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HW5.0

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1. A thought paper on the price tag law of the Philippines. Create a summary about its provisions.

Price Tag Law

       A price tag is a device attached to a commodity stating the price at which it is offered for sale.

        The price tag law requires merchants to place prices on every item. Many retailers, including big chain of supermarkets, have resorted to clever, if not dishonest way, of going around the law. As early as 1946, the law on price tag on consumer products is clear. Republic Act No. 71 covers “all articles of commerce and trade offered for sale to the public at retail.” Retail items should be “publicly displayed with appropriate tags or labels to indicate the price of each article and said articles shall be sold uniformly and without discrimination at the stated price.”       

        The price tag law is in place to keep retailers from changing the prices of goods without warning. Most retailers prefer shelf tags to individual price stickers, or bar codes that consumers cannot read. Some retailers install price scanners in hideous corners of the store; others don’t. Some items don’t have any price tag at all: no individual price tag, no shelf tag, no price list, and no bar code. Buyers end up getting shocked upon seeing the price of untagged item once it is punched in the counter.

Maximum price

          Selling the item at a price higher than that displayed is unlawful. For a while, following introduction of the price tag law, there were problems with some retailers simply increasing their prices to cover the charges levied on them by credit card processing agencies. Although this met the letter of the law, because the highest price payable was shown, it meant it was possible to negotiate a lower price by paying in cash. Legislators hoped to curb haggling with the act, as they considered it “a waste of time and energy of both buyer and seller.” In 2006, the Philippines Department of Trade and Industry banned credit card surcharging.

Penalties

         A first offense results in a fine of not less than 200 pesos but no more than 5,000, or by “imprisonment of not less than one (1) month but not more than six (6) months or both, at the discretion of the court.” A second violation results in the revocation of business permit and license.

      

 

Preferences

 

Synthesis

       As a consumer, enables business to grow, compete, and succeed, and to care for consumers so they get the best value for their money. That is why they need to put double price tags, shelf tags without individual tagging, and to just install price scanners to read bar codes. These variations from what the law and implementing rules provide constitute amendments to the Price Tag law and the Consumer Act that the DTI is not empowered to do. Doing so is usurping the power of Congress to legislate.

       Any person who violates the price tag requirements, the manner of placing price tags and any regulations for price tag placement shall be criminally liable under Consumer Act of the Philippines. The displayed price must be in pesos and centavos. The law states that the item’s price must be “in Philippine currency, except when a law or regulation allows consumer products to be sold in foreign currency such as in the case of duty-free shops.” Banned practices include showing separate price tags for cash and credit card sales.

 

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WAC 1.0

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The effect of the minimum wage on the fast-food Industry

Abstract

      This paper presents new evidence on the effect of minimum wages on establishment level employment outcomes.
      How do employers in a low wage labor market respond to an increase in the minimum wage? The prediction from conventional economic theory is unambiguous; arise in the minimum wage leads perfectly competitive employers to cut employment (George J. Stigler, 1946). Although studies in the 1970’s based on aggregate teenage employment rates usually confirmed this prediction, earlier studies based on comparisons of employment at affected and unaffected establishments often did not.   Analyses of the 1990-1991 increases in the federal minimum wage (Lawrence F. Katz and Krueger, 1992; Card, 1992a) of an earlier increase of the minimum wage in California (Card, 1992b) find no adverse employment impact.
Key words: Minimum wage, Aggregate teenage employment, Unambiguous, Competitive labor market.

Introduction

     Comparisons of employment, wages, and prices at stores in New Jersey and Pennsylvania before and after the rise offer a simple method for evaluating the effects of the minimum wage. 410 fast-food restaurants in New Jersey and Pennsylvania following the increase in New Jersey’s minimum wage from $4.25 to $5.05 per hour. Comparisons within New Jersey between initially high-wage stores and other stores provide an alternative estimate of the impact of the new law.

Hypothesis

  1. Minimum wage causes unemployment.
  2. The higher the wage an establishment pays relative to other firms, the more diligent and loyal its employees, and the less likely they are to quit.
  3. The resulting high turnover of employees makes unionization more difficult.
  4. Employers routinely violate current minimum wages, federal and state.
  5. A big increase in minimum wages makes a hollow victory without enforcement.

