• Study Resource
  • Explore Categories
    • Arts & Humanities
    • Business
    • Engineering & Technology
    • Foreign Language
    • History
    • Math
    • Science
    • Social Science

    Top subcategories

    • Advanced Math
    • Algebra
    • Basic Math
    • Calculus
    • Geometry
    • Linear Algebra
    • Pre-Algebra
    • Pre-Calculus
    • Statistics And Probability
    • Trigonometry
    • other →

    Top subcategories

    • Astronomy
    • Astrophysics
    • Biology
    • Chemistry
    • Earth Science
    • Environmental Science
    • Health Science
    • Physics
    • other →

    Top subcategories

    • Anthropology
    • Law
    • Political Science
    • Psychology
    • Sociology
    • other →

    Top subcategories

    • Accounting
    • Economics
    • Finance
    • Management
    • other →

    Top subcategories

    • Aerospace Engineering
    • Bioengineering
    • Chemical Engineering
    • Civil Engineering
    • Computer Science
    • Electrical Engineering
    • Industrial Engineering
    • Mechanical Engineering
    • Web Design
    • other →

    Top subcategories

    • Architecture
    • Communications
    • English
    • Gender Studies
    • Music
    • Performing Arts
    • Philosophy
    • Religious Studies
    • Writing
    • other →

    Top subcategories

    • Ancient History
    • European History
    • US History
    • World History
    • other →

    Top subcategories

    • Croatian
    • Czech
    • Finnish
    • Greek
    • Hindi
    • Japanese
    • Korean
    • Persian
    • Swedish
    • Turkish
    • other →
 
Profile Documents Logout
Upload
Marketing Mix Practices in the Industrial Market (PDF
Marketing Mix Practices in the Industrial Market (PDF

... However, innovation alone cannot provide the basis for a competitive advantage. Time required before competitors can introduce a me-too product has been reduced considerably (Butz Jr & Goodstein, 1996). Hence, companies need to focus on delivering superior value, the latter being defined as the rat ...
What is Marketing
What is Marketing

... From the list of marketing activities listed on pages 16-17, what would be three marketing activities that would benefit a not-for-profit organization? Explain. ...
Entrepreneurial Marketing: A Historical Exploration
Entrepreneurial Marketing: A Historical Exploration

marketing plan librería herrero 21
marketing plan librería herrero 21

... Regarding typology, it is a general bookstore 1 where only physical –due to the appearance of e-Books it is important to distinguish– second-hand books are offered in a wide variety, having a catalog of a large collection of books in all literary genres, including fiction, essays, poetry and drama, ...
Marketing Metrics: The Manager`s Guide to
Marketing Metrics: The Manager`s Guide to

... At Google, we have a saying we use quite frequently: “Data beats opinion.” This mantra inspires us to constantly think about how we can increase the ratio of fact to speculation. What do we actually know vs. what do we only think we know? The best approach we’ve found is to determine our key perform ...
Retail and Consumer Goods Survey
Retail and Consumer Goods Survey

... It’s a well-known business axiom that repeat customers drive current profitability while new customers drive current growth and future profitability. Yet, acquiring and retaining customers is harder than ever before. That’s because consumers are expecting personalization―experiences tailored to their ...
Full Article
Full Article

... Later product classification schemes also incorporated the convenience goods category. Thus, in early marketing usage, "convenience" denoted the time and effort consumers used in purchasing a product rather than a characteristic or attribute of a product. Focusing on resources such as time, opportun ...
Suggestions to Improve Marketing in Anhui Huidian Science & Technology Co. Ltd
Suggestions to Improve Marketing in Anhui Huidian Science & Technology Co. Ltd

... education. Wants are some directed need to special product that meets the need. For example, most Chinese young men want to have an apartment. But most of them can’t afford it because of high Chinese housing price. Demands are wants for specific products backed by an ability to pay. Therefore, most ...
Customer Acquisition at Online Auctions: Why More Bidders Can Decrease Profitability
Customer Acquisition at Online Auctions: Why More Bidders Can Decrease Profitability

