Complete Business
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FAILED APPLE PRODUCT
The apple company has had many successes than failures. The Macintosh portable is one of the few failed products of the apple company situated in the United States. , the Macintosh portable, developed in 1989, faced huge criticisms at the time. Firstly, the product was too heavy and bulky for it to achieve its purpose of being portable. The portable had lead-acid batteries which were estimated to weigh around seventeen pounds. The machine was also about four and a half inches thick. Secondly, the device was costly. The product had a starting price of $2000, which was insanely expensive at the time. The price was no for potential customers who termed machine failure.
SIGNIFICANCE OF PACKAGING ON THE CONSUMER
When comparing similar products, the packaging speaks a lot about the company. Many consumers will judge a product by its packaging the same way the panel first decides a person in an interview according to their dress code. A cheap and lousy package communicates that the quality of the product is low and the chances of the consumer purchasing it is deficient. On the other hand, good packaging reflects the product inside to be of better quality in the market. Good packaging increases the chances of consumers purchasing it.many of the buyers do not have the time to start weighing the product’s pros and cons; the would immediately opt for the shortcut: the packaging (Rundh, 2016). Recent research done in the United States confirms that over 90% of new business fail not because of the products but because of the packaging and first impression the consumers have of their product.
DIFFERENCES BETWEEN PRICE SKIMMING AND PENETRATION PRICE
Price skimming is when a company charges the highest amount for a new product which, after a while, will be reduced when the first consumer is satisfied with the company’s product. An example will be iPhones. When being launched, the prices would be high almost $2000 and the ones able to buy will do so and market it as a quality product. After a year the iPhone would cost around $1000 to attract the second set of consumers penetration, pricing is a strategy used by companies whereby the initial cost of a product is low to attract a large number of the consumers who will market the product. This particular pricing strategy is all about the idea that consumers will switch to a better brand because of the low prices.
EFFECT OF NETFLIX ON MOVIE RENTAL BUSINESS
The effect of Netflix on movie rental business is massive since it focused on producing original movies that would market the company more instead of renting movies and videos. Netflix has to pay every time they rented a movie, making them earn profits and Netflix; on the other hand, was making losses. Also, Netflix did this to improve the quality of content being created and put out to consumers to view. The movie business has now been put out of business a significant effect of Netflix strategies, making them look for other means of survival. Launching of their subscription model earned them close to two hundred thousand subscribers in the first year and around eleven million in the second year.
PSYCHOLOGICAL, REFERENCE AND DISCOUNT PRICING EXAMPLES
Psychological pricing bases its strategy on the theory that the pricing of a product has some psychological impact on the consumers. An example is whereby the standard price of a shoe Nis set to be a hundred dollars but then implementing the psychological pricing strategy shoe companies will set the price at $999.8. Automatically, the human brain would notice that the shoes are less than a hundred dollars. Reference pricing is whereby a company would set the price of its products just below the main cost of its competitors to attract more customers. Another form of reference pricing is whereby a company announces massive discounts compared to the previously advertised discounts. Discount pricing example is where a firm gives enormous discounts on their commodities to increase the traffic and also stay competitive. Amazon would sell merchandise cheaply to increase the number of people going to their website to shop while on the other hand, it is gaining fame in many countries
WHAT COMPANIES CAN DO TO REDUCE BAD PUBLICITY
As stated earlier, negative publicity ruins a good company, and their effects would be losing customers which result in losses. In a reputation crisis, especially in social media, the company should hire a social media director who manages the company’s social pages(Pasqualucci,2019). The expert is supposed to focus mainly on facts than emotions which can trigger more negative publicity. In this case, find the right person to do this. In other occasions going off social media is the best option since the trends are usually for a season. Until the situation calms down, the company is advised to caution all their employees not to lash back at the angry online users.
References
Pasqualucci, G. (2019). Corporate crises and negative publicity: which defensive strategy is more effective?
Rundh, B. (2016). The role of packaging within marketing and value creation. British Food Journal.
Yu, Y., Chen, H., Peng, C. H., & Chau, P. Y. (2018). The Causal Effect of Subscription Video Streaming on DVD Sales: Evidence from a Natural Experiment. Available at SSRN 2897950.