...Itu CHAPTER 6- ANALYZING MANAGERIAL DECISIONS iTUNES MUSIC PRICING MAUREN PIUCCO Songs have different values to consumers. The category may be the same, which is music, but the sub-categories has many variations. Consumers value each sub-category different, which some people may give more or less value based on what type of music they like or if it is a new release or not. I do not know which one of these characteristics they should prioritize setting up price discrimination but I assume it could be implemented (the price differentiation) in order to maximize revenue since people would be willing to pay more for something they value more. According to our textbook, there are several others pricing policies that can be implemented such as: * Block Pricing: A consumer might be motivated to buy more songs at once if more he buys cheaper it gets per song, for example. First song is 99 cents, second song is 98 cents and so on. People buy a lot from impulse and this strategy might explore this consumer behavior. * Two-part tariffs: consumers could pay a monthly fee to use iTunes, maybe a VIP membership for example, and then have advantages such as access to new releases first, special discounts and promotions, and then also pay per song. The company would have the upfront fee’s and also the per song fee’s. * Group pricing: the company could differentiate consumers providing different prices for different group of consumers for example. For example, like on...
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...Mission and Goals “Digital Lifestyle” is focus. Apple focuses on developing multimedia and personal digital assistant. They offer customers a small hard-drive-based, high quality digital music player, the iPod, and offer an easy to use, no-nonsense music service, the iTunes Music Store, which sells individual songs through the iTunes applications. With both iPod and iTunes Music Store integration, Apple is aimed at the digital music market. Making the ipod and iTunes the new “digital lifestyle” to revitalize apple’s sales and guarantee the long term security of the company is Apple’s hope. Threats and Opportunities Threats: - The legal sale of music online. - Competition with similar digital music player manufacturers and online music service. Opportunities: - The iTunes Music Store had the backing of the five major record labels. - Taking advantage of the explosion of personal electronic devices and digital downloads to add the values of products. - Consumer behavior and Market segmentation The iPod combines the innovation of Information and Internet technology with fashion, design and electronic consumption. Apple hopes that iPods can be popular in the pop music, fashion, motor vehicle, and cellphone markets and catch different level of customer’s eyes. Consumer behavior is high involvement: - Loyalty. - Reference Group influence is important on product category and brand level. - Personality and life-style are relevant in brand choice. Target segments ...
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...Economics MBA 540 Chapter 7 Case Analyzing Managerial Decisions: iTunes Music Pricing 1. Provide an argument for why a variable pricing policy might increase the sales revenue from Apple’s Music Store. The music industry is big business and for many years, consumers have obtained music in many ways other than purchases, which is known as piracy. Today, consumers can purchase music through file-swapping networks, thus leading to a decline in the music industry’s total revenue. In 2003, after agreement with individual music companies, Apple Inc. gave customers the opportunity to purchase and download digital music and audio books through Apple’s iTunes Music Store awaiting at least some revenue from downloaded music (Brickley, Smith, & Zimmerman, 2009). At that time, Apple’s managerial staff set the product price at $.99 per song for all digital music. In 2005, the Music Store sales soared, thus encouraging record companies to ask for a more variable pricing policy. The record companies requested the price for popular songs to increase in price and the older songs to drop in price (Brickley, Smith, & Zimmerman, 2009). In 2009, after negotiations between Apple and the record companies, Phil Schiller, Apple’s senior vice president, announced Apple’s iTunes store would offer music at three prices - $.69, $.99 and $1.29 (Breen, 2009). The variable pricing policy went in effect April 2009 at Apple’s iTunes Music Store (Breen, 2009) and not long after, almost all top songs...
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...Analyzing Managerial Decision: iTunes Music Pricing by HCM-540, MBOL5, Health Care Organization Instructor: Saint Leo University Distance Learning November 10, 2013 Abstract Apples’s Itunes music store came upon the music industry in 2003. It quickly became supreme within the music industry. The iPod, Apple’s MP3 players, and iTunes software were all interfacing, making it one of the more popular technology favorites among consumers. At odds with iTunes were the music companies crying foul over infringement and pricing. Buying overpriced CDs were quickly becoming a thing of the past. Music had been illegally accessed through peer-to-peer file sharing networks. With the recognition that music was being stolen, other ways were being developed by those with a stake in earning a profit. The industry had to decide if it should allow piracy to continue of develop variable pricing alternatives. This paper takes a look at alternative pricing in the case study, iTunes Music Pricing. At the conclusion, readers will have a better understanding of variable pricing policies. Introduction Variable pricing represents a concept use, by Apple, to describe the structure of pricing to advertise downloadable data. Variable pricing involves the different cost of a product for based on the preferences of the producers. This varies from the model of flat pricing, where one fixed price is applied to those items that are the same. Content of purchased songs, all cost one...
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...he would take the CD with him and play it on a portable CD player” (“iTunes changes the model for music distribution”). The stereo system was...
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...One of the reasons I love this software is because it has so many functions. It allows you to copy music from your phone to your computer but also allows you to copy music give me a computer to your phone. It's usually not normal to copy music from your iPhone to your computer, you can only copy music from your computer to your iPhone most of the time but this app makes it possible for you to copy music to and from your iPhone and computer. It also supports android devices and you can use your android device on iTunes. You may think it's impossible to use your Android device on iTunes but with Wondershare TunesGo it is possible. It also allows you to backup and restore your Android device. It converts music to the proper format for your phone and it also allows transfer between phones. You can transfer your files from an android phone to another android phone or from an iPhone to another iPhone and also from an iPhone to an android phone and from android to an iPhone. You see, it makes things just easy for you. Back up with TunesGo is easier and faster to do. To get started with Wondershare...
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...Introduction iCloud is the service operated by apple for cloud storage and cloud computing which was launched on October 12, 2011. As of July it has 320 million users. The service allows users to store data such as iOS applications and music on remote servers for download on any device you like. This application also replaced apple’s Mobileme service, acting as a data syncing centre for calendars, contacts, emails, photos, notes, reminders etc. users can connect to iCloud wirelessly unlike previously by using iTunes. One of iCloud’s data centres is located at Maiden, North Carolina, History iCloud was previously been branded as iTools in 2000,Mac in 2002 and Mobileme in 2008.It is the latest branding of apple in cloud computing. It was announced in 2011 at the apple worldwide developer’s conference. Apple announced the discontinuation of its previous version of iCloud i.e. Mobileme after June 30, 2012. The official website went live in august for apple developers. ICloud broke all record and had 20 million users in one week of launching. The registered trademark and domain iCloud.com were bought from a Swedish company. The company still controls major domain like iCloud.es and iCloud.fr. Customers unhappy over the transition from Mobileme to iCloud filed a class action lawsuit. Features The cloud based system allow users to store documents, applications, videos, music, bookmarks, reminders and provides a platform for Apple's email servers and calendars. Backup...
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...means to wirelessly back up iOS devices directly to iCloud, instead of being reliant on manual backups to a host Mac or Windows computer using iTunes. Service users are also able to share photos, music, and games instantly by linking accounts via AirDrop wireless. It replaced Apple's MobileMe service,[4] acting as a data syncing center for email, contacts, calendars, bookmarks, notes, reminders (to-do lists), iWork documents, photos and other data. One of Apple's iCloud data centers is located in Maiden, North Carolina, US.[7] Beginning in 2011, iCloud is based on Amazon AWS and Microsoft Azure (Apple iOS Security white paper published in 2014, Apple acknowledged that encrypted iOS files are stored in Amazon S3 and Microsoft Azure[8]). In 2016, Apple Inks Deal to Use Google Cloud Platform for Some iCloud Services.[9][10] ------------------------------------------------- History[edit] iCloud was announced on June 6, 2011,[13] at the 2011 Apple Worldwide Developers Conference (WWDC). Apple announced that MobileMe would be discontinued after June 30, 2012, with anyone who had an account before the unveiling of iCloud having their MobileMe service extended to that date, free of charge.[14] The official website, www.icloud.com, went live in early August for Apple Developers. On October 12, 2011, iCloud became available to use via an iTunes update.[15] iCloud...
