Repositioning Mkt 441

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The iPhone is a mulit-media and internet enabled quad-band GSM (Global Systems Mobile Communications) supported mobile designed and marketed by Apple. A users input is accomplished by multi-touch screen with virtual keys and buttons. The iPhone functions include those of a camera phone, portable media player (iPod) in addition to text messaging and visual voice mail. The iPhone internet services including e-mail, web-browsing and local Wi-Fi connection. (apple.com/iPhoneinformation)

The introduction to the iPhone is a moment that consumers have been waiting for a long time. The fact is that the race is on to get the iPhone into consumer’s hands. To make the iPhone a success, Apple has to take into consideration on the repositioning of the iPhone. Apple wants to reposition the appeal of the iPhone in order for the iPhone to attract new market segments. Apple is reconsidering the place/distribution of the iPhone, tax ramification for on-line purchases, evaluate consumers level of involvement for the iPhone, post decision making process, and finally how to measure the success of the repositioning of the iPhone. Positioning

Positioning the iPhone was a major part of the marketing strategy for Apple. When organizations position a product on the market the goal is to find a way to make the product appeal to potential buyers. What makes a product different from the competition? The Apple iPhone utilized many different strategies and techniques to make the iPhone stand above similar product. The iPhone is the first smart phone that offered consumer the wide range of diversity within one phone. When Apple began positioning the iPhone on the market a report was sent out to the public. The report showed the phones that “Apple selected for its side-by-side comparison include the Nokia N95, the Samsung Blackjack, the BlackBerry Curve 8300, and the Palm Treo 750” (Macworld, 2007, ¶ 5). . These phones offered many of the same capabilities but there are different characteristic that set the iPhone apart from the four used in the side-by-side comparison. The iPhone offers consumers a thinner phone “beating out the Blackjack by a tenth of a millimeter; at 3.5 inches” (Macworld, 2007, ¶ 7). . The wider viewable screen also positioned the iPhone higher in the market than other phones. The iPhone also provides consumers with a display surface made out of glass rather than the plastic surfaces on the other phones. The smoother sleeker look appealed to consumers along with the advanced touch screen. Before releasing the iPhone, Apple also found a way to extend the battery life. Apple realized that the battery life of any phone is a major concern of the consumer. Apple believed the extended battery life would help the iPhone become more appealing to the iPod customers. The iPhone does have one characteristic in common with the Nokia N95, both phones offers customers Wi-Fi. The Wi-Fi is only offered to customers through AT& T. The Wi-Fi allows consumers to utilize the wireless Internet. Tax Ramifications

Businesses that operate on the Internet are forced to abide by the same regulations that govern all corporations or tackle the same penalties as a normal brick and mortar organization would. Web based organizations must follow international regulations. Hence, the Web extends traditional boundaries which require an extensive amount of laws to comply with. These laws include tax laws. The concerns of organizations having online businesses are the tax ramifications involved in the process. As stated by G.Schneider, (2004), “Companies that do business on the Web are subject to the same taxes as any other company. However, even the smallest Web businesses can become instantly subject to taxes in many states and countries because of the Internet’s worldwide scope.” (2004, pg. 86). The Internet has spoiled customers, who have grown accustomed to a 24/7/365 service environment of personalized and customized products and services. Unlike...
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