ITunes price changes hurt some rankings - Assignment Example

?Chapter 9: Article: iTunes Price Changes Hurt Some Rankings The article points out that two days after Apple iTunes Music store raised its prices onsome individuals tracks, the sales dipped and with that the rankings of the songs. The iTunes top 100 chart registered 40 songs at $1.29 and 60 songs at the normal $0.99 price point. After the price change, the $1.29 songs lost 5.3 places on the chart while the $0.99 songs gained an average 2.5 chart positions. These changes give a general idea of how incremental changes in revenue can be reached. Moving up and down the chart impacts the revenue greatly which in turn is impacted by price changes. These changes are solely chart position, but a general idea of incremental changes in revenue can be reached. By looking at the unit sales of the most recent Soundscan top track downloads chart, the different between chart positions can offer a view into how moving up and down the chart impacts revenue. An assumption here is that the iTunes Top 100 chart is representative of the Soundscan top track downloads chart. Given its market dominance, this is a reasonable assumption. I chose this article because it gives a good idea of how small changes in price can turn around Sales. A significant notion raised by this article is the way in which how prices alter the rankings of songs in the music industry. The prices change the rankings and the rankings which in turn impact sales and revenue. This article relates to chapter nine of our text book in which key issues related to initiating and responding to price changes are discussed. Buyer reaction to price changes are a result of the value the customers see in the price change. (Glenn Peoples) Works Cited Glenn Peoples, Nashville. How iTunes Price Changes Hurt Some Rankings. 10 April 2009. 19 May 2011 . Article: 7 in 10 Americans say High gas prices hurt This article is related to a recent chapter that we covered from our text book. Customers don’t react to price changes in a very straight forward way. A price increase is expected to lower sales. This is because a brand’s price and its image are closely tied together. Price changes will alter consumer perception about a particular product and the way they want to consume it. Thus price is a very critical factor. I chose this article because it offers insight into how price changes in a mandatory commodity such as gas influences the common man. The survey was conducted by USA today in which they asked people if recent changes in prices of gasoline have impacted them financially. 7 in 10 Americans believed it did. More than half of them claimed that they have had to make changes to account for higher prices of gasoline. 21% of them felt the impact so heavily that they believed it jeopardized their standard of living. (Stauss) Stauss, Gary. 7 in 10 Americans say high gas prices hurt . 18 May 2011. 19 May 2011 . Article: Apple and Starbucks announce music partnership The article talks of the Apple and Starbucks music partnership. Under this partnership, customers at Starbucks will be able to wirelessly browse, look around for music, buy and download music from the iTunes Wi-Fi Music Store at Starbucks on their iPod touch, iphone, Mac or PCs running iTunes in a participating location. They will also be available to avail the new “Now Playing” service under which the name of the song playing in the Starbucks store at that particular moment will be shown. They will then be able to buy and download songs directly to their device. The partnership will benefit both Apple and Starbucks and is a classic example of horizontal marketing. I selected this article because I felt that having free access to the iTunes Wi-Fi Music store and the Now Playing service of Starbucks is a great ways to attract customers to both Starbucks and Apple iTunes. It will trigger greater revenues for both companies. This exemplifies the concept of Horizonal Marketing as taught to us in class in chapter 10. During these tough economic times, companies are working hard to remain competitive and conspicuous in the eyes of the customers. Starbucks and Apple are coming together to collaborate on financial, production and marketing resources to accomplish what either company could have accomplished alone. Apple capitalizes on its digital music leadership while the Starbuck’s unique customer experience creates a synergy for both companies. Apple benefits from this partnership by increased sales while Starbucks benefits from higher sales, greater market share and more brand loyalty. (Staff) Works Cited Staff, Apple Insider. Apple and Starbucks announce Music Partnership. 5 Sept 2007. 