Question

Jobs' announcement was an example of the intelligent use of trade shows and Apple's experience with generating press coverage and buzz about new products through them. The iPhone could be described as a combination of Apple’s popular iPod music player and a smart phone designed to surf the Web. Its highly-touted feature is a 3.5-inch, touch-sensitive screen that consumers use to make calls, navigate their music collection, and write messages on a virtual onscreen keyboard (Wingfield and Yuan, 2007). All of these benefits and features of the iPhone come for a price though; the initial price of the 4GB model was $499 and the 8GB model cost $599. Aimed at the high-end, tech-savvy consumer, who is often a business user, the iPhone is marketed to a sizable, fast-growing market.

(a) Describe the THREE (3) levels of products for Apple smartphone (iPhone) design?

(b) List and explain FOUR (4) types of Consumer Products Classification. Classify the Apple smartphone (iPhone) belongs to which category?

Marketing

Answer 1

a. Three levels of product for Apple smart phone design

Level one - Core product

Level two - Actual product

Level three - Augmented product

CORE PRODUCT :

The core product is a level that is focused on the core benefit, this attracts the customer to buy the product.

ACTUAL PRODUCT :

Level two is translating the list of core product benefits into a product that people will buy.

There may be competitor products offering the same benefits so the aim at this stage is to design a product that will persuade people to purchase your product.

This can involve deciding on the quality level, product and service features, styling, branding and packaging. For example Apple's iPhone design has enabled it to become a smart phone market leader so that by September 2012 it was able to launch the iPhone 5, the 5th version of this product.

AUGMENTED PRODUCT :

Level three involves deciding the additional non tangible benefits that a product can offer.

Competition at this level is based around after sales service, warranties, free delivery and so on.

In other words it is things that the product does not do but customers may find them useful.

Non tangible benefits such as product warranties offer customers peace of mind and demonstrate the manufacturer has faith in the quality of its product.

b. FOUR (4) types of Consumer Products Classification.

1.Consumer products :

• consumer product is any tangible product for sale that is used by a person or household for non-business purposes.
• Consumer products are further classified into 4 types

A. Convenience Products :

Convenience product is a consumer product that takes little thought, is routine, purchased often, appeals to a large target market,

and the consumer purchases with little planning.

Convenience products usually are not associated with a large price so companies must sell a large volume in order to make a profit.

Convenience products also do not require complicated information-based advertisements . Instead, the promotion is all about reminding the consumer that the product is available.

B. Shopping Products :

Shopping products are type of products that requires consumer research and comparison of brands.

examples of this type of shopping products would be appliances or a fridge.

C.Speciality products :

Speciality products are products where consumers are concerned about brand image and quality of their purchases . Consumers doesnot need substitutes for such products

Speciality goods have higher profit margins and higher prices relative to convenience or shopping goods. For the most part, manufacturers of speciality goods sell their products on the basis of product quality, reliability, and image, rather than on the basis of price.

Persons purchasing speciality goods are not concerned about prices

D. Unsought products:

Unsought Goods are goods that the consumer does not know about or does not normally think of buying. Purchases of unsought goods may arise due to danger or the fear of danger.

• Apple smart phone falls under speciality goods because it is known for it's brand and quite expensive when compared with other smart phones