Concert Prices

There are many different service based businesses, especially in the United States. Pricing for these services is very complex. One aspect of services I wanted to concentrate on is the prices of concerts in small venues, big venues, festivals and local shows. The prices to see live music varies drastically today. The music industry and recording industry have become to different industries. Large venues have many added service fees which vary depending on the show and the cost they predict. Small venues are just trying to maintain their place, where larger venues are looking for a greater profit. The underground music scene is larger due to the affordability and the intimate experience. But if a larger artist was to play in a small venue the prices would skyrocket because of value.

Each experience is rated on a value system, the quality of the musician is becoming less of a factor, if they are famous, a large name on the top 40 lists or a typical big summer show they have higher value. Some of the best musicians are unknown because they do not appeal to the masses in a large party setting. Dave Matthews Band concerts are known for the atmosphere of being a very passionate crowd, involving a lot of singing along to "lets eat, drink, and be merry." This experience, with the musical performance, light show and outdoor concert setting has a value based on all of this criteria, which doesn't effect the musicianship. How high do you think entertainment prices will go?

Developing New Products

How To Develop a New Product:

This is just like a science experiment in Chemistry, you can make hypothesis' and generate ideas or a purpose for this new product, or it can happen fairly sporadically. Here is a step by step process according to our text:

1. Idea Generation

2. Screening

3. Concept testing

4. Business analysis

5. Product development

6. Test Marketing

6. Commercialization

This is a much longer process then I realized, with multiple steps that the product can fail at it all starts over. The main idea behind this seven step process is increased testing at different levels, slowly introducing the new product so that the company does not loose a lot of money. These products are originally supported by other lines in large companies, but you don't want to bring down the full company. A company such as Coca-Cola are always introducing new products because they offer such a wide variety of drink products. Different areas are designated text market cities because they exemplify the target market. Their are lists that rank cities based on a variety of characteristics as to why they provide the best consumer test market. What are some characteristics you think make up the best consumer market for a test city or region?

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?

Response to Mallory's Branding

Brands and packaging make the products stand out from others. Do you agree? Do you think that people focus more on the brands or on the packaging of products? Do you believe that they are both very important?

Branding and packaging are a vital part of a product when they are sold in the stores. One point I wanted to stress is that packaging is becoming more and more creative because of the online component of sales. The package would then be the page the item is sold on. But ultimately what most likely got the customer to that page is the brand name. I agree that both are very important but that for higher end products or something most likely bought online the brand name is more important. That the brand name is advertised and recognized. Packaging makes an item stand out on the shelf and incorporates the brand name. If you trust a brand name you are likely to buy other products under that brand name. If something is shiny and bright it my draw attention for a second, or if has a certain picture on it or a second use, it does create discussion. We are consumers and brand conscious. If someone is looking to save money they are looking at price less then packaging as long as the packaging is comparable, and not falling apart.

Culture: A Perceptual Approach in the Marketing Mix

The perceptual model can be applied to cultures in Marketing research. One way I would like to break it down is to a college campus. Throughout the readings on subcultures I made connections to my first year transition experience or my various groups of friends and acquaintances. Companies have to market their product to a variety of subcultures, even just within the United States.
First Off, the premise of this model can relate greatly to the set up of a busy meal at the dining commons. People with similar experiences sit together and can discuss for hours something the table next to them may have no thoughts on. This can relate greatly to the target market, all college students yet so different. I like creating this comparison to get a snapshot of the many cultures within what seems like a college that "lacks diversity." You see cultures interact as they get their food, some very talkative and open, polite while others keep to themselves. The final main observation is the similarity in the way each group dresses, wither they notice it or not.
Taking a step back, being a newcomer within an environment can bring out different sides of individuals. This is a key time for marketers, whether it be in any transportation center, or a billboard of the side of the highway. Easily influences, in college the orientation program, which I have helped facilitate assists first years in recognizing that they have the same problems, aspirations, and that they are in the same situation as the person next to them. We assist in easing this domestic intercultural operation. We pair people off with people who have similar interests so they can create a subculture under the first year culture. Breaking apart these cultures makes the leaders opinion leaders and are one of the main social influences. These identity groups help one transition into the collegiate setting, helping them create a family that perceives their actions as normal.
Soon as groups grow and flourish into different cultures at Keene State College we see the power component. With each groups individual version of the English language they come together in organized clubs with similar interests. Each club having the power, their own format, and making an impact on the larger community that is Keene State College. Just like the goal of each marketing team. I never thought my culture, of music lovers would make such an impact on this campus. We speak a language involving genres, new releases, and concert slang. Now we bring this to the radio station at Keene State, sharing our thoughts and knowledge. Also, we have made on of the largest efforts to connect the town art scene with the colleges, bringing students to events sponsored off campus at such places like the Starving Artist. A group of friends can discuss and relate in silence, or through sharing music can effect an entire melting pot of cultures. This equals one target market, the college student in Keene, NH.

the Overspent American Response

"The Overspent American: Why We Want What We Don't Need" is a video concentrating on the new wave of consumerism in America. It shows the transition of what persona Americans want to portray from keeping up with the jones' to a new millionaire appearance. This shift has led to increase awareness and concern with appearance, and living a life of luxury. Throughout this film we see how Americans are increasingly going into debt. They say the price to live comfortable and for essentials is unreachable. 25% of Americans with a household income of over $100,000 say that it is not enough for basic necessities. The spread of rich and poor and our values in the United States are deteriorating. It is a large concern that the United States is going to lead to its own deterioration. Everyone has to be bigger and better instead of comfortable, or better for the environment, or better for themselves!
This want for more is being taken advantage of by the marketing world. Using celebrities to model a new clothing line ect. I work in a Williams-Sonoma, a kitchen chain, where constantly items are promoted by food network stars. The stress on appearance is driving Americans into debt because of big houses in developments, fancy cars, and fancy clothes.
Personally I find myself falling into this downward trend when it comes to clothes and shoes, and I hope I do not slide to deep. Now I am looking at the negative sides of it, and am trying to support local, live in moderation, and increase awareness of the green movement. Also, watch my credit card, and be aware of what I have. How can I avoid being an overspent American?