The Value Chain
... Before making any marketing decisions, analyze the buyers – segment the market. Consider how the market is changing. Evaluate your strengths and weaknesses, both in absolute terms and relative to your competitors. Given buyer characteristics, market segments, market trends, and your strengths and we ...
... Before making any marketing decisions, analyze the buyers – segment the market. Consider how the market is changing. Evaluate your strengths and weaknesses, both in absolute terms and relative to your competitors. Given buyer characteristics, market segments, market trends, and your strengths and we ...
Chapter 10
... 3. The firm is a single-price monopolist; it charges the same price for all units of output. B. Price will exceed marginal revenue because the monopolist must lower the price to sell the additional unit. The added revenue will be the price of the last unit less the sum of the price cuts which must b ...
... 3. The firm is a single-price monopolist; it charges the same price for all units of output. B. Price will exceed marginal revenue because the monopolist must lower the price to sell the additional unit. The added revenue will be the price of the last unit less the sum of the price cuts which must b ...
File
... potential buyers. Games consoles can be tried out in shops or road shows. Low Trial Prices: Businesses may choose to offer new products at a lower price. This strategy is known as penetration pricing. There is a variety of ways of doing this. A product might have a low price for the first month afte ...
... potential buyers. Games consoles can be tried out in shops or road shows. Low Trial Prices: Businesses may choose to offer new products at a lower price. This strategy is known as penetration pricing. There is a variety of ways of doing this. A product might have a low price for the first month afte ...
Link to SEM I Exercises for 2-6 thru 2-10-12 Grp #3
... an ideal, anytime snack food. Usage Some markets can be segmented into light, medium and heavy user groups Loyalty Loyal consumers - those who buy one brand all or most of the time - are valuable customers. Many companies try to segment their markets into those where loyal customers can be found and ...
... an ideal, anytime snack food. Usage Some markets can be segmented into light, medium and heavy user groups Loyalty Loyal consumers - those who buy one brand all or most of the time - are valuable customers. Many companies try to segment their markets into those where loyal customers can be found and ...
KotlerMM_ch08
... Market Segmentation Market segmentation is the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs ...
... Market Segmentation Market segmentation is the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs ...
Principles of Marketing
... The firm achieves a strong position because of its greater knowledge regarding a segment. It can market more efficiently and effectively. Niches are smaller and offer only one or few competitors, henceforth smaller companies can focus their resources more aptly. Once established in a niche, a compan ...
... The firm achieves a strong position because of its greater knowledge regarding a segment. It can market more efficiently and effectively. Niches are smaller and offer only one or few competitors, henceforth smaller companies can focus their resources more aptly. Once established in a niche, a compan ...
Lecture 16 - Iowa State University Department of Economics
... –Firms try to achieve some control on prices by differentiating products, but are limited by close substitutes –Emphasis on non-price competition ...
... –Firms try to achieve some control on prices by differentiating products, but are limited by close substitutes –Emphasis on non-price competition ...
Marketing - tcrthsbusiness
... how the products or services of the business can satisfy this demand. Marketing is the process that involves identifying consumer wants and needs, establishing how the business can satisfy those wants and needs, closing a sale, and building a relationship. Marketing and selling should not be confuse ...
... how the products or services of the business can satisfy this demand. Marketing is the process that involves identifying consumer wants and needs, establishing how the business can satisfy those wants and needs, closing a sale, and building a relationship. Marketing and selling should not be confuse ...
Business Level Strategy: Creating and Sustaining
... Source: Adapted and reprinted with the permission of The Free Press, a division of Simon & Schuster Inc. from Competitive Strategy: Techniques for Analyzing Industries and Competitors. Michael E Porter. Copyright © 1980, 1998 by The Free Press. All rights reserved. ...
... Source: Adapted and reprinted with the permission of The Free Press, a division of Simon & Schuster Inc. from Competitive Strategy: Techniques for Analyzing Industries and Competitors. Michael E Porter. Copyright © 1980, 1998 by The Free Press. All rights reserved. ...
BA460-2
... A cost leader does not try to be industry innovator The overriding goal isincreased efficiency & lower costs relative to rivals Will seek to minimize costs in marketing, R&D & production ...
... A cost leader does not try to be industry innovator The overriding goal isincreased efficiency & lower costs relative to rivals Will seek to minimize costs in marketing, R&D & production ...
Document
... • Retrenchment strategies - scale back numbers of line employees, idle equipment, close plants. ...
... • Retrenchment strategies - scale back numbers of line employees, idle equipment, close plants. ...
1.01 ppt
... Marketing’s benefit to society Societies benefit from Marketing through increased competition, lower prices, larger variety of goods/services, and mass communication with information about products/services. Fueled with more information, better choices are made utilizing our scarce resources with ...
... Marketing’s benefit to society Societies benefit from Marketing through increased competition, lower prices, larger variety of goods/services, and mass communication with information about products/services. Fueled with more information, better choices are made utilizing our scarce resources with ...
IB1 Ch 4.5 The Four P`s
... Cost-Based Pricing • Firms determine the costs of producing and supplying a product and then ADD money on top of this calculated costs to determine the selling price. • Cost-Plus Pricing ...
... Cost-Based Pricing • Firms determine the costs of producing and supplying a product and then ADD money on top of this calculated costs to determine the selling price. • Cost-Plus Pricing ...
Global Marketing and R&D
... Adapt their products – and adapt the balance of the product mix to appeal to market segments with differing needs across markets – Market segments that have materially different needs force companies to customize -- adapt -- their products McGraw-Hill/Irwin ...
... Adapt their products – and adapt the balance of the product mix to appeal to market segments with differing needs across markets – Market segments that have materially different needs force companies to customize -- adapt -- their products McGraw-Hill/Irwin ...
