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Understanding iPad Pricing and Marketing Dynamics

Delve into the factors affecting iPad pricing and marketing strategies, from supply and demand dynamics to consumer preferences and competitor actions. Explore recent developments influencing Apple's market expansion and pricing decisions, and learn how changes in demand and supply impact product availability and pricing. Discover the role of competition, consumer income, government policies, and cost of production in shaping the iPad's market landscape.

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Understanding iPad Pricing and Marketing Dynamics

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  1. Origin of the ipad Originated in January 2011 Released in April in the same year

  2. Demand and supply • Taking other variables constant, --demand increases, supply increases --demand decreases, supply decreases How the prices of ipad is determined???

  3. Consumer income • Taste • Government legislation • Consumer expectation • Prices of substitutes • Prices of compliments What causes changes in demand???

  4. Cost of production • State of technology • Price of related goods • Government policy Factors affecting supply

  5. International plug that can be used worldwide • USB port for computer • Car charger so it can be changed on the move Associated products

  6. ------------------Competition----------------- • Microsoft and Nokia partnership to make a joint product • Consumers switching to windows mobile platform How recent developments affect marketing and pricing decisions?

  7. More money invested by apple in R&D • Ensure that products are ahead of competitors • Buying an apple ipad has better marginal benefits than other products • Ensuring marginal benefit is higher than marginal cost

  8. More people will continue buying apple products • Demand and quantity increase • Price increase • Higher profits

  9. Apple looks to expand its market • Pushes PPC out • New production facility would be built • Cost of producing one ipad increase as mortgage and workforce needs to be paid Cost of resources

  10. More advertising needed • Company’s budget increase • Generate more profits to pay off budget • Price increases

  11. Improved version of windows mobile out in 2012 • New product will have new functions • Certain consumer prefer the functions in windows mobile • Less people buy ipad Switching to substitutes

  12. Demand drop, supply drop • Decreasing prices means lesser money earned

  13. Due to new technology, prices goes up(as mentioned earlier) • Some consumers were unwilling or unable to pay • These people are rationed out of the market High prices

  14. People wiling and able to pay continue paying • Overall quantity demanded decreases, quantity supplied decreases • Producers produce lesser ipads as the sticks are in surplus • Quantity demanded drop is unhealthy sign to business

  15. Credits • http://mashable.com/2010/01/27/9-upcoming-tablet-alternatives-to-the-apple-ipad/ • http://tutor2u.net/business/marketing/buying_decision_process.asp • http://www.knowthis.com/principles-of-marketing-tutorials/pricing-decisions/internal-factors-costs/

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