Factors that Affect Pricing Strategies for International
... and to gain market share, and then the price is increased after the market share has been achieved. To penetrate the market and gain market share, businesses set a low price in comparison to other competitors. Note that also low price is sometimes perceived as indication of low quality product. It m ...
... and to gain market share, and then the price is increased after the market share has been achieved. To penetrate the market and gain market share, businesses set a low price in comparison to other competitors. Note that also low price is sometimes perceived as indication of low quality product. It m ...
5. Unit 4- Market structures
... (4) Taking ownership of monopolies in key industries- e.g. electricity, water, post service. Governments also protect consumers from being sold poor quality or even harmful goods through consumer protection laws. These protect consumers from exploitation and harmful business activities, e.g. it is a ...
... (4) Taking ownership of monopolies in key industries- e.g. electricity, water, post service. Governments also protect consumers from being sold poor quality or even harmful goods through consumer protection laws. These protect consumers from exploitation and harmful business activities, e.g. it is a ...
Chapter 3 – Elasticity of Demand
... the product’s cost represents a large portion of the consumer’s income – housing *Elastic goods tend to have flat or almost horizontal demand curves. Inelastic Demand – change in price causes little impact in the quantity demanded. Goods or services tend to be inelastic if: the product is a nece ...
... the product’s cost represents a large portion of the consumer’s income – housing *Elastic goods tend to have flat or almost horizontal demand curves. Inelastic Demand – change in price causes little impact in the quantity demanded. Goods or services tend to be inelastic if: the product is a nece ...
The Role of Prices - White Plains Public Schools
... as a green light because high prices signify greater profits. ...
... as a green light because high prices signify greater profits. ...
Marking Mix Defined
... changing needs of the target customer; pricing which is used to increase or slow down the volume of sales according to market conditions; promotion which is used to increase the numbers of the people in the target market who are aware of the product and directed to buy the product; the place which d ...
... changing needs of the target customer; pricing which is used to increase or slow down the volume of sales according to market conditions; promotion which is used to increase the numbers of the people in the target market who are aware of the product and directed to buy the product; the place which d ...
MARKETING CONCEPTS
... 2. to make a profit B. Businesses used to focus primarily on sales – known as the “Sales Concept” 1. For example, Henry Ford's first autos were all the same style and were all black -how many people would that satisfy now? 2. customer preferences were not taken into account 3. little or no $$ was sp ...
... 2. to make a profit B. Businesses used to focus primarily on sales – known as the “Sales Concept” 1. For example, Henry Ford's first autos were all the same style and were all black -how many people would that satisfy now? 2. customer preferences were not taken into account 3. little or no $$ was sp ...
Marketing Chapter 14 Determining The Price Professor Myles
... Question The first handheld calculators were priced at several hundred dollars so that its manufacturer could recoup research and development costs. Even though the first calculators only added, subtracted, multiplied, divided, and did square roots, they were so superior to other methods that custom ...
... Question The first handheld calculators were priced at several hundred dollars so that its manufacturer could recoup research and development costs. Even though the first calculators only added, subtracted, multiplied, divided, and did square roots, they were so superior to other methods that custom ...
Mandatory Price Reporting
... concentrated, the markets from which prices are reported may become too “thin” to be meaningful. As such, the idea is to force large participants to report all transaction prices, not just open negotiated transactions. Of course in that case, the benefits of seeing such reported prices would be subj ...
... concentrated, the markets from which prices are reported may become too “thin” to be meaningful. As such, the idea is to force large participants to report all transaction prices, not just open negotiated transactions. Of course in that case, the benefits of seeing such reported prices would be subj ...
Phase I: Preliminary analysis and screening
... The opportunities for international marketers of consumer goods and services today have never been greater ...
... The opportunities for international marketers of consumer goods and services today have never been greater ...
Marketing Functions Defined
... 3. Marketing information management (Market Research): Gathering information (such as customer buying habits, prices customers are willing to pay for products, or test marketing potential new products), analyzing information, and utilizing information for use in making marketing decisions. For examp ...
... 3. Marketing information management (Market Research): Gathering information (such as customer buying habits, prices customers are willing to pay for products, or test marketing potential new products), analyzing information, and utilizing information for use in making marketing decisions. For examp ...
Chapter 1: A Business Marketing Perspective
... Business Marketing Management • B2B vs. B2C – Do firms have to be one or the other? – Which is larger? – What’s the difference? ...
... Business Marketing Management • B2B vs. B2C – Do firms have to be one or the other? – Which is larger? – What’s the difference? ...
3c. The Marketing Plan
... Every business has a different range of customers that they market their product/service towards Each individual is different.....but many are similar It helps to find a segment of the population that would use your product/service The purchase of the product/service will fulfill some sort of want ...
... Every business has a different range of customers that they market their product/service towards Each individual is different.....but many are similar It helps to find a segment of the population that would use your product/service The purchase of the product/service will fulfill some sort of want ...
Monopoly Behavior Price discrimination: first, second and
... In practice monopolist adjusts quality rather than quantity of the good. Idea: reduce the quality offered to the low-end of its market, to prevent high-end customers from switching end get more of their surplus. E.g.: “unrestricted airfare” for business travel and “restricted airfare” for non-busine ...
... In practice monopolist adjusts quality rather than quantity of the good. Idea: reduce the quality offered to the low-end of its market, to prevent high-end customers from switching end get more of their surplus. E.g.: “unrestricted airfare” for business travel and “restricted airfare” for non-busine ...
The Law of Demand
... ►Merger – when one company joins with another ►Government uses research to see whether the merger will help or hurt consumers ...
... ►Merger – when one company joins with another ►Government uses research to see whether the merger will help or hurt consumers ...
10Topic ten price
... and also delivers a fair rate of return for its effort and risk. • Costs may be an important element in the pricing strategy. • Lower costs may mean lower prices, greater sales and profits. ...
... and also delivers a fair rate of return for its effort and risk. • Costs may be an important element in the pricing strategy. • Lower costs may mean lower prices, greater sales and profits. ...
Pricing Strategies www.AssignmentPoint.com A business can use a
... - This occurs when firms segment the market into high demand and low demand groups. Firm need to ensure they are aware of several factors of their business before proceeding with the strategy of price discrimination. Firms must have control over the changes they make regarding the price of their pro ...
... - This occurs when firms segment the market into high demand and low demand groups. Firm need to ensure they are aware of several factors of their business before proceeding with the strategy of price discrimination. Firms must have control over the changes they make regarding the price of their pro ...
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.