What Is Price Perception?

Price perception is one of the leading variables when it comes to consumers buying process. Economists, market researchers have already undergone researches and predict that in buying decision price are the driving forces. Several studies explain and determine and explain the same fact thereby concluding the fact with decision making. The determinants of price perception can be both rational and psychological factors. The other factors may become psychological factors and prestige. The key variable to explore and explain consumers’ price perception is the degree of understanding the psychological process of consumers’ price perception.

When a firm has seasonal demand, the discrepancies are observed between the supply and demand. Generally the firm has excess supply at the time of low demand and scarcity when there is high demand. If the firm commercializes goods and faces seasonal demands, it can minimize the effect through good management of production and storage. The problem becomes more difficult in several sectors such as tourist services. The prices being fixed by these companies and firms drives the price perception in different aspects which can differ according to the individual characteristics. The pricing fixed by the firm by undifferentiated strategies, under price discounts may lead the consumers/individuals to perceive as low quality products being offered. So the price discount strategy becomes ineffective in this case.

Role of Price Perception in Consumer Buying Process

The price perception has been one of the most important research issues on the consumer behavior for last many years. The concept of reference point is very important in this regard and efforts have been made in order to define it.… Read the rest

Use of Propaganda in Advertising

Propaganda is a “systematic, widespread dissemination or promotion of particular ideas, doctrines, practices, etc. Some use it to cause or to damage an opposing one.” While it is true that many of the techniques associated with propaganda are also used in the practice of advertising or public relations, the term propaganda is usually applied to efforts to promote a particular political viewpoint. Additionally, propaganda can be used to promote specific religious views. Furthermore, companies use propaganda to persuade consumers into buying their product, and, sadly, misinformation is found all around people in magazines, on television, on billboards, and in movies. Subconsciously, people let the use of propaganda influence their decision to purchase items that they often would not buy.

Advertisers lean heavily on propaganda to sell products, whether the “products” are a brand of toothpaste, a candidate for office, or a particular political viewpoint. Although propaganda may seem relevant only in the political arena, the concept can be applied fruitfully to the way products and ideas are sold in advertising. All around us, we can see a lot of propaganda ads on television, magazine, newspaper, and etc. Propaganda is a systematic effort to influence people’s opinions, to win them over to a certain view or side. People have been influenced by the propaganda advertisements. Some psychologists’ point of view considers that propaganda is in fact changing our mind and heart, because they make our spirits full of material desires. For instance, sometimes we purchase something that we don’t even need because of our desire.… Read the rest

Need for Creative Advertising

Most brands in the same category deliver more or less the same functional benefits and answer the same needs of the consumers. With so many products on the market having the same function, the only way to position a product, service, or company differently from anything else in the same category is through creative development in advertising.

Today traditional advertising is losing its sheen. The biggest problem with traditional media is that consumers today have lots of choice for ad avoidance. The fragmentation is very high and there is very less scope of customized message for all. The Indian consumer has changed if we focus on this issue there is a lot more on the menu to choose from. Now the message unlike the past is no longer a one way process. But public opinion is far more mobilized, they have immediate platform for expression.

The expert believes that the creativity in advertising could never exist in isolation without a context. The success of final product completely depends on empathy and the relevance of message it intends to deliver. The trigger for ideas and insights must necessarily come from the environment.

The new millennium is just decade old, advertising, which is about creating demand, also has undergone a complete transformation. Many things have changed and many things have stayed exactly the same in this industry. The media agencies have witnessed the tremendous growth in skills set. If one critically analyze, “advertising reflects the mood of the times. The simplistic inform-persuade-sell mode worked beautifully for a long time but once communication became sophisticated, technology entered, there was a paradigm shift.… Read the rest

Changing Scenario of Advertising Strategies

In recent years, advertisement has grown dramatically. Many people are exposed to several ads every day. Some people can think that advertisements don’t mean anything, but usually ads sell more than they offer. Sometimes, ads can sell values, norms, lifestyles, love, popularity, and happiness. Ads have an important role in society because sometimes those ads tell people who they are or who are they going to be. Advertising has a profound effect on everyone, and sometimes we don’t know that. In fact, marketers spend billions trying to reach audience. Advertising is everywhere from the clothes we use until the food we eat. Marketers use many ways to approach to audience, but some of these methods are unethical. One of these methods is called “divide and conquer”, and its purpose is to increase sales through market segmentation. Marketers use strategies based on social diversification, audience packaging, and product targeting. Even though it doesn’t seem hazardous, those types of strategies can raise ethical problems.

One of the techniques that advertisers use is social diversification. Many businesses spend large quantities of money trying to approach different audiences based on their social status. In society, consumption depends on terms of class. Market segmentation is a common tactic for many marketers. The main purpose is to separate people in various homogeneous groups. Target particular markets based on demographic groups can raise differentiation among people. Advertisers seek for information that indentifies possible consumers. They usually target people who are in a good economic situation. They have databases on hundreds of people who might be approached as possible consumers.… Read the rest

Guerrilla Marketing – A Case of Non-Traditional Marketing

When some starry-eyed startup or a small company takes on the big budget corporate in the marketing domain with an underground marketing campaign that costs nothing but causes shock-waves for months, its called guerrilla marketing. Guerrilla marketing is a different kind of marketing which does not involve big budget but it is about out of the box thinking; it is about using anything around to market a product, an idea or a social message virtually anything under the sun. It believes in entertaining and engaging the target customer. It does not involve preaching or educating but it is about exciting the viewer to find out a secret or solve a puzzle. Guerrilla campaigns purely depend on creativity, intensive word of mouth campaigns and its oddness like using unconventional locations. Some guerrilla campaigns are so brilliant that it has made bystanders feel lucky to be there to witness them.

AMA defines Guerrilla Marketing as “Unconventional marketing intended to get maximum results from minimal resources”.

The goals of guerrilla marketing are relatively simple: use unconventional tactics to advertise on a very small budget. It is based on the idea that one does not need radio or TV ads to market something. Make a campaign so shocking, funny, unique, outrageous, clever, or creative (even controversial) that people cant stop talking about it thus create intense word of mouth publicity. Guerilla marketing involves approaches like interception in public, giving free products, PR stunts basically any unconventional marketing approach intended to give maximum result from minimum investment. … Read the rest

Case Study: Apple iMac Ad Campaign

In the late 1990s technology analysts speculated that Apple Computer, Inc.’s fate hinged on its new personal computer the iMac. Apple’s share of the worldwide desktop-computer market had plummeted since 1995, the last year the company had been profitable. Ever greater numbers of consumers were buying personal computers (PCs) that ran on Microsoft’s Windows operating system rather than Apple’s version. Although Apple had pioneered user-friendly computers, the company had not introduced a consumer-targeted computer since 1992. Hoping that its stylish new iMac would propel Apple back into this vast segment of the market, Apple released its iMac ad campaign.

The iMac ad campaign consists of a series of seven television commercials. These commercials advance Apple Computers newest generation of personal computers: the iMac. The iMac is a personal computer that is an AIO unit (All In One) and is housed in a translucent white and green case. Apple has attempted to make a simple, cheap, powerful, and easily connectable computer for people of all ages. The idea began about two years ago when Apple acquired Next Computers and restored Steve Jobs to Interim CEO of the Apple. Jobs, who founded Apple and created the modern computer, was the visionary who conceived the idea of a computer that was as attractive and simple as it was powerful. He set a team of designers to work on putting Apple’s existing computer chip, the Motorola Power PC Generation 3, into an awe inspiring case. During the spring of 1998, rumors began to fill silicon valley that Jobs was about to reinvent the modern PC.… Read the rest