Website Visit: Constant Contact
1. I have used constant contact on many occasions and was very happy with the service. The tour and tutorial are very accurate and do not over-hype this great product.
2. The price is very affordable for all sizes of businesses and nonprofit organizations.
3. The tour is very persuasive and left me with an “I can’t live without this product” feeling.
4. The voice is clear and the narrator does a great job in generating interest in the product.
5. My only criticism is that many people, especially those who are at work (arguably their target market), would not listen to the voice over. Additionally, their images are small and hard to read in the window of the tour. They should have done a better job in their tour to make it easier for someone who wished to view the tour without sound.
Monday, April 7, 2008
Chapter 17, Question 3.3:
Chapter 17, Question 3.3: Explain the concepts of elastic and inelastic demand. Why should managers understand these concepts?
Elastic demand is a situation in which consumer demand is sensitive to changes in price. Inelastic demand is a situation in which an increase or a decrease in a price will not significantly affect demand for the product.
Managers should understand these concepts when determining price. If demand is elastic and they choose to significantly increase price, they could lose customers. Conversely, if demand is inelastic, the manager could increase revenue by raising prices without affecting demand.
Website Visit: Constant Contact
Elastic demand is a situation in which consumer demand is sensitive to changes in price. Inelastic demand is a situation in which an increase or a decrease in a price will not significantly affect demand for the product.
Managers should understand these concepts when determining price. If demand is elastic and they choose to significantly increase price, they could lose customers. Conversely, if demand is inelastic, the manager could increase revenue by raising prices without affecting demand.
Website Visit: Constant Contact
Chapter 17, Question 3.2:
Chapter 17, Question 3.2: If a firm can increase its total revenue by raising its price, shouldn’t it do so?
Yes, especially if demand is inelastic price should be increased. However, if demand is elastic, an increase in price could actually lead to a decrease in revenue. If overall costs are high and fixed, price should be set to where the maximum number of sales can equal a profit.
Yes, especially if demand is inelastic price should be increased. However, if demand is elastic, an increase in price could actually lead to a decrease in revenue. If overall costs are high and fixed, price should be set to where the maximum number of sales can equal a profit.
Chapter 17, Question 3.1:
Chapter 17, Question 3.1: Explain the role of supply and demand in determining price.
The price marketers set for a product depends mostly on two factors: the demand for the good or service and the cost to the seller for that good or service. When pricing goals are mainly sales oriented, demand considerations usually dominate.
If there is no demand for a product, the manufacturers and retailers will likely reduce the cost to reduce inventory. If supply is low and demand is high, the price could potentially increase but would definitely at least stay constant until demand begins to decline. Price equilibrium occurs when demand and supply are equal.
The price marketers set for a product depends mostly on two factors: the demand for the good or service and the cost to the seller for that good or service. When pricing goals are mainly sales oriented, demand considerations usually dominate.
If there is no demand for a product, the manufacturers and retailers will likely reduce the cost to reduce inventory. If supply is low and demand is high, the price could potentially increase but would definitely at least stay constant until demand begins to decline. Price equilibrium occurs when demand and supply are equal.
Chapter 17, Question 2.1:
Chapter 17, Question 2.1: Give an example of each major type of pricing objective.
Profit-Oriented: Firms like Apple are examples of profit-oriented companies. When the ipod came to the market, it was a new product and there was no competition to speak of in the MP3 player industry. Apple was and, because of quality and a relative monopoly, is able to set prices high in order to maximize profit.
Sales-Oriented: Coffee sales between Folgers and Maxwell House are an example of sales oriented pricing. Both companies set price as a means to control a larger share of the market.
Status Quo-Oriented: Air-travel is an example of status quo pricing. Across the board, airlines closely monitor their prices in comparison to other airlines in the same market. When an airline reduces its price between two markets, the competitors usually follow suit.
