Pricing a Product

In order to price a product, it's imperative that you understand the target market to which you are trying to sell the product. There are a lot of factors that go into this understanding. For example, if the product is directed towards kids, is it reasonably priced? Will they be able to afford it on the five dollars a week they receive for allowance? If not, is it something their parents will find worth spending their own money on? 

You also need to take into account if the product is something the consumer needs or wants. If there are other competitors out there that the consumer can go to for the same product, and many other factors. 

What do you think is the most important part of pricing? Why?

In Response to Haley's Post

Have you ever noticed what persuades you to purchase a certain movie?

As an avid Netflix user, I find that the thing that makes me chose a certain movie or TV show is the "recommended for you" section they have. Marketing wise, it's a really great idea. Instead of just having the consumer watch one movie that they heard about from somebody, it creates this endless list of movies they would most likely watch. This keeps them wanting to keep coming back for more, and spending more money on them by keeping their account and paying each month. 

Eco Friendly Companies

With today's society being extremely focused on clean energy, recycling, and being eco friendly in general  som companies are now taking a stand and focusing on creating more green ways to operate. Much like Gap Inc's Water Quality Program that I posted about earlier in the year, companies are focusing more on creating a cleaner environment. And many times, they end up using this as a way of advertising.

While there are many companies that practice green marketing, companies that are passionate about a green environment and a green product, there are some companies that may use this as a means of gaining more customers. How many times have you seen an add, or commercial on TV, where a company uses the "green marketing" in a way that made you think they weren't being legitimate? Some car companies use it to get more people interested, even when the specific car they are advertising doesn't help much with creating a greener environment. "Going Green" has become a phrase that some companies think will bring in a larger consumer group, not understanding that the phrase only goes so far.

Do you think there are any companies that use their "going green" attitude as a means of getting more customers?

In Response to Sam's Post

Who is your favorite artist sponsored by?
Are you more likely to buy that product?

I don't think I even know who my favorite artists are sponsored by. I guess that means either I don't pay enough attention, or it isn't extremely noticeable to me. However, with few that I can think of, it doesn't really make me want to buy their items. It's just something I notice and move on from. 

Email Promotions

At most businesses, especially retail businesses, we are often asked to give our email address for coupons and other promotional information. It's a good idea as far as marketing goes. The more coupons or sale information a customer gets, the more likely they are to shop at the business. But how often do we really read these emails? I myself have signed up for a few business email lists, but when I get these emails I usually just delete them before I read them. Part of me thinks that it's great they're having a sale, but I'm sure I'll get another email next week with information about a different sale. These emails usually end up in the deleted folder pretty quickly, so how affective are they really?

Do you pay more attention to the emails you receive from companies? How affective do you think email promotions are?

In Response to Roland's Post

This has probably generated a lot of traffic to their web site and perhaps even some purchases of products that are “in stock”, which is their intent. But is this type of ad fair to consumers? Does it cross any ethical or legal boundaries?

I think it's bad marketing for the company. Situations like that have happened to me, and it always bothers me. Why promote something that you can't keep a good inventory on? It shows bad business skills and will more likely than not keep customers from coming back to shop with American Eagle. 

Target Markets

Target markets are an important part of selling a product or service. It's important to understand your target market in order to be able to sell a product. Much like packaging, you need to really know what will catch that person's eye. Marketers pay really close attention to things like this, and if you pay really close attention yourself, you'll be able to see what kinds of tactics they use to reach the target market they're aiming to reach.

 It's interesting to watch commercials on different T.V channels. You never really think about how tailored they are the you as a viewer, but the companies paying for those commercials put a lot of thought into which channel they will advertise on. If you're watching a channel like TLC, you're not going to see a lot of commercials for Nike's new running shoe for men, or the latest sports gear for sale at Sport's Authority. It would be more likely that you would see commercials for make up, skin care products or products for young families.  While if you were watching the SyFy channel, you most likely wouldn't see those types of commercials.

Advertisements on television are extremely catered to the target market of the channel. The ones that air not only have to be made in a way that will catch the target market of the product itself, but also in a way that will catch the eye of the other viewers watching, so it does not seem too out of place.

Which target market do you see things advertised to most often?  Have you ever though a commercial seemed out of place compared to the channel you were watching?