Places and the Products Being Sold

Our group project has made me think about how important it is to sell the right product, at the right price, in the right place. Where I live in Wolfeboro, NH everyone assumes those who live there are wealthy and or on vacation. The stores in our downtown consist of fast food restaurants or fancy restaurants and souvenir shops. Everything is over priced and there are no necessities. The downtown is geared for tourists. I could not tell you where to buy a pair of socks in my town, which makes it is very inconvenient. I understand our population triples in the summer so the town caters to those visiting where there is room for a large profit to be made, but in the winter you would think prices would drop and or more useful items would restock the Lake Winnipesaukee T-Shirts that no one who lives in Wolfeboro would actually wear. There is nothing I would purchase in my town unless it was a gift for someone. 

In the past few years the economy has not been as strong and it shows because there is less traffic in town during summer compared to later years. So one can assume the businesses are not doing as well because there isn’t the same volume of people coming into their stores. I would think the businesses would start to swap out some of their inventory for the locals who are always there and looking to save on gas money when they just need to pick up a few things. (Closest stores are about an hour away.) 

Do you think the businesses would be more profitable if they change their prices and or products? Do you think it is good for a town to only rely on tourists to earn profit? Do you think the businesses have to comply with an all or nothing change?

Response to Drew's Question: Has a family member or social setting influenced you in purchasing a certain product?

Yes I have had a family member influence me into purchasing a product, multiple times. My mom and I are very close so I trust her opinion. Whenever I have a problem I typically take her advice. Pertaining to cosmetics, I have very dry skin and she suggested Olay products. I will never again buy another face lotion due to how well their product works. I am willing to pay more than a cheaper drug store alternative because I know it moisturizes my face without it being oily or breaking out. Social media has also influenced me because if I see people "liking" a page or talking about certain products I will be more likely to try them. Anytime I hear another person using a product and see them give it good reviews I will definitely give it a shot.

That is why it is important for a company to have good customer service and strong products. Ways for a company to earn business isn't just through marketing it is after the marketing has gotten a consumer to try the product and satisfying them so they will recommend and speak highly of the product. I think a lot of people hear about products this way and not even through advertisements. Word of mouth travels quickly so a company can only hope they have prepared enough that what is being said earns them more customers to gain revenue. 

Do you think companies earn more business from advertising or from customers recommending and spreading the word about a product?

Companies Pairing up to Create New Products

While I’ve been home over break I have been able to watch more television. I have seen plenty of commercials but have been surprised with the number of companies partnering up with new products. The two that stood out to me were command strips with febreze and venus with olay. Command strips now allow febreze to be stuck up anywhere to give a fresh scent. Olay now has a moisture bar on venus razors for a more comfortable shave.

I have noticed the companies who pair up are equally popular and profitable products. I think that is to attract more or new customers to existing products due to established and trusted brands. These products also are making tasks more convenient without the company having to produce a new type of product, simply pairing with another.

I think this is a great idea. I think companies will benefit from this and increase sales. I use venus razors and olay face lotion. This makes me more likely to try the venus and olay razor to see if it improves my shave over the regular razors.

Do you think it is smart for companies to pair up? Do you think one company benefits more than the other? 

Response to Sean's Question: Does Branding Make the Product?

I agree with Sean’s post. I too had never thought about consumers buying a product because of the label. It does seem like we are paying more attention to the brand rather than the product we are purchasing. I cannot imagine if a product had no label. I buy things because of the brand a lot of the times because I know the quality will be the same. When I am purchasing a product I have never bought before, if I am indecisive between 2 products I will choose the one with better packaging because if it looks better the product will be better is my logic. I also agree that due to the number of brands we are overwhelmed and tend to forget about what we are actually purchasing and not choosing the “better” brand.

Do you think if products had no labels or brands were not as prevalent that consumers would pay the extra money or would they focus more on the product? Do you think there is an actual difference in the product or is it strictly different brand names? 

Brands

In class we have been talking about branding. I think one of the most important accomplishments a company can make is establishing their brand. Once a company has done this they can rely on repeat customers, which is easier than trying to advertise for new customers. With an established brand customers trust the product and may be more willing to try other products put out by the same company. They are typically willing to pay more for the quality of the product they are buying. Establishing a brand mark can be even more powerful because millions know what a simple logo symbolizes. For example the golden arches of McDonalds. Every person in the United States over the age of 2 knows there is a McDonalds when they see the iconic arches.

How do store brands or no name brands still make a profit? Sometimes it doesn’t matter if you purchase the generic brand or the name brand depending on what you are purchasing. I also think in this economy more people are switching to the generic brands to save money. Once the generic brands are tried the consumer may realize there is little to no difference between the products so they will continue to purchase the product because it is much cheaper. Once the generic brand has been tried and is comparable to the name brand the consumer will be more likely the next time to try another product from the generic brand to try to save even more money. Walmarts generic brand Great Value is always cheaper than the other products and consumers consider the taste and quality to be basically the same as brand names for most of the items they are purchasing.

Do you think if the economy stays the way it is generic brands will again become more popular than brand names? Do you think some people are so loyal to their name brands that they will never try a generic brand? Do you think just because a product is brand name it has the right to mark up their prices?

Response to Sean's Question: Is This the Next Big Successful Move in Marketing for Years to Come?

I do think this is the next big successful move in marketing. Because purpose based marketing has become a way of marketing there is competition for all companies to be socially responsible. Every business is going to move toward this trend to stay competitive because it is popular to be green and give back to the environment and community. There is no way companies will digress from this while others are moving forward and becoming more conscious. A customer is more likely to purchase a product of same quality, price, and value when the company is more socially responsible and has positive values then a company who is not.

I think the quote Sean provided perfectly describes what customers want, which shows customers want more from the company they are purchasing from. It makes the customer feel better about themselves for purchasing from a socially responsible company. Especially when more and more companies are in the news with negative press and the access we have to company’s records. 

Globalization Relative to Businesses

Globalization has had a large impact on society today, especially in relation to business. It can create a lot of opportunities for businesses but comes with a lot of additional problems. International businesses create a list of contacts through networking, a broad customer basis, and room for higher revenue. However it can cause stress and has strict regulations to follow.

If a business opens up overseas it has the opportunity to expand and can therefore create higher revenue. It can reach more people, and deliver products in a more efficient way. Shipping products will be easier and cost less for the company. The business can also create the products with lower labor costs adding to the higher margin for revenue.

But with high opportunity there is high risk. The company could take on more than it can handle. The company could lose money if the business is unsuccessful especially if they do not look into foreign customs and gather background knowledge for businesses. There could also be a lack of communication between the two headquarters and the business could suffer. If a business tries to expand too soon there will be a lot of stress to hire qualified employees to run the international side.

I think a business should expand when possible. Business is very competitive and to be a competitor businesses need to be international to keep up societal trends. The world is globalizing at a quick rate and soon everything will be offered worldwide. The benefits of expanding contacts, more efficient shipping, reaching more customers, and lower labor costs seem worth the risk especially when there is a good chance of becoming a successful, profitable international company. To establish an international brand is a great accomplishment and I think all businesses should strive towards this.

What do you think is the biggest risk of becoming an international business? Do you think the benefits out weigh the risks of becoming an international business?