‘’During the year 2006, there was a market for music-enabled mobile phones was emerging to challenge Apple Computer’s dominant position in the digital music industry. Through its iPod line of portable digital music devices and its iTunes Music Store, Apple controlled more than half of the market for both music player hardware and online music sales. But the evolving ability to merge those devices with mobile phones, and to deliver music to mobile handsets created a potentially market-changing opportunity for players in several industries. There examines the key players and covers the origins of the mobile music business, projections on its potential size, its technological building blocks and the key dynamics, the music delivery method and pricing as well as mobile-PC integration that characterize mobile music business models.’’
Most of today’s mobile companies are in vision to always acquire better and appropriate innovation changes in terms of digital processes for adding a more suitable mobile music chain and the using of IPod as well as high tech cell phones as a channel or medium for that technology advancement and the continuous cycle of the music industry as of the present epoch. The companies who markets solely on IPods and cell phones has provided a more ideal stance in terms of market techniques and segmentation like for instance, providing small business sectors a chance to craft retailers, suppliers as well as distributors of such IPod and cell phone items. There is also imperative market communication, a connection among large companies focusing on the type of business nature for example, Apple IPod, Samsung as well as Nokia cell phones respectively. There has been understandable paradigm cycle for balancing coherences as possibly resulted by fierce level of competition and the attack of digital, more easy and durable technology that provides satisfaction and worth of money spent by the mobile users as well as customers who re music lovers wishing to have easy access of the type of music they want to hear at any place and time.
For the SWOT Analysis, the strength of IPods can be it can have the capacity to download volumes of music songs and video while, cell phones also have the capacity to record as well as download songs depending on such range of the phone as well as the features. The music industry then is a boom to all ages of different generations mostly to the youth age groups as well as to those young professionals who have better working careers and even to those groups below the par bracket, to the elementary and high school students even a pre-schooler knows that cell phones acquire such kind of music because of its strong impact and may even recognize IPod as well. The weakness of IPod and cell phones can be staggering in terms of sales and profits as there lots of companies now that specializes in building a medium for music accessibility in those items, and there can be issues and challenges that will affect customer preferences, their mode of buying and will have such unlucky breaks for the suppliers and retailers as well as the company as a whole. The impact of globalization can also be a weakness in terms of carrying out a stable market position for focusing IPods and cell phones in giving out assurance for quick and easy music acquisition.
The opportunities imply a continues music revolution through the IPods and cell phones and the opportunity for loyal technology addicts to wait what Apple company is gong to produce next that will be a craze in the society and that people will dream of getting a new one as it is popular and most recent in IPod technology meanwhile, cell phone collectors and enthusiasts will provide Nokia company a stable share in the market as they are also waiting for the new Nokia phone model to be released, knowing the features and how music is accessible over an IPod. The opportunity for the firms to have better chain management and always in control of its quality management and the opportunity to plan and realize advertising promotions in communicating to the people, who are basically good potential buyers. Thus, there can also be opportunity to execute and implement market communication plan and positive drivers integrating into the music industry market and position. For the threats, there can be uncontrolled conditions that technology driven companies are in danger such as the threat for digital rights management, copying or stealing of rights by others without permission, the presence of risk management in achieving sales quota if there is any, risk management because of customer loyalty like for instance, one company is loyal to the other and mostly, lack and failure of management standards and principles that is threaten by the rising demands of music revolution and tight space competition reality.
