Price Challenges: Article Review

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Price challenges: Article review Introduction Adopting a low-price strategy is often a key positioning technique marketers use when selling goods and services consumers do not have an emotional attachment to, like toilet paper or soap. However, technology is often priced at a premium. The strategy of high-cost, high-image marketing is adopted by Apple, whose products are traditionally more expensive than its competitors, but offer perceived added value, along with the social cache for the user of being seem as an 'Apple' type of a person. Phones often become a very personal part of someone's identity, as manifested in the way people use special ringtones, cases, and styles to express themselves. Overview However, two of the major manufacturers of mobile phones clearly think that there is potential value in using a low-cost strategy to sell phones. "Nokia and Microsoft on Monday announced plans to accelerate the sale of smartphones running Windows software by adding a cheaper version to their lineup and dramatically expanding the sales network around the world" (O'Brien 2012). The target market for these phones will be in the developing world. Although China and other areas of the Far East have shown brisk sales of Apple products, there is a large segment of the population not wealthy enough to buy premium-priced phones. Cellphones are used even more in the developing world than they are elsewhere, given the lack of stable landline communication systems or computers.
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