Special Deal——A Good Promotion Strategy?

June 8th, 2011 • 1 comment Uncategorized

Response to Jacky’s post: ” How determined are you to keep your customer”

Comm 296: How determined are you to keep your customers

I agree with Jacky that the special deal provided by sales people will always  make customers be happy and be willing to buy the product. However, I also think about its negative sides and kind of worried about it.

I understand the reason sales people want to offer a special deal to customer is they desire to sell out the product as soon as possible. After all, new innovation on product is introduced so quickly today, and the old version are always substituted.  Company do not want to under their break-even point that is why they are willing to earn low profit to cover their cost. As customers, they will also consider this problem and when they figure out the real intension that sales people try to do, customer will soon be upset and do not trust sales people again. That will destroy the relationship between customers and company. Also will drug company’s reputation down.

In addition, sometimes people prefer to buy the products with high price, because they think there should be several reasons for high price, maybe high quality or good customer service. They see the value on the product through the price and the decreasing price let them reestimate product’s value and re-make the shopping decision.

Last but not least, the special deal will also affect the other customers’ post-purchase. If customers know someone got one product with lower price than they got, they will probably be frustrated because they think it is dissonance and it will destroy customer loyalty.

Therefore, company should care about the special deal as their promotion strategy. After all, every coin has two sides.

Is IOS 5 Good or Bad？

June 8th, 2011 • Uncategorized

https://www.youtube.com/watch?v=LLJIef-e-7g

On the June 6th, Apple introduced the IOS 5 with over 200 new features. It seems so amazing for consumers and Apple fans because the new mobile system makes things much easier than before. It is such a genius idea and surely it will capture much more potential customers for Apple because consumers would see the value on Apple’s new products.

For Apple’s competitors such as google and Microsoft, surly its renovation will pose a new threat to them. But in my opinion, the biggest victims of this innovation are Apple’s partners rather than competitors.

As known to all, the success of i-product rely to App store. Also we can say that Apple’s success is coming form its most of small partners because hundreds and thousands apps developed by them make i-product beyond just a dull device and give the users ability to extend the i-product experience. In the past, Apple just act as a role of communicator, it create a stage to let its small partners sale their apps on it and then charge the commission fee. But the new innovation introduced by Apple break this relationship.

Apple’s new features cover a lot of popular app’s characters. For example,” imessage “introduced by iphone is almost same as “Whats app” (a social network app). The new camera features include a lot of photograph app’s function. Also”Reminder” takes  a lot of  productivity app’s features. New IOS 5 carried with Apple’s own apps will cause a huge decrease on app developers’ sales, after all, consumer prefer to get more benefit for free. It seems that Apple is not satisfied with sharing profit with their partners any more, it begins to steal market not only form its competitors but also from its corroborators.

In the other hand, although new system  will attract more customers for Apple, it also bring apple a big challenge of losing their app developers who are also used to be kind of Apple’s customers. Developing the new system and covering most features of existing apps will decrease private app developer’s motivation and believes, and further destroy Apple’s mission of encouraging and gathering genius idea together. It seems that Apple will not have  partners any more because they want to be the only one person who is successful in the world. Too much competitors made by Apple itself is a big issue for Apple’s future development.

IOS 5——–A big Challenge!!!