A free sample is a portion of food or other product which is given out in shopping malls, grocery stores, and other venues. Sometimes samples of non-perishable items are included in direct marketing mailings. The purpose of a free sample is to acquaint the consumer with a new product.
The concept of a free sample is not unlike that of a test drive, in that a customer is able to try out a product before purchasing it.
There are lots of free samples online. Often, people will create forums to share free samples they find, such as the SlickDeals.net
Monday, January 8, 2007
Sales Promotion
Sales promotion is one of the four aspects of promotional mix. (The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.) Sales promotions are non-personal promotional efforts that are designed to have an immediate impact on sales. Media and non-media marketing communications are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include:
coupons
discounts and sales, including Blue Cross Sale
contests point of purchase displays
rebates
free samples (in the case of food items)
gifts and incentive items
free travel, such as free flights S
ales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmick by many.
coupons
discounts and sales, including Blue Cross Sale
contests point of purchase displays
rebates
free samples (in the case of food items)
gifts and incentive items
free travel, such as free flights S
ales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmick by many.
Online Shopping Rewards
The advent of online shopping has resulted in the development of a large number of rewards programs that offer rewards for shopping through specific shopping portals. These rewards can be points-based (allowing redemption for various prizes), cashback, airline frequent flyer-miles-based, hotel points, or even donations to charity.
Rewards portals exist in most major markets, most notably in the US, Canada, UK, and Australia. The original loyalty program was started in 1896 by Sperry & Hutchinson called Green Stamps which has been digitized into the new S&H greenpoints.com. In the early 1900s, Carlson Marketing owned a company called Gold Stamps and that has similarly been rebranded as GoldPoints.com. One of the most successful programs that currently exist is called AirMiles out of Canada and, like the old Green/Gold Stamps programs it includes everyday spending in supermarkets.
It is important to remember that, with the exception of cashback rewards, each rewards program values its points differently: before consumers purchase through one of the point- or mile-based programs, they should compare the points they will earn with the specific reward they choose. In addition, because of the highly competitive nature of online commerce, many of the shopping portals offer coupons or discount offers not available if purchases are made directly through the merchant site: besides receiving points towards a reward, consumers can also save money up front.
Rewards portals exist in most major markets, most notably in the US, Canada, UK, and Australia. The original loyalty program was started in 1896 by Sperry & Hutchinson called Green Stamps which has been digitized into the new S&H greenpoints.com. In the early 1900s, Carlson Marketing owned a company called Gold Stamps and that has similarly been rebranded as GoldPoints.com. One of the most successful programs that currently exist is called AirMiles out of Canada and, like the old Green/Gold Stamps programs it includes everyday spending in supermarkets.
It is important to remember that, with the exception of cashback rewards, each rewards program values its points differently: before consumers purchase through one of the point- or mile-based programs, they should compare the points they will earn with the specific reward they choose. In addition, because of the highly competitive nature of online commerce, many of the shopping portals offer coupons or discount offers not available if purchases are made directly through the merchant site: besides receiving points towards a reward, consumers can also save money up front.
Electronic Commerce
Electronic commerce (also referred to as EC, e-commerce or ecommerce) consists primarily of the distributing, buying, selling, marketing, and servicing of products or services over electronic systems such as the Internet and other computer networks. The information technology industry might see it as an electronic business application aimed at commercial transactions; in this context, it can involve electronic funds transfer, supply chain management, e-marketing, online marketing, online transaction processing, electronic data interchange (EDI), automated inventory management systems, and automated data collection systems. Electronic commerce typically uses electronic communications technology of the World Wide Web, at some point in the transaction's lifecycle, although of course electronic commerce frequently depends on computer technologies other than the World Wide Web, such as databases, and e-mail, and on other non-computer technologies, such as transportation for physical goods sold via e-commerce.
According to Forrester Research (as cited in Kessler, 2003), electronic commerce in the United States generated sales worth US $12.2 billion in as of 2003.
According to Forrester Research (as cited in Kessler, 2003), electronic commerce in the United States generated sales worth US $12.2 billion in as of 2003.
Bookstore
A bookstore or bookshop is a retailer that primarily sells books.
Bookstores can range in size from local independent bookstores offering several hundred titles to large brick-and-mortar chains offering upwards of 200,000 titles; online bookstores may offer many times more titles.
Bookstores often sell items related to books such as newspapers and maps; additional product lines may vary enormously, particularly among independents. Colleges and universities often have their own student bookstore on campus that focuses on providing course textbooks, although some on-campus bookstores are owned by large chains such as Barnes & Noble College Bookstores, which is a subsidiary of Barnes & Noble.
