BUS 350: CONSUMER BEHAVIOR
“iPod vs. Zune”
Instructor: Sam Batarseh
In 2006 Microsoft came up with an answer to the Apple iTunes/ iPod MP3 player and product line, and called it the Zune. Zune is the product-line brand name for the Zune portable media players, Zune software, and Zune marketplace services sold by Microsoft, which provides music, video, and podcast downloads. Although the Apple computer company was the first to offer the product and extensive product line, Microsoft clearly followed in the market leaders footsteps and carved their place in this particular niche in the media/entertainment industry. Using a well put together market strategy, as well as applying some of the basic principles of marketing; Microsoft has established a strong and successful product line.
In order to break down and evaluate the marketing plan that was used in launching the Microsoft Zune and its product line, one must first identify the “four P’s” of the product. The Four P’s stand for product, price, placement and promotion. The product in the principles of marketing is described as a “need-satisfying market offering”. Although the Apple iPod was already on the market, it was the only of its kind. At one point since they were the only company in the industry that made MP3 players, there was no choice and no competition. In other words Apple had the market cornered. Therein was the need, the need to give consumers another option, a less expensive option with just as many if not more features as the Apple iPod. Soon after other companies came up their own version of MP3 player but the Microsoft Zune has held steady as one of the leading suppliers since its debut in late 2006.
One of the first major factors that Microsoft had to consider in the development of the product was how to market and price the item so that it would compete with the other brands of that particular product. Microsoft used several campaigns...