Methodology

  • The rise in minimum wage occurred during a recession.
  • The increase had been legislated two years earlier when the state economy was relatively healthy.

By the time of actual increase, the unemployment rate in New Jersey had risen substantially and last-minute political action almost succeeded in reducing the minimum wage increase. It is unlikely that the effects of the higher minimum wage were obscured by a rising tide of general economic conditions.

  • New Jersey is a relatively small state  with an economy that is closely linked to nearby states.

Fast-food stores in eastern Pennsylvania  forms a natural basis for comparison withe experiences of restaurants in New Jersey, however, allows us to compare the experiences of high-wage and low-wage stores within New Jersey and to test the validity of the Pennsylvania control group. Since, seasonal pattern are similar in New Jersey and eastern Pennsylvania, as well as across high- and low wage stores within New Jersey, Comparative methodology effectively “differences out” any seasonal employment effects.

  • Successfully  followed nearly 100 percent of stores from a first wave of interviews conducted just before the rise in the minimum wage (in February and March 1992)

Results

    Early in 1992 the impending increase in the New Jersey minimum wage by surveying fast-food restaurants in New Jersey and eastern Pennsylvania. Fast-food industry was driven by several factors. First, fast-food stores are a leading employer of law-wage workers: in 1987, franchised restaurants employed 25 percent of all workers in the restaurant industry. The restriction  results in a slightly smaller estimate of the relative increase  in employment in New Jersey.

Analysis

     An alternative possibility is that seasonal factors produce higher employment at fast-food restaurants in February and March than in November and December. An analysis of national employment data for food reparation and service workers, however, shows higher average employment. Analysis of the 1991 Current Population Survey reveals that part-time workers in the restaurant  industry work about 46 percent as many hours as full-time workers. Katz and Krueger (1992) report that the ratio of part-time workers hours to full-time workers’ hours in the fast-food industry is 0.57.

Conclusions

     The authors examine the impact of recent changes in the federal minimum wage on a low-wage labor market The authors draw four main conclusions. First, the survey results indicate that less than 5 percent of fast food restaurants use the new youth sub-minimum wage even though the vast majority paid a starting wage below the new hourly minimum wage immediately before the new minimum went into effect. Second, although some restaurants increased wages by an amount exceeding that necessary to comply with higher minimum wages in both 1990 and 1991, recent increases in the federal minimum wage have greatly compressed the distribution of starting wages in the New Jersey fast food industry. Third, employment increased relatively in those firms likely to have been most affected by the 1991 minimum wage increase. Fourth, changes in the prices of meals appear to be unrelated to mandated wage changes. These employment and price changes do not seem consistent with conventional views of the effects of increases in a binding minimum wage.

     Similarly, regressions including the gap variable provide no evidence that the minimum-wage increase led to a systematic change. One explanation of our finding that a rise in the minimum wage does not lower employment is that restaurants can offset the effect of the minimum wage by reducing non-wage compensation. For example, if workers value fringe benefits and wages equally, employers can simply reduce the level of fringe benefits by the amount of the minimum-wage increase, leaving their employment costs unchanged. The main fringe benefits for fast-food employees are free and reduced-price meals.

References

      http://davidcard.berkeley.edu/papers/njmin-aer.pdf

      http://dollarsandsense.org/blog/2014/02/increasing-minimum-wage-can-actually-create-jobs-its-enforced.html

      http://www.google.com.ph/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&docid=rpg7upfZkc2SNM&tbnid=y6pR0V_lmiletM:&ved=&url=http%3A%2F%2Fwww.downsizinggovernment.org%2Flabor%2Fnegative-effects-minimum-wage-laws&ei=6hXaU-fxMpHg8AWc84KQBQ&bvm=bv.72185853,d.dGc&psig=AFQjCNHXlcCDl8x3ZFcXJn463oWzHnnQwg&ust=1406887786951257

Acknowledgement

     Part of this work was completed Katz and Krueger 1992. I am very grateful David Card for helping in constructing the data.
David Autor, Lawrence Katz and Alan Krueger

Appendix

HW 4.0

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1. Give at least five known local brands and top 1o international brands. Include a brief company overview for each brand.