... policy or how a stipulated advertising policy might affect customers’ return decisions. Another related problem in auction design is understanding endogenous auction participation. Menezes and Monteiro (2000) consider a problem in which agents decide whether or not to participate in an auction based ...
Marketing Strategies and Plans
Marketing Strategies and Plans

A Guide to Rapid Market Appraisal (RMA) for Agricultural
A Guide to Rapid Market Appraisal (RMA) for Agricultural

... market wants, farmers and their facilitators often expend time and energy in trying to find markets for what they have already produced. Lack of attention to markets all too often results in farmers being “stuck” with unwanted produce that they are forced to sell at very low prices because it is not ...
Marketing in a Changing World: Creating Customer Value and
Marketing in a Changing World: Creating Customer Value and

Chapter 20
Chapter 20

... 41. Environmentalists assert that the marketing system’s goal should be to maximize _____. a. consumer protection b. protection of the environment c. the quality of life d. efficient use of our resources e. the welcoming of diversity (Answer: c; p. 507; Moderate) 42. The challenge of developing an e ...
Preview Sample 2
Preview Sample 2

... 35. _____ is an important concept when we realize that losing a customer means losing more than a single sale. It means losing the entire stream of purchases that the customer would make over a lifetime of patronage. a. Heuristics b. Net profit c. Customer lifetime value d. Relationship marketing e. ...
Raisin Marketing Practices in Western Maharashtra, India
Raisin Marketing Practices in Western Maharashtra, India

... 1. Introduction Marketing of agriculture is the most important activity of a farmer. This is a particularly true in case of small farmers who have small surpluses for marketing. The average farmers is so poor and indebted that they was no capacity to wait for better prices, they forced to sell their ...
Chapter 1 - Test Bank wizard
Chapter 1 - Test Bank wizard

... Marketing managers must decide which customers they want to target and on which level, timing, and nature of their demand.  Assignments, Resources Use Discussion Question 1-3 here Use Critical Thinking Exercise 1-6 here Use Think-Pair-Share 3 here  Troubleshooting Tip The concept of not serving al ...
Importance of Customer Satisfaction
Importance of Customer Satisfaction

Chapter 1 - Test Bank
Chapter 1 - Test Bank

... Marketing managers must decide which customers they want to target and on which level, timing, and nature of their demand.  Assignments, Resources Use Discussion Question 1-3 here Use Critical Thinking Exercise 1-6 here Use Think-Pair-Share 3 here  Troubleshooting Tip The concept of not serving al ...
Magic Quadrant for Managed Print Services Worldwide
Magic Quadrant for Managed Print Services Worldwide

... approach and engage new customers. Although customer awareness of MPS has increased, buyers tell us it is the salespeople, rather than the customers, who most often propose MPS instead of just purchasing or leasing equipment. Varied and Diluted Approaches The boundaries between MPS and more-limited ...
Global Marketing Management
Global Marketing Management

entrepreneurship - Fr.Agnel College Library
entrepreneurship - Fr.Agnel College Library

...  It refers to what, where, when, how much and what price and whom to sell or reduce. Right decision at a right time is required. Time and situation will not wait for anybody. He has to enter a particular speed which suits him as the best from the point of prospects and profit. You should have a fle ...
Collection-of-cost-data-and-reduction-of-business
Collection-of-cost-data-and-reduction-of-business

... understand the meaning of the management accounting. The Association of Chartered Certified Accountants (ACCA) defined management Accounting as the “ Application of accounting and statistical techniques to the specific purpose of producing and interpreting information designed to assist the manageme ...
customer success and marketing alignment
customer success and marketing alignment

Industrial Marketing - Department of Higher Education
Industrial Marketing - Department of Higher Education

... when’s of their consumers needs and wants and their demands. They figure out all sorts of things about the customer’s moves, which the industrial marketers satisfy by giving the support to the organization. This gives rise to many such other questions, like: • Do we know that how many men put their ...
Learner Guide Apply Marketing Principles in Agriculture
Learner Guide Apply Marketing Principles in Agriculture

< 1 ... 12 13 14 15 16 17 18 19 20 ... 202 >

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.
  • studyres.com © 2026
  • DMCA
  • Privacy
  • Terms
  • Report