reply.docxMarketing
1st post to reply to: 200 word reply
A push strategy is when a product is almost literally “pushed” at the consumers. Pricing items as 2 for 1, using direct sales, or advising the value of the product are ways to use the “push” strategy. The pushing starts at the manufacturer who pushes to the wholesaler, who then pushes it to the retailer, who then finally does the same to the consumer. Only a solid sales team who can promote the product efficiently and powerfully will produce the desired sales.
A pull strategy starts with the consumer’s wants. In this channel is it necessary for the consumer to ask or demand for a product. If the retailer does not get it, the consumer will go elsewhere. The retailer then has to ask the wholesaler for it, who then asks the manufacturer.
A company that does both is Progressive Insurance. The use certain discount promotions to get people to get a quote or purchase insurance. The pull strategy is used when the customer asks for insurance on more than the promoted item that got them to call. I could call Progressive because I saw they have a deeper multicar discount than Gieco, then when I speak with them ask them to cover my boat and RV as well.
One Monday I received a postcard-type flyer in the mail from the Audubon Institute Aquarium advertising their new “Great Maya Reef” exhibit. The beautiful aqua marina colors and pictures of new fish made me “pulled” me in. You can see small replicas of Mayan structures in the tanks. The front of the card explains how there is a private opening exclusive to members. The idea of being first to see the new exhibit is exiting, and makes me want to go on March 8th to be a part of the event. The back of the card gives the address, time the gates open, and the names of the added fish. The event is “pushed” because if kept, the card doubles as a $5 off parking coupon at the surrounding parking garages. This advertising is effective because we are members and I am happy to investigate the Audubon Institute’s offers. The target marketing worked and I still have the card on my refrigerator, while the non-targeted print adds such as rent-to-own store flyers were put directly into the recycling bin.
Coupons are distributed in a variety of ways to get attract buyers to try an item at a cheaper price in hopes they will become loyal customers. At least 81% of buyers use coupons, this makes them a great promotional tool. (Kerin, Steven, Hartley, Rudelius, 2013, pg. 353). A company that uses coupons well is Cheerios. I find their coupons either online or in the newspaper every week, consequently our house is consistently stocked with Cheerios. A coupon that is easily found right now is 75 cents off a box of the new Dark Chocolate Crunch Cheerios. Another coupon that is out is “Buy Two Boxes Get One Free”.
Rebates are used to make a product look like they are getting it for a better deal. The possibility of a $75 rebate may persuade someone not to buy the cheapest Vacuum, but go for the one with the rebate. Companies that advertise rebates know that few of the customers “cash in”, making rebates a less expensive option for promotion. The Vacuum brand Hoover has a $20 rebate for customers who purchase the Hoover Wind Tunnel Air Bagless Upright. It is a mail in rebate that requires the customer to send in their proof of purchase within a specific amount of time after purchase.
Rebates are more geared with the company in mind because they know that even though usually a high dollar amount is offered as a rebate, very few people will actually go through the hassle of gathering the needed items and sending them to the manufacturer and waiting four to six weeks. Rebates probably appeal to more impulsive buyers. Coupons are geared with the customer in mind because of the large amount of people that do use coupons. There are many shoppers that will not retain loyalty to a brand after buying it simply because they only purchase items that are paired with a coupon. When a brand uses coupons for too long it can start to devalue the actual product, and people question its quality or value.
Coupons appeal to me more because they are easy to obtain, I can use many in one shopping trip, and I can plan our grocery budget consistently knowing they will be available. I have never made a purchase that offered a rebate that I am aware of. They seem to be so few and far between that I do not think of them.
Scripture Reference
Luke 14:28
“For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it?"
2nd post to reply to: 200 word reply
Part One: The Push-Pull Marketing Strategy
The push strategy is used by companies to try to push their product out on the market (Kerin, Hartley, &Rudelius, 2013 p. 326). They do this by calling wholesalers and offering their product with discounts and incentives. They will also make goals for those that deal in their product so that when the seller reaches goals they can be rewarded.
The pull strategy can be implemented when the manufacturers aren’t having much luck with the channel members wanting to purchase more of their product. This way the manufacturer can pull their product back and offer to consumers directly (Kerin, Hartley, &Rudelius, 2013 p. 326).
An example of a company that uses this strategy would be Wal-Mart. They use this method in order to offer different products to their customers. They want to make the access easier so that their revenue will grow.
Part Two: Product Advertising
Product Advertisements can come in three forms; pioneering, competitive, or reminder (Kerin, Hartley, &Rudelius, 2013 p. 340). Each one has its own purpose. The pioneering stage is the first when a product is first introduced. The competitive stage is when the company wants to make their product look better than others, and the reminder ad wants to keep the product on your mind.
Terry is an automotive dealer that has many new and used cars that they can offer consumers (Lynchburg News and Advanced, February 23, 2014). This advertisement appeals to me because it actually pictures many of the cars that they have for sale listed right on the page. It is a full page advertisement. This particular advertisement uses all three of the components of advertising.
Part Three: Sales Promotions
Coupons are used by manufacturers to gain business. This is a great way to promote a product because people are always looking to save a dollar. An example of this would be Tide. The company that produces this product offers a discount through coupons to its customers. In return they sell more products.
