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TO: Proximity music team FROM: Heba J. Bullock DATE: October 12, 2009 SUBJECT: iTunes strategy analysis

Here is my iTunes strategy analysis. Since the debut of the iTunes application, it has been the go to source for legal downloadable music from the internet.


 * Profile**

ITunes is a downloadable media player made by Apple Inc. With the iTunes program, users can play media files such as music and movies. Users also have access to the iTunes store where consumers can get free and purchasable digital media. The application was first introduced in 2001 at a conference in San Francisco, Ca. “…our idea was to try to come up with a music service where you don’t have to subscribe to it. You can just buy music at 99 cents a song and have great rights to it,” says CEO of Apple Inc., Steve Jobs.

Apple was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. The company is an American multinational corporation that designs and manufactures consumer electronics and computer software products. Apple had worldwide annual sales of $32.48 billion in its fiscal year ending September 29, 2008. Apple has established a unique reputation in the consumer electronics industry. This includes a customer base that is devoted to the company and its brand, particularly in the United States. Fortune magazine named Apple the most admired company in the United States in 2008 and in the world in 2009.

ITunes revenue comes from: · Users who purchase music · Users who purchase or rent movies · Those that buy iPods to download media files from iTunes

ITunes currently has 10 million users that have iTunes accounts. The company generated $1.9 billion in music sales alone in 2008.


 * Competitive Landscape**

Steve Jobs, CEO of Apple Inc. and giant of legal music, has made iTunes the ‘go to’ for all music needs. ITunes is the only site that gives user full rights of the music they download without having to subscribe. It also encourages users to purchase the iPod Touch to transfer their music library that they conveniently have on their computers to easily migrate onto their portable music device. Apple pioneered the ability to have the media library on the desktop and evolved this ability by the invention of the iPod to make this library portable. The iPod Touch device does take illegal media files as well.

ITunes gives full rights to the music that a user purchases, unlike its closest competitor, Rhapsody who does not give complete ownership of the downloaded music to its subscribers. Another competitor, Microsoft, introduced the Zune & Zune Marketplace combo in efforts to suspend the success of the iTunes leadership but it did not affect iTunes at all.


 * ITunes strategy**

The Company’s business strategy leverages its unique ability to design and develop its own operating system, hardware, application software, and services to provide its customers new products and solutions with superior ease-of-use, seamless integration, and innovative industrial design. The Company continues to invest in research and development which is critical to the development and evolution of innovative products and technologies. It also continues to capitalize on the junction of the personal computer, mobile communications and digital consumer electronics by creating and refining innovations, such as iPhone, iPod and the iTunes Store.


 * Gen Y implications**

As long as Apple continues to evolve and provide their users with the most efficient and forward devices and technologies, then it will remain in the forefront of the industry.


 * References**

Apple. Financial History. Retrieved October 4,2009 from []

Wikipedia. (2009, October 4) Apple. Retrieved October 4, 2009 from []

Blog proposal
TO: Proximity social networking team FROM: Heba Bullock SUBJECT: Blog Post Proposal DATE: October 26, 2009

I propose that we do our Proximity blog post on the use of social networking sites to assist in the marketing of small businesses. This post can be used to share the benefits of these sites to expose companies to a larger audience or consumer base. Social networking sites are helping to increase the exposure of small businesses to potential users or buyers. Companies are interacting with their audience while also increasing the traffic to their website. Consumers can get the latest news or advertising on the brand in a more informal and personal way. It is also helpful that these businesses can interact with other businesses and make professional relationships with companies in their community while still reaching out to future consumers. I recommend that we organize the post around __How to Use Social Networking for Business Marketing Profits__ run by HubPages that gives clear instructions on the best way for companies to use social networking sites to better their brand: http://hubpages.com/hub/How-To-Use-Social-Networking-For-Business-Marketing-Profits
 * Rationale **
 * Sources **