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...Introduction The blue ocean strategy in the environment of marketing is an extraordinary way to embark on creating a monopolistic customer base. It describes how the blue ocean strategy looks to find ways to build a new market segment that has no current existing businesses and without competing in a crowded marketplace with existing companies. As new technological innovations emerge daily, blue ocean strategy is rapidly growing. The paper will intel the characteristics of the blue ocean strategy while providing ideas of how to employ them into the business environment. Description and Importance of Blue Ocean Strategy Blue Ocean Strategy is a non-fiction business book written in 2005 by W. Chan Kim and Renee Mauborgne. Kim and Mauborgne sought to find a more vigorous strategy approach than Harvard Professor Michael Porter’s “five forces”. They argued that Professor Porter’s strategy would have businesses remaining in the “red ocean” where there’s heavy competition and a very crowded marketplace. The importance of the Blue Ocean Strategy is to encourage existing business customers to move from the red ocean which is characterized as a bloody, shark infested waters competition marketing environment to the blue ocean waters than has no competitors and ample amount of space to evolve new beginnings. Kim and Mauborgne used the Cirque du Soleil as an example of how the Blue Ocean Strategy can be successful. “Despite a long-term decline in the circus industry, Cirque du Soleil...
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...Sony Walkman Sony is an international brand and known as electronic company. The company selling products to the global market that makes company has a very large consumer market. Also Sony has always led the market in terms of innovation and new technology products. Companies in this industry are benefiting from rapid growth have sales and earnings that are expanding at a faster rate than firms in other industries but, electronic industry has low barrier to enter and exit. The technology of electronic product is easy to copy that makes Sony faces with many competitors so Sony should try to be the first and fast entrant to develop and launch new products to market in order to gain high profit. Sony moved to expand their branding strategies with the potentially unlimited difference of the global market. The target consumer group, Sony Walkman will focus on teenager, and young consumer groups. Often the concept of “youth” came to play a predominate role in many of Sony Walkman’s advertisings. By emphasizing consumer driven design and hip sensibility, Sony played a pivotal role in developing much of the branding and lifestyle marketing that has become a central strategy for Sony Walkman. Entertainment giants “Sony” were the first one to envision the portable music player when they launched the first Walkman in the year 1979 and they were very successful in 1981. At that time, at least 20 companies...
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...In September of 2013 Iphone users controlled forty percent of the Smartphone market, the closest competitor being the Samsung galaxy with twenty five percent of the market (Winn, 2013). Externalities of the Iphone include all of the different carriers that allow Iphone plans. Externalities of the Iphone include products that are compatible with Iphone messaging, such as iPod touch, Mac computers, and of course the Ipad. Iphone also has the externality of the largest online music network of ITunes. Also the Iphone has exclusively for apps, meaning that some apps are specific and only an externality of the Iphone. The Iphone also has Facetime allowing you to be able to video conference with 40 percent of the Smartphone users. When Iphone started it was one of the first Smartphone’s, the competition was the blackberry that did not have a touch screen; the Iphone was said to be the fastest, people got addicted to its ease of use. Now the Iphone has put out 7 models and 6 IOS. Time is money with everyone being able to share information Easley with Iphone message and facetime, and photo and video capability productivity could be increased by everyone using the same phone.” Metcalfe’s law states the value of a network goes up as the square of the number of users (Carl Shapiro, 1999, p. 184)”. Apple sure has a profitable control over the cell phone market; making apple one of the worlds most valuable publicly traded companies (Wikipedia, 2014). The Iphone network is has many components...
