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Product, Pricing, and Channels Paper Essay Sample

Product, Pricing, and Channels Paper Pages
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A detailed description of the features of your product or service including how it solves the needs of your target market: The Apple Watch II features a sapphire crystal screen, increased water resistance, and kinetic battery technology. The use of a sapphire crystal screen isn’t considered that technology advanced, however, its crystal-clear transparency and hardness, second to a diamond, makes it an ideal product for display screens. This will help against scratches or possible cracking. The Apple Watch II will also have an increased water resistance from 30 meters up to 50 meters. The Apple Watch II is now suitable for swimming, white water rafting, non-snorkeling water related work, and fishing; however, it is still not suitable for diving. The most exciting feature of the Apple Watch II is the use of kinetic battery technology. Although this is not new technology, it will be the first time Apple Inc. will be using it within its product line. Kinetic charging allows the wearer to recharge the battery when motion occurs while wearing it on the user’s wrist.

There are several advantages of a kinetic battery. One is that the wearer will not need to wind or change a battery as the watch is powered through his or her movement and then stored within the watch. Apple Watch II can store this energy for up to six months and also has an indicator to let the wearer know how much charge is being stored. Another advantage is the accuracy of the Apple Watch II. It uses multiple technologies in conjunction with the wearer’s i-Phone to keep time within 50 milliseconds of the definitive global standard. Finally, although there are no batteries to replace, the main capacitor that stores the energy and keeps time may need to be tuned up or replaced every 5-7 years. A description of how your marketing efforts will change with each phase in the product life cycle: One major advantage Apple Inc. has in its marketing efforts is during the earliest phase of the product life cycle.

All new products go through four different stages. These stages are Introduction, Growth, Maturity, and Decline. These four stages coincide with the consumers that not only embrace the new technology but become customers and help to increase customer attention. Typically the introduction phase is the phase where the company seeks to build product awareness and to develop a market for the product. Distribution is typically very selective until customers show acceptance of the product. This is not the case with the Apple Watch II. This is due simply to the fact that the Apple brand has such a strong following. Apple Inc. expects that marketing will naturally focus on the innovators and early adaptors. Regardless of what is being released, Apple Inc. has such a strong following that nearly every media outlet reports on its product releases. The Apple Watch II will be no different.

Apple Inc. expects marketing efforts to start out strong as we leverage upon our existing customer base and focus on what differentiates this product from the prior version. Apple Inc. will also leverage the media outlets reporting on this product to market the product for us. This will allow Apple Inc. to stretch its marketing dollar yet maintain market focus on the Apple Watch II. Apple Inc. expects to be able to ride the early wave of excitement around the product launch for quite some time. When moving into the growth stage, Apple Inc. will focus its marketing attention on the early majority of customers. During this phase, Apple Inc. will leverage improvements in features through additional applications in the App Store. As the Apple Watch II enters the maturity phase, Apple Inc. may experience a decline in sales due to a combination of competition and saturation of the marketplace. In this phase many of the consumers that were going to purchase this product have already purchased the product and those that haven’t will compare and contrast with the competitors that may have caught up with features in the product.

While Apple Inc. does not offer price promotions, in this phase Apple Inc. may allow its retailers to bundle the Apple Watch II with accessories to improve its competitive edge. When the Apple Watch II finally enter into the decline phase, it will become very important for Apple Inc. to begin “leaking” information around the next iteration of the product. Apple Inc. can release information such as specs on future products, features, benefits and possibly even a release date for the next product. The packaging you will use for your product or service and how it will add value: The entire concept of the Apple Watch II is very intriguing, but what fascinates customers even more is the packaging of the product itself. Packaging is an important aspect in marketing and Apple Inc. takes package design very seriously. “Packaging involves promoting, protecting, and enhancing the product.” (Perreault, Cannon, & McCarthy, 2014, p. 211). The Apple Watch II will be displayed attractively in a seamless clear case complete with the Apple logo.

This will allow the consumer to see the beauty of the product in its presentation but also promotes the Apple brand at point of purchase. The Apple Watch II will integrate a charging dock base that doubles as a watch stand/holder within its packaging design. It will have two USB points allowing the consumer to charge multiple Apple products. This feature adds tremendous value to the product as consumers can arrange his or her Apple products in one location while keeping clutter to a minimum. Apple Inc. is well known for its simple, minimalist, and sleek packaging designs. Apple Inc. wants the user experience to begin when the consumer picks up the box itself. The appropriate pricing strategy for your product or service and the price you will set at launch: Apple Inc. understands that a high quality buying experience increases its ability to attract and retain customers and Apple Inc. is well known for its innovation. Apple Inc. has established a unique reputation and has ensured brand loyalty in the electronics industry by its ability to design new and innovative high end products. Consumers starve for Apple products.

Customers who own Apple products usually own more than one device due to its unique operating system. Customers perceive a higher value for Apple products. The majority of the time, consumers are not aware of the real cost of production for the products he or she are buying. It is simply what is worth to them. It is the perceived value of the product. Apple Inc. has a unique reputation and customers know that Apple products mean high end innovative products. The Apple Watch II is no exception from all the other Apple products. This watch is a high quality watch within the market. The appropriate price strategy will be the perceived value strategy. The starting price for the Apple Watch I was $349 and with the new additions to the Apple Watch II, the starting price will be $449. The channels of distribution you will use to sell your product along with a description of how each channel partner will add value: The channels of distribution Apple Inc. will use to sell the Apple Watch II will be direct and indirect.

The direct method of distribution is preferred because Apple Inc. will maintain full control of the entire marketing process. If Apple Inc. were to use wholesalers or retailers to sell the Apple Watch II, they might make decisions that are in their own best interest in mind, because of the multiple products they sell. Direct marketing through a website-based e-commerce system will give Apple Watch II direct access to the customer, at a low cost and with high profit potential. Additional direct marketing channels Apple Inc. will use and its value include: Telemarketing: Inexpensive, efficient, quick, access to remote areas and easy Mail: Inexpensive, can reach a large audience, Can be personalized and has measurable results Personal Selling: Relationship with customers, loyalty, pride in product, control brand image, repeat business The indirect channel of distribution has advantages over the direct channel. Because of the need to invest in people, services and technology in the direct method, it will be cost effective to work with reputable intermediaries.

This will allow Apple Inc. the flexibility to focus their financial resources on other aspects of the Apple Watch II. Another advantage according to Perrealult, Cannon and Carthy (2014), “intermediaries may further reduce producer’s need for working capital by buying the producer’s output and carrying it in inventory until it’s sold. If customers want a good “right now”, there must be inventory available to make the sale. And if customers are spread over a large area, it will probably be necessary to have widespread distribution”. Most importantly, the intermediary can aid Apple Inc. by better assisting its customer base and at a lower cost. Here is a list of indirect channels Apple Inc. will use to assist with Apple Watch II sales and their value: Retailers: Very wide distribution, can offer personal consumer assistance, may offer financing Agents: Broad network, personal face to face, established channels Distributers: Focused customer base, cover more geography, additional sales force

References

Apple.Com. Timekeeping. Retrieved from http://www.apple.com/watch/timekeeping/?cid=wwa-
us-kwm-watch-com
Livescience. Apple Watch: What’s So Great About Sapphire? Retrieved from http://www.livescience.com/47793-apple-watch-sapphire.html
Perreault, W. D., Jr., Cannon, J. P., & McCarthy, E. J. (2011). Basic marketing: A marketingstrategy planning approach (19th ed.). New York, NY: McGraw-Hill Irwin

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