Econs project- Ipad By: Avina, Deon, Fiona, Tiance, Xinru, Zhihao.
Post on 23-Dec-2015
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- Econs project- Ipad By: Avina, Deon, Fiona, Tiance, Xinru, Zhihao
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- DO YOU KNOW… When is the Birthday of iPad? 27 January 2010 The cost price and selling price of the iPad is…? USD320 ; USD499. So… PROFITS EARNED! $.$ Who are iPad’s enemies? Motorola Xoom: USD799 Galaxy Tab etc
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- How about some Products to go along with iPad? AND MORE iPAD CASES!!!!!! Some of the goods are used for protection, eg iPad Casings Some are just to beautify it Different products will meet different needs of the iPad users. Eg Some may need a Stylus, while some do not. Complements to the iPad.
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- Question: How will recent developments affect pricing and marketing decisions from a consumer’s POV and a producer’s POV???
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- Pricing decisions Decisions faced by top management and marketing managers on the pricing of a good Affected by…. competition cost advertising sales promotion
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- Marketing decisions the commercial functions involved in transferring goods from producer to consumer
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- Producers POV- 1 st perspective Recent Developments: Introduction of cheaper alternatives. Using Price Elasticity of Demand (PED) When the price of Ipad = more than proportionate change of fall in qty dd. WHY??? Consumers turn to cheaper alternatives (eg: ExoPC slate) THEREFORE, Ipad is price elastic. Furthermore, Ipad is a luxury good, this implies a small pool of consumers. SOOOO…. WHAT DOES THIS ALL MEAN?? LINK: Due to competition from other companies who have came up with similar goods, Apple would keep price constant/decrease to increase total profits.
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- Producers POV 2 nd perspective Recent developments: Other companies such as Griffin and Incase have released similarly iPad-compatible wall chargers. Using Cross Elasticity of Demand (XED) Goods compared: Ipad and Ipad charger. CLOSE COMPLEMENTS. SOOOO…. WHAT DOES THIS ALL MEAN?? LINK: To increase profits, and to edge out rival companies, Apple should decrease the price of Ipad chargers!
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- Consumers POV 1 st perspective Recent developments: Natural disasters hit food producing countries. Using income elasticity of demand (YED) Food shortage food prices Eg: Global food prices rose to a fresh high in December 2010, according to the UN's Food and Agricultural Organisation (FAO) Decreasing real income as food is price inelastic. Therefore, the iPad2, as a luxury good, will take 2nd place to normal goods such as food. SO…. WHAT DOES THIS ALL MEAN?? LINK: It results in the foregoing of the purchase of iPad 2 to divert their dollar votes to food.
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- Consumers POV 2 nd Perspective Recent developments: Improvements to the Ipad, implemented into the Ipad 2. (Thinner, lighter, built in camera) Consumers more willing to pay for Ipad (signalling function) Demand for Ipad, and the price of the iPad 2 (supposingly) This results in a shortage. (rationing function) Producers increase qty output to increase profits gained. SOOO…. WHAT DOES THIS ALL MEAN?? LINK: Consumers have to fork out more money to purchase an Ipad due to a spike in qty dd.
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- BUT! In reality… Price of iPad = Price of iPad 2 iPad 2 more advanced in technology, and more holistic in features(built-in-camera) SO…. More COMPETITIVE!!! more ppl wants to buy iPad ( instead of the cheaper substitutes, since iPad is more HIGH-TECH = more WORTH IT!!! ∴ consumer SATISFACTION MAXimised!!!
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