordable way of downloading the music they demanded. While at the same time, it was portable enough that it could be listened to during a number of different activities. This provided an initial foundation for the company to be able to market their new device using: word of mouth, traditional and online sales tactics. Within the first year of its launch, this approach helped the Apple to be able to sell over one million units. At the same time, it allowed the company to see repeat sales by offering customers the ability to purchase thousand of song from their library for only $.99 cents. ("I Pod and I Tunes Timeline," 2011)

As more versions were introduced, they began to expand the number of features that were offered to include: the ability to download videos from the I Tunes store. This is the point, when they began to redefine the portable music and video markets, with the company creating a unique product that can address these demands. This is significant, because it is showing how they were able to create a unique product that can address the needs of consumers. While being able to: redefine the technology, music and motion picture industry. Once this occurred, it meant that they would become the industry leader in setting a standard for innovative products that were addressing the needs of consumers. ("I Pod and I Tunes Timeline," 2011)

Recently, these changes have been occurring with the company offering merchandise that was combined with various applications to enhance the user experience. As a result, Apple has been able to identify changes in consumer tastes to have an impact on the way people are being entertained. This is important, because it is illustrating how these changes are redefining the music, entertainment and technology industries. ("I Pod and I Tunes Timeline," 2011)

Social Influences

The social influences that would have an impact on Apple and the industry are that a shift was occurring during the 1990's. What happened was various websites such as Napster began to offer consumers the ability to download a wide variety of songs. This had an impact on the music, technology and entertainment industries. As, an increasing number of people were no longer willing to spend money on: purchasing CDs, videos and applications. Instead, they wanted something that was small and customizable to what they wanted. ("New Napster," 2003)

This created a showdown between the industry; who wanted to see these various applications limited because of copyright concerns. Yet, technology had advance to the point that people were no longer willing to be able to continue to use the traditional model of the music and entertainment industry. At which point, a quandary developed over how this conflict would be addressed. ("New Napster," 2003)

When Apple introduced the I Pod in 2001, the company began to aggressively focus on these social preferences by: creating a bridge between the entertainment industry and the changes in technology. Over the course of time, this strategy was so effective that it allowed the company to address the demand of the general public. While at the same time ensuring, a new avenue for: the music and entertainment industries to offer a wide variety of products. This is the point that a shift would take place in how consumers were being entertained. ("New Napster," 2003)

Evidence of this can be seen by looking no further than the fact that movie and television studios will upload versions of their programming for sale to consumers in the I Tunes store. As customers have wide variety of choices at one low price. While at the same time, the industry is able to protect their copyrights and the patents of the products that they are producing. This is significant, because it shows how this kind of shift will is addressing: the social needs of customers, which has created a change in the way they are being entertained. ("New Napster," 2003)

Psychological

From the psychological standpoint, the introduction of I Pod created a shift in how consumers were looking at the product itself. This is because Apple was able to tap into the demand for: specific songs, movies, videos, television shows and applications. This had an impact on consumers by giving them exactly what they wanted, at a low price that they could afford. Once this occurred, it meant that demand would increase exponentially for the products and services that they were selling. ("I Pod and I Tunes Timeline," 2011)

Over the course of time, this would lead to a transformation in how everyone was being entertained and it created other products that helped to build upon the new image of the company. This is the point that Apple became the industry leader by being directly tied to various segments of: the music, entertainment and technology industries. Psychologically speaking, this created a change in consumer perceptions about what is the best product for meeting their demands. Over the course of time, this led to a must have mentality in the minds in the general public about owning Apple products. As, they were seen as something that was considered to: be hip and the most effective way for being entertained. This helped to create a transformation in the inside the industry and what products were seen as superior in comparison with others. ("I Pod and I Tunes Timeline," 2011)

Ethical Influences

The biggest ethical issues that were affecting Apple were how to address the needs of consumers. While at the same time, making sure that they can maintain some kind of standard that will protect the traditions inside the music and entertainment industries. At first this was somewhat challenging, as they were facing the dilemma of copyright infringement (if they offered various songs and applications to their customers without paying some kind of percentage to producers). Then, they had to maintain some kind of balance by ensuring that both industries would be able to continue to receive their royalties from various titles. ("I Pod and I Tunes Timeline," 2011)

As a result, Apple negotiated with many different record companies about offering their songs in the I Tunes store. This addressed the various ethical issues that were affecting the industry by providing a way that they could be able to receive some kind of royalties for the various products that they are marketing. At the same time, they were addressing the needs of consumers by providing them with various products that were inexpensive and in a format that was easy to use. ("I Pod and I Tunes Timeline," 2011)

When you put these two elements together, this meant that Apple was able to effectively deal with the various ethical issues they were facing. This was accomplished by taking a middle of the road approach through searching for a viable solution. At which point, they began to offer a product that could address both issues in the form of the I Pod. Then, once the device became popular they expanded the various kinds of music and they added numerous programs (with each new version that was released). Over the course of time, this created a shift inside the industry by offering a way to meet the demands of consumers and ensuring that the ethical issues of the music / entertainment industries were addressed. ("I Pod and I Tunes Timeline," 2011)

Conclusion

Clearly, the most effective strategy that Apple used for marketing the I Pod to consumers were to address various issues that could have an impact on: sales and the success of the new product. To achieve this objective, the company was engaging in a strategy that addressed a number of different issues. From the social standpoint, they were addressing the demands of consumers by providing them a way of downloading the songs they wanted. This was accomplished through their use of the I Pod and the I Tunes store. To deal with the different psychological aspects of marketing, the company began to focus on creating a device that met the demand of consumers. This was accomplished through them focusing on delivering a variety of services to customers including: music, videos, movies, television programs and applications. As far as ethics is concerned, Apple was concentrating on identifying those areas that can provide a bridge between: the demands of consumers, changes in technology and within the industry. Where, they created a model that could be used to provide consumers with the content they wanted. While, ensuring that the industry was able to continue to receive its royalties through selling various titles in the I Tunes store. In the case of political issues, Apple was able to address antitrust concerns through showing how the product was the first of many alternatives that would be available to consumers. These elements are important, because they are illustrating how executives would be able to offer a new device that met the demands of consumers. While ensuring; that the industry would be able to benefit from the new business model that was introduced. This allowed marketers to be able to create a new product that would transform: the technology, music and entertainment industries.