ECON ARTICLE Essay Example | Topics and Well Written Essays - 750 words

ECON ARTICLE - Essay Example The LCD-panel manufactures had been producing flat screens faster than the TV industry could absorb and thus were forced to cut their wholesale prices by as much as 30%, which lowered their profits. Now they demand that TV makers, distributors, and retailers should cut their margin in order to generate more sales. On the other hand retailers complain that their margins are not really much because the high cost of storefront display and marketing TVs does not leave high profits for them. In addition, they have to invest heavily in training sales personnel also. They further have a lot of money tied up in inventories of the costly TVs. Moreover, the average selling price of flat screen TVs have dwindled to about $3000 from $5000 two years ago. The LCD panel makers, meanwhile, face stiff competitive pressure from other screen technologies such as Plasma and High Resolution Projection TVs. Since September 2004, plasma TV prices have plummeted and contributed to high market share gains over LCD sets. Retailers of plasma screen also apply a similar margin to plasma sets as well. But plasma screen factories are not as costly to erect as LCD screen plants, and there is less competition among plasma screen makers, so the profit squeeze is not as bad. A slightly encouraging trend that the flat TV producers can find relief in is that the low price is likely to increase the sales volume. Though there is a gradual decrease in prices and an increase in sales of flat screen TVs, most analysts predict that it won’t take off as quickly as flat screen computer monitors. Monitors primarily being used for commercial purposes, the purchasing has been driven by businesses while TVs are chiefly purchased for domestic use by consumers. These customers rather tend to be more sensitive to price than any other consideration. Due to increased production, the supply of flat TVs has

Advertising PowerPoint Presentation Example | Topics and Well Written Essays - 1000 words

Advertising - PowerPoint Presentation Example Total investment in advertising media has been forecasted to be USD 558.4 billion by the year 2016 (Neoadvertising, 2011). There are several challenges that the advertisers face when marketing their products. Advertising is a costly affair and thus it increases the cost of the product. It at times misleads the public and also creates dissatisfaction among them (The Guardian, 2012). Junk food can be referred as an informal expression that is used for food. It does not have much nutritional values. It has been observed that junk foods have negative impacts upon the health of the people (Nawathe & et. al., 2007). Government has stated that the junk food marketers must not advertise their products to the kids because such advertisements may attract the kids and may create harm to their health. Although several efforts are being made to reduce such marketing towards the children, there has been rise in the fast food advertisement aimed towards 2-to-18 years’ old children (Noguchi, 2012). The main marketers that tend to advertise their products to the teens are McDonald’s, KFC, Subway, Domino’s, Taco Bell, Burger King and Dunkin’s Donut. These companies target the teens because they are heavy users of social networking sites, cell phone messages as well as games. Therefore, targeting them becomes easier (Melnick, 2010). The main objective of the advertising done by the fast food marketers is to stimulate brand affinity that begins at early age. Most of the marketers advertise targeting at parents as well with the perception that greater exposure held by parents will lead to more routine fast food dining (Melnick, 2010) It has been noted that in the year 2002, a group of over-weight children filed a complaint against McDonald’s from New York. They stated that certain food products of the company lead to several diseases such as over-weight,