Do you think holiday sales are becoming too much?
I know a lot of people get upset when they see christmas items out in september or october but for the most part this doesn't really happen in most companies. I have never walked into a store in september and have seen christmas decorations being set. I work at Target currently so I have seen when each season or holiday has been set for the store. We typically try to get the holiday items out a little more then a month before the actual holiday. This gives people the time to poke around and find things to decorate their homes instead of rushing a few weeks before the holiday. Now if some companies are setting up for christmas early in the fall then that is just ridiculous and unnecessary.
When we set for halloween we usually start in mid september and the say after halloween is when the thanksgiving decorations and items come out. Then the day after thanksgiving (so end of November) is when all the christmas items and decorations come out. We just finished setting our outdoor furniture about a month ago when it was still cold but people like to look through it anyways. It makes people happy to walk by it and think "yes! the outdoor furniture is out which means summer is even closer." Thats what I think whenever I walk by it and with the weather lately, we are selling a ton of it. I love when the halloween section is set in mid-september. It makes people excited for the season even though it is a month away, it is something to look forward to.
Even some of our summer clothing and bathing suits come out in January where as our winter coats come out in October and are gone by beginning of February. Retail works in an odd way but for the most part it makes sense, at least to me. Everyone asks why the bathing suits are out during that time and dont realize people are going on vacation to warm places at these times, especially in March. There is an explanation for everything and even if it doesn't seem to make sense, there is a reason why companies set it up the way they do.
Do you find stores such as Wal-Mart and Target to be very seasonal? If you go into either of these places to shop, do you enjoy the fact that they bring out the specific holiday items a little early helpful or more annoying?
Thursday, April 8, 2010
The Role of Price
What is price? Price is the value exchanged for products in a marketing transaction. Trading of products, or what is called barter, is the oldest form of exchange. Goods and services were exchanged among one another for other goods and or services. Barter still happens to this day and there are many people who service others for something in return, could be fresh fruit and vegetables rather then money. I actually worked on a vegetable farm one summer and the owner got certain tools and or equipment and in return the other person got fresh vegetable whenever they wanted.
Price competition is when a marketer emphasizes price as an issue and matches or beats the prices of competitors. This happens with most business because they are all trying to make sales and beat out the other companies. I work for Target and one of our major competitors is Wal-mart. They sell pretty much the same things as Target does but for a cheaper price. They send people into our store to check out our prices and in return we do the same. If all firms producing the same product charge the same price, the firm with the lowest costs is the most profitable. If all companies charged the same amount and had the same sales then it wouldn't matter what store you shopped at. A seller competing on price may change prices frequently or at least must be willing to do so and both Target and Wal-mart and other companies are willing to do so if they want to survive.
Nonprice competition occurs when a seller decides not to focus on price and instead emphasizes distinctive product features, service, product quality, promotion, packaging, or other factors to distinguish its product from competing brands. Thus this allows a company to increase brand's unit sales besides changing the price of the brand. Nonprice competition is effective under certain conditions. A company must be able to distinguish its brand through different product features, higher product quality, promotion, packaging or even great customer service. At Target we try to help every customer we can and focus a lot on customer service. The last place I want to shop is at a store where no one offers to help you. It's important for companies to focus on both nonprice competition and price competition.
Do you think most companies keep an eye on price competition and nonprice competition? We know Target and Wal-Mart watch eachothers product prices and compete for customers but what about other businesses? Especially with our current economic condition, do you think more companies are becoming or are price conscious?
Price competition is when a marketer emphasizes price as an issue and matches or beats the prices of competitors. This happens with most business because they are all trying to make sales and beat out the other companies. I work for Target and one of our major competitors is Wal-mart. They sell pretty much the same things as Target does but for a cheaper price. They send people into our store to check out our prices and in return we do the same. If all firms producing the same product charge the same price, the firm with the lowest costs is the most profitable. If all companies charged the same amount and had the same sales then it wouldn't matter what store you shopped at. A seller competing on price may change prices frequently or at least must be willing to do so and both Target and Wal-mart and other companies are willing to do so if they want to survive.
Nonprice competition occurs when a seller decides not to focus on price and instead emphasizes distinctive product features, service, product quality, promotion, packaging, or other factors to distinguish its product from competing brands. Thus this allows a company to increase brand's unit sales besides changing the price of the brand. Nonprice competition is effective under certain conditions. A company must be able to distinguish its brand through different product features, higher product quality, promotion, packaging or even great customer service. At Target we try to help every customer we can and focus a lot on customer service. The last place I want to shop is at a store where no one offers to help you. It's important for companies to focus on both nonprice competition and price competition.
Do you think most companies keep an eye on price competition and nonprice competition? We know Target and Wal-Mart watch eachothers product prices and compete for customers but what about other businesses? Especially with our current economic condition, do you think more companies are becoming or are price conscious?
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