The industry is for the most part made up of mature markets and with maturity comes sophistication. It is by necessity that marketing communication must satisfy the ever-increasing demands and emphasis placed on it as the single surviving, sustainable, competitive edge in the marketing environment. Aside, customer behavior holds key to understanding what it is that moves specific groups of prospects closer to a decision to commit and buy and that customer perceptions and behavior are crucial to crystallizing important to flourishing market value as there is identifying the individual customer within targeted niche’ markets. The industry is tough and the demand is in high notion and the competition is fierce and tight for IPods and cell phones. The value of market share maybe in low stance and needs rejuvenation probably because one company selling IPod and cell phones is far better than the other company in providing useful and accessible mediums for music revolution such as through music downloads and compilation. The recording labels are not only taking legal action against file-sharing systems, but also beginning to incorporate the Internet into their own distribution networks. Some music companies have launched commercial file-sharing services and others are planning to follow suit. However, none of these commercial offers is particularly successful and several commercial digital music services have suspended operations. (Assael, 1998; Degeratu, Rangaswamy and Wu, 2000)
While a lot of attention has been focused on the issue of free access to music and the violation of copyright laws through file-sharing services, little is known about the behavior of consumers using such services or how well digital music will sell on the Internet. Although the importance of online consumer behavior to successful sites is undisputed (Degeratu et al., 2000), there is a lack of information about consumer’s online music procurement behavior and price sensitivity. A number of music companies are introducing legal subscription-based services, which pay royalties for the songs they distribute. One of the most important questions relates to users’ price sensitivity for such services. Aside, determining these would allow marketers to address the needs of different online music-procurement groups more objectively. Given the attractiveness for the music industry, capturing Internet-induced changes in the behavior of downloaders would be highly relevant to marketing practice. Furthermore, the Internet-related behavior of non-downloaders, who also seek music-related information and services but show little inclination to download music, needs exploring as little is known about their attitudes. From a demand perspective, this group needs to be considered because they are potential customers of online music services. (Assael, 1998; Degeratu, Rangaswamy and Wu, 2000)
The preliminary point for development and evaluation would be to explore the motives for using liberated digital online music mediums. It is probable that users associate certain benefits with online music, benefits they would also expect in commercial offers. The exploratory investigation had three aims. First, it seek to identify imperative challenges of the music industry, to select and utilize a model of established line of music procurement through using technology tools as provided by the companies. Despite the remarkable general music gadgets market, the music industry is facing stagnating revenues, mainly because of the dissemination of reasonably priced technologies to copy sound carriers, pirate sales of disks also Internet bound music sharing services and the progressively multi-demanding consumer base that have consequences on music industry sales and profits. (Assael, 1998; Degeratu, Rangaswamy and Wu, 2000)
Changing patterns of behavior
The music industry poses salutation opportunity to allow young consumers to engage in more activities through IPods and cell phones. Furthermore, the growing amount of changing music medium style and unreliable degree of Internet resemblance and innovative distribution channels make it more difficult to envisage music connected consumer behavior. (Dolan, 2000; Jarvenpaa and Todd, 1996) As for instance, numerous consumers access gratis music from Internet but continue to buy compact disks which makes it hard to label consumers into cell phone and IPod users.
A model of music procurement behavior
In order to acquire enhanced understanding of customer music procurement, a buying decision making approach is used which focuses on how consumers acquire better technology gadgets for having ample music information and how they utilize it to achieve their desired music types. In toting up to the imagined relations between the different stages of music procurement and behavioral reactions situation variables and individual characteristics are illustrated. (Dolan, 2000; Jarvenpaa and Todd, 1996)
The process
The process of music procurement covers several stages that influence each other as the consumers become active when they identify a need for music. Some consumers may have specific requirements influenced by music reviews found in magazines and newspapers and others have less definite buying desire for cell phones and IPods that will cause the consumer to gather information on available music offers. (Assael, 1998; Degeratu, Rangaswamy and Wu, 2000) Depending on the accessibility and awareness with digital knowledge and technology, marketing and the utilization of music records and labels will contrast. The innovative consumers are more likely to download music from the Internet and to listen to it using IPod player, whereas other consumers will prefer conformist sound carriers such as cell phones and or CDs and will opt for usual procurement through suppliers and retailers that will lead to evaluation affecting future marketing decisions of companies such as Apple and Nokia.
The music procurement implies that customers can decide among various alternatives of free as well as commercial music download of songs or videos and that some consumer connected uniqueness and situational variables applies music value authority. The buyer need for which type of music is secured in which such arrangement will depend on personal character and situational variables and hoping to emulate the success of Apple’s iPod and mobile phone industry is making a bet on music downloads as means of boosting market revenues like for example from the fast 3G networks and handsets that is globally presented. (Dolan, 2000; Jarvenpaa and Todd, 1996; Kretschmer, Klimis and Wallis, 1999)
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