19 May 2011 . Article: New Kodak Inkjet printers promise cheaper prints The article talks of the revolutionary steps under taken by Kodak in the inkjet industry. Kodak announced the launch of a range of All-in-One Inkjet printers that promise to provide cheap home printing with pigment based inks and social paper. Kodak aspires to turn around the current print/ink model through price controlled printers and cheaper inks. The price range of these printers is from 150 to 300 dollars while the ink costs are $15 for color cartridge and $10 for black cartridge. A crucial part of this announcement was Kodak’s foray into exclusive distribution. Starting March 2007, Kodak Easy-share printers like 5100 and 5300 AiO Printers will be sold at exclusive Best buy stores across the United States. This paper is directly related to the concept of exclusive distribution that we have covered in chapter 10. In exclusive direction, you give only a limited number of dealers the exclusive right to distribute the company’s products in their territories. Kodak gave the exclusive right for the distribution of its printers to only Best Buy stores across United States. The article attracted me because of its relevance to the chapter that we have covered. Kodak Announces New Line of All-In-One Inkjet Printers. 6 Feb 2007. 19 May 2011 . Chapter 11: Retailing and Wholesaling Article : The future of retail This article is an interesting account on the future of retail and highlights where retail is headed to. The aging Baby boomers and the turnaround of Gen Y is expected to change the dynamics of consumer spending in future. Thus retail stores which are better able to adapt to the new consumer demographics will thrive while those stores who’d be unable to adjust to changing trends will fail. In order to keep up with the changing time and trends it is important for retailers to adapt themselves to certain factors. The new generation of consumers would be more tech savvy; would focus more on quality rending the mass production model ineffective. Success of retail stores would also depend on their ability to be in touch with customers via their mobile devices ; to address quality issues more than quantity issues. Developing economies such as India and China are expected to expand more using traditional modes than developed nation. The future of retailing has been taught in the course. Retailing is expected to move towards an era where non store retailing will grow, there will be retail store convergence, the rise of mega stores and growing use of technology. The article attracted because it explained how retailing will find new avenues in the years to come. (Steverman) Steverman, Ben. The Future of Retailing. 15 April 2009. 19 May 2011 . Article: Amazon Kindle finally threatens booksellers by finally launching in retail stores Kindle has been one of the biggest trend setters by Amazon. It made a huge mark in the e-reader market without even being available in most brick and mortar stores. Capitalizing on the success of Kindle, Amazon announced that Kindle will be available in retail stores all over United States. The announcement comes in as Bad News for competitors like Barnes and Noble whose Nook e-reader had already been there in Best buy stores. These devices and other Kindle competitors had the advantage that customers could experience them first hand in retail stores. Now Kindle will take that edge from them. The article attracted me because of the way Amazon tries to gain complete hold of the market by opting for this move. There was only one edge that it’s competitors had and with this move to venture Kindle into retail markets, even that advantage is taken away. Amazon is a classic example of non-store retailing but in this case it does take advantage of store retailing; concepts that have been taught in chapter 10. (Conneally) Conneally, Tim. Amazon Kindle threatens booksellers by finally launching in retail stores. 9 Sep 2010. 20 May 2011 . Chapter 13 Article: Hurd Pressures HP Storage Teams According to the CEO of HP, Mark Hurd was not happy with the assessment of his company’s storage sales organization. He felt that HP sales didn’t cover enough accounts and it reflected in the sales of their quarterly earnings. The sale of storage products grew by 3% during the quarter that ended January 31st where HP’s overall revenue grew by 11 %. HP needs to churn out stronger top line results in the business. In order to achieve this HP should invest in improving sales coverage and recruiting more storage sales specialists. In other words it has to do a better job at reaching out to its customer. A financial analyst of a leading financial institute claimed that HP was not focusing on storage selling. HP needs to realize that storage doesn’t sell itself. The enterprise storage buyer is a conservative who makes decision after careful consideration. One needs specialists in this area of business to generate enough buyers. The article attracted because of HP’s ineffectiveness in selling storage. There is a need to revamp its sales management process in this particular area of selling. It has been discussed in the course that sales force plays a crucial role in driving sales home for a company. This is because they are directly in touch with customers. It is hence important to ensure that sales is properly, managed, researched and mobilized. (Mullins) Mullins, Robert. Hurd Pressures HP storage sales teams. 