Running head: TARGETING AND POSITIONING PAPER
Targeting and Positioning
University of Phoenix
Targeting and Positioning the iPod
There are many factors to consider when marketing a new or existing product. Segmentation, targeting, and positioning are important when identifying the specific target market, examining the role that consumer behavior plays when applying basic marketing concepts, and examining the impact of purchase trends on consumer behavior. Internal and external influences on consumer behavior are all factors that must be considered when applying marketing strategies. Learning and memory theories are also factors considered when applying marketing strategies. In addition, strategies for repositioning the 4 P’s (product, price, promotion, and place) as they relate to consumer behavior must be initiated. The elements of the consumer decision-making process must also be considered as well as analyzing the post-purchase process of the target customer. And finally, developing a timetable and criteria for measuring the success of the repositioning strategy is important. This paper will discuss the factors and the impact they have on repositioning of the iPod. Target Market for the iPod
Since the inception of the iPod in 2001, the target market has basically been the same. The popularity of the product indicates consumers are between the ages of 12 and 34, the iPod is used by both female and male, most consumers are middle to upper class, and the product is targeted to those who have a desire for literature and music (Johannes, 2006). Since 2001, the technology of the iPod has changed. Not only does the iPod play music, consumers can now download recipes. With the development of the video iPod last fall, ABC, NBC, and MTV have capabilities for consumers to download such programs as Lost, Commander in Chief, The Office, and South Park. This new technology has expanded the market to attract consumers well into their 40s (Johannes, 2006). Johannes indicates: “Everyone is on the go, we need to be smart about how we communicate. Podcasting is one way of bringing more content to the consumer’s hands” (Johannes, 2006). iPod accessories are targeting women. Matthew Honan says, “The iPod has transcended the technology sector. It has become a modern lifestyle product” (Honan, 2005). With this thought in mind, accessories such as holders, cases with straps, and skins are being designed by some well-known designers. Casauri, Gucci, and Delarew Designs have entered the accessories market (Honan, 2005). These designers have created some designs that, because of price, are targeted to the upper class. Despite the cost, the accessories are quite popular. The first iPod could hold 1,000 songs and play up to 10 hours. The advancement of technology now sees the iPod holding 15,000 songs, 25,000 photos, and more than 150 hours of video. To enhance the marketing of the iPod, the latest version sells for $299 which is the same price as the original iPod in 2001 (Johannes, 2006). Positioning
The next important step of bringing a product to market after the appropriate target has been identified is to decide on the positioning of the product within those segments. “A product’s position is the way the product is defined by consumers on important attributes – the place the product occupies in consumers’ minds relative to competing products” (Armstrong & Kotler, 2005, p.207). This positioning can be done a number of ways; however, it often involves looking to those strengths identified in the SWOT analysis and capitalizing on the advantages presented over the competition. These competitive advantages are then used in conjunction with the known target to develop further marketing strategies. Customers that are in the market for an iPod are looking for ways to store media files in greater quantity than ever before. Their desire to play back both audio and video files...
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