1. 7 Functions of Marketing iPhone 5

2. Promotion 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

3. 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 Promotion

4. iPhone 5 is everywhere, easy for customers to purchase Online deliveries shipped by large companies such as UPS and FedEx Distribution StaplesLondon DrugsFuture Shop Apple Store (Online/In Stores) Cellular Service Providers Best Buy Other Authorized Retailers

5. 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 Selling

6. 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 Selling

7. 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 Pricing

8. 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

9. 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

10. 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

11. 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

12. iPhone 5Galaxy Note 2 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

13. 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 Product/Service Management

14. 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 Finance

15. 7F Assignment 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!