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... Choosing A Distribution Strategy The choice of distribution strategy determines which channel the firm will use to reach potential consumers The optimal strategy depends on the relative costs and benefits of each alternative Since each intermediary in a channel adds its own markup to the product ...
... Choosing A Distribution Strategy The choice of distribution strategy determines which channel the firm will use to reach potential consumers The optimal strategy depends on the relative costs and benefits of each alternative Since each intermediary in a channel adds its own markup to the product ...
the free enterprise system
... produce and sell expensive sports cars in a poor country. Although people in that country might want those cars, most of them would not have the money to buy them. Moreover, the few people who could afford such cars might prefer to spend their money on something else. Producers, therefore, have to ...
... produce and sell expensive sports cars in a poor country. Although people in that country might want those cars, most of them would not have the money to buy them. Moreover, the few people who could afford such cars might prefer to spend their money on something else. Producers, therefore, have to ...
CHAPTER
... substitutes for each other. The presence of a specific and consistent pricing strategy, the use of controlled power, and the recognition of the rights of followers to their respective market positions will sustain a leadership position. 6. What is the competitive bidding process and what types of or ...
... substitutes for each other. The presence of a specific and consistent pricing strategy, the use of controlled power, and the recognition of the rights of followers to their respective market positions will sustain a leadership position. 6. What is the competitive bidding process and what types of or ...
New Product Development
... • We Want Our Users/Consumers to Understand What Our Product Is and What It Stands For. • Product Ladder Exercise for Colas ...
... • We Want Our Users/Consumers to Understand What Our Product Is and What It Stands For. • Product Ladder Exercise for Colas ...
Objective 3.03 Employ Pricing Strategies to Determine Prices
... profit. The direct effect relates to whether the price covers the cost of producing the product. Price affects profit indirectly by influencing how many units sell. The number of products sold also influences profit through economies of scale -- the relative benefit of selling more units. The primar ...
... profit. The direct effect relates to whether the price covers the cost of producing the product. Price affects profit indirectly by influencing how many units sell. The number of products sold also influences profit through economies of scale -- the relative benefit of selling more units. The primar ...
Private Safaris presentation - International Union for
... How can we serve this customers best? (value proposition) How will you organize differentiate and position yourself in the market place to satisfy the need. Why should one buy your product and not the Competitors? ...
... How can we serve this customers best? (value proposition) How will you organize differentiate and position yourself in the market place to satisfy the need. Why should one buy your product and not the Competitors? ...
幻灯片 1
... Mathematics has many applications in business and it’s really functional. We can maximize our profits and improve our sales plan if we make full use of math. Then I and my parter will talk about two simple examples. ...
... Mathematics has many applications in business and it’s really functional. We can maximize our profits and improve our sales plan if we make full use of math. Then I and my parter will talk about two simple examples. ...
Marketing Is All Around Us
... Getting the___________ that is necessary to pay for setting up and running a business Often in the form of a bank loan and/or forming a corporation and selling shares (or stock) of the business ...
... Getting the___________ that is necessary to pay for setting up and running a business Often in the form of a bank loan and/or forming a corporation and selling shares (or stock) of the business ...
Market Research - Business Educator
... 1. The product is the most important decision a business must make. Once this has been decided, the firm must continue to make decisions about the product. They could introduce different ______________ of the same product – this is called ____________ ______________________. The different versions a ...
... 1. The product is the most important decision a business must make. Once this has been decided, the firm must continue to make decisions about the product. They could introduce different ______________ of the same product – this is called ____________ ______________________. The different versions a ...
Markets and Prices
... ways depending on the nature of the market. In a socialist or closed economy government intervenes and regulates prices in the interest of the people and economy. In a capitalist economy the market forces are considered to operate freely and prices for the commodities are determined by the free in ...
... ways depending on the nature of the market. In a socialist or closed economy government intervenes and regulates prices in the interest of the people and economy. In a capitalist economy the market forces are considered to operate freely and prices for the commodities are determined by the free in ...
Planning Product Marketing
... 5. Promotion: How will your company remind, persuade, and inform consumers about its products? ...
... 5. Promotion: How will your company remind, persuade, and inform consumers about its products? ...
MARKETING SUMMARY Chapter 11 Price The Product
... Ex: many cellular phone service providers offer customers a set number of minutes for a monthly fee plus a per-minute rate for extra usage. • Payment pricing makes the consumer think the price is “do-able” by breaking up the total price into smaller amounts payable over time. Ex: The monthly lease a ...
... Ex: many cellular phone service providers offer customers a set number of minutes for a monthly fee plus a per-minute rate for extra usage. • Payment pricing makes the consumer think the price is “do-able” by breaking up the total price into smaller amounts payable over time. Ex: The monthly lease a ...
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.