Itunes
1. Analyses of the iTunes by using the 4 P’s
The Marketing Mix, it’s a set of marketing tools commonly used by a firm to pursue its marketing objectives have been classified into 4 major groups, so called the 4 P’s: Product, Price, Promotion, Place
We will now analyze iTunes marketing mix starting with the product:
iTunes is an online music service with a library of more than 200’000 songs from a wide variety of artists and labels, including exclusive bonus track. The system worked by downloading a software tool from Apple website that was used as the interface for the online store. Users where then free to buy the library of songs through a search engine. iTunes has a user friendly interface and very up to date features. Also being part of Apple, a recognized brand, which helped iTunes to succeed quickly in the market.
From a price perspective the download of the interface was free. The price for each song was less than $1, although the profit margin was only 10% per song. iTunes strategy was to be the center of a user’s digital world.
From a promotion perspective most of the artist liked the idea of iTunes because Apple’s brand was in line with their images. Therefore more then glad to promote the idea.
As for the place iTunes was available online, therefore anywhere and anytime, with no distribution cost.
The success P is a combination of product features as the interface was very user friendly and price, as downloading was free.
Now we will analyze Peer-to Peer networks for 4 P’s
The product is free use and unlimited download of songs and videos, incredible variety ranging from commercial hits to rare tunes and movies. Easy to use.
Price: free downloading and zero cost per song.
Promotion: High brand loyalty mainly due to word of mouth.
Place: Download available...
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