During class this week, we talked about the concept of pricing. More specifically, the importance of price to marketing managers. Managers usually strive to charge a price that will earn a fair profit. To earn a profit, managers must choose a price that is not too low or too high, or in other words, a price that equals the perceived value to targeted customers. Trying to set the right price is one of the most stressful and pressure-filled tasks of the marketing manager. Trends in the consumer market attest:
- Confronting a flood of new products, potential buyers carefully evaluate the price of each one against the value of existing products.
- The increased availability of bargain-priced private and generic brands has put a downward pressure on overall prices.
- Many firms are trying to maintain or regain their market shares by cutting prices.
- The internet has made a comparison shopping easier.
- The United States was in a recession from late 2007 until 2009 and was still recovering very slowly in 2011.
How do you think marketing managers choose the appropriate price for a product? What factors do they take into consideration when setting a price?
Tuesday, April 9, 2013
Saturday, April 6, 2013
In response to Melissa Moriwaki
What is your opinion on these April Fools Day products? Are they helping the brands? Why or why not?
After reading Melissa's post, I believe that the April Fools Day products could help or hurt the brands depending on the audience. I think that younger generations would like the commercials because of the sense of humor used in the ads. Especially with younger people, the funny commercials will stay in their minds when they are out and about or out shopping. As for the older generations, I feel that if the consumer already uses the product and sees a funny commercial about it, they will find it funny, but as for adults who do not use the product I do not see how they would be affected by the funny commercials.
After reading Melissa's post, I believe that the April Fools Day products could help or hurt the brands depending on the audience. I think that younger generations would like the commercials because of the sense of humor used in the ads. Especially with younger people, the funny commercials will stay in their minds when they are out and about or out shopping. As for the older generations, I feel that if the consumer already uses the product and sees a funny commercial about it, they will find it funny, but as for adults who do not use the product I do not see how they would be affected by the funny commercials.
Factors Affecting Channel Choice
In class this week, we talked about the factors that affect channel choice. Managers must answer quite a few questions before choosing a market channel. In order to a choose a market channel, managers must analyze several factors, which interact often. Theses factors are normally grouped as market factors, product factors, and producer factors.
Producer Factors: Factors having to do with the producer are very important to the selection of a market channel. In general, producers with large, financial, managerial, and marketing resources are better abel to use more direct channels
Product Factors: Products that are more complex, customized, and expensive tend to benefit from shorter and more direct marketing channels.
Market Factors: Target customer considerations is one of the most important market factors affecting the choice of distribution channel. Specifically, managers should answer certain questions: Who are the potential customers? What do they buy? Where do they buy? When do they buy? How do they buy? In addition, the choice of channel depends on whether the producer is selling to consumers or to industrial customers.
Out of these 3 group factors, which one do you think is the most effective when it comes to channel choice?
Producer Factors: Factors having to do with the producer are very important to the selection of a market channel. In general, producers with large, financial, managerial, and marketing resources are better abel to use more direct channels
Product Factors: Products that are more complex, customized, and expensive tend to benefit from shorter and more direct marketing channels.
Market Factors: Target customer considerations is one of the most important market factors affecting the choice of distribution channel. Specifically, managers should answer certain questions: Who are the potential customers? What do they buy? Where do they buy? When do they buy? How do they buy? In addition, the choice of channel depends on whether the producer is selling to consumers or to industrial customers.
Out of these 3 group factors, which one do you think is the most effective when it comes to channel choice?
Sunday, March 24, 2013
In response to Katie Longchamp's post
After some research, a company that I found that Amazon.com uses one on one marketing. Amazon offers users targeted offers and related products. Once a customer of Amazon buys a product, Amazon will offer other products that the consumer might like based off of what they had purchased in the past.
As an Amazon user myself, I think that this company is doing very well using the one on one marketing. Whenever I purchase a product from Amazon, they always recommend me another product that I may be interested in or something similar to what I have already purchased. Overall, I feel that Amazon has a great amount of success from one on one marketing.
As an Amazon user myself, I think that this company is doing very well using the one on one marketing. Whenever I purchase a product from Amazon, they always recommend me another product that I may be interested in or something similar to what I have already purchased. Overall, I feel that Amazon has a great amount of success from one on one marketing.
Self Concept
As described in our book, self concept, or self perception is consumers perceive themselvels. Self-concept includes, attitudes, perceptions, beliefs, and self evaluations. Although self concept may change, the change is often gradual. Through self concept, people define their identity, which in turn provides for consistent and coherent behavior.
Self concept combines two different types of self image. The first is ideal self image, which is the way an individual would like to be perceived. The second is real self image, which is how an individual actually perceives himself or herself. In today's society, we generally try to raise our real self-image toward our ideal self image or at least narrow the gap between them. An example of this would be someone who sees herself as a trendsetter, and wouldn't buy clothing that doesn't project a contemporary image.
Can any of you think of a certain time that you wanted to buy a product to raise your real self-image? If so, did you end up buying the product?
Self concept combines two different types of self image. The first is ideal self image, which is the way an individual would like to be perceived. The second is real self image, which is how an individual actually perceives himself or herself. In today's society, we generally try to raise our real self-image toward our ideal self image or at least narrow the gap between them. An example of this would be someone who sees herself as a trendsetter, and wouldn't buy clothing that doesn't project a contemporary image.
Can any of you think of a certain time that you wanted to buy a product to raise your real self-image? If so, did you end up buying the product?
Thursday, March 7, 2013
Consumer Involvement
In class this week, we talked about the factors determining the level of consumer involvement. The level of involvement in the purchase depends on the following factors:
1. Previous experience- when consumers have had previous experience with a good or service, the level of involvement typically decreases. After repeated product trials, consumer learn to make quick choices.
2. Interest- Involvement in directly related to consumer interests, as in cars, music, movies, or electronics. A person highly involved in their interest, such as bikes, will be more interested in that topic and spend much more time evaluating different types of bikes.
3. Perceived risk of negative consequences- As the perceived risk in purchasing a product increases, so does the consumer's level of involvement. The types of risk that concern consumers include financial risk, social risk, and psychological risk.
4. Social visibility- Involvement also increases as the social visibility of a product increases. They make a statement about the purchaser and carry a social risk.
What level do you think relates most to your consumer involvement?
1. Previous experience- when consumers have had previous experience with a good or service, the level of involvement typically decreases. After repeated product trials, consumer learn to make quick choices.
2. Interest- Involvement in directly related to consumer interests, as in cars, music, movies, or electronics. A person highly involved in their interest, such as bikes, will be more interested in that topic and spend much more time evaluating different types of bikes.
3. Perceived risk of negative consequences- As the perceived risk in purchasing a product increases, so does the consumer's level of involvement. The types of risk that concern consumers include financial risk, social risk, and psychological risk.
4. Social visibility- Involvement also increases as the social visibility of a product increases. They make a statement about the purchaser and carry a social risk.
What level do you think relates most to your consumer involvement?
Wednesday, March 6, 2013
In response to Katie Longchamp's post
Can you think of any products in which consumer perception caused them to flop?
After doing some research, I found a product in which consumer perception caused them to flop. According to the website, The Research Bunker, a product called LifeSavers Drink suffered from consumer perception.
After doing some research, I found a product in which consumer perception caused them to flop. According to the website, The Research Bunker, a product called LifeSavers Drink suffered from consumer perception.
Source: http://rmsbunkerblog.wordpress.com/tag/product-flops/
The perception of this product was comparable to consuming a bottle of liquid candy. Everybody loves candy, but occasionally people have to limit themselves to the amount that they consume, and consumers took this into account before buying the product.
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