    Top 5 Local brands

  • SILVER SWAN
        Silver Swan Manufacturing Company is the country’s leading provider of high-quality condiments and food products.
 
Company Overview

         Silver Swan Manufacturing Company, Inc. is the country’s leading provider of high-quality condiments and food products such as its popular soy sauce and vinegar.

Over the years, Silver Swan has strives to provide only the best products that exceed the culinary needs and expectations of its customers.

Silver Swan has sought to actively pursue different tastes, sauces, and techniques to raise the bar for the industry as a whole through innovation, product development, and advancement.

  • SKYFLAKES (CRACKERS)

M.Y. SAN SKYFLAKES CRACKERS

         Betty Ang studied in The University of the Philippines, Los Baños.

Monde Nissin Corporation was originally incorporated as Monde Denmark Nissin Biscuit Corporation in 1980 and started out manufacturing biscuits. Among its products were Nissin Butter Coconut and Nissin Wafer.

In 1989, the company ventured into the instant noodle segment under the Lucky Me! brand, marketed mainly for members of the lower class. It has become the leading brand of instant noodles in the Philippines. The company later launched the very first dry noodle in pouches, the Lucky Me! Pancit Canton; and the first bowl noodle, Lucky Me! Supreme La Paz Batchoy.

In 2002, the company acquired M.Y. San Corporation, the manufacturer of the popular brands, Sky Flakes, M.Y. San Graham Crackers and Fita. Subsequently, the company changed its name to Monde Nissin Corporation. The Lucky Me! brand currently accounts for 64% of the retail sales.

  •   CHAMPION (Detergent)

          Champion laundry detergent has been around for a while. The brand was launched with very little fanfare, if there was any, in 1997 and has since made its way into the hearts of millions of Filipino consumers, even without mainstream advertising.

From the very start, Peerless Products Manufacturing Corp.—the maker of Champion—focused on winning the trust of Filipino consumers by addressing their need for quality products at affordable prices.

It invested heavily in technology, research and development and its people.

Peerless uses one of the best European detergent making technologies, which costs double that of the ordinary technology, but guarantees efficient performance and quality output.

The first Champion production plant was built in Bulacan.

 

  • GREAT TASTE (Instant Coffee)

        

        Great Taste was known to be a blockbuster and powerhouse team to those who got to watch the game in the early 1980s, this team was also one of the ragtag and also-ran teams of the 1970s. Not exactly blessed with the biggest names among the present set of players then, they did become competitive owing more on the sheer hearts of their players rather than talents.

 

  • DATU PUTI (Condiments)

  

          It has come to our attention recently that there has been a malicious attempt to ruin our reputation as a leading manufacturer of quality condiments under the Datu Puti brand name. We condemn this act and categorically deny this baseless claim.

Nutri-Asia, Inc., maker of Datu Puti, has been consistently the No. 1 manufacturer of condiments and sauces because it has earned the trust of the public through the years with its leading brands. We are proud to say that our production processes and facilities have been certified to comply with FSSC (Food Safety System Certification 22000), the highest and strictest global accreditation body for food manufacturing companies. In fact, to date, we are the only liquid condiments manufacturer in the Philippines that has earned this highly coveted worldwide accreditation. Stringent manufacturing practice is a pillar of our business operations and we take pride in this commitment. Thus, we will not allow anyone to tarnish our good reputation.

We stand firm on our commitment to quality and our doors are open to our valued consumers who would like to visit our manufacturing facilities.

 

References

http://www.kantarworldpanel.com/vn/news/Top-10-Most-Chosen-FMCG-Brands-by-Sector-in-Urban-and-Rural

 

    Top 10 International brands

  • APPLE

top brands

Brand value: $185 billion
Sector: Technology
2012 rank: 1

        It may have been a lost year for the tech titan in many respects, but Apple’s (AAPL) position as the world’s most valuable brand remains undisputed.

