5

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

• iPhone 5 is everywhere, easy for customers to purchase
• Online deliveries shipped by large companies such as
UPS and FedEx
Other
Authorized
Retailers
Best Buy
Staples
London Drugs
Cellular
Service
Providers
Apple Store
(Online/In
Stores)
Future Shop

• 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

• 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

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

Marketing Information Management
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 iPhone Users
Female
43%
Male
57%
• Sold over
5,000,00
0 phones on first 3 days
• 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
• 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

Product/Service Management
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

Various mobile companies offer different plans
Rogers
(Minimum 3 Year Contract)
16 GB – $179.99
32 GB – $279.99
64 GB – $379.99
Sources say 16GB iPhone 5 costs $167.50 to build, if sold for standard price a
$481.50 profit

• With a partner you need to find a consumer product of your choice (other than an apple product) and create a similar PowerPoint describing the 7 Functions of Marketing for that product.
• Provide researched details for each function.
• Print as a handout to turn-in and be prepared to present the following day.
• You will have 2 days in class to work on.
• Get to work!