Buying A Playstation 3 Video Game

However, GameStop is still at a disadvantage, because there are such a large number of competitors in the industry. Buyer’s bargaining power are high, since there is no brand loyalty in the industry. Customers are very well aware of the market price of a product and will look for the best deals they can find. Suppliers have high bargaining power since suppliers can choose to integrate forward and sell their products themselves. The success of the retail gaming industry is very dependent on the availability of supplier’s goods. Additionally, since there are low barriers of entrance, substitute products and new entrants often appear in the market. Since most competitors in the industry do not have a strong presence, the expected retaliation towards new entrants is low. An increasing popularity of smartphone games and social media games such as Farmville on Facebook, allows customers to play against friends. Although these social media games do not offer the same experience as a video game, the fact that virtually no switching cost is associated with switching to a competitor’s game and since they are so cheap compared to video game disk and consoles, can easily drive customers from video gaming to online gaming. (Exhibit 2)

In fact, Price and promotion are two factors of the “4 P’s” discussed in marketing communication, which have severe effects on a customer’s outlook towards a retail environment with regards to their brand image (Kotler, 2010). Concerning price, there is the cost for the seller and for the customer (Profit +), and as for Promotion, the products benefit mainly to the customer (Eugene McCarthy). For example, you are only taking into consideration the

Price is the one element of the marketing mix that generates revenue; all the others are costs. Customers obviously like a bargain and may be attracted to buy a product even if they had never considered purchasing the product before. Prices could be artificially reduced to attract customers to a new product and to discourage

•Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling

One of the hardest part about being a producer is putting items for sale at a price that the consumer will be able to afford, while at the same time making an appropriate profit. If you put the prices on items too high, then the customer will either complain about the prices or they will go and find the product somewhere else. If you put the prices on a product too low, then everyone will be able to afford it and you will make little to no profit at that rate. In selling a product, one must take multiple factors into consideration. Factors such as: if the product suits the target market, if this product is affordable by all classed-citizens, or if the profit of the product out-weighs the cost of production. Once all of these factors have been taken into consideration and have been respectively examined to the point that the product will have little to no chance of failure, only then can the marketing of a product become successful. Successful marketing is seen everywhere, but how much of a beneficial impact it makes on society is due to the success. Examining the major beneficial factors of total cost minimization for the producers, consumers, and society.

Marketers, first of all, have to consider price boundaries such as the price floor, the price ceiling and

Product is the essential factor to create the market, thus it’s also a starting point in creating a marketing mix. A business should clearly figure out what their product is, what benefit

Product pricing is regarded as the least exiting element of the marketing mix however it is the only element that directly relates to income and also an element which crosses over dramatically to other element .Promotional campaigns frequently carry messages about price, sales promotions are often based on price reduction and discount, price coveys message about the quality of the products and it can even discount, price conveys message about the quality of the products and it can even control the features and benefits of the products (Stin,1998).

In other words, consumer evaluates all aspects of a company and then decides whether it is offering value or not (Chen & Hu, 2010). It affects his buying behaviour. Businesses attempt to influence this perception of reality, sometimes through trickery and manipulation but often just by presenting themselves in the best possible light. For example, advertisements often trumpet the quality and convenience of a product or service, hoping to foster a consumer perception of high value, which can pay off with increased sales (Sweeney et al., 1999).

According to Harvard Professor of Business Theodore Levitt , the purpose of all business is to "find and keep customers." Furthermore, the only way you can achieve this objective is to create a competitive advantage. That is, you must convince buyers (potential customers) that what you have to offer them comes closest to meeting their particular need or want at that point in time. Hopefully, you will be able to provide this advantage consistently, so that eventually the customer will no longer consider other alternatives and will purchase your product out of habit.

They are not aware of the production process and the cost of raw materials and other related costs. They only build a feeling about the worth of the product. Therefore, the societal marketing of a brand can differ significantly from the real value of that brand. It can either be higher or lower. The consumers might be willing to a higher price for a brand that they feel is worth more even though its actual cost might be lower. In such cases the company is able to charge more than the normal price because of its high perception value.On the other hand, the consumers might be willing to pay less because of their low value even though the brand’s actual cost might be high. In such cases the company is forced to lower its price since the consumers won’t purchase the brand at a higher price.

Product: refers to the item actually being sold. The product must deliver a minimum level of performance; otherwise even the best work on the other elements of the marketing mix won 't do any good.

According to Kotler and Armstrong (2012), product is defined as something that is offered to the market for attention, acquisition, use or consumption that may satisfy a person's wants or needs. Products can be physical goods like mobile phones, books or computers. It could be intangible goods as well such as services, events, ideas, organizations or places. Kotler and Armstrong (2012) further explained that products are the primary element in the overall market offering as it is the first step in marketing-mix planning, and that is to develop an offering that can create values to target market and build profitable customer relationships.

Products: The products play a vital role in marketing. They analyze the wants of the customers and offering them a product. They are also set the size of the product color of the product and other things. They are also considering about the features of the product so that it can satisfy the customers.

Such behavior is influenced by four main factors: Cultural, Social, Personal and Psychological. These factors affect consumer decision making and plays a core impulse that let customer purchase.