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Essay / Research Paper Abstract
This 4 page paper looks at the pricing and distribution strategy of Apple with the iPod. The pricing strategy is identified, and the way that the pricing and distribution strategy may offer promotional opportunities is assessed. This assessment includes the potential for further brand extensions. The bibliography cites 7 sources.
Page Count:
4 pages (~225 words per page)
File: TS65_TEipodprice.doc
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Unformatted sample text from the term paper:
may also vary on the lifecycle stage of the product. The approach of Apple to pricing may be argued as a premium pricing. Premium is a strategy where the
product price is higher than many other products on the market (Anonymous, 2012). This is usually facilitated where there is a high level of differentiation that is valued by the
consumer; meaning that they are willing to pay the premium price for the additional real or perceived features and characteristics associated with the good (Mintzberg et al, 2008). The iPod
has been able to successfully differentiate itself; it has been able to gain a strong market following with a very loyal customer base (Kotler and Keller, 2008). The premium
price reflects the high level of differentiation that product has achieved, in terms of the features and the psychological association. It is seen as the quintessential MP3 player, it is
also highly fashionable with the slim design and the way that the design has changed. The alignment with the i range of product and cross functionality between the products all
adds value to the brand. The pricing also helps to support the premium positioning of the product, which is also supported by other strategies, such as packaging.
The firm supplies the price with the use of a recommended retail price. Many of the iPods are sold directly through Apple themselves, either through the web site of through
the Apple shops. These are the retail prices and are supportive of their premium pricing. Where there have been price cuts needed to help move product, the product itself has
been adjusted to reduce the price and justify the lower price, as seen in 20098 when the small iPod shuffle, without a screen was sold for only $49 (Heater, 2008).
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