Assignment 1-Product Assessment

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Assignment 1 – Product Assessment Dr. Irene M. Zoppi Rodriguez Marketing 10004VA016-1126-001 July 28, 2012 Discuss this product or service in terms of its current target market demographics using U.S. Census Data. The product I chose was compact discs or CD’s. The sales of CD’s has been declining for awhile now and has fell 14.8% from last year. The target market for CD sales is people of all ages – including teenagers, young adults, and older people alike. CD’s are recordable devices used for music, movies, use in computers, and other recordable data. By 207, 200 billion CD’s had been sold worldwide. CD’s are still widely used in the computer and technology field. They are an easy way to store and use data when needed as well as a great way to store software information. Determine why you believe the product or service is declining in popularity. Be sure to include information on social, demographic, and ethnic markets; economic and technological factors; political and legal factors; and competitive factors. Compact discs are being increasingly replaced by other (and sometimes more compact) forms of storage device. The CD is used largely for music; and as the music industry has its own challenges and feats in a recovering economy, it seems that businesses such as iTunes and other companies that focus on providing music sales and storage without the CD are taking over. CD sales are dropping steadily and even music artists have recognized and instated other forms of making revenue off of their music. Business models that provide downloadable music have licenses with recording companies to sell songs, on a song by song basis or as a whole album, depending on how many songs a consumer would like to buy. This shows that people are recognizing the changing economy and adjusting their marketing techniques accordingly. Digital downloads seem to be

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