Advertising and Pricing Strategies - Essay Example

Advertising and Pricing Strategies Advertising and Pricing Strategies Question The 1984’ ad by Apple is one of the greatest commercial advertisements in American history. It introduced the Apple Macintosh Personal Computer, a revolutionary product at the time. The value proposition of the product was its focus on the needs and individuality of consumers. The ad ran during the Super Bowl, a traditional American sporting event. This related to American consumers who love the event and also appreciated the value of having a personal computer.

Question 2 The purchase of an iPhone 5c is an opportunity to join an elite mobile phone category. This feeling is as a result of Apple’s price skimming strategy that excites late adopters who are able to get their expensive products at a bargain price. This not only creates good will for the company, but also increases their revenue. Moreover, late adopters increase its market share. According to Perreault, Cannon and McCarthy (2011), a price skimming strategy focuses on profit maximization by charging a high price for early adopters of a new product then reducing the price to attract thriftier consumers.

Apple has adopted this strategy because it helps them to create an aura of prestige around their products while generating a lot of profits. Moreover, it allows them to reduce their prices to encourage consumers to buy. The purchase decision was informed by a number of factors. First, the affordability of the product. Second, the utility of the product. The iPhone 5c has a lot of features that add value to the consumer. Third, the uniqueness of the brand. Apple products have a beautiful design.

Moreover, they are elite products because their high price discourages most people from buying. The research process involved a comparison of different mobile phone reviews online. In addition, conversations with friends and family members reinforced the decision to purchase an iPhone 5c. ReferencesPerreault, W. D., Cannon, J. P., & McCarthy, E. J. (2011). Basic marketing: A marketing strategy planning approach. 1221 Avenue of the Americas, New York, NY, 10020: McGraw-Hill.