Essay on Apple Ipod Case

2364 Words10 Pages
Marketing Management
2007

Apple iPod
Case Study

Table of contents
1 ANSWER TO QUESTION 1 1
1.1 HOW WOULD YOU DEFINE THE MARKET FOR THE APPLE IPOD? WHICH ARE THE RELEVANT EXISTING AND FUTURE COMPETITORS? 1
2 ANSWER TO QUESTION 2 1
2.1 HOW WOULD YOU DEFINE APPLE’S COMPETITIVE ADVANTAGE? 1
3 ANSWER TO QUESTION 3 2
3.1 HOW IMPORTANT IS CUSTOMER LOYALTY FOR APPLE? 2
3.2 WOULD YOU RECOMMEND A STRICT EXIT STRATEGY FOR ITUNES, IF THE PROFIT PER TRACK OF 10 CENTS WILL GO DOWN TO ZERO EVEN NEGATIVE? JUSTIFY. 2
4 ANSWER TO QUESTION 4 3
4.1 DEVELOPMENT OF A PERCEPTUAL MAP 3
4.2 WOULD YOU LIKE ADDITIONAL DATA? 4
5 APPENDIX 6
6 REFERENCES 9

Table of Tables
Table 1 Marketing questionaire of portable Mp3 players ranked for
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Windows and Apple Mac users found themselves together fighting for innovation and idealism. Many outsiders were amazed at the speed and extent at which Apple was able to bring even non-traditional users into the Apple community.
Should Apple invest into each customer to increase customer loyalty?
If this means whether Apple should invest at all, then our answer is a clear ‘yes’. But it should be clear from our last answer that brand loyalty is already strong, so we do not believe that Apple needs to increase spending in this area.. Additionally, Apple has a history of good customer service. In the 2006 Customer Satisfaction Index, Apple placed top in customer satisfaction among PC manufacturers . The report also stated that Apple’s customer service agents at the call centers were key for the high rating. Such call center agents are often the only face of the company, and contribute significantly to customer loyalty. This has been a strong factor helping to transform the customer into a brand champion - promoting Apple’s cause by word-of-mouth.
3.2 Would you recommend a strict exit strategy for iTunes, if the profit per track of 10 cents will go down to zero even negative? Justify.
We would not recommend a strict exit strategy for iTunes in this case. iTunes is an immensely popular store for purchasing online music for the iPod. The argument against

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