Download APU Students comment on Marketing and Pricing

APU Students comment on Marketing and Pricing
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Pricing a product is one of the most difficult decisions for any company. It is
hard to figure out the perfect price to get as many customers as they can. Of course
people usually like low prices, but being too low sometimes has a contrary effect. For
example, ‘cheapness’ seems like ‘ bad quality’ so people who care about quality will not
prefer too cheap products even though their quality do not differ much from the others.
Sometimes it is difficult to tell the difference from the package, so people figure it out
from the price. Right now there is a huge business called “DAISO” in Japan, and all the
products there are priced a hundred yen. They have unbelievably many different kinds
of convenient products and everything seems very cheap. Although sometimes other
shops offer cheaper prices than DAISO, consumers are caught with the thought that
¥ 100 is the cheapest, so they purchase all their things at DAISO. DAISO has definitely
succeeded in their pricing.
Junko Otsubo, Pin# 4
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In many cases, low price is the appeal that persuades the customers to choose
your product over that of the com petitors’. I’ ve noticed that in some cases, it’s the other
way around. Products such as medicine can succeed in wining the customers over with
higher price for product with similar effect. For example, Zantax company took the No.1
position in the market, when they put out their product at a more expensive price than
the competitor ’s ($9.99 vs. $6.99). Though Zantax was not greatly superior to the other,
customers chose Zantax because they thought more money meant a better product.
Health is something so important that most people would pay more for better medicine,
regardless of the cost.
Bahk, Yongsoo, Pin# 46
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Why can current profit maximization be one of marketing objectives? I think
most companies aim for long-term profits, especially Japanese companies.
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To set prices for our products, we should know their value. For example: “Gobi”
is the biggest company in Mongolian Cashemere product industry. In 1997 it opened its
branch in U.S. First, they set a low price to attract customers. But sales were very
small. After “Gobi ” increased their prices, sales began to increase. Cashmere products
show the case of positive demand elasticity!
Ankhbold, Pin# 12
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I am doing a part-time job in a food shop. There are certain periods for some
items to be discounted, just 50 or 90 yen. We don’t expect that only a 50 yen discount
would have much influence on sales. But very surprisingly, it works!
Jin Hailian, Pin# 92
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Product Bundle Pricing
Companies in tourism often use Product Bundle Pricing. For Example, if I was
to take a trip to Hawaii, I could easily find a package deal for a reasonable price. This
package could include the airfare, hotel, tickets for a concert or an amusement park and
so on.
Tomo Koga, Pin# 68
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Capt ive-product pricing
Another good example of captive-product pricing other than the ones you
mentioned in class would be Sony. Once you buy a Sony product, you have to buy Sony’s
other products as well to make the whole set complete. And usually these
supplementary products are more expensive than the on es of other companies.
Camellia N. Ramleh, Pin# 42
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In response to Marko’s comment, I do not agree at all. Yes, you may be able
to sell in the short run, but what is more important than today’s sales are
tomorrow’s sales. This is called prospecting. If you are found as a liar or swindler,
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you will not get another deal with the same customer again. What’s worse, being
human, he will tell his experience to probably 8 friends. These people will tell more
people. This is called the buzz. It is a double-edged sword.
Kenny Lim, Pin# 26
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M = Mi + SWOT + STP + 4P
I understand the terms written in the formula that define marketing. However,
the concept of time is not explicitly represented in this formula. I think the concept of
“time” should also be taken seriously in the formula, because all marketers need to be
well aware of “time” in their decision making.
Marko Stimac, Pin# 104
Marko, thank you for your very profound statement. How about revising
the formula as follow s:
M (t) = Mi(t) + S(t) W(t) O(t) T(t) + S(t) T(t) P(t) + 4P (t)
A. Takamoto
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Feedback from classmates
Getting the feedback from classmates benefits me a lot. It is important to
share other people’s views and understand how they think in marketing or other
classes. Because by learning from others, we could not only come up with new ideas,
but also get a clear view of how we can set our strategies in this competitive world.
Fung Yee Luh, Pin# 74
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Choosing the right place
Choosing the right place to launch the products is a “ matter of life and
death” for any company, especially when it goes global. When Nestle chose to launch
its product of baby instant food in Third World countries, it suffered from a
disastrous failure. Why? Nestle’s product worked well in Europe and the U.S. but in
the Third World countries, where mothers do not have enough knowledge how to
use the product, where the water may not be pure enough for the instant food, and
where mothers’ milk is the traditional food for babies..the failure was inevitable.
Therefore, choosing the right place to launch the products is one of the factors
essential for the success of marketing.
Tran Viet Ha, Pin# 24
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Marketing assignment
At first, I was worried about my final marketing report since it looked very
confusing and too much. I did not know where I should start. However, once I
started doing the project, I found it so much fun. I can image myself to be the
entrepreneur starting my own company. The 20 pages of the report that I felt was
too much before, now look easy because I have so many things to write about.
I do admit that learning in the class made me feel that marketing is quite
an interesting subject. But starting to do the final report made me feel even more
interested since I can utilize what I have learned.
Sinthip Nuangchamnong, Pin# 98
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