Apple Pricing Strategy
CASE STUDY: APPLE
Chapter 7: Pricing
Contents
A. Understanding Pricing 4 1. Internal and External Considerations Affecting Price Decisions 5 1.1. Internal factors 5 1.2. External Factors 9 2. Setting The Price 10
B. Introduction to Apple 13 1. Product 14 2. Promotion 15 3. Place 16 4. Price 17
C. IPHONE 19 1. Introduction to iPhone 19 1.1 Main Features 19 1.2 Market share 20 2. Pricing Strategy of Apple’s IPhone 21 2.1 High Reference Pricing 21 2.2 Penetration pricing 22 2.3 Skimming Pricing 22 2.3 Psychological Strategy 23 2.4 Combination of pricing strategies with carriers 23 3. Result and Evaluation 24 1. Sales and Revenues 24 2. Target market 25
D. IPAD 26 1. Basic features of Ipad: 26 2. Pricing strategy 27 3. Impact of the pricing strategy on Ipad 30
E. MACBOOK 33 1. Technological specs 33 2. Pricing strategies 35 2.1. Skimming pricing 35 2.2. Value-based pricing 35 2.3. Psychological pricing 36 2.4. Product Mix Pricing Strategy 36 3. Impact of the pricing strategy for Mac Book 37
F. REFERENCE 39
A. Understanding Pricing
Price is the amount of money charged for a product or a service. More broadly, price is the sum of all the values that customers give up to gain the benefits of having or using a product or service.
Price is the only element in the marketing mix that produces revenue; all other elements represent cost. Price is also one of the most flexible marketing mix elements because prices are perhaps the easiest element of the marketing program to adjust; product features, channel, and even communications take more time.
Pricing decisions are clearly complex and difficult, and many marketers neglect their pricing strategies. Holistic marketers must take into account many factors in making pricing decisions- the company, the customers, the competition, and the marketing environment. Pricing decisions must be consistent with the firm’s marketing
Chapter 7: Pricing
Contents
A. Understanding Pricing 4 1. Internal and External Considerations Affecting Price Decisions 5 1.1. Internal factors 5 1.2. External Factors 9 2. Setting The Price 10
B. Introduction to Apple 13 1. Product 14 2. Promotion 15 3. Place 16 4. Price 17
C. IPHONE 19 1. Introduction to iPhone 19 1.1 Main Features 19 1.2 Market share 20 2. Pricing Strategy of Apple’s IPhone 21 2.1 High Reference Pricing 21 2.2 Penetration pricing 22 2.3 Skimming Pricing 22 2.3 Psychological Strategy 23 2.4 Combination of pricing strategies with carriers 23 3. Result and Evaluation 24 1. Sales and Revenues 24 2. Target market 25
D. IPAD 26 1. Basic features of Ipad: 26 2. Pricing strategy 27 3. Impact of the pricing strategy on Ipad 30
E. MACBOOK 33 1. Technological specs 33 2. Pricing strategies 35 2.1. Skimming pricing 35 2.2. Value-based pricing 35 2.3. Psychological pricing 36 2.4. Product Mix Pricing Strategy 36 3. Impact of the pricing strategy for Mac Book 37
F. REFERENCE 39
A. Understanding Pricing
Price is the amount of money charged for a product or a service. More broadly, price is the sum of all the values that customers give up to gain the benefits of having or using a product or service.
Price is the only element in the marketing mix that produces revenue; all other elements represent cost. Price is also one of the most flexible marketing mix elements because prices are perhaps the easiest element of the marketing program to adjust; product features, channel, and even communications take more time.
Pricing decisions are clearly complex and difficult, and many marketers neglect their pricing strategies. Holistic marketers must take into account many factors in making pricing decisions- the company, the customers, the competition, and the marketing environment. Pricing decisions must be consistent with the firm’s marketing