Still, rivals are gaining share of the smartphone market, profits and margins have been squeezed, Apple stock is 30% off its 2012 peak, and the company hasn’t unveiled a major new product since the iPad mini last October.

 

  • GOOGLE

top brands

Brand value: $114 billion
Sector: Technology
2012 rank: 3

      Google’s (GOOG) share price chart has been almost the mirror image of Apple’s (AAPL) since last October, and it’s been busy on the product and innovation front.

Developers, and a few in the media, have been given Google Glass to play with. The company has refashioned chat with Hangouts and launched a significant challenge to Spotify and other rivals with Google Play Music All Access.

 

  • IBM

top brands

Brand value: $113 billion
Sector: Technology
2012 rank: 2

         It may have slipped a place but the biggest name in “old tech” has had a pretty good year. Big Blue’s shares are not far off their all-time high, and while first-quarter earnings weren’t great, the previous quarter beat all expectations.

IBM is still reaping the rewards of selling its PC unit to Lenovo in 2005 and focusing more on software and services such as analytics and cloud computing. The drive to exit low-margin businesses took a knock earlier this month when talks on selling its x86 server business — again to Lenovo — broke down over price.

With its vast size and global footprint, investors still tend to view the company’s earnings as an indicator of overall corporate technology spending and demand.

 

  • McDONALD’S

top brands

Brand value: $90 billion
Sector: Fast food
2012 rank: 4

        The fast-food giant saw its brand value slip 5%, but held on to fourth place.

McDonald’s (MCD) has spent years beefing up its premium line to boost profits and attract parents as much as children. There are signs it may be returning to its focus on value, though, after customers resisted the introduction of a one-third-pound Angus burger.

It’s been adding more salads and other foods with less fat, salt and sugar, too, in response to growing public concerns about diet. Last year, it opened a vegetarian restaurant in India.

 

  • COCA-COLA

top brands

Brand value: $78 billion
Sector: Soft drinks
2012 rank: 6

        Coca-Cola’s (KO) brand value rose by 6%, pushing it one place higher in the rankings this year.

The company reported better-than-expected earnings last month, showing consumers still like their fizzy drinks. Emerging markets such as Brazil, Russia and India made up for some slack in China, and Coke continues to generate slow and steady growth in developed economies.

 

  •  AT&T

top brands

Brand value: $76 billion
Sector: Telecom
2012 rank: 8

      The Dallas-based telecom giant has grown from its humble beginnings in the 1870s to become an international heavyweight in high-speed Internet, Wi-Fi and wireless communications. Its share price has been rising, and is now hitting levels last seen in early 2008.

AT&T (T) has made the top 50 in Fortune’s list of America’s Most Admired Companies and has the largest 4G network in the United States.

 

  • MICROSOFT

top brands

Brand value: $70 billion
Sector: Technology
2012 rank: 5

        The tech giant has been battered, bruised and clearly beaten up by Apple in terms of brand name. But Microsoft (MSFT) still maintains a commanding presence in its home market — the United States — and around the world.

Shares in the software titan have recently hit their highest level since early 2008, and the company’s smartphone operating system just surpassed Blackberry to take third place behind Google’s Android and Apple’s iOS, according to researcher IDC.

 

  • MARLBORO

top brands

Brand value: $69 billion
Sector: Tobacco
2012 rank: 7

        In a world that is growing increasingly hostile towards Big Tobacco, the Marlboro name stands strong. True, its brand value slid by 6% since 2012, but Marlboro still holds a place in our collective psyche as a manly, rugged cigarette brand that has withstood the test of time.

Marlboro is the only brand in the top 10 that’s not a standalone company. The Marlboro brand is owned by both Altria (MO) in the U.S. and Philip Morris International (PM), which operates in non-U.S. markets.

 

  • VISA

top brands

Brand value: $56 billion
Sector: Financial services
2012 rank: 15

         Visa (V) has made significant progress over the past year, with the company’s brand value skyrocketing nearly 50%. Visa prides itself on being a market leader in global payments and is recognized by hundreds of millions of people around the world.