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...Downloading in the digital age In the past decade CD sales have drop where there has been a rapid growth in the download of a signal song or album. The question at hand is what has made the change come along so fast? Could it be the fact that people use there iPod, mp3 player, or phone? What was the kick starter in the digital age ? The start of downloading music came along with Napster. Shawn Fanning was a freshman in Northeastern University in 1999, and he decided to create Napster which, was a piece of software that would let people share their mp3 files that where hard to find. This didn’t cost the user anything to use it. In Dec 1999 the legal battles began with Napster vs. the recording Industry Association of America, Metallica, and many others. The lawsuit that came about was based on infringing upon copyright laws. The legal battle came to an end in September 2001, and Napster was changed forever; with artists having final say over which songs could be shared on the platform. Napster wasn’t the end of the peer to peer networking of sharing music between users on the internet. There was Kazza thatsers could use. This came at a cost because, it was load with adware, spyware, and let’s not forget about the illegal downloading of something you don’t own. Even if you installed Kazza the spyware and, adware was still there. Kazza was shut down dew to copyright infringement. There are still programs out there that let user download music like Limewire...
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...Android versus iPhone Karla Washington ENG/130 February 9th, 2015 Maureen Chisholm The Choice is yours Since 2007, I have been an iPhone user. I stood in line for hours waiting for the Apple store to open so that I could purchase their newest creation. I happily handed over $599 for the opportunity to be the owner of the first iPhone and the latest gadget out there. Yes, I was fondly known as “the gadget girl.” If there was a new gadget, I had to have it, at any cost. The very first iPhone was released on June 29, 2007 in the United States where thousands of people (including myself) were reported to have waited outside Apple and AT&T retail stores days before the device's launch; with many stores reporting stock shortages within an hour. To avoid repeating the problems of the PlayStation 3 launch, which caused burglaries and even a shooting, off-duty police officers were hired to guard stores overnight. (Hart & Sabrina, 2007) For years, Apple has cornered the cell phone market with their creation of the iPhone, but now people are turning to the next best thing, the Android. It has the same features as the iPhone for less of the cost and more freedom of choice for the user. So what will it be? The iPhone fad, with a new iPhone every other year or the Android, with numerous types, price points and choices with the ability to have extra money in your pocket? Android and Google are a better choice I was an iPhone user up until the iPhone 5. In 2013, I...
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...A common cross-cultural challenge in managing across cultures is language barriers. If managers are working in another country that does not speak English, the manager will have a hard time effectively communicating with his staff. As a result, now many international companies communicate internally through the English language. Managers are able to communicate with their foreign counterparts through speech and text with English. However, there are many times when the manager will still be forced to learn the language of the country he is working in. For example, if all of the Japanese workers are speaking Japanese, the manager will be expected to communicate in Japanese as well. Another challenge in managing across cultures is cultures. Managers must understand that other cultures do not conduct business the same as they do in the United States. Before doing businesses in other cultures, managers need to study the culture of the country they will be working in. They need to become familiar with business etiquette, time management, dining etiquette, nonverbal communication, religion, and personal space. If managers have an understanding of the previously listed concepts, they will be successful in managing in another country. For example, a manager doing business in Greece should be aware of how Greeks feel about time management. Managers should leave ample time in their schedules when conducting business meetings in Greece. Greeks are not strict about time and it is common...
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...lines and simplify the processing demand for each page loaded. The next major feature is the all home wi-fi capability. This makes it easy to design a party mix in one room and play it in the living room with your iPhone. This makes music listening much less of a hassle with the current copyright laws for same home users. The possibilities are endless with this technology. NOTE: If you haven't backed up your iPad, it might be wise to do it before installing the new iOS 4.3. After you have updated iTunes to the most recent version, follow the instructions below to update your iPad to iOS 4.3. Normal Update Procedures: 1) Open iTunes 2) Connect your iPad to you computer 7) Updating takes anywhere...
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