Pricing Issues in International Marketing

Price can be defined in the ratio terms, giving the equation:

                             resources given up
price  =     ———————————————               
                                 goods received

With this equation there are several ways that the price can be changed:

·      “Sticker” price changes- the most obvious way to change the price is the price tag. You receive the same thing, but for a different amount of money.

·      Change quantity. Consumers respond negatively to an increased sticker price, and change in quantity are sometimes noticed less.

·      Change quality. Another way candy manufacturers have effectively increased prices is through a reduction in quality.

·      Change terms. In the old days, most software manufacturers provided free support for their programs. Nowadays, you either have to call a 900 number or have a credit care handy to get help from software makers. Another way to change terms is to do away with favorable financing terms.

Consumers often develop internal reference prices or expectations about what something should cost, based mostly on their experience. Retailers very often promote soft drinks, since consumers tend to have a good idea of process and these products are quite visible. The trick, is to be more expensive on products where price expectations are muddier.

Marketers often try to influence people’s price perceptions through the use of external reference prices. For example

• Manufacturer's Suggested Retail Price (MSRP). This is often pure fiction. The suggested retail prices in certain categories are deliberately set so high that even full service retailers can sell at a "discount." Thus, although the consumer may contrast the offering price against the MSRP, this latter figure is quite misleading.
• "SALE! Now $2.99; Regular Price $5.00." For this strategy to be used legally in most countries, the claim must be true (consistency of enforcement in some countries is, of course, another matter). However, certain products are put on sale so frequently that the "regular" price is meaningless. In the early 1990s, Sears was reported to sell some 55% of its merchandise on sale.
• "WAS $10.00, now $6.99."
• "Sold elsewhere for $150.00; our price: $99.99."

Can you think of another way marketers can change the prices without the consumer knowing? Do you think this is ethical or unethical?

In Response To Billy's Post

Can you think of any other companies that do this?

To companies that came to my mind when thinking about companies that promote other companies in the same commercial would be Gillette razor, which helps promote Gillette stadium, and also TD bank, which helps promote TD Garden in Boston. These two stadium have nothing to do with a bank or a razor if you heard of them but at the same time have everything to do with each other. I think when creating a commercial it is a smart way to tie in another company, two reasons you can get more for your money and most likely this will pay off and people will soon associate both product together. 

Importance of Branding

 The American Marketing Association defines a brand as a “name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of the other sellers. Branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem.

Objectives that a good brand will achieve:

·      Delivers the message clearly

·      Confirms your credibility

·      Connects your target prospects emotionally

·      Motivates the buyer

·      Concretes User Loyalty

In order to succeed in branding you must understand the needs and wants of your customers and prospects. You can do this by integrating your brand strategies through your company at every point of public contact. The brand resides within the hearts and minds of customers, clients, and prospects. It’s the total sum of their experiences and perceptions, some of which you can influence, and some that you cannot. It is important to spend time investing in researching, defining and building your brand. Your brand is the source of a promise to your consumer, a foundational piece you do not want to be without.

In Response to Maggie Carter's Post

Do you think using Flash mobs and other means to relate to young people is a good idea for our future?

            I do believe that using flash mobs is a great way to spread awareness about the earth and it’s issues. Young people would rather see or hear this information, young people don’t like to ‘waste’ there time reading about environmental/global issues they would rather hear about it.  What better way then to have a flash mob it educates you and give you a show. 

As you see in this video once people start to hear someone talk over the loud speaker they stop to listen, to me this would be a great way to spread awareness in a fun and exciting way, hoping people will get the right message. 

In the next few years what are other promotional ideas do you think would be best to promote awareness of the earth?

Rules for more Effective Advertising

Many businesses have a difficult time with there advertising and spreading the word for their product. Here is a guide that could help them focus on what a successful ad would consist of. I found this article about the 10 Rules for more Effective Advertising.

http://americanresearchgroup.com/adrules/

1. Does the ad tell a simple story, not just convey information?

2. Does the ad make the desired call to action a part of the story?

 3. Does the ad use basic emotional appeals?

4. Does the ad use easy arguments?

 5. Does the ad show, and not tell?

6. Does the ad use symbolic language and images that relate to the senses?

7. Does the ad match what viewers see with what they hear?

8. Does the ad stay with a scene long enough for impact?

9. Does the ad let powerful video speak for itself?

10. Does the ad use identifiable music? 

Most advertising fails to follow any of these rules at all and that’s also why there advertising doesn’t reach out to everyone. One of the best rules would have to be number 1 it states that a good story allows each member of the audience to interpret the story, as he or she understands the action.  Another important rule would be number 5, people don’t like to read ads; they would rather see or hear the ad. Our generation is getting lazy and the simpler the ads the better. All of their rules are very important and should really be taken into consideration when planning an advertisement.

Which of the 10 rules do you think is the most important? If you could make any ad what would it be for and how would you go about creating the advertisement?

Repsonse to Rachel Marra's post

What are some of the reasons that you think Domino’s is so much more successful than Pizza Hut?

I believe that Domino’s is more successful because unlike Pizza Hut, Domino’s has 8 different flavored oven baked sandwiches. Although Pizza Hut does have pasta, Domino’s has 6 different flavors including Mac-N-Cheese. Pizza Hut delivers but I don’t believe that everyone thinks that. I actually didn’t know that Pizza Hut delivered before this post. A lot of the commercials for Domino’s talk about delivery and all the great deals they have, where as Pizza Hut focuses on their lunch buffet and there wing “Wing Street”.  Domino’s has improved their pizza a great deal since first opening, this video below explains how over the years with all there bad reputations for the pizza tasting like ‘cardboard’ they have chanced it after listening to recommendation about what needed to chance. Which would you prefer Domino's or Pizza Hut? What other advertising ideas would you give to either company to improve there business? 

The next big thing..

 The Next big thing? The memristor, a microscopic component that can "remember" electrical states even when turned off. It's expected to be far cheaper and faster than any flash storage. A theooretical concept since 1971, it has now been built in labs and is already starting to revolutionize everything we know about computing, possibly making flash memory, RAM and even hard drives obsolete within decade.
The memristor is just one of the amazing technological advances sending shock waves through the world of computing. Other innovations in the works are more down-to-earth, but they also carry watershed significance. From the technologies that finally make paperless offices a reality to those that deliver wireless power, these advances should make your PC become a whole different experience when the turn of the decade comes.
 If you could think of something new to technology what would it be? Do you think that you will be purchasing a memristor within the next decade?