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4/16/2010

Major Media Source Response

This is in response to L.B.’s post:

Which major media source do you think is best? If you were a company looking to advertise, which media source would you use?

These are tough to answer because as you have mentioned there are advantages and disadvantages of all of the media sources available. I think it all depends on what the company is trying to provide or sell. For example, a newspaper would be helpful to restaurants such as the Keene Sentinel. Panera Bread could promote their restaurant by placing coupons in the newspaper which would reach a variety of people. However, Panera Bread may want to put coupons in a health magazine promoting their products because their target market will most likely read that type of magazine. They may even want to advertise on the radio as well because this information will reach a large span of people as well.

Direct mail is definitely a great media source because it’s been around for the longest. When people receive things in the mail, they look everything over because some could be bills while others could be letters. However, they still have to go through everything else before throwing it away. Companies could get billing information of specific customers so that they can send them coupons and discounts on products. Basically, I feel as if the type of advertising depends on the product or service they are trying to promote. Do you agree?

Product Differentiation

Product differentiation is the process of creating and designing products so that customers perceive them as different from competing products. The differences between certain products include product quality, product design and features, and product support services. The process of differentiation is very important because it is the true test for a product to stand out against competitors.

Products quality refers to the overall characteristics that allow a product to perform as expected in satisfying customer needs. When we buy products we expect them to do the tasks which they are supposed to complete. For example, if we buy an expensive pair of jeans we expect them to last a couple of years or more because of the quality. Or if we buy a winter jacket, we would expect that the quality of the jacket will keep us warm and will be durable for many years. These two examples refer to the consistency of quality which is the degree to which a products has the same level of quality over time.

Product design is how a products is conceived, planned, and produced. Any brand can possess a great product design which is the best competitive advantage for the product. A design includes the physical appearance of the product and the products features. The physical appearance of the product is known as styling. This aspect of design is important for many consumers. We all look for a distinctive appearance in a product. The product features are specific design characteristics that allow a product to perform certain tasks. For example, cell phones are now coming into the market with so many different features. They were first just cell phones and now they include cameras, and video cameras, internet, calculator, scanner, speaker phone, etc. These features help make a distinction of a cell phone from others.

Product support services include customer services which are the human or mechanical efforts or activities that add value to a product. Some companies solely depend on customer services in order to differentiate their product. When buying appliances there is usually warranties and guarantees long with repairs. For example, if we buy a washer or dryer these types of services are very important because of the price paid for them. If something went wrong we would like for someone to repair it for a low price.

I think that product quality and design are more important that customer services in some cases. You don’t need to depend on customer service if the quality and design of your product fits specific task that it needs to perform. We all want quality, durability, and certain features that will enable the product to last a long time. I feel as if customer service is more important in service businesses. For example, customer service is significant in restaurants because not only of the quality of the food, but the service by their servers. If the servers are not friendly or helpful then customers need to report this to customer service.

Which do you think is more important, quality and design or the customer services of a product? What supports your choice?

4/10/2010

Pricing Response

This is in response to Chris French’s post:

Do you think price is always an important role? Or does it sometimes not matter? How important is it for a company to scout out competitors’ prices and adjust as needed?

Price is not always an important role, but it all depends on the situation. Senior citizens tend to buy products when they go on sale, because they know how to use their money wisely. Then you have people who will pay any price for a specific brand because it shows status. These are just a couple of the circumstances that apply to buyers. I do think prices are important when it comes to the specific product, target market, and situation.

I think it is important for a company to scout out competitors’ prices and adjust as needed in certain situations as well. This definitely applies to the more expensive purchases buyers make. For example, car dealerships are selling very expensive products which are sometimes hard to sell. They should definitely scout their competitors’ prices and adjust the prices depending on what they are charging. Competition is a threat to companies so it is important to be aware of their prices. Do you agree with this? Do you think price is important all the time or in certain situations?

Pricing

There are many different pricing strategies to help sell a product. These strategies include: Differential pricing, new product pricing, penetration pricing, product-line pricing, psychological pricing, and promotional pricing. The type of strategy that is going to be used depends on the product, target market, and the purchase situation.

