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