Report proposal
TO: Proximity Social Networking Team FROM: Heba J. Bullock DATE: January 5, 2010 SUBJECT: Proposal for Report on Facebook Facebook has been the dominant social networking site for Gen Y and others to keep in contact with friends, post pictures, and to post their status. A growing number of small business owners are turning to Facebook to market their company. I propose to write a report on how these small business owners can utilize this site to maximize their brand. The once sharp distinction between business and pleasure is blurring. · Businesses are using Facebook as a free service to keep clients up to date on promotions and special offers. · More than 300 million people are signed up for Facebook and over half of them visit the site every day. · Everyday 10 million people become fans of pages making it seemingly easy for a business to attract fans. · Facebook operates as both a fun and professional environment unlike other social networking sites, so it allows you to expand your network more efficiently. By investing some time and energy into Facebook you can build brand loyalty, establish your expertise, engage your customers on a deeper level, and drive qualified leads back to your Web site. Clients of Proximity who wish to target Gen-Y consumers need this report to understand how exactly to use Facebook to take full advantage of this new trend to reach small business’s marketing objectives. The proposed report, “How to Facebook: Business Edition” will cover the following topics: · How Facebook works · How Facebook can work for a small business · What are some of the businesses using the service successfully · What do the businesses do to stay successful on Facebook The report will also include attachments that outline the growth of users on Facebook and the lure of small businesses to the site. The following items are key sources for the report. Pattison, Kermit, "How to market your business with Facebook." //nytimes// N.p., 11 Nov. 2009. Web. 5 Jan. 2010. Pattison suggests that business owners decipher what they are interested in achieving when setting up their Facebook page. Whether it is brand awareness or building a client base, Pattison recommends determining a strategy to do just that. He also states that owners should start small and not worry primarily on selling. Brooks, Rich. //Flyte// N.p., n.d. Web. 5 Jan. 2010. Rich Brooks, president of the Flyte website, gives a few guidelines to becoming successful with using Facebook as a marketing tool. He says, “Every small business owner and entrepreneur should invest some time to determine how Facebook fits in with the rest of his or her marketing efforts.” "Top Ten Ways to Use Facebook." //The Marketing Zen Group// N.p., 2009. Web. 5 Jan. 2010 This blog post gives a step by step outline on how to use Facebook to market a small business. It’s first step is to create an excellent profile then to add friends to keep connected. Davis, Lidija. "Social Media for Business." //readwriteweb.com// N.p., 2 Oct. 2008. Web. 5 Jan. 2010 Davis claims that it is not about selling anymore, it is all about the relationship between business owners and their clientele. Business owners must focus on this foundational relationship to build their company. "How can social media help small biz." //emarketer.com// N.p., 24 Dec. 2009. Web. 5 Jan. 2010 . This post suggests that Facebook was rated number one in the helpfulness for small business.
 * Need **
 * Topics **
 * Sources **

Team conference presentation proposal
//paste team conference presentation here//

Sales letter and report prospectus


December 7, 2009

Ms. Rosa Rodriguez, Director of Marketing Ted Gibson Salon Incorporation 2243 8th Street NW Washington D.C. 20007

Dear Rosa,

I enjoyed talking with you yesterday at Proximity’s Next Generation Media seminar regarding Ted Gibson Salon’s need to promote its brand to Gen Y consumers. Enclosed you will find a prospectus for the report I mentioned describing how your business can successfully use Facebook to attract Gen Y users.

As you noted yesterday, Ted Gibson Salon needs to establish a relationship with Gen Y to not only reach a broader audience but to reach a younger and more vibrant consumer market as well. I believe Proximity can work with you to devise a comprehensive campaign that uses social networking to achieve that goal.

We can provide you with customized survey and focus group results to help shape Ted Gibson Salon’s image as a progressive, trendy company. Our faculty consultants can advise your sales force on how to position new products and promotions, specifically for online friends. In addition, we have trained student marketers who can promote Ted Gibson Salon by updating the status of the business page with upcoming events and hair trends.

I invite you and your staff to join us at Proximity’s Towson office for a special focus group session on Ted Gibson Salon’s Gen Y brand image. After that session, you can meet with members of our group to discuss how Proximity can help you meet your marketing goals.

Sincerely, Heba J. Bullock Associate Media Analyst

enclosure


 * About Proximity**

Proximity is a Gen Y on-demand media strategy group. Its analysts know how to connect with their generation using campaigns designed for the new media landscape. Because it is associated with Towson University, Proximity has immediate access to a large student population and the expertise of faculty who specialize in marketing and media research.

Proximity offers its clients a full range of services for developing and executing customized campaigns that can reach any segment of Gen Y. It regularly conducts on-line surveys and focus group sessions to keep marketers up to date on the social trends and emerging technologies that determine how this cohort communicates and what it purchases. Visit Proximity at www.proximity.edu to sample its research and see examples of successful campaigns.