Differential pricing occurs when different prices are charged to different buyers for the same quality and quantity of the product. New product pricing includes price skimming which results in charging the highest possible price that buyers will pay because of the desire they have for the product. This applies to the people who live by buying a particular brand and nothing else. For example, people may enjoy a certain brand of shampoo and I will pay anything for it because it is best for their hair. Penetration pricing is used by setting prices below those of competing brands to penetrate a market and gain a significant market share quickly. A good example of this I feel would be the new iPad. This product is reasonably cheap for the features that it offers, and competes with laptops. Product-line pricing establishes and adjust prices of multiple products within a product line. I think that this is a great strategy. Another example using shampoo would be the conditioner that comes with it. You will definitely buy that specific shampoo, and buy the conditioner that goes with it no matter what the price is because of the results. Psychological pricing attempts to influence a customers’ perception of price to make a product’s price more attractive. This would relate more to the branding of certain products. People will pay a price for quality, durability, and particular trends during that time. Promotional pricing is very attractive to customers because prices are set below the usual markup and look better to the buyers when compared with the original price.

I think that all companies should use promotional pricing at some point because customers are attracted to low prices. Penetration pricing seems to be the best pricing strategy to use because it involves pricing below the competition. As mentioned above, the pricing strategy depends on several factors which are all significant in different circumstances. Do you agree with this? Which pricing strategy do you believe is the most important to the buyer and seller?

4/03/2010

Branding Response

This is in response to L.B.’s Blog:

How do you feel? Do you come to expect certain things from certain brands? Do you prefer and insist on certain brands or are you open to anything?

When it comes to certain brands, I am pretty open to buying anything unless I am making a large purchase. The way the product looks and the quality of it is usually most important to me. I don’t necessarily think that particular brands have a higher quality than generic brands. For example, Uggs are a brand of boots in which all college female students have except for me probably. I can’t imagine spending $180 on a pair of boots that are not necessarily durable. My friend has a pair of Ugg boots and since the winters are sometimes intense, the salt from the roads has ruined the leather. Just because that is the new trend doesn’t mean I am going to buy them. I like certain brands because of the way the products look, but not really because of the quality. The only product that was an expensive purchase of mine was my Dansko shoes. I needed them because I was always on my feet at work and my back was starting to bother me. Not only are the handmade and durable, but they are comfortable and help support you feet well. If I am going to spend a lot of money on a product, then I want something that will last me a long time so I won’t have to replace it quickly. Do you agree with this? Do you prefer certain brands over others?

Product Variable~ Branding and Packaging

Products surround us in our daily lives, and all across this earth. When we buy products, the brand on the label is usually important to the consumer. The brand consists of a name, term, design, symbol or other feature that identifies a seller’s product and differentiates it from a competitor’s product. People tend to buy products of certain brands because it is a sign of status, brand loyalty, provides a form of self-expression, and evaluates the product’s quality. I feel that if I am buying a product that is fairly expensive, I tend to search for a good brand of that product because I want it to last a while. I don’t buy products of certain brands just because it is the new trend. For example, I work in a restaurant and am always on my feet so I bought a pair of Dansko’s which have helped my back. So for me it depends on the product that I am buying.

Packaging is an important factor when buying products. It involves the development of a container and a graphic design for a product. Product packaging has functions involving the protection of the product from being damaged, convenience to customers, and communicating its features. Some people may enjoy buying a particular brand, but sometimes convenience is better and consumers will buy another brand of the same product. I feel as if the packaging is very important when attracting the attention of customers. My attention would be drawn more to a package full of color than a packaging with only black and white. People want heavy duty packaging for items that are especially fragile. For example, my parents bought a patio set and when they brought it home and opened it, the glass was shattered in an area of the table. So they were very disappointed and sent it back.

Overall the brand and packaging of products is very important when buying certain products. I think that it is very important to focus on these two aspects because they can make a difference not only for the buyer, but also the seller. Brands and packaging make the products stand out from others. Do you agree? Do you think that people focus more on the brands or on the packaging of products? Do you believe that they are both very important?

3/26/2010

The Overspent American Response

This is in response to Bruce Wichland’s post:
How do you feel? Do you think this documentary is accurate? Are these issues blown out of proportion? Do we have a spending problem?

I have the same beliefs about this new consumerism. I feel that this document is accurate to an extent. The media definitely plays a significant role in the way Americans consume. However, it is not forcing us to go out and spend money. It may have a little influence, but we have the choice to spend money on things we don’t need. As you mentioned, 25% of people with $100,000 of annual income say they do not have the money for basic necessities. This blew my mind because needs are not that expensive unless you live that lifestyle. If you can’t afford that lifestyle then you’re not meant to be living in it. Overall, some of these issues mentioned in the video are blown out of proportion for sure.

There is no doubt that we have a spending problem here in America. I bet that the majority of Americans have credit card debt. It is understandable if the debt is from medical needs or emergencies because sometimes these types of things happen when least expected. However, when a credit card is maxed out because of vacation trips and jewelry, then that’s a different story. We are all consumers and spend money on things we really don’t need. People need to realize those goods that they really don’t need and just want because their neighbors have it. Do you agree?