Inresponse to Sarah's Post 'Pricing'

When it comes to pricing what should be on the brain when a company prices their product? Are there things that should worry a company when pricing?

There are many aspects and considerations in pricing a product. First and the most basic is the cost of making or buying the product, including overhead and labor and the parts. That is the basic line. Then how much income a company is looking to make to cover these costs and expand the company, or if it is a nonprofit organization. Also, what is the cost of similar products? How much can the market handle. A company can price something based off of quality, but if there target market can't afford the product and there are comparisons that are less expensive then they will not see any. Awareness of what is going on around them, and not solely on the workings of their own company is the most important tip and what company's should most worry about.

Brand Recognition in Children

According to an article titled How Marketers Target Kids, industry spending on advertising to children has increased from $100 million in 1990 to more than $2 billion in 2000. The article also notes the increase power of children with "pester power" for families to purchase items. Brand recognition has now reached two levels, the power of pestering children as well as adults making educated decisions know the alternatives. Marketers are spending this increase in money towards marketing to children so that brand recognition and loyalty starts at a young age.

Just like an individual might grow up a yankees or red sox fan they are also growing up a coke or pepsi fan. There are toys in children's meals at fast food restaurants, and teen editions of famous magazines. My cousins who are three and five recognize the McDonald's arches and their parents are not sure why. Schools used to be safe of branding, but now they are a source of educational improvement offering grants and equipment along with vending machines. What is next, advertisements on the side of school busses?

This slow transition from recognition to preference ends with insistence, instead of asking for a soda you ask for a pepsi or coke. Instead of fast food or a burger joint its Mcdonalds, Burger King, Wendy's, Jack-n-the-Box. My favorite, let's go to Disney World, when ever the thought of vacationing or rides or characters or the happiest place on earth.

How far are marketers going to go to snag your child young?