Article On I Pad Libre
Proceedings of the 8th International Conference on Innovation & Management
·389·
Price Skimming on a Successful Marketing Strategy: Study of Ipad
Launching as Apple’s Innovative Product
Ma Huimin, Jose Antonio Hernandez
School of Management, Wuhan University of Technology, Wuhan, P.R.China, 430070
(E-mail:mhm_72@163.com, ing.jose.hernandez@gmail.com)
Abstract: What is the secret behind the highly success of Apple Inc.? How the Brand has conquered a considerable proportion of the market share as increased Brand Loyalty with the new Tablet product of
Ipad? The answer is already given: Brand Loyalty. This paper attempts to analyze the principal factors and activities that conform his Marketing Strategy, and the advantages and disadvantages of a Price
Skimming setup on this kind of market. Price skimming strategy provides an excellent opportunity for the company to maximize profits from the early stage of the Product Life Cycle (PLC), covering research and development costs and eventually, slowly decreasing price when is needed, due of sales reduction. Key words: Marketing strategy; Price skimming; Price setting strategy; Ipad
1 Introduction
Price is perhaps the most important of the four Ps of marketing, since it is the only one that generates revenue for a company. A Price strategy usually changes as the product passes through its life cycle. One of the strategies for Price setting of new products consists in set high initial prices to “skim” revenues layer-by-layer form the market (Kotler, Armstrong). The case of Apple on launching the Ipad as a relative new product of electronic Tablet is an example.
Apple is well-known for their innovative thinking in terms of marketing, and the strategy for their newest creation of iPad is no an exception. Part of Apple's marketing strategy is to have their products appeal to the masses, gathering business customer and entertainment customer both in one market.[1] Its combination of exceptional products, great style and
·389·
Price Skimming on a Successful Marketing Strategy: Study of Ipad
Launching as Apple’s Innovative Product
Ma Huimin, Jose Antonio Hernandez
School of Management, Wuhan University of Technology, Wuhan, P.R.China, 430070
(E-mail:mhm_72@163.com, ing.jose.hernandez@gmail.com)
Abstract: What is the secret behind the highly success of Apple Inc.? How the Brand has conquered a considerable proportion of the market share as increased Brand Loyalty with the new Tablet product of
Ipad? The answer is already given: Brand Loyalty. This paper attempts to analyze the principal factors and activities that conform his Marketing Strategy, and the advantages and disadvantages of a Price
Skimming setup on this kind of market. Price skimming strategy provides an excellent opportunity for the company to maximize profits from the early stage of the Product Life Cycle (PLC), covering research and development costs and eventually, slowly decreasing price when is needed, due of sales reduction. Key words: Marketing strategy; Price skimming; Price setting strategy; Ipad
1 Introduction
Price is perhaps the most important of the four Ps of marketing, since it is the only one that generates revenue for a company. A Price strategy usually changes as the product passes through its life cycle. One of the strategies for Price setting of new products consists in set high initial prices to “skim” revenues layer-by-layer form the market (Kotler, Armstrong). The case of Apple on launching the Ipad as a relative new product of electronic Tablet is an example.
Apple is well-known for their innovative thinking in terms of marketing, and the strategy for their newest creation of iPad is no an exception. Part of Apple's marketing strategy is to have their products appeal to the masses, gathering business customer and entertainment customer both in one market.[1] Its combination of exceptional products, great style and