22 Feb 2007. May 20 2011 . Article: Job Description of A Sales Associate at Macys Macy’s employees are engaged in selling products in apparel, furniture and other departments. The company calls them sales associates. The company follows principles regarding its sales and expects all of its employees to adhere to those principles. These include ensuring that ethical business practices are followed; quality products are delivered to customers, respecting the right of their property and protecting the interests of their shareholders. Job responsibilities at Macy’s are immense. Their sales associates are assigned to departments where they are responsible for selling and giving away products to customers. They are also expected to produce outstanding customer service. Sales associates are asked to assist customers in finding the products that they need and respond to any queries by the customers. Other than these, sales associates are also expected to do other tasks for instance stocking racks and shelves, preparing displays, taking inventory and marking prices. The retail sales persons are kept in the loop and alert about any possible thefts and security risks at all times. I selected this article because of the guidelines and principles that the staff at Macy’s follows. Macy is one of the largest retailers in the United States and its revenue in 2010 alone was $24.9 billion dollars. In order to mobilize and retain such a huge amount of revenue, it is important to churn out a well qualified, well trained and well mobilized sales force and Macy’s does exactly that. (Echaore) Echaore, Susan. Job Description for a Sales Associate at Macy's. 20 May 2011 . Chapter 14 Article: Social Network Marketing Meets Small Business Needs This is a very useful article that explains how social networking is a cost friendly way of advertising and promoting not just big businesses but also small businesses. Sites like Twitter, You tube and Facebook are growing in the number of users they have every-day. A lot of big businesses like Dell capitalized on Twitter and reported 3 million dollars in revenue via just social marketing. This is because while other modes of promotion for instance PR and Advertising are costly, the main cost associated with social media is time and not cash. This is precisely why any business willing to spend some time on social media/ networking sites, building a community or fan base can benefit. The article attracted me because it removed the perception in my mind that only big businesses can benefit from social networking. Examples of small businesses benefiting from social networking cited in the article also attracted me. The course book in chapter 14 also explains the growing emergence of promotions via online social networking. Marketers can engage with online communites in two ways ; by either participating in existing web communities are coming up with their own. L.Schiff, Jennifer. Social network Marketing Meets Small Business Needs. 6 July 2009. 20 May 2011 . Article : The Business Face of Social Networking This article offers insight into the business face of social networking. In today’s globally competitive world, Websites, blogs and RSS feed may not be enough. It is important to capitalize on social networking sites and should be a very important of any business’ agenda. These sites can help one find referrals, generate ideas, get advice and more all for free. It is not just MySpace, Facebook and online popularity contests on them. it is about using their potential as a lucrative advertising tool. Social networking helps one be pro-active in reaching. They let one make use of existing network of customers, partners and suppliers to go about developing new partnership. The article offers insight into various useful examples for instance linkedn and their lucrativeness to the business. The article attracted me because social networking is fast developing as a lucrative way of promoting one’s business. It is cost efficient and is driving revenues homes. As explained in the course book too, while large online social networks such as MySpace and Facebook have grabbed deadlines, more focused niche networks have recently started emerging. These more focused networks for instance Linkedn look after the needs and aspirations of like minded people. Bsales, Jamie. The Business Face of Social Networking. 9 June 2008. 20 May 2011 . Chapter 15 Article: BlackBerry maker offers tablet aimed at businesses The article is about soon to be launched Black Berry’s Play book. This is Research in Motion’s latest offering in tablet PCs. The tablet PC was shown on Monday and will be launched in early 2011. The international rollout will follow later in the year. RIM breaks Apple’s claims on Ipad by claiming a device which is even lighter than it. (Vanacore) The Playbook will be half the size of the Ipad and weight about just the same. It will have a 7 inch screen and also two cameras, front and back unlike the Ipad. The cost of the tablet PC is undecided at the moment but it is said to start from around $499. The tablet will be access beyond the Wife only. It will be able to catch Web access via simple linking it to the Blackberry. But the tablet will also function as a standalone advice. RIM’S COEE claims that the ultimate aim of this tablet is to provide a full on computer and web experience on the tablet. This means that the dependency of tablet would be very little on third party applications. On its end, the Playbook is a step taken by RIM to protect its position as the top notch provider of mobile gadgets for the business set. It will also have flash applications. On the other hand, Apple CEO Steve Jobs has voiced his restraint in allowing Flash on company’s mobile gadgets claiming that the software has too many bugs and rips apart too much battery life. The article attracted me because it is about RIM’s close relationship with its various corporate clients can help the company extract a certain portion of the tablet market which is originally Apple’s niche. If it moves strategically, then it can take away that portion of the market share. IDC predicts that the corporate market for tablet computer will keep growing with the growth of sales of these tablets in the next few years. It is forecasted that roughly 11 percent of the overall sales of the tablet PCs will be directed to schools till 2014. Vanacore, Andrew. Black Berry Makers Offer Tablet Aimed at Business. 