Integrated Business Modeling
... 3. Create a chart summarizing each firm’s product strategies, pricing strategies, distribution strategies, promotion strategies and any other strengths/weaknesses 4. Use this information to formulate your positioning strategy (this is how your product will be positioned in the mind of the consumer, ...
... 3. Create a chart summarizing each firm’s product strategies, pricing strategies, distribution strategies, promotion strategies and any other strengths/weaknesses 4. Use this information to formulate your positioning strategy (this is how your product will be positioned in the mind of the consumer, ...
Product market
... traditional product managers, who often officially “own” product marketing but ignore it. Product management is a big job and often product managers can be so focused on feature development they can’t put themselves into the shoes of the customer when it comes to communicating why someone should buy ...
... traditional product managers, who often officially “own” product marketing but ignore it. Product management is a big job and often product managers can be so focused on feature development they can’t put themselves into the shoes of the customer when it comes to communicating why someone should buy ...
Distribution
... Distributors have a similar role to wholesalers – that of taking products from producers and selling them on. They also usually have a much narrower product range. Distributors are often involved in providing after-sales service. ...
... Distributors have a similar role to wholesalers – that of taking products from producers and selling them on. They also usually have a much narrower product range. Distributors are often involved in providing after-sales service. ...
Production
... A cost leader does not try to be industry innovator The overriding goal isincreased efficiency & lower costs relative to rivals Will seek to minimize costs in marketing, R&D & production ...
... A cost leader does not try to be industry innovator The overriding goal isincreased efficiency & lower costs relative to rivals Will seek to minimize costs in marketing, R&D & production ...
Market Segmentation
... Mass Marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. Micro Marketing refers to the designing, creating, and manufacturing products, marketing strategies, and advertising campaigns for the benefit of ve ...
... Mass Marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. Micro Marketing refers to the designing, creating, and manufacturing products, marketing strategies, and advertising campaigns for the benefit of ve ...
Course Binder: Marketing
... Consumer market: all potential customers who will buy the product for personal use. Industrial market: all potential customers who will buy the product for business use. How do marketers find out who their customers are? The key to marketing and selling goods/services is to know who your custome ...
... Consumer market: all potential customers who will buy the product for personal use. Industrial market: all potential customers who will buy the product for business use. How do marketers find out who their customers are? The key to marketing and selling goods/services is to know who your custome ...
we will look at the macro and microenvironments, marketing mix
... Financial is useful in terms of credit facilities and any other banking needs. Government can affect them if there were strict laws with regard to importing or import tax increases. Internal groups include employees. They important in that if they project a negative image about GS it may affect it n ...
... Financial is useful in terms of credit facilities and any other banking needs. Government can affect them if there were strict laws with regard to importing or import tax increases. Internal groups include employees. They important in that if they project a negative image about GS it may affect it n ...
Chapter 6
... marketing can lead to privacy abuses, but that the benefits to both consumers and marketers far outweigh the risks. Where do you stand on this issue? Why? ...
... marketing can lead to privacy abuses, but that the benefits to both consumers and marketers far outweigh the risks. Where do you stand on this issue? Why? ...
Service parts pricing
Service Parts Pricing refers to the aspect of Service Lifecycle Management that deals with setting prices for service parts in the after-sales market. Like other streams of Pricing, Service Parts Pricing is a scientific pursuit aimed at aligning service part prices internally to be logical and consistent, and at the same time aligning them externally with the market. This is done with the overarching aim of extracting the maximum possible price from service parts and thus maximize the profit margins. Pricing analysts have to be cognizant of possible repercussions of pricing their parts too high or too low in the after-sales market; they constantly have to strive to get the prices just right towards achieving maximum margins and maximum possible volumes.The after-sales market consists of service part and after-sales service. These areas often account for a low share in total sales, but for a relatively high share in total profits. It is important to understand that the after-sales supply chain is very different from the manufacturing supply chain, and hence rules that apply to pricing manufacturing parts do not hold good for pricing service parts. Service Parts Pricing requires a different outlook and approach.Service networks deal with a considerably higher number of SKUs and a heterogeneous product portfolio, are more complex, have a sporadic nature of demand AND have minimal response times and strict SLAs. Companies have traditionally been content with outsourcing the after-sales side of their business and have encouraged third-party parts and service providers in the market. The result has been a bevy of these operators in the market with strict price competition and low margins.Increasingly, however, companies are realizing the importance of the after-sales market and its impact on customer retention and loyalty. Increasingly, also, companies have realized that they can extract higher profit margins from the after-sales services market due to the intangible nature of services. Companies are investing in their after-sales service networks to deliver high levels of customer service and in return command higher prices for their parts and services. Customers are being sold the concept of total cost of ownership (TCO) and are being made to realize that buying from OEMs comes packaged with better distribution channels, shorter response times, better knowledge on products, and ultimately higher product uptime.The challenge for companies is to provide reliable service levels in an environment of uncertainty. Unlike factories, businesses can’t produce services in advance of demand. They can manufacture them only when an unpredictable event, such as a product failure, triggers a need. The challenge for Service Parts Pricing is to put a value to this customer need. Parts that are critical, for example, can command higher prices. So can parts that only the OEM provides in the market. Parts that are readily available in the market cannot, and must not, be priced to high. Another problem with after-sales market is that demand cannot be stimulated with price discounts, customers do not stock up service parts just because they are on discount. On the up-side, the fact that most service parts are inelastic means pricing analysts can raise prices without the adverse effects that manufacturing or retail networks witness.These and other characteristics of the after-sales market give Service Parts Pricing a life of its own. Companies are realizing that they can use the lever of service part pricing to increase profitability and don't have to take prices as market determined. Understanding customer needs and expectations, along with the company's internal strengths and weaknesses, goes a long way in designing an effective service part pricing strategy.