• 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
10. Pricing
10. Pricing

... – How does our market offering compare to the competition in terms of customer value? – How strong are current competitors and what is their pricing strategy? – How does competition influence price sensitivity?  Other ...
the marketing department
the marketing department

Marketing, Chapter 2 - Cole
Marketing, Chapter 2 - Cole

... •You want to create Value: the personal satisfaction gained from the use of a good/service. Consumers compare the price they pay for a product with all the benefits that come with it. •Ranges from support services offered to how customers are treated. •Value is NOT defined by a business; its by the ...
Marketing Lessons - Oman College of Management & Technology
Marketing Lessons - Oman College of Management & Technology

... Considered to be core of marketing It is the set of tools that the firm uses to pursue its marketing objectives in the target market Decisions must be made for both the distribution channels and the final consumers ...
Parts of a Business Plan
Parts of a Business Plan

... A mini-business plan in one or two pages  Highlights the most important points of your business plan  It is NOT an introduction to the plan  It must grab your reader, and entice him/her to read further ...
DEVIN POINDEXTER 559-367-7313 dpoindex@asu.edu
DEVIN POINDEXTER 559-367-7313 [email protected]

Marketing Different Classes of Consumer Goods and Services
Marketing Different Classes of Consumer Goods and Services

... SALES and PROFITS DURING the PRODUCT LIFE CYCLE ...
MN416 - BDSS Ch10
MN416 - BDSS Ch10

... competition. To the extent that firms can pass cost increases along to consumers in the form of higher prices, non-price competition is less likely to erode profits than is price competition. What follows consider the factors which heat up “price” competition: i. There are many sellers in the market ...
4.04 Understand activities and careers in marketing.
4.04 Understand activities and careers in marketing.

... 4.04 Understand activities and careers in marketing. ...
Marketing Foundations - Rowan County Schools
Marketing Foundations - Rowan County Schools

... or investing; deciding if customers can pay with credit or other payment options • Financial institutions and banks are in the business of financing as they provide capital to businesses, consumers and investors to help them achieve their goals. • Getting investors • Generating revenue ...
Chapter 9 MC Question Study Guide
Chapter 9 MC Question Study Guide

... 1. The amount of sales for a business is $390,700 and the total market size is $1,050,000. The market share for the business is (a) 18, (b) 37, (c) 26, (d) 27. 2. A written marketing plan should (a) help you determine your networking objectives, (b) identify your specific strategies for price, produ ...
Chapter ______
Chapter ______

... 200%, to meet its own goals. A company that has its own marketing subsidiary via FDI or sells directly to end-users can control pricing better. Foreign market considerations. Local conditions such as climate, infrastructure, less concentration of customers, and local government regulation can lead t ...
MT 219 Marketing Seminar
MT 219 Marketing Seminar

... • Growth of non-store retailing as consumers buy off the internet and through direct marketing • Retail convergence is taking place where retailers sell the same products to the same consumers across all competition. This makes for keen competition. • Megaretailers are increasingly becoming prevalen ...
Spare Parts Marketing Senior Specialist Commercial Vehicles
Spare Parts Marketing Senior Specialist Commercial Vehicles

chapter22
chapter22

download
download

... Illustrative buyer characteristics in consumer markets: – Family size, age, income, geographical location, sex, and occupation Illustrative factors in organizational markets:  Type of industry  Company size  Location  Type of products ...
Midterm Exam - C.T. Bauer College of Business
Midterm Exam - C.T. Bauer College of Business

... needs to help people see that they need a bike, a second bike, or a new bike – however that would be done. It could NOT be done by designing a “better” bike – retailers don’t do that, right? You got one point added to the 5 for each correct answer, or 5 if you got them all correct. 34. Explain “deri ...
Review of Quiz 2
Review of Quiz 2

... • a). It uses a break-even chart that shows the total cost and total revenue at different levels of sales volume. • b). Although break-even analysis and target profit pricing can help the company to determine minimum prices needed to cover expected costs and profits, they do not take the price-deman ...
Quiz Review 2 - Brand Luxury Index
Quiz Review 2 - Brand Luxury Index

... • a). It uses a break-even chart that shows the total cost and total revenue at different levels of sales volume. • b). Although break-even analysis and target profit pricing can help the company to determine minimum prices needed to cover expected costs and profits, they do not take the price-deman ...
4.5 * The Four P*s - Mrs. Dill`s Weebly
4.5 * The Four P*s - Mrs. Dill`s Weebly

... Paid form of communication – uses independent mass media to promote a product or business Advertising – central global role – categories of advertising Informative Advertising – providing information on features, price or other specifications Persuasive Adverting – convincing customers to buy on ...
THE SEVEN MARKETING FUNCTIONS DEFINED
THE SEVEN MARKETING FUNCTIONS DEFINED

price sensitivity
price sensitivity

أنموذج ( أ ) الخاص برسائل الماجستير و اطاريح الدكتوراة ( اخر شهادة
أنموذج ( أ ) الخاص برسائل الماجستير و اطاريح الدكتوراة ( اخر شهادة

... direct the significant managerial decisions such as pricing decisions. The increase in marketing costs have increased their importance, and this requires to assign them to products in making pricing decisions, and not only assign production costs; as the traditional systems information have become m ...
Marketing and society : social responsibility and marketing ethics
Marketing and society : social responsibility and marketing ethics

... the requirement of low , to take into consideration in its decision making the social consequences of its decision and action as well as profit ...
Developing Effective Commercialization Strategies
Developing Effective Commercialization Strategies

< 1 ... 175 176 177 178 179 180 181 182 183 ... 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