A
nother common type of bookstore is the used bookstore or second-hand bookshop which buys and sells used copies of books, often for prices much cheaper than new copies. However, sometimes with rare books, especially certain first editions, these prices are much higher. Book collectors tend to frequent used book stores. Large online bookstores offer used books for sale, too. Individuals wishing to sell their used books using online bookstores agree to terms outlined by the bookstore(s): for example, paying the online bookstore(s) a predetermined commission once the books have sold.
Bookstores can range in size from local independent bookstores offering several hundred titles to large brick-and-mortar chains offering upwards of 200,000 titles; online bookstores may offer many times more titles.
Bookstores often sell items related to books such as newspapers and maps; additional product lines may vary enormously, particularly among independents. Colleges and universities often have their own student bookstore on campus that focuses on providing course textbooks, although some on-campus bookstores are owned by large chains such as Barnes & Noble College Bookstores, which is a subsidiary of Barnes & Noble.
A
nother common type of bookstore is the used bookstore or second-hand bookshop which buys and sells used copies of books, often for prices much cheaper than new copies. However, sometimes with rare books, especially certain first editions, these prices are much higher. Book collectors tend to frequent used book stores. Large online bookstores offer used books for sale, too. Individuals wishing to sell their used books using online bookstores agree to terms outlined by the bookstore(s): for example, paying the online bookstore(s) a predetermined commission once the books have sold.
Kinds of Shops
Shops are divided into multiple categories of stores which sell a selected set of goods or services.
Many shops are part of a chain: a number of similar shops with the same name selling the same products in different locations. The shops may be owned by one company, or there may be a franchising company that has franchising agreements with the shop owners (see also restaurant chain).
Some shops sell second-hand goods. Often the public can also sell goods to such shops. In other cases, especially in the case of a nonprofit shop, the public donates goods to the shop to be sold (see also thrift store). In give-away shops goods can be taken for free. In Antique shops the public can find goods that are older and unique
Many shops are part of a chain: a number of similar shops with the same name selling the same products in different locations. The shops may be owned by one company, or there may be a franchising company that has franchising agreements with the shop owners (see also restaurant chain).
Some shops sell second-hand goods. Often the public can also sell goods to such shops. In other cases, especially in the case of a nonprofit shop, the public donates goods to the shop to be sold (see also thrift store). In give-away shops goods can be taken for free. In Antique shops the public can find goods that are older and unique
Pricing
The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (or percentage) to the retailers cost. Another common technique is manufacturers suggested list pricing. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer.
In Western countries, retail prices are often so-called psychological prices or odd prices: a little less than a round number, e.g. $ 6.95. In Chinese societies, prices are generally either a round number or sometimes some lucky number. This creates price points.
Often prices are fixed and displayed on signs or labels. Alternatively, there can be price discrimination for a variety of reasons. The retailer charges higher prices to some customers and lower prices to others. For example, a customer may have to pay more if the seller determines that he or she is willing to. The retailer may conclude this due to the customer's wealth, carelessness, lack of knowledge, or eagerness to buy. Price discrimination can lead to a bargaining situation often called haggling — a negotiation about the price. Economists see this as determining how the transaction's total surplus will be divided into consumer and producer surplus. Neither party has a clear advantage, because the threat of no sale exists, whence the surplus vanishes for both.
Also if you are wishing you had something in side of the store you will just look through the glass windows.If you dont have the money to get it.
In Western countries, retail prices are often so-called psychological prices or odd prices: a little less than a round number, e.g. $ 6.95. In Chinese societies, prices are generally either a round number or sometimes some lucky number. This creates price points.
Often prices are fixed and displayed on signs or labels. Alternatively, there can be price discrimination for a variety of reasons. The retailer charges higher prices to some customers and lower prices to others. For example, a customer may have to pay more if the seller determines that he or she is willing to. The retailer may conclude this due to the customer's wealth, carelessness, lack of knowledge, or eagerness to buy. Price discrimination can lead to a bargaining situation often called haggling — a negotiation about the price. Economists see this as determining how the transaction's total surplus will be divided into consumer and producer surplus. Neither party has a clear advantage, because the threat of no sale exists, whence the surplus vanishes for both.
Also if you are wishing you had something in side of the store you will just look through the glass windows.If you dont have the money to get it.
