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Homework answers / question archive / Part 1 Product Placement and High and Low Involvement Products" Please respond to the following: Watch the video titled "Product Placement" located here
Part 1
Product Placement and High and Low Involvement Products" Please respond to the following:
Part 2
I thoroughly enjoyed reading your post. I didn't realize how many ties Verizon actually has in the market, therefore making its promotional value so influential in society. I personally believe that Amazon is the internet's version of Walmart and is so convenient to the economy. Amazon allows the consumer to purchase from home which is perfect in the "on the go" era in the market. Plugging products is a great way to expand the brand and allows companies to generate not only additional profit but further develop brand loyalty and build trust with the customer. It also assist with generating new consumers who may be unaware of brands who are or are not related.
Answer:
Part 1
Nike is a proven brand leader, and, in recent years, has demonstrated market leading innovative thinking around its product initiatives. Over the past 14 years, NIKEiD, the brand's revolutionary footwear customization service, has evolved into a fully-integrated component of a digital retail experience that is poised to generate USD $2 billion in annual online sales by 2017. Again proving its ability to respond to a rapidly changing market, in 2014, the company stopped producing its well-established Nike+FuelBand hardware-a device that helped pioneer the wearable technology market-and opened its NikeFuel platform to outside development. Through initiatives such as the Nike+ Accelerator program and Nike+ Fuel Lab incubator in the heart of Silicon Valley, Nike is betting a more open approach will allow it to stay relevant and responsive to evolving consumer needs, while feeding rumors of a rekindling of its partnership with Apple. This focus on optimizing for digital and social channels continued during a year in which Nike demonstrated a shift away from large broadcast media buys.
However, the brand's approach to official sponsorships illustrated further shifts-allowing Adidas to gain the coveted Manchester United FC association, but outbidding Under Armour in a record-breaking shoe deal with basketball superstar Kevin Durant. Nike's brand promise of "innovation and inspiration for athletes" was visible in this year's successful FIFA World Cup campaign, "Risk Everything," featuring real and animated football superstars. The campaign demonstrated a laser focus on the youth market and Nike continued to steal the limelight and social engagement from official World Cup sponsor Adidas. Despite the disappointing performance of the Nike-sponsored host, Brazil, and a final featuring two Adidas teams, the enduring image of the 2014 World Cup will be Mario Götze's extra-time goal in the final, delivered from a Nike Magista boot. By continuing to associate itself with the world's top athletes and sports events, helping its customers live healthier and express their personal style-and being wherever they are-Nike is building stronger relationships and long-term engagement that will give it an edge in the Age of You (Interbrand, 2014).
Nike and Apple are two great companies that are growing everything. You have Nike that is globally known and as well as Apple that is globally known. Both of the companies are considered low involvement in my eyes, because consumers are buying Nike (Jordan's, Carmelo Anthony's, Air Force Ones, Dunks and etc...) and Apple (iPhone6, iPhone 6 Plus, iPad, iPod and etc...) we find ourselves waiting or a product to drop weather its shoes or phone we stand in line for these products for hours at a time to purchase them.
Part 2-
The main source of revenue is the sale of a broad variety of goods and services to clients. The goods offered on the customer-facing websites chiefly include products and content bought for resale from wholesalers and those presented by third-party suppliers, and the firm also produce and put up for sale electronic devices. In general, the company recognizes gross income from items it sells from the inventory as goods sales. The company also provides other services like AWS, accomplishment, printing, promotion etc.
The financial focal point is on long-term, sustainable expansion in open cash flow per share. Free currency flow is determined chiefly by rising operating revenue and competently managing functioning capital and cash capital expenses. Enlargement in operating revenue mainly result from increase in sales of goods and services and professionally managing the operating expenses, partly offset by savings made in long-term planned proposals. To raise sales of goods and services, the firm focuses on upgrading all aspects of the client knowledge, including lessening values, improving accessibility, providing faster distribution and performance time, raising collection and growing product information as well as upgrading ease of usage. The firm also seeks to resourcefully manage investor dilution while preserving the elasticity to issue shares for tactical reasons, like financing, attainment, and align worker compensation with investors' interests.
The company seeks to decrease the variable costs for every unit and work to bring to the same level the fixed prices. The variable costs comprise goods and content price, payment dispensation and linked business costs, selection, wrapping, and preparation of orders for delivery, transport, client service support etc. The fixed costs comprise the costs essential to run the expertise infrastructure; to construct, develop, and append features to the internet and website services. Variable expenses in general change openly with sales quantity, while permanent costs in general are reliant on the occasioning of capability needs, physical spreading out, class expansion, and other factors. To decrease our variable costs on a per unit basis and enable us to low prices for clients, The Company seeks to add to the direct sourcing, amplify money off from merchants, and decrease imperfection in the processes. To decrease enlargement in permanent costs, the firm seeks to progress process competencies and preserve a lean civilization.
Because of the model, the company is able to rotate its inventory rapidly and have a cash-generating working cycle. On average, the high inventory rapidity means Amazon usually collect from customers before the payments to dealers come due. Inventory turnover was for and. Amazon expects unpredictability in inventory turnover over time because it is affected by numerous factors, like brand mix, the mix of sales by Amazon and by other wholesalers, the ongoing focus on in-stock inventory accessibility and assortment of product provision, the investments in newer locations and product line, and the degree to which Amazon chooses to use third-party accomplishment suppliers. Accounts billed days were , , 74, and 76 for , , and . Amazon expects some unevenness in accounts billed days over time because they are influenced by numerous factors, like the mix of brand sales, the mix of sales by other traders, the mix of supplier, seasonal change, and transformations in payment conditions over time, comprising the result of balancing price and timing of payment conditions with a supplier.
Reference
Interbrand. (2014). Nike Sporting Goods . Retrieved November 1, 2014, from Best Global Brands: http://bestglobalbrands.com/2014/nike/
Jackman, G. (2013, September 10). Marketing Tips: High Involvement vs. Low Involvement. Retrieved November 1, 2014, from Writer Access : http://www.writeraccess.com/blog/writeraccess-marketing-tips-high-involvement-vs-low-involvement/
lardbucket, 2. b. (2012). Low-Involvement Versus High-Involvement Buying Decisions and the Consumer's Decision-Making Process. Retrieved November 1, 2014, from Books lardbucket: http://2012books.lardbucket.org/books/marketing-principles-v2.0/s06-02-low-involvement-versus-high-in.html