TABLE
FACT
Increasing of fuel price, Green Marketing, Viral Marketing and E-retailing.
IDEAS LEARNING ISSUES ACTION PLAN
Searching through websites, finding the information in books and related articles, and going to UNIMAS library to read further information.
Decreased of fuel subsidy might affect monthly expense for low level income people. How may it affect the expenses of those low level income people?
Increasing of fuel price has led to dissatisfaction situation. What might happen if the dissatisfaction situation is not solved?
It is important to purchase and use green product. Why is it important to use the green product?
More awareness of the green product will lead to better green marketing. How to increase the awareness of green product among people?
Promoting a product through viral marketing is effective. Why is it effective to promote product through it?
Viral marketing is fast and easy to remember by its audience or receiver. What type of people mostly attracted to use viral marketing?
E-retailing is a well-known method and use widely nowadays to sell product. Why is it used widely nowadays?
A convenient and easy way to purchase a product. Why is it convenient to customer to purchase product?
Individual reflection
Pricing strategies is an important element to keep customers.
Customers are being likely to consider prices when they want to purchase something in terms of what they consider the price have to be, concerning to what they think the price supposed to be with the actual price. Inconsistency in both direction maybe it is too high or too low may affect the customer to purchase the product from different alternative company. A consumer-based pricing strategy can be beneficial since it drives ...
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...shop at home and any time without going anywhere and just sit in front of the laptop, computer or any other devices that may connect to the internet to do purchasing. Consumers usually want to save their time and money to search products and services by using internet. It is easy for them to survey the items that they want and making purchase by online easily. It can take several days physically o go form a location to different location and it cost customer’s time and fuel to find the items that hard to find. Apart from that, e-retailing also is an efficient way for retailing business to do business transaction. The cost to start the business is less than doing business with brick and mortar. Plus, fewer license and permits required doing this type of business. Fewer employees needed to run this e-retailing business and it can avoid from paying high utility costs.
As we learned from Chapter 12, price must be carefully determined and match with firm’s product, distribution, and communication strategies. (Hutt & Speh, 2012, p. 300) Therefore, there should be a strong market perspective in pricing. In order to build an effective pricing policy, marketers should focus on the value a customer places on a product or service. One of the most effective ways to do so is differentiating through value creation.
Weakness: A lower price suggests the company’s total income relies more on the quantity of products sold, which may lead to financial issues such as shortage of capital turnover if the business cannot sell enough goods. However, recent researches on the feedback from customers from different online sellers have shown that the price is higher than their expectation, which may also deteriorate the sales amount in the future.
Setting prices too high would discourage purchasing and setting prices too low negatively affects revenue. While several pricing strategies exist, the use of a value-based pricing system, as implemented at Cabela’s, offers an optimal strategy that meet both customer expectations and company requirements.
Meanwhile, price strategies are important to be considered by every marketer before market a new product into a new market. Basically, the price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer’s perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.
Pricing also can convey the organizations value and positioning of its product or brand. A well designed and well marketed product direct a price premium and reap big profits for its products. Pricing affects everything from the marketing strategy to the marketing environment. Consumers are also very big on pricing because in the current environment, everyone is looking to decrease their pocket expenses as much as
...re the price-setters, and companies cannot risk increasing their prices significantly as it may result in a loss in the customer base. In fact, in order to remain competitive, prices of products and services should always be kept either equal or lower than that of the rivals. Either that, or the company provides a strong value-added component that the customers wouldn’t mind paying a premium price for.
Sometimes customers did not look for alternatives even when there are many offers for alternatives because they do not prefer alternatives. And so, customers at that time might pay more than what the products may really
Price Elasticity is the measure in responsiveness of consumers to changes in the price of a product or service. The evaluation and consideration of this measure is a useful tool in firms making decisions about pricing and production, and in governments making decisions about revenue and regulation. “Price Elasticity is impacted by measurable factors that allow managers to understand demand and pricing for their product or service; including the availability of substitutes, the consumer budgets for the product or service, and the time period for demand adjustments.” The proper consideration of Price Elasticity allows managers to set pricing such that the effect on Total Revenue is predictable and adjustments to production are timely. The concept of Price Elasticity is employed in the management of commercial firms and government.
If consumers think that the company’s product or service provides greater value compared with competitors, the company can charge a higher price. Otherwise the firm must either charge a lower price or change customers’ perceptions to justify a higher price. The goal is not to match or beat competitors’ price, but is to set prices according to the relative value created versus competitors. For example, Apple makes high-quality consumer electronics: it leads its industry despite charging higher prices than competitors such as Samsung, Huawei, Lenovo and Dell. Indeed, despite Apple’s premium prices, customers believe that Apple give them a lot more value for the price they pay. (Armstrong 2017,
The Internet is rapidly becoming widespread and widely used as a tool for globalization across the world. As the Internet became more easily accessible by most people in the world, the web is bringing significant implications and changes to the way we live, including the way we shop. There is a rapid growth with e-commerce and moving businesses onto the web and retail success is no longer about stores and shopping centers. In developed countries, about two thirds of the population have access to the Internet making the option of online shopping is easily accessible to most people (Valerio). With the ease of shopping in your own home there are many benefits of doing your shopping online. Consumers can easily compare prices online, there is a larger range of products on the web, you can save time by having your shopping delivered right to your doorstep and it also overcomes physical barriers. Over the last decade online shopping has challenged and replaced the traditional means of physically going into shops as the digital world has provided customers with further convenience, flexibility and comfort from shopping from your own home.
The main advantage of online shopping is convenient. Online shops open 24/7. People who live in remote areas do not need to speed long time on the traveling to the stores. Consumers who come from other cities/countries can easily buy the native and specialty goods by just a click instead of going to that cities/countries themselves. The relevant information of products can be received from any location in seconds. Study showed that 72% of online shoppers preferred surf online than go to retail store to attain information about a product (Lokken et al., 2003). Online shopping also has greater price information (as cited...
being used at a price in which consumers want to pay, as its placed about the competitive
1. Convenience: Online shopping provides convenience to the customers as it is available around the clock and is open 24*7. Many people choose to shop online because they could shop after hours, when traditional stores are closed & also they want to avoid traffic jams, crowds, waiting lines etc. Customers not only see products available but also online services that are provided to them. Good service will retain the customers for longer time. Some people want to avoid face to face interaction with the salespersons so they do online shopping. This is true for those people who have had negative experience with salesperson or they just freely want to make decisions by themselves without interruption of the
Electronic Commerce as popularly as E-commerce has become a big deal in our growing economy due to the increase use of online systems. E-commerce now of the fastest growing business in the world. The technology has change the way of business. Business that have physical location have now made it an effort to focus their online business. It is the new sort of business platform where you can make use of different technologies like electronic data interchange or transfer document electronically. Online business is an effective of sales.
Marketing is defined as follows: Marketing is the process of interesting potential customers and clients in your products or services. In this essay, I am going to address the concept of “social marketing” and how does social marketing differ from “societal marketing” or “socially responsible marketing” in the first part, and in the second part, I am going to provide examples of each of the three approaches to marketing and analyse how these represent a departure from traditional marketing practice.