Marketing Principles
... Two different types of costs: Fixed costs, are the same (in the short term) no matter how many units you sell….if your fixed costs account for a high proportion of your total costs…you’ll find it difficult to cut your costs to match a declining income. In declining income case, you may offer lower p ...
... Two different types of costs: Fixed costs, are the same (in the short term) no matter how many units you sell….if your fixed costs account for a high proportion of your total costs…you’ll find it difficult to cut your costs to match a declining income. In declining income case, you may offer lower p ...
Profits Hiding in Plain Sight
... Psychology, and if I were to begin my career today that is exactly what I would do. At the very least, I would like to remind that you should be reviewing your pricing monthly if not seasonally. Strongly consider looking up ‘pricing’ on internet, reading books and articles, attending workshops. The ...
... Psychology, and if I were to begin my career today that is exactly what I would do. At the very least, I would like to remind that you should be reviewing your pricing monthly if not seasonally. Strongly consider looking up ‘pricing’ on internet, reading books and articles, attending workshops. The ...
MANAGING PRODUCTS AND BRANDS PRODUCT LIFE CYCLE
... Stimulate primary demand ◊ for product class Create selective demand ◊ preference for a specific brand ◊ educating the consumers Pricing: skimming vs penetration Place: limited ◊ convince channel to carry ...
... Stimulate primary demand ◊ for product class Create selective demand ◊ preference for a specific brand ◊ educating the consumers Pricing: skimming vs penetration Place: limited ◊ convince channel to carry ...
1133273874_334264
... Pricing Products Too Low 1. Managers attempt to buy market share through aggressive pricing. 2. Managers tend to make pricing decisions based on current costs, current competitor prices, and short-term share gains rather than on long-term profitability. ...
... Pricing Products Too Low 1. Managers attempt to buy market share through aggressive pricing. 2. Managers tend to make pricing decisions based on current costs, current competitor prices, and short-term share gains rather than on long-term profitability. ...
The Role of Government in the Economy
... market may not be able to provide a number of goods and services that are important to society – such as national defense, policy protection or water supply. The benefits from these services are spread over such a large segment of the population that it is difficult to charge a fee for their use b ...
... market may not be able to provide a number of goods and services that are important to society – such as national defense, policy protection or water supply. The benefits from these services are spread over such a large segment of the population that it is difficult to charge a fee for their use b ...
Marketing Mix: Elements Explored
... similar products of different sizes and varieties? How much is the customer willing to pay? Consider a company that markets cell phones. For $300, it can sell a phone with a lot of features. But some people can’t or won’t pay $300 for a phone. That means lost sales for the cell phone maker. There ar ...
... similar products of different sizes and varieties? How much is the customer willing to pay? Consider a company that markets cell phones. For $300, it can sell a phone with a lot of features. But some people can’t or won’t pay $300 for a phone. That means lost sales for the cell phone maker. There ar ...
Chapter 2
... Test Your Knowledge An ad in a publication aimed at veterinarians explains why they should recommend Eukanuba cat food to the owners of the cats they treat. This is an example of: A) Consumer advertising B) A promotional pull strategy C) A harvesting strategy D) A consumer promotion E) A promotiona ...
... Test Your Knowledge An ad in a publication aimed at veterinarians explains why they should recommend Eukanuba cat food to the owners of the cats they treat. This is an example of: A) Consumer advertising B) A promotional pull strategy C) A harvesting strategy D) A consumer promotion E) A promotiona ...
Marketing Mix
... Quality Improvements made to attract more customers. Design Consumers will often buy one product over another because of the way it looks. Features such as the materials, scent, size, or the taste, Service providers outline or detail what they do best. ...
... Quality Improvements made to attract more customers. Design Consumers will often buy one product over another because of the way it looks. