Concepts of Business

Concepts of Business

Research a product or idea from a company such as Microsoft, Google, or Apple that failed during the steps of new product development. What step/stage did it fail? Why?

Google glass merchandise was a hinge of utmost deliberations in the US. The product primarily advertised on both social media and televisions. Despite the advertising efforts, it still got a backlash in terms of market response (Kim, 2018). By the year 2012, the product was already in the market and perceived as one of the most significant releases of the year in a class of wearing technology.  The glasses were premeditated on both its usefulness and style, but some concerns were raised due to the blurriness that made it difficult for people to converse. The drinks were also presented in varied tints, others had lenses with prescriptions, but the pressure to make some modifications to the product seemed to dominate the social media. The most suitable invention progress of Google glasses got a backlash while at its final phase, which was to serve as an introduction to the market. Ideally, with technological globalization presently, each individual will be struggling to occupy the technical space by seeking the newest product in town with improved features. However, this appeared parallel to the Google product. The discrepancies that made the product fail included; the company was freeing its work in progress versions to explore or seek some financial assistance for the glass advancements. (Kim, 2018). The media became anxious about the product and were on toes to hear any data release from the explorers by then the negativity had already engulfed, through the detrimental media publication labeled against the product, it severely affected the outcome.  

What significance does packaging have on the consumer when comparing similar products?

Packaging products are very core in influencing consumer’s decisions concerning specific products. The many different communication images created by the packaging style expresses the significance of the product itself and the perception of the company that produces the product. Essentially, product packaging should be taken into keen considerations as the product itself, and this is because of packaging assists in 8in advertising and the entire communication (Gómez et al., 2015). The significant roles played by product packaging include differentiating it from the other same products in the market. Other competitor products in the market are seeking the consumer’s attention, for one to make a comprehensive decision will be based on the packaging style of the product. Therefore, its vital for the companies to also take time and package their products efficiently and thoroughly to capture the customer’s attention and heart by seeming to be different from the competitors.

The packaging itself can entice and change the consumer’s decision to either purchase or ignore the product. Also, the colors used in packaging play a vital role in customers’ decision making. It is quite common that the humanoid cognitive part reacts contrarily to colors. So, with better packaging, the more the customers the company or product is likely to get (Gómez et al., 2015). For a brand to be reorganized from a distance, it must have proper packaging; for those that are well packaged and control a large market share, they intend not to change, but for those with less market share, they are prone to change their packaging style time to time.

Discuss the differences between price skimming and penetration price. What effects did the strategy incorporated by Netflix have on the movie rental business?

Both price skimming and penetration price entails predictable marketing plans that are commonly applied when the manufactures when introducing a new product or service into the market. The plans have proved to be working to different business establishments and companies. Though the companies are forced to have an understanding of their price relationship to the general marketing and advertising plans (Du & Chen, 2017). For instance, here now, the penetration prices depend strongly on the low before pay price with the aim of enticing and attracting consumers. In contrast, the skimming prices are intended to be accrued with upfront to exploit the short-term incomes from the interested and consumers with the urge of the commodity.

With respect to growth weight, penetration pricing is majorly aimed at bringing more consumers from the existing competing organizations. The notion is to apply a better mix of different products, advantages, and lowering prices to entice consumers. This is contrary to price skimming that comes in choosing a market of its primary consumers to attain a larger market share that comes in later when the prices are already low.  For example, the principal advertising tactic applied by Netflix organization is price penetration. This because they give products from their company that is in demand by the consumers, with quality prices; this ensures customer satisfaction; one can get what he/she has paid for (Du & Chen, 2017).  This kind of pricing, referred to as penetration indeed has positively impacted Netflix in maintaining and attracting more customers hence more profits.

Discuss an example of each of the following: A) Psychological pricing B) Reference Pricing C) Discount Pricing

Psychology pricing is a method through which the prices are set somewhat lesser than a rounded figure. This is facilitated by the perception that consumers in many instances do not concern themselves in rounding of these prices, but rather prefer them as already reduced prices. An example in such a scenario is when a motorcycle is priced at $1999 instead of $2000.  This type of pricing is applied mostly to consumer goods. Referencing pricing, on the other hand, is presumed to be competitive pricing. Under this kind of pricing, the prices differ, mong competitors, whereby one sells his/her products slightly lower price that his/her competition as a way of sourcing more customers from competitors.

Mostly under referencing price, the prices tagged on some commodities by the m manufacturer or the owner of a distribution store sells particular goods at a significant discount compared to the preceding advertised one. This type of pricing is experienced more at Big Bazaar centers, one of the major stores in India. The store conducts sales when and around Independence Day yearly; during this period, a good number of commodities their prices have been profoundly reduced, leading to heavy selling of goods and products. For discount prices, the typical business plan intended by the establishments intends to sell the lower-priced commodities in huge volumes. Here the method applied is for the organization to lower the cost to stay relevant. Its commonly practiced by the retailers on its apparel items within a particular period to get new customers and advance in sales turnover.

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Bad publicity can break a company. What can companies do to offset negative publicity that has gone “viral” through sites such as Facebook, Twitter, YouTube, and review sites such as Yelp.com?

The impact of social media is not to enlighten people concerns particular businesses or firms. Still, also it affects the business negatively by spreading bad news among consumers within a certain setting. Though, it’s clear that crummy publicity is unavoidable. Despite the organization observing high moral standards, it may find itself in minute risk that was unanticipated (Chung & Jiang, 2017). Negative publicity finds its way into the consumers much faster than the company before even the organizations think of solutions to ways of getting itself out. Though the organization is exposed to diverse forms of liberating itself from bad publicity, they include: the organization ignoring the internet’s bad publicity to sort out itself. The internet must be expected to lie low by itself, and then, the organization should not ignore any or avoid any befalling challenge on its crosshairs.

Additionally, the organization should have a keen hear and give more time to its criticizers so that they can get to listen to the problem at hand. For instance, if it’s only a single person laying the claims of the prevailing issue, he/she might be wrong, but if it’s a group, then some considerations have to be given to the problem since it may be a genuine problem (Chung & Jiang, 2017). Then, it crucial for the organization to always listen to problems forwarded unto them via social media and avoid joining having contests with them. Instead, the organization should classify it as an opportunity of expansion to its customers, through building a good rapport by presenting better solutions to the problems trending. This will help to arrest the customer’s heart to continue doing business with the company since their problem was solved well and ethically.

References

Chung, A., & Jiang, H. (2017). Handling negative publicity. Journal of Communication Management.

Du, P., & Chen, Q. (2017). Skimming or penetration: optimal pricing of new fashion products in the presence of strategic consumers. Annals of Operations Research, 257(1-2), 275-295.

Gómez, M., Martín‐Consuegra, D., & Molina, A. (2015). The importance of packaging in purchase and usage behavior. International Journal of Consumer Studies, 39(3), 203-211.

Kim, L. (2018, July). The Lessons of Google Glass: Aligning Key Benefits and Sociability. International Conference on Human Interface and the Management of Information (pp. 371-380). Springer, Cham.