Marketing Skimming Essay

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CONTENTS

1. Background of Smartphones

2. Market Segmentation of Smartphone (Main Brand)

3. Value Proposition & Positioning 3.1 Features Comparison 3.2 Perceptual Map

4. Product 4.1 Product Life Cycle

5. Pricing

6. Promotion

7. Place 7.1 Direct and Indirect Channel

8. Reccomendation

9. Conclusion

10. Refrences

1. Background of smartphone
A). iPhone Apple Computer, Inc. ("Apple" or the "Company") has been existing since January 3, 1977 under the laws of the State of California . The Company designs, manufactures and markets personal computers and related software. Apple also designs,develops and markets a line of portable digital music players along with related accessories and services including the online distribution of third-party music and audio books and Apple’s products and
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From those price, it showed that iPhone adopted Marketing Skimming Pricing strategy for this product. Skimming refers to new product with setting at high prices to skim maximum profits from the company’s targeted. Electronic devices tend to use this strategy with purposing to pay their research and development. iPhone’s design and iPhone’s quality which proved prestige image that are the additional factors why iPhone’s price sets at high price than its competitor’s product.

SAMSUNG Recently, Samsung launched Samsung S6 and Samsung S6 Edge, the price sells from S$ 599,00. Samsung sets their price at almost half of iPhone’s price and it believed that Samsung was adopting at low price for penetrating into market faster and deeply. Basically, the company sets low price to delight new customers, that makes new customers encouraging to change into new product because the price’s low. Addition, Samsung probably would benefit for long-term which would raise customers with lower price. So, Samsung would produce more in market growth.

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