iTunes
Group 3:
Alex Park, Edwin Villa, Kelly O’Toole , Kiki Karountzos, Matt Staszel , Ryan Osiecki &
Toby Kurian,
iTunes:
In 1999, Jeff Robbin and Bill Kincaid developed SoundJam MP
Purchased by Apple and renamed the software iTunes
Software music player for your Mac or PC which is available in over 19 languages
January 9th, 2001 iTunes 1.0 was released into the public, and users immediately grew interest toward the new product
media player computer program that helps users download, save, and organize digital music and video files on a desktop or personal laptop computer
iTunes Problems:
Consumers do not know that you can copy your CDs into iTunes
Biggest groups of people who use iTunes fall between 12-17 years old
Predominantly male
Marketing plan only concentrates on the aspect of selling
Pushes away potential customers
Causes people to believe iTunes comes at a cost
Marketing Segments:
People who normally access music off the Internet
People who normally access music from CD’s
Research Design – Statement of Purpose
Research Design – Discussion on Sample
Research Design – Questionnaire Design
Research Design – Data Collection
Research Design – Data Collection
Research Design – Data Analysis
Toby & Ryan Slide
Toby & Ryan Slide – If Needed
Toby & Ryan Slide – If Needed
IV: Data Interpretation (T-Test)
Variable QuestionNormally
Uses iTunes
Normally access music
from CD's T-Test2 Tail Prob
1. P5 Q1 Safety 0.530 0.220 4.380 0.000
2. P5 Q7 Gratification 0.530 0.290 3.320 0.001
3. P5 Q4 Stressed 0.200 0.050 3.250 0.001
4. P6 Q1 Own an Apple Product 0.810 0.590 3.181 0.002
5. P2 Q6 Quick and Easy 0.900 0.730 2.743 0.007
6. P6 Q3 Cheaper (Price) 0.570 0.370 2.641 0.009
8. P4 Q1 Easier to Purchase 0.910 0.780 2.347 0.020
7. P2 Q8 Fear, Not Secure 0.440 0.610 2.185 0.030
9. P4 Q2 Contingent on Weather 0.540 0.390 1.996 0.04810.P6 Q10 Better Sound 0.530 0.380 1.937 0.054
High Means
1. P3 Q7 People who travel or workout 0.830 0.920 1.950 0.0532. P3 Q1 College Students 0.810 0.900 1.527 0.129
3. P2 Q3 Convenience 0.900 0.830 1.322 0.188
4. P3 Q9
People who own MP3 or Apple Product 0.970 0.940 0.883 0.378
5. P3 Q6 Smart Phone Users 0.840 0.880 0.625 0.533Low Means
6.. P5 Q6 Laziness 0.200 0.086 2.966 0.0037. P5 Q5 Relieved 0.240 0.160 2.815 0.005
8. P5 Q10 Guilty 0.060 0.100 2.104 0.037
Kiki & Edwin Slide – If Needed
Kiki & Edwin Slide – If Needed
Solution #1
Inserting pamphlets informing people about iTunes into every CD case.
Pros:
Everyone no matter if you purchase music of the internet or CDs will know about iTunes.
Easiest way to get iTunes to consumers
Allow iTunes to grow
Cons:
Very expensive for iTunes
No guarantee everyone will read the pamphlet and use iTunes
Record companies my not allow this solution
May cause CD prices to increase
Mass Media (creating a new marketing strategy that focuses on the older demographic)
Pros:
More users will begin using iTunes
People will become more aware of iTunes
More consumers will use iTunes
Cons:
Expensive to change marketing strategy
May loose current users of iTunes
May loose new demographic if iTunes in not properly explained to consumers
Solution #2
Create help kiosks within malls to teach people about iTunes and how to use the software
Pros:
More people will learn about iTunes
Will be able to help people who already use or want to use iTunes
Will cause interest within people
May be able to sell Apple products at kiosk
Cons:
May become to expensive to upkeep
People may not want to take advantage of these Kiosks
Not all consumers shop at the mall
Solution #3