Vitto makes some excellent points about how Google is using a price skimming strategy with their Google Glass product.  Currently the $1500 price tag is meant to just target the innovators; however, the price should come down to focus on consumers in the near future.  Additionally, he states how this pricing strategy will have a long-term advantage because the first people to get it will sincerely be interested in this new market so they will review it very highly.  The high price for Google Glass could also be an indicator of quality.  Vitto also states that product is a “one-of-a-kind” but after doing some research it seems many people are companies and start-ups are jumping on the smart glasses bandwagon.  For example, a group of students from the Rochester Institute of Technology have created a product with similar capabilities, a better looking design, and for a price of $200.  With all these competitors trying to enter the market, when Google brings their price down to a consumer price level, they aren’t going to be able to charge monopolistic prices.  However, since Google has already established a loyal customer base, they may be able to charge a price slightly higher than the competition and still retain a high percentage of the market.

Going back to their price skimming strategy, it may backfire on Google because since consumers will likely know the manufacturing costs of the product they may feel like they are getting ripped off by paying in excess of $300.  It will be interesting to see what sort of pricing strategy Google decides to use once the product reaches the average consumer, but in the mean time, Google better keep a close eye on their competition and create some barriers to entry using intangible assets such as patents.

Sources: https://blogs.ubc.ca/vitotagle/2013/11/02/you-want-it-then-pay-the-price-external-blog-post/

http://medcitynews.com/2013/11/google-glass-less-expensive-competition/

In her blog post, Heidi Cohen explains how marketers can learn to target teens based on their behavior

First off, she explains how teens love to communicate with their friends with pictures and videos.  She then continues with her advice to marketers by suggesting they make it easy for teens to contact them to purchase or use their product, support teens’ communication to help them share photos of the company’s products and services, and supply WiFi to remove communication barriers.

Next, Cohen explains how many teens use their smart phones to do a variety of tasks, including homework, and how marketers can take advantage of this by creating smart phone apps and utilities that would appeal to teens.

Thirdly, Cohen reports how teens think cable is a waste of money because there are free (or very cheap) alternatives online and these online resources do not have ads.  She suggests that marketers integrate their ads to not interrupt entertainment.

Fourth, Cohen states that Facebook has reached a point where it is no longer cool because everyone has it, so now social media like Instagram, Vine, and SnapChat have become more popular among teens.  She suggests if marketers want to market to teens, don’t do it on Facebook.

Finally, she states that Teens are using apps more than ever to do shopping and create Christmas lists, so marketers should make it easy for teen shoppers to show their parents what products they want.

The most interesting thing I found about this blog post is the fact that teens are turning away from Facebook despite the social media site starting from teens and young adults.  Overall, I found this blog post to be interesting because it seems like teens are just a bunch of hipsters who want to set themselves apart from everyone else.

Source: http://heidicohen.com/5-things-marketers-can-learn-high-school-students/