Introduction
The Smart Class software that is made by our company has revolutionized and brought a complete transformation in the traditional rote methods of learning. Smart class use modern techniques to understand student requirement and explain them the concept. With the help of projectors they use digital instruction material to explain students, white boards are used, and they even use computers which keep student engaged and make work of teacher easier in explaining those (Conole & Oliver, 2008). They are also named as digital classes. Teachers now days prefer using smart boards instead of black boards.
Almost all institution which comes under top category are opting for smart classes as student get interest in it and can even learn lot more from it. It makes the learning processes easier and full of pleasure. Smart class has brought digital technology in academics. It is a digital approach which is transforming the techniques and methods used by teachers to teach student and students can learn a lot in the given time and in an innovative manner. Through smart classes technology has entered into academics and replaced black boards.
Concept of Smart Class
Smart classes’ concept bought by our company use the visualization technique which helps student in better understanding of concept. Smart classes have improved education system by bringing visualization concept which explains this better than videos and presentation. Even those students who find it difficult to understand teaching technique of teacher our smart classes’ technique has even made it simpler for those students to understand the concept. Movies are the best example as students summarize and understand movie better than the lessons taught in classroom. E-learning is better as it creates interest and attention among students. Smart classes are not used for every topic of subject and this is done to prevent the imagination, visualization and application capability of student, which may get reduced. Smart class gives maximum benefit only up to certain limit. It is very beneficial in teaching and learning process. Smart classes use smart boards which are finely handled by students and teachers to get best out of it.
Elasticity in Prices
This case is satisfied when the quantity that is demanded is relatively elastic which means that even a little change in price while greatly affect the demand of product. Similarly if price of smart class software manufactured by our company is reduced more numbers of buyers will come forward for it. In case of E > 1 the demand curve should me horizontal. Products having high price elasticity of demand, in that case the increase in price will result in decreased revenue, as the lost revenue due to decrease in quantity sold is more than the gained revenue from the increase price.
Factors Affecting the Price Elasticity of Demand
The factors that affect the price elasticity of our product that is smart classes are as follows:
Availability of substitutes: Greater is the number of substitutes, greater the elasticity is. Number of substitutes completely depends upon how broadly the product is defined.
Proportion of the purchaser's budget consumed by the item: Products that consume large amount of purchaser budget have grater elasticity.
Time period considered: When consumer get longer period they adjust their behaviour and thus elasticity increases.
Permanent or temporary price change: one day sale triggers different reaction and response than a permanent decrease in price.
Strategies for pricing
For our product we will be using following pricing strategy:
Premium Pricing: We will use high price for the product where the product and its services are unique. This technique is implemented where competition is less and demand of product is more.
Penetration Pricing: This strategy is followed where there is huge market share. The price of product and services are kept low to sustain in the market. After getting a place in market the price of product can be increased.
Price skimming: this strategy is adopted where competitive advantage is seen. Increase in price attracts new competition and price eventually falls due to increase in supply.
Skimming or penetration pricing is practical and workable. It has many advantages and few disadvantages too as every good come with some drawback in it.
Advantages of Price Skimming
With the help of price skimming our company is recovering the growth, development and research price which are related to the growth of new product.
Company’s main target is the consumer who gives more emphasis on quality rather than price of product. And this strategy works and gets huge benefit to the company.
Disadvantages of Price Skimming
The strategies followed by company can have bad affects if there is any close completion in the market and if they introduce products with lower price. This will make a bad image on company in front of consumer.
Price skimming does not work if government has made strict rules and regulation for consumer rights.
Price skimming done earlier may affect the sale of new launched product. The consumer will never buy the newly launched product they will rather wait for few months and will prefer buying product at lower price.
As our company is a service provider it offers various discount to its customers and even give allowances to its employees. The discount which is given to the buyers helps in reducing the tax. Usually the buyer considers the quoted price as the list price. Discount is given on this price to the distributor channel members and some of the users. There are few discounts which are given are as follows:-
Quantity discount – it is a part of the marked price that is deducted from the purchasing amount, customers purchasing a large amount of goods are provided with this rebate which adds up to their benefit and motivates them to continue their further purchases from the same place (Clegg, Hudson & Steele, 2003).
Cumulative quantity discount- when the amount of rebate increases with an increase in the cumulative quantity it is known as cumulative quantity discount. Resellers benefit in greater amount from cumulative discount, these resellers buy wholesome of quantities at times but they are not willing to set large individual orders.
Seasonal discount- these discounts are entirely dependent on the time at which the product is purchased and are made available in order to decrease fluctuations that takes place in sales and market marked as seasonal variations. As for example the discounts that are offered by the travel agencies in the off season rates. Seasonal discounts do not rely on the time of the year but can also depend on the day of the week or time of the day which includes costing that is due to longer distance and wireless service providers.
Cash discount- Cash discount is available for customers who are prompt in paying their bills prior to the specified date. Such discount are given in order to appreciate their in time responsible behavior of clearing their bills.