Consumer surplus
Consumer surplus or Consumer's surplus (or in the plural Consumers' surplus) is the difference between the price consumers they are willing to pay (or reservation price) and the actual price. If someone is willing to pay more than the actual price, their benefit in a transaction is how much they saved when they didn't pay that price. For example, a person is willing to pay a tremendous amount for water since he needs it to survive, however since there are competing suppliers of water he is able to purchase it for less than he is willing to pay. The difference between the two prices is the consumer surplus.
Argument
Economics is usually defined as the problem of how best to distribute limited resources, limited because wants are characterised as unlimited. Surplus economics argues that rather than limited resources, there is an abundance of resources and this is the economic problem. The difference is one of perspective. If wants are the focus, then of course resources are limited, but if needs or essentials are used as the foundation, then resources are seen to be abundant. The difference is between a description and an explanation. A focus on wants describes a free market situation, a focus on essentials allows an explanation of the economy to begin.
An abundance of resources means that not all need to work productively and that some can use more resources than others. Who shall be the lucky ones and how to keep the unlucky quiet is part of the economic problem. Abundance is also a problem because having more resources than is strictly needed to live presents a danger to the production processes and the command over resources that created an economic surplus in the first place.
Surplus economics seeks to answer such questions as: Why does so much waste exist along side of so much poverty?
The orthodox assumption of scarcity has survived even the staggering levels of surplus of modern economies because this assumption suits the needs of those who command resources and who prefer to ensure that the economy does not become democratised; that unpleasant tasks are done by someone else, that some win and many lose.
An abundance of resources means that not all need to work productively and that some can use more resources than others. Who shall be the lucky ones and how to keep the unlucky quiet is part of the economic problem. Abundance is also a problem because having more resources than is strictly needed to live presents a danger to the production processes and the command over resources that created an economic surplus in the first place.
Surplus economics seeks to answer such questions as: Why does so much waste exist along side of so much poverty?
The orthodox assumption of scarcity has survived even the staggering levels of surplus of modern economies because this assumption suits the needs of those who command resources and who prefer to ensure that the economy does not become democratised; that unpleasant tasks are done by someone else, that some win and many lose.
Surplus Detailed
On a standard supply and demand diagram, consumer surplus shows up as a triangle above the price and below the demand curve, since intramarginal consumers are paying less for the item than the maximum that they would pay.
Producer surplus shows up as a triangle below the price and above the supply curve, since that is the minimum that a producer can produce that quantity with.
If the government intervenes, using, for example, a tax or a subsidy, then the graph of supply and demand becomes more complicated and will also include an area that represents government surplus.
Combined, the consumer surplus, the producer surplus, and the government surplus (if present) make up the social surplus or the total surplus. Total surplus is the primary measure used in Welfare Economics to evaluate the efficiency of a proposed policy.
A basic technique of bargaining for both parties is to pretend that their surplus is less than it really is: sellers may argue that the price they asks hardly leaves them any profit, while customers may play down how eager they are to have the article.
In national accounts, operating surplus is roughly equal to distributed and undistributed pre-tax profit income, net of depreciation.
In heterodox economics, the economic surplus denotes the total income which the ruling class derives from its ownership of scarce factors of production, which is either reinvested or spent on consumption.
In Marxian economics, the term surplus may also refer to surplus value and surplus labour.
Producer surplus shows up as a triangle below the price and above the supply curve, since that is the minimum that a producer can produce that quantity with.
If the government intervenes, using, for example, a tax or a subsidy, then the graph of supply and demand becomes more complicated and will also include an area that represents government surplus.
Combined, the consumer surplus, the producer surplus, and the government surplus (if present) make up the social surplus or the total surplus. Total surplus is the primary measure used in Welfare Economics to evaluate the efficiency of a proposed policy.
A basic technique of bargaining for both parties is to pretend that their surplus is less than it really is: sellers may argue that the price they asks hardly leaves them any profit, while customers may play down how eager they are to have the article.
In national accounts, operating surplus is roughly equal to distributed and undistributed pre-tax profit income, net of depreciation.
In heterodox economics, the economic surplus denotes the total income which the ruling class derives from its ownership of scarce factors of production, which is either reinvested or spent on consumption.
In Marxian economics, the term surplus may also refer to surplus value and surplus labour.
Sunday, January 7, 2007
Surplus
The term surplus is used in economics for several related quantities. The consumer surplus is the amount that consumers benefit by being able to purchase a product for a price that is less than they would be willing to pay. The producer surplus is the amount that producers benefit by selling at a market price that is higher than they would be willing to sell for. Note that producer surplus flows through to the owners of the factors of production, unlike economic profit which is zero under perfect competition. If the markets for factors are perfectly competitive as well, producer surplus ultimately ends up as economic rent to the owners of scarce inputs such as land.
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