Question

Total Product Offer

One of the American Marketing Association's definitions of marketing says it's "a set of processes for creating, communicating, and delivering value to customers." When consumers calculate the value of a product, they look at the benefits and then subtract the price to see whether the benefits exceed the costs, including the cost of driving to the store or shipping fees if they buy the product online. Whether consumers perceive a product as the best value depends on many factors, including the benefits they seek and the service they receive. To satisfy consumers, marketers must learn to listen better and constantly adapt to changing market demands. From a strategic marketing viewpoint, a product is more than just the physical good or service. A total product offer consists of everything consumers evaluate when deciding whether to buy something. The basic product or service may be a cell phone or a hotel room, but the total product offer includes other aspects of the good or service.

Read the case below and answer the questions that follow.

At the time the new iPhone 3GS was introduced, it was described on Apple's website in the following way:

Priced from $199 to $299, Apple promises that its new iPhone 3GS is the fastest, most powerful iPhone yet. The new version features video recording, Voice Control, and up to 32GB of storage. iPhone is more than just a phone. It combines three devices in one:

a revolutionary mobile phone, a widescreen iPod, and a breakthrough Internet device. All that and more makes it the best phone you'll ever use. The Apple iPhone is a revolutionary phone. With the Multi-Touch interface on iPhone, you can make a call simply by tapping a name or number in your contacts or favorites list, your call log, or just about anywhere. Visual Voicemail lets you select and listen to messages in whatever order you want—just like email. The Apple iPhone shows off your content—music, movies, TV shows, and more—on a beautiful 3.5-inch display. Add to your collection by downloading music and video wirelessly from the iTunes Store. Scroll through songs and playlists with the touch of a finger. Even browse your album artwork using Cover Flow. The Apple iPhone uses fast 3G and Wi-Fi wireless connections to deliver rich HTML email, Maps with GPS, and Safari—the most advanced web browser on a mobile device. It has Google and Yahoo! search built in. And since iPhone multitasks, you can make a phone call while emailing a photo or surfing the web over a Wi-Fi or 3G connection.

The Apple iPhone comes with some amazing applications. And you can choose from thousands more on the App Store and download them with a tap. Your iPhone gets even better with every new app. Play games. Be more productive. Keep yourself entertained. No matter what you want to do on iPhone, there's an app for that. With iPhone, Apple combined innovative hardware features with the world's most advanced mobile operating system to redefine what a mobile phone can do. Applications work together seamlessly and they sync with your computer—whether you're on a Mac or a PC. From its revolutionary Multi-Touch display to its intelligent keyboard to its smart sensors, iPhone is years ahead of any other mobile phone.

What is the total product offer for the Apple iPhone?

Answer 1

A total product offer consists of everything such as service, quality, price, packaging, image that a customer will consider before buying the product.

Apple offers innovative products with premium offerings. Apple offers products with high quality offerings. Apple focuses on evolving its iPhones and enhancing their technology. Apple has a dedicated product development team which launches much improved versions of its previous iPhones. The design of Apple iPhone is so classy and superior that Apple has become a smart phone market leader. By now, the company has launched about 10 versions of the iPhone. There are several smart phones available in the market but Apple has designed its iPhone such that people pre-order it wait for hours outside Apple's stores so that they can be the first ones to buy. The packaging of the iPhone is such that it gives the users a sensory experience. The minimalist white box with shimmering fonts is artistic and visually appealing. Apple has service centers all across the world for servicing the customers. Apple has an interface that is easier to use for all generations. However, this ease comes with a price. The target market of Apple is not people looking for affordable smartphones. They have a premium target segment.