Rebates are helpful to the manufacturer and the consumer as well. When purchasing an item the consumer can send in the information and receive the rebate through the mail. Pennzoil is an example of a company that offers rebates on their product.
While these are both useful; the rebate takes much longer to receive and so the coupon is the quicker way to get the savings. However, they both save you money in the long run. The coupon is quicker but the rebate will possibly save you more. I prefer coupons over rebates due to the fact that I sent in a rebate once and never got the money rebated to me.
1 Thessalonians 5: 16-18 (KJV) states that, “Rejoice evermore. Pray without ceasing. In everything give thanks: for this is the will of God in Christ Jesus concerning you”. No matter how well things are going always give thanks.
References
Kerin, R. A., Hartley, S. W., & Rudelius, W. (2013). Marketing: The core. New York, NY: McGraw-Hill/Irwin.
Economics
1st reply post:
The legal system is one of the six key factors that are central to the economic growth process (Gwartney, Stroup, Sobel, & MacPherson). The legal system promotes economic growth through secure property rights, rules of law, and even-handed enforcement of contracts (Gwartney, Stroup, Sobel, & MacPherson). Secure property rights, such as private ownership, legally protects people against those who commit fraudulent acts, and private property ownership also permits people to keep what they earn (Gwartney, Stroup, Sobel, & MacPherson). Overall, it provides private property owners with a powerful stimulus to develop and use resources wisely, innovates and discover better ways of doing things, and invests and conserves time for the future (Gwartney, Stroup, Sobel, & MacPherson).
The rule of law is a system of rules and rights (Gwartney, Stroup, Sobel, & MacPherson) According to the American Bar Association, the concept of the rule of law is the body of legal precepts governing, those institutions vested with appropriate legal power, and those legal procedures by which those precepts may be applied by those institutions (American Bar Association). Together they are designed to effect the protection of essential interests of individuals guaranteed by our society through limitations on the authority of the state (American Bar Association).
A real-world example of the legal system is, The Copyright Act. The Copyright Act establishes laws giving “authors and inventors the exclusive right to their respective writings and discoveries”, to encourage progress in the arts and sciences (US Legal System).
The Holy Bible, in my opinion, is in comparison to the U.S. Legal System. God provides Christians with the Bible as our guide to promote personal growth and to develop a personal relationship with Him. The Bible protects us from evil, just as the legal systems protects Americans. The government oversees and promotes economic growth in America, and God protects and promotes spiritual growth within the world.
References
American Bar Association, section on International and Comparative Law. The rule of law in the United States; a statement. p.108 (1958).New York. Retrieved from Liberty University Library.
Gwartney, James D., Stroup, Richard L., Sobel, Russell S., MacPherson, David A. (2013, 2011). Economics: Private and Public Choice.(14th Ed.). South-Western, Cengage Learning.
Radcliffe, Mark. Brinson, Diane. The U.S. Legal System-find law (March 26, 2008). Retrieved from http://coporate.findlaw.com/litigation-disputes/the-u-s-legal-system.html
2nd reply post:
Innovation increases output throughout several markets. History is in the process of being written for today’s changes in technology. Three distinct occurrences reveal themselves in the past 200 years of advancement: manufacturing and products are becoming faster and smaller, innovation in the IT market drives down the cost of information, and even with huge advancements with speed in information, countries with low production at the beginning of the 1820’s fair about the same nowadays which echoes the principles of sound economic stability by establishing property rights.
Moore’s Law states that integrated circuits will double in components each year making it roughly twice as fast through innovations in information technology (Mack, 2011). So far, there are billions of nanometer sized semiconductors in one 150 – 300 mm diameter silicon wafer (Bates, 2000). The capacity for processing in silicon wafers is still increasing.
An increase in timely information allows for more timely decision making and decreases the price for that information. The competition in the computer industry drives prices down for computers with higher processing ability. With lower prices in computers comes more demand for the higher capacity to move information around either in just one business or worldwide.
Robert Allen posted a paper with his assumption on the how the current world leaders in technology or “capital intensive industries” achieved their status versus economies with a rich supply of labor and less resources to charge up their industry sectors. From this perspective, any country that improves its efficiency per worker throughout each part of the domestic economy will steadily grow in output, decrease prices, and throughout generations increase trade and standards of living (Allen, 2012). This is what growth in technology does for a country, improves efficiency per worker.
Technology increases and pushes the limits inherent in human processes. Technology brings the world closer with faster and fuller information every day. In the end, we must be aware that under the binary and processors the intent is still human and we must take care that the intent is paired with righteousness.
References
Allen, R.C. (January, 2012). “Technology and the great divergence: Global economic development since 1820” Explorations in Economic History. Volume 49, Issue 1. Pages 1-16. ISSN 0014-4983. Retrieved from http://dx.doi.org/10.1016/j.eeh.2011.09.002
Bates, S.J. (2000). “Silicon Wafer Processing”. Applied Materials Course, San Jose State University. Retrieved from http://www.engr.sjsu.edu/sbates/images/materials%26plastics/Silicon_Wafer_Processing.pdf
Mack, C.A. (May 2011). "Fifty Years of Moore's Law" Semiconductor Manufacturing. IEEE Transactions. vol.24, no.2. pp.202,207. Retrieved from http://ieeexplore.ieee.org/stamp/stamp.jsp?tp=&arnumber=5696765&isnumber=5762426