According to Visa, its brand is able to “transcends the common barriers of language, culture and geography to establish a common payment mark that has come to symbolize acceptance, convenience and security.

 

  • CHINA MOBILE

top brands

Brand value: $55 billion
Sector: Telecom
2012 rank: 10

       China Mobile is one of the world’s largest wireless providers, serving more than 730 million customers. With 1.3 billion potential customers in China, it’s easy to see the opportunities for growth.

References

© 2014 Cable News Network. A Time Warner Company. All Rights Reserved.

Synthesis

         Aside from your personal brand comes to life in how you consistently behave, promote yourself and present yourself to others. When you show up in person, others judge you by your non-verbal attributes, and the way you communicate creates an impression of who you are and what you value. It may not feel fair, to be judged based on how you look, but it is real to others.

         Some logos and brands have become so  embedded in our culture and everyday life that we can recognize them even if we see just a small portion.When designing a logo or even when creating an important document or proposal, a business card or brochure it is essential to know what colors to add and which ones to stay away from. In order to do that you must know what the different colors mean in the business world. What do consumers expect of global brands? We found that it simply didn’t matter to consumers whether the global brands they bought were American.

        Such people may value global brands particularly highly because they represent a way of life that they cherish—a way of life that may be under threat from religious fundamentalism.What we look for is quality in their products. Since people’s concerns with U.S. foreign policy have little impact on brand preferences, American companies should manage brands just as rivals from other countries do.

 

 

HW 3.0

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1. Identify one fad product and show how it could be maintained on the market past its fad stage.

Kisses/Star balls

  

These product entered the market quickly, created a consumer obsession, sold million of units in a short amount of time, and declined just as rapidly.

References:

https://www.google.com.ph/?gws_rd=ssl#q=fad+product+in+the+philippines+images

Synthesis:

Like what I said, Fad products are things that becomes very popular then suddenly forgotten at the same speed. But as you can see, this product are not totally forgotten, there are some people who are still using/ buying this product as a signed that it created a name the market. This past years, they are actually promoting their products by means of advertising. As of now kisses/ Star balls are still competing in the market place. Maybe others are just lowering the prices to attracts the customers or new customers.

Sales slow and profits drop in the decline stage, usually because of advances in technology, a shift in consumer taste, or increased competition. Distribution becomes exclusive, and sales promotions are developed. Products in the decline stage should have their sales, market share, costs, and profit trends regularly reviewed so that managers can decide whether to maintain the product, harvest the product  or drop the product from the product line.

 

HW2.0

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1. What are the common product positioning strategies? Give examples with pictures/videos/articles.

Secret to Fresh Breath

The secret’s out! Beat bad breath

Beat bad breath with the power of mouthwash in your toothpaste.

Keep your breath fresh with Active Zinc Mouthwash only with Closeup Deep Action.  

Bad breath is bad news – especially on those rare, intimate moments. The fresher your breath, the more confident you can be socially. Thankfully, keeping bad breath at bay and keeping your breath fresh need not be so difficult. Here’s the secret: ZincArticle Secret to Fresh Breath

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Keep your breath fresh with Active Zinc Mouthwash only with Closeup Deep Action.  

Bad breath is bad news – especially on those rare, intimate moments. The fresher your breath, the more confident you can be socially. Thankfully, keeping bad breath at bay and keeping your breath fresh need not be so difficult. Here’s the secret: Zinc.

Zinc in your toothpaste fights bad breath causing germs so you’re always ready to get close with long-lasting fresh breath. Try brushing with Closeup Deep Action toothpaste. It gives you 3 times fresher breath* with Active Zinc Mouthwash that fights up to 99% of germs, giving you up to 12 hours of fresh breath.

Article_Deep_Action

 Reference:

 2012 Market Segmentation Study Guide  

Positioning Examples

Synthesis:

This positioning strategies help us in our personal satisfaction by contributing to the improvement of the “common good” in our society. It is the way to centralized the product or make it on top. The ability the make an informed decision about HOW WHEN and WHERE to target a customer group, facilitate resources and set objectives makes the difference between a manager who thinks from a strategic perspective in light of what might emerge in future. They anticipating those movements into current decision-making helps to set a stage to create sustainable advantages.