Profit-Oriented: Firms like Apple are examples of profit-oriented companies. When the ipod came to the market, it was a new product and there was no competition to speak of in the MP3 player industry. Apple was and, because of quality and a relative monopoly, is able to set prices high in order to maximize profit.
Sales-Oriented: Coffee sales between Folgers and Maxwell House are an example of sales oriented pricing. Both companies set price as a means to control a larger share of the market.
Status Quo-Oriented: Air-travel is an example of status quo pricing. Across the board, airlines closely monitor their prices in comparison to other airlines in the same market. When an airline reduces its price between two markets, the competitors usually follow suit.
Chapter 14, Question 5.2:
Chapter 14, Question 5.2: How does a website’s ease of use affect its ability to create attention, interest, desire, and action? Visit www.kohler.com and determine how successful they are at moving customers through the AIDA process.
A website is great for generating attention, interest, build a compelling case or desire, and command an action. Building attention starts with a compelling headline and layout – commanding the reader to continue viewing. Generating interest on a website is also key and answers the reader’s question, “what’s in it for me?” Desire on a website is created through testimonials, ratings, studies, etc. The placement of these facts on the site will help generate desire for that specific product. Action is where you close the deal. Making purchasing the product easy is key to having an effective website. If the product is only available at a certain store, the site should have direct links to where the product can be purchased.
Kohler’s website is very nice. The homepage is simplistic and it is very clear what they sell and they do a great job in generating attention to their product. When you click on kitchen and bath, you are re-directed to a flash site that brings you further through the AIDA process. Interest is generated through great pictures, and shows the depths of their product mix. Desire is also created through pictures and persuasive language. Action is made simple with an online store that makes it easy for the customer to design and purchase the product.
A website is great for generating attention, interest, build a compelling case or desire, and command an action. Building attention starts with a compelling headline and layout – commanding the reader to continue viewing. Generating interest on a website is also key and answers the reader’s question, “what’s in it for me?” Desire on a website is created through testimonials, ratings, studies, etc. The placement of these facts on the site will help generate desire for that specific product. Action is where you close the deal. Making purchasing the product easy is key to having an effective website. If the product is only available at a certain store, the site should have direct links to where the product can be purchased.
Kohler’s website is very nice. The homepage is simplistic and it is very clear what they sell and they do a great job in generating attention to their product. When you click on kitchen and bath, you are re-directed to a flash site that brings you further through the AIDA process. Interest is generated through great pictures, and shows the depths of their product mix. Desire is also created through pictures and persuasive language. Action is made simple with an online store that makes it easy for the customer to design and purchase the product.
Chapter 14, Question 5.1:
Chapter 14, Question 5.1: Discuss the AIDA concept. How do these different stages of consumer involvement affect the promotional mix?
The AIDA concept is a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and action. This model proposes that consumers respond to marketing messages in a cognitive (thinking), affective (feeling), and conative (doing) sequence.
Advertising is very effective in creating attention and interest and somewhat effective in creating desire for a product. However, advertising is not exxective in creating action. Public relations, is very effective in creating attention, interest and desire for a product but not effective in creating action. Sales promotion is very effective in creating desire for a product, not effective in creating action and somewhat effective in creating attention and interest for a product. On the other hand, personal selling is very effective in creating action desire and interest for a product and only somewhat effective in creating attention as it only person-to-person.
The AIDA concept is a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and action. This model proposes that consumers respond to marketing messages in a cognitive (thinking), affective (feeling), and conative (doing) sequence.
Advertising is very effective in creating attention and interest and somewhat effective in creating desire for a product. However, advertising is not exxective in creating action. Public relations, is very effective in creating attention, interest and desire for a product but not effective in creating action. Sales promotion is very effective in creating desire for a product, not effective in creating action and somewhat effective in creating attention and interest for a product. On the other hand, personal selling is very effective in creating action desire and interest for a product and only somewhat effective in creating attention as it only person-to-person.
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