Webster University MRKT 5000 Marketing Strategic Case Assignment Jose Barriga Newspapers Test Pricing for Digital Editions 1. When The Wall Street Journal began charging for online access, the number of visitors to its site dropped dramatically and slowly began rising again. What does this suggest about the price elasticity of demand for its products? Therefore, the suggestion for price elasticity of demand for The Wall Street Journal for online access started during the 1990s when the journal recognized that they have an unusual opportunity to be a pioneer for online news content. As a result, newspaper circulation fell by 17 percent due to revenues from display advertisement that have plummeted as many marketers engage customers via social media, Internet ads, special events, daily deal sites, and other promotional methods that sidestep newspapers.
Sales-force was incentivized by a quota system with quarterly volume quotas. Manufacturing Selling Prices of RBS increased 3 times in previous 5 years. Price increases were due to increase in raw material cost by 11%. Advertising was focused on new uses of product like pet care, baby care, pool care, outdoor care etc and emphasized non-toxic benefits of product. In 2006 too much RBS product moved in the market, so need to deplete Inventory and increase sales RBS More aggressive in promotion during last 3 years.
Just four years ago, family savings and income accounted for thirty-six percent of college costs. Unfortunately, because home equity loans are harder to get, many families have to turn to education loans with higher interest rates. While median family income is markedly down, tuition and fees have spiked over the past few years. In fact, public institutions of higher learning have become twice as expensive to attend over the past decade. Meanwhile, to make matters worse, State funding is down twenty-two percent over the same time period.
Therefore, company A needs to stop making this product. Although we can argue that if company A could reduce the cost dramatically, it can become profitable. However, as the demand of its headphones is shrinking and there are so many suppliers (due to low barrier of entry), there will be great price pressure on the product, as explained by William F. Samuelson and Stephen G. Marks (2010). The price reduction may over shallow the possible cost reduction the firm could achieve. Susan Schreter’s second step is to target new customers from within groups.
So where did the other sales go if its full-line stores’ sales dropped? Well part of it is due to an increase in sales in its Rack stores due to the increase in amount of customers bargaining for prices due to post-recession behavior. But most of it is due to its 30% online sales jump which enabled Nordstrom’s total revenue to increase in the year of 2013. Unlike some of its counterparts, Nordstrom adapted to new shopping behaviors. Online shopping is definitely the newest and boldest trend for retailers.
Maturing brands characteristically have slowing sales and maybe even declining sales (Pg. 261). Allround’s sales were growing still and we had to figure out
Google: Dumbing Down Society Does the Internet make us stupid? Or does it simply allow us to become more efficient? The answer is yes to both, and these are questions that come to mind while reading an article titled “Is Google Making Us Stupid?” by Nicholas Carr. If you were born in the early 90’s or before, it is safe to assume you have witnessed the rapid evolution of technology, which has now led to the simplicity of tasks that used to require a great amount of time and effort. In this article, Carr explains to us the ways in which he believes that technology has affected our society.
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.
At least today, the industry got their credit and half of the profit made. 2. Describe the impact of the disruptive technology on the companies discussed in this case. The disruptive technology had a significant impact on this case. The ability to quickly download material and having it run the web, was really hurting the
Change in Consumer Lifestyle over Time When looking at changes in consumer lifestyle in the past decade, the most salient feature has been the sharp increase in dependence on technology to acquire information and media. In tandem, the act of reading physical books has declined considerably as information is more quickly and easily obtained via any device with Internet connectivity. As lifestyles of the young and middle-aged demographic become busier with more people on-the-go and reliant upon compact technological devices, physical books and bookstores are slowly becoming obsolete. However, a segment still exists that enjoys reading books during leisure time, such as during travel, but carrying around many books at a time can be cumbersome and inconvenient. Value Innovation – Amazon´s Kindle Amazon saw the opportunity to offer books and other media from its own collection to consumers in a compact and convenient way, and in 2007, it introduced the Kindle, revolutionizing the very act of reading and launching the first commercially successful e-book reader.