 

HW1.0

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1. What is Marketing? 

Marketing is the set of human activities directed at facilitating and consummating exchanges.

-Philip Kotler (Marketing Management)

   Synthesis:

In marketing not just only satisfy  the people’s unlimited needs and gaining profit but it also needed to meet the expectation of an individual, which constitutes the ability and willingness to purchase. Goods and services refer to items that people use to satisfy their needs or wants. Products are actually bought in view of the service or satisfaction that it offers. In deciding what or which product to purchase, it is vital for the customer to decide on the value of the product that is capable of satisfying his needs, it can then be procured via the process of exchange or transactions. 

2. Enumerate and discuss the Goals of Marketing?

Determining your goals is just step 1. After you determine your goals, you need to determine your measures of success. Tom Landry said it the best: “Setting a goal is not the main thing. It is deciding how you will go about achieving it and staying with that plan.” What varies from marketer to marketer is how they measure these goals. SMART is an acronym for:

Specific – Answer the who, what, when, where, which, and why.

 e.g “Building Brand Awareness.” 

Measurable – Track it quantitative or qualitatively. Depending on the metric, manually or with marketing tools. 

e.g “Generating high lead volume.” 

Attainable – Goals should be possible to achieve and you should establish a reasonable time frame to achieve those goals! Otherwise, the goals could become too lofty and overwhelming leading you to feel that it is hopeless in trying reach it. 

e.g: “Establish thought leadership” 

Realistic – Would you need to hire 3 people to achieve your goal? Remember the ideal vs ordeal, unfortunately we can’t do everything! 

e.g “Contributing leads that turn into sales”’

Time-related – Set deadlines for when these goals should be achieved.

e.g “Increasing Engagement” 

Reference:

http://trackmaven.com/blog/2014/01/smarter-marketing-goals/

Synthesis:

In Marketing, we are making a goals to for you to know if there is an accomplishment together with your works. Before you make any headway, you need to make sure that your setting first your goals. Because goal is a key to success without goal your just like running without any purpose. 

3. Discuss the Concept of Customers value and It’s importance to successful Marketing.

You make buying decisions every day. 

According to Woodruff (1997 ) – Customer value is a customer’s perceived preference for and evaluation of those product attributes, attribute performances, and consequences arising from use that facilitate (or block) achieving the customer’s goals and purposes in use situations”.

In every buying decision, a consumer asks the same question: is what I am going to receive worth what I have to give up in order to get it? The gain the consumer receives for the benefit is weighed against the cost the consumer must pay to acquire the benefit. The value the individual consumer places on a product or service becomes the customer value for that offering.

In order for a company to make any sales, their products and services must have a customer value in the minds of their consumers higher than that of similar offerings by competing companies. When companies make marketing decisions, such as making changes to the quality of their products or changing the price of their products, they must consider the impact that the change will have to the customer value that their consumers currently place on their offerings. 

In order for a company to succeed, they must find consumers who consider their offerings to have the highest customer value when compared to other offerings in the marketplace. Once these consumers have been identified, companies must make every effort to ensure that their products and services consistently create the highest customer value to these consumers when compared to all of the other choices in the marketplace.

Reference:

© copyright 2003- 2014 Education Portal. All other trademarks and copyrights are the property of their respective owners.

http://education-portal.com/academy/lesson/what-is-customer-value-marketing-definition-quiz.html#lesson

Synthesis:

In this lesson, we will learn more about customer value, the concept of valuing customers. In the world of business, customers is the most important thing. Because without a customers, who else could buy the products that had been produced. There will be no changes if that could happen as well in the company. So we must be able to value our customers, not only pertaining their needs or gaining profits but also to make the customer satisfied and meet their expectation as well. In that way, if that customer met his expectation it is possible come back again or so much for that is patronizing your products. If that will happen, of course the customers are willing to buy or maybe invest. An so on, there will be a succession to your business.