Trade discount- in order to appreciate the performance of channel members in their particular roles, a different type of discounts is provided known as trade discount. Taking into consideration the discount that is provided to a small retailer who might not involve in buying large sum of quantities but contributes to a large amount in performing the important retail functions. Trade discounts is the proper way to keep the members attached and it acts as an initiative to motivate the members for much more enhanced performance.
Promotional discount- promotional discounts are just short term rebates that are basically involved as measures to promote the product and create a drive in the sales.
Buy one; get one free- this type of discount account for the reliability of the two products on each other. When an item that is not charged for, but will be free only on the purchase of the first item and the rebate is collectively given on the net amount. These promotions are moreover considered as discount rather than promotional steps.
Discount Strategy
Discount strategy that is adopted by our company is to attract people in our store and towards our product. Every customer wants to save his money and wherever he gets a chance he tries to save money. So get customers attention the best technique is to tell them that you will save money on purchase of this product (Oludipe, 2009). Discount not only gives benefit to our customers it also gives benefit to our company. Discount is major factor that can bring business to success it can be from increase in sale to reputation of a company.
Attract Customers
People buy more products at the time of sale, discount on it helps to attract and get more people to our store. If discount given is for only few days than the banners and advertisement of discount period should be done so that customers get aware of it and get the benefit of discount. People rush to the shop when they come to know that discount given is only for few days. At the time of discount phase more people get attracted towards shop and more traffic comes. To handle that traffic company schedules more employees during the discount period to provide good service to its customers.
Increase Sales
As the number of customers to company’s store increases the sales of product increases automatically, with discounted product sale of other product also increases. Discount get more people to store but the buyers will also look around at the other products also which is given by the company (Mali, 2013).
Free Up Room
Giving discounts on product helps company to sell all it product and free up the room for new products as item that are doesn’t come under the selling plan sits in the room for longer duration. By giving discount on them the chance of selling those products increases.
Reputation
Company improves its reputation by giving special discount to senior citizens of country or to the army people. It also gives discount to people who are going through difficult condition or those who are financially stable. By doing this it makes an effort to help needy people. Customers have impression in their mind that businesses are money hungry so any effort made to help people improves the reputation of company.
Meet Goals
Companies have their sales goals that may be weekly, monthly or yearly. If company is not able to meet this goal by giving discount company can achieve its goal.
Save money
Discount helps in saving money if discounts add the payment methods. Through Credit and debit card payment additional fees is charged which gives profit to the companies that clearly mean that by cash payment they face loss.
Suggested Price Model
The price of the complete model will be set up in the manner that it should attract the customers. The concept of smart classes is unique and has gained a lot of importance in the last 5 years. Thus the financial model will be on a higher side and will result into a high priced package.
The model can be presented in a branch wise, semester wise, subject wise module.
The complete package will be presented in different forms, like for example, complete year of any engineering will cost less if bought with another year and another semester. Highest rates will apply if the customers asks subject wise module and the least will be when the customer agrees to take a complete package for a complete year of engineering subjects (Weiser, 2001).
Different models like if the hardware components are already available with the customers, then special discounts will also be given to them.
Another way of increasing the sales would be offering them to pay in installments. The installments will vary with the number of installments.
Conclusion
The Smart Class software that is made by our company has revolutionized and brought a complete transformation in the traditional rote methods of learning. The company uses various strategies to increase sale of its product and satisfy its customers. It has to adopt various strategies to maintain its place in market and a give discount to its customers in such a way that company and customer both make a profit.
It even has to take care of its reputation and maintain a good image in front of its customers, so that their image should not affect the sale of their new launched product. Company should be very alert in making and applying any strategy as it directly affects its market. Price skimming has many advantage but company should act very smart while implementing price skimming strategy as it may also spoil their reputation and affect sale of other products (Angel & Woosley, 2007).
Discount offers given by company attract customers, increase their sale, and clear the stock that was occupying space since months. Company gives discount to increase sale of not only the discounted product but it also increase the other products too as the traffic increases during the same period. These strategies adopted by company helps in its growth and development.
References
Clegg, S., Hudson, A., & Steele, J. (2003). The emperor’s new clothes: Globalization and e-learning in higher education. British Journal of Sociology of Education, 24(1), 39-53.
Conole, G., & Oliver, M. (2008). A pedagogical framework for embedding C & IT into the curriculum. The Association for Learning Technology Journal, 6(2), 4-16.
D’Angelo, J. M., & Woosley, S. A. (2007). Technology in the classroom: Friend or Foe Education, 127 (4), 462-471.
M. Weiser (2001). The Computer for the Twenty-First Century. Scientific American, 265(1), 66-75
Mali, B. P. (2013). Effectiveness of smart class for teaching Sanskrit grammar. International Journal for Research in Education, 2(4), 36-38.
Oludipe, B. (2009). Influence of test anxiety on performance levels on numerical tasks of secondary school physics students. Online Journal of Academic Leadership, 7(4), 4-9.
