January 16, 2015
Products, Pricing, and Channels
“Innovation distinguishes between a leader and a follower,” quoted the late Steve Jobs. Apple continues to lead the industries latest and greatest technology years after his death. This paper will outline the features and benefits of Apple Pay and why our targeted consumers need this technology. This paper describes the phases of the product lifecycle and the marketing efforts within each stage. In addition, this paper summarizes the packaging and the appropriate pricing strategy, and the proper channel of distribution utilized as well as the value added from each segment within this plan.
Features and Benefits
According to Apple Inc., (2015), “Apple Pay will change how you make purchases with breakthrough contactless payment technology and unique security features built right into the devices you have with you every day. So you can use your iPhone, Apple Watch, or iPad to pay in a simple, secure, and private way.”
They go on to say “One touch to pay with Touch ID. Now paying in stores happens in one natural motion — there’s no need to open an app or even wake your display thanks to the innovative Near Field Communication antenna in iPhone 6. To pay, just hold your iPhone near the contactless reader with your finger on Touch ID. You don’t even have to look at the screen to know your payment information was successfully sent. A subtle vibration and beep let you know”.
Simply double-click pay and go. To make a purchase with Apple Watch, double‑click the side button and hold the face of your Apple Watch near the contactless reader. A slight pulse and ring tone will confirm that a purchase has been made and that your payment information was sent. This offers a convenient checkout. Other products such as iPhone 6, iPad Air 2, and iPad mini 3, can also use Apple Pay to pay with a single touch within their apps. Checking out has never been so easier just placing your finger on Touch ID. More Secure Payments
With Apple Pay, instead of using your actual credit and debit card, you add your card; a unique Device Account Number is assigned, encrypted, and securely stored in the Secure Element. These numbers are never stored on Apple servers, so when you make a purchase, the Device Account Number, along with a transaction-specific dynamic security code, is acclimated to process your payment. Actual credit or debit card numbers are never shared by Apple with any merchants or transmitted with payment. Even if you lose your device or it was stolen, you can quickly put your device in Lost Mode to suspend Apple Pay, or you can wipe your device clean completely.
Product Life Cycle
During the introduction stage of the service, the launching could cost the company; this can be a very expensive process. This is due to the service being new, sales could be low in the beginning, increasing as the service becomes known and users want the service. During this phase, marketing will just start out, and will not be as strong as it will be in the phases to come.
The next phase is the growth stage, and this is where most of the money is made from the service. This is where consumers are purchasing and using. During this phase, marketing will pick up, there will be an increase in advertising, as the service is becoming popular by consumer use, in addition to word of mouth, and advertising of the service needs to be seen as well.
Maturity Stage Maturity stage comes when the service is established, and now the company wants to maintain the business; the company wants consumers to still see use in the service. This is the most important time to focus on the marketing, and during this phase, the marketing will increase. The company needs to do all that it can to ensure that it keeps the current customers as well as reaching out to new ones and gaining their business.