Answer Question 1,2, and 3 on the second page bottom right corner.

7. Company objectives influence product line length-the total number of items in the product line. Product lines tend to lengthen over time. A company lengthens its 9. The label can be a simple attached tag or an elaborately designed graphic that is an inherent part of the package. product line in two ways: line stretching and line filling. A label performs several functions: It identifies the prodproduct line beyond its current range, lengthens its uct or brand; it might describe the product (who made it, market, up-market, or both. Line filling occurs when a and how to use it safely), and it might promote the prod- uct through persuasive messaging. firm adds more items within the existing range. 8. Packaging includes all the activities of designing and 10. Guarantees and warranties are explicit or implicit promproducingthecontainerforaproduct.Packagingmustachieveanumberofobjectives:identifythebrand,con-isesbysellersthattheproductwillperformasspecifieorthesellerwillfixitorrefundthecustomersmoney vey descriptive and persuasive information, facilitate con-_ during a specified period. Guarantees reduce the buyer's product transportation/protection/storage, and aid con-_ perceived risk by suggesting that the product is of high sumption. A good package draws the consumer in and quality and that the company and its service perfor- mance are dependable. Whether expressed or implied, encourages product choice. warranties and guarantees are legally enforceable. marketing SPOTLIGHT Apple Apple Computers was founded, in 1976, by college dropouts Steve Jobs and Steve Worniak, who wanted to make computers more user-friendly so people could use them at home and at work. The company's first major success-Apple II launched in 1977-revolutionized the computer industry with the introduction of the first-ever color graphics. On the heels of explosive growth. Apple went public in 1980. Several years later, in 1983, Jobs hired John Sculley, CEO of PepsiCo at the time, as Apple's CEO-a decision that backfired when, in 1985, Scully ended up firing Jobs. One of Apple's early and most important innovations Apple's focus on short-term profits rather than innova-_ was the iPod MP3 player. Not only did the IPod become a tion led to a gradual deterioration of its market position, and cultural phenomenon; it introduced many consumers to Apple by 1996, experts were raising questions about the company's and initiated a series of monumental product innovations. viability. To make up for lack of innovation, Apple bought out The iPod exemplified Apple's leading-edge design skills and NeXT Software - the company founded by Jobs after he left looked, felt, and operated like no other device. To the delight Apple-and brought back Jobs as an interim CEO (he offi- of Apple (and the chagrin of competitor Sony), the iPod cially became CEO in 2000). Once back at the helm of Apple, became "the Walkman of the 21st century." The dynamic Jobs forged an alliance with Microsoft to develop a Mac_duo of the iPod and the newly launched iTunes Music store version of its popular Office software, introduced iBook-an helped drive iPod sales through the roof. entry-level laptop for consumer and education markets, and The iPod was also central in changing the way people lislaunched iMac-a suite of all-in-one computers featuring dis- tened to and used music. According to musician John Mayer, tinctly colored, translucent egg-shaped cases. "People feel they're walking through musicology" when they Over the past two decades, Apple has continued to use their iPods, leading them to listen to more music, and with invest heavily in research and development to become more passion. The IPod has gone through a series of generaa world leader in innovative new-product launches. The tions, and along the way Apple has added features like photo, company transformed the way people listen to music, play video, and radio capabilities. Realizing the success of its foray video games, talk on the phone, and even read books. into the music industry in general and the iPod in particular, Apple's revolutionary product innovations include the Apple launched itunes-a software-based digital marketplace IPod, iMac, iPhone, and iPad and are the reason why the for music. Introduced in 2003, the iTunes store became the company topped Fortune magazine's World's Most Admired largest music vendor in the United States by 2008 and the Companies list for many years. largest music vendor in the world by 2010. (continued) Apple achieved its impressive market domination documents, and hundreds of thousands of applications at isk Appleachieveditsimpressivemarketdominationthroughacombinationofshrewdproductinnovationandclevermarketing.ThemarketingeffortappealedbothtoApplefansandtopeoplewhohadnotusedAppleproductstouchofafinger,withoutmouseorkeyboard.ApplefollowoyupwiththelaunchoftheIPadmini,asmallerversionofthaoriginal,andtheiPadAir,whichcorrespondedwithapoivh. in the past. To reach such a broad consumer base, the com- ful marketing campaign that inspired consumers to foot they pany had to shift its channel strategies. Apple added "mass could do anything with their iPad, including creating movelectronic" retailers such as Best Buy and (the now obsolete) les, building wind turbines, studying coral reefs, and mahirg Circuit City to its existing channels, which quadrupled its mountain climbing safer. On the heels of the success of the Pad, in 2015Appla number of outlets. Besides this enhanced "push" effort, Apple also devel- introduced its first wearable device, Apple Watch, offaring oped memorable, creative "pull" advertising that helped drive fitness tracking and health-oriented capabilities. After a slug. the popularity of the iPod. The Silhouettes, which featured gish start, Apple Watch ultimately became one of Appla's sithouettes of people listening to and dancing with their fastest-growing product categories, selling over 30 million unt iPods, appeared all over the world. This simple message in 2019. True to its mission of staying at the forefront of user. beyond the reach of anyone who enjoyed music. artifial inteligence and machine leaming. indeed, in the past As the iPod's popularity grew, a halo effect helped several years, the use of artificial intelligence in consumer pod increase the market share of Apple's other products. As a ucts has exploded through the rise of digital assistants such as result, in 2007 Apple officially changed its name from Apple Amazon's Alexa, Google's Assistant, and Apple's own Siri. Computer Inc. to Apple Inc. to help communicate the com- Apple's investment in research and development is one pany's expanded focus on non-computer products. Apple's way the company remains a leader in this cutthroat indistry. next-largest product launch after the iPod was the iPhone, Apple spent over $18 billion on research and development its 2007 entry into the cell phone industry. The iPhone, with in 2020 and continues to increase its R\&D budget in order its touch-screen pad, virtual keyboard, and internet and to stay ahead of the competition. Creating, producing, and e-mail capabilities, launched to huge consumer excitement: launching new products is a top priority for Apple. Suppotlad People lined up for hours to be among the first to buy one. by creative marketing, the company's pioneering is the rea. Investment analysts initially feared that Apple's two-year son why consumers and analysts stay on their toes awaiting contract with AT\&T and high initial price would hinder the news of Apple's latest products. 47 IPhone's success. Seventy-four days affer the product's debut, however, Apple had sold its one-milionth iPhone. Questions It had taken the PPod two years to reach the cumulative sales 1. What are the key factors contributing to Apple's phe (\$1.1 million) that the iPhone had reached in its first quarter. nomenal success? In fact, half the iPod buyers switehed to AT\& from a different 2. Apple's product launches over the past decade hove wireless carrier, some incurring fees to break their contracts, been monumental. What makes the company so good at just to have a chance to own an iPhone. innovation? The launch of the iPad also created a media frenzy in 3. How important was the iPhone to Apple's current suc2013. The multitouch device combined the look and feel of the IPhone with the power of a MacBook and gave consumcess? Discuss the significance of the IPad and Apple ers access to music, books, movies, pictures, video games, Watch launches to Apple's new-product development strategy. marketing SPOTLIGHT Casper Casper is an American e-commerce company that primarily sells mattresses. The idea of Casper was thought up by fou members of a New York City venture accelerator in 2013. The company aimed to be an alternative to what they callod "Big Mattress," the dominant manufacturers and retailers at the time. The four brands that made up "Big Mattress" were Serta, Simmons, Tempur-Pedic, and Sealy. The Casper