27 Sept 2010. 29 Sept 2010 . Article: Iphone Set to Surpass Blackberry Market The article talks about how Apple managed to retain its product leadership in the smart phone market and the difficulties it encountered. The Iphone was launched on January 9th 2007 at the Macworld Convention in San Francisco. The launch of this revolutionary phone was not an easy task. Almost a year before, Steve Jobs had inquired Apple’s top engineers about the progress of the phone and he was told that the prototype was a disaster. It wasn’t working, the battery would stop charging before it was full, data and applications would crash and the cell was anything but durable. The launch of the phone seemed like a far cry as the list of problems remained endless.But Jobs put his foot down and fixed the concerned people demanding a product. The impact could not be ignored. Iphone was central to their yearly goals given the fact that the development of Leopard had been delayed. They desperately needed a product and if there were delays in the product, stock prices of Apple were bound to suffer. Moreover, relations with AT&T were also to suffer as after negotiating with them for a year and a half, Jobs had finally zeroed down on them as the wireless division. The terms were set and the deal was on floors. Now the least that was expected of him was to meet the deadline. Thus, the following three months turned out to be very intense. The article attracted me because of the intense struggle undertaken at Apple to retain product leadership.Engineers worked over night coding the phone away, then quit and rejoined later. Frustration level was soaring high, so much so that a production manager slammed her door such that the door got locked and it took some hours to free her. But towards the end of it, it was worth the wait, and by mid-December 2006, the Iphone prototype was in hand. The phone was shown to Stan Stigman around the same date and he was happily convinced about the prospects of the phone. Of the various marketing strategies taught to us from the text book one of them is Product leadership. Under this strategy the company offers superior value by offering a continuous stream of cutting edge products and services. It strives hard to make its own products become obsolete. Such companies like Apple are always open to new ideas and relentlessly pursue new solutions. Consumer buying plans reached record level by October 2009 and spending over electronic goods showed signs of pick up in shops. According to survey conducted the phone is expected to continue showing growth and continue increasing its market share. Iphone started with a 0.3 % market share which shot up to 2% by 2010 and by 2011 its market share is expected to surpass that of Blackberry to. Report, Bureaur. iPhone set to surpass Blackberry in Iphone Market. 06 March 2010. 03 04 2010 . Chapter 12 Article : Ben and Jerry Drops Email Marketing in favor of social Media The article talks about Ben and Jerry’s move to drop email marketing in favor of social media. The company announced to its subscribers that it will discontinue its regular email marketing and opt for social media. The news came in as a surprise as both social media and email marketing share a close relationship and are generally effective when used together. Ben and Jerry felt that its customers preferred to stay in touch via social media sites instead of email. The article attracted me because Ben and Jerry invited subscribers to connect to them through facebook or twitter accounts and the email sent in this regard would be their last one. Pros and cons of internet marketing have been extensively discussed in our text book in chapter 12. Typically companies can conduct online marketing in various ways depending on what suits their organization the most. The could opt for placing ads and promotions or participating in Web communities and online social networks using email. (Schief) Works Cited Schief, Mike. Ben and Jerry drops Email Marketing in favor of Social Marketing. 14 July 2010. 24 May 2011 . Article: Amazon Hikes Global Marketing Spend by 62% Online retail Amazon increased its marketing expenditure by 62% to 241 billion dollars. This move was undertaken to boost the sales of its electronic reading device Kindle. The article attracted me because it highlights the importance and dominance of online marketing in today’s time and age. The company expects its operating income to fall yet it took the leap of bringing down its overall marketing expenditure. (Banhan) Works Cited Banhan, Mark. Amazon hikes global marketing spend by 62%. 22 Oct 2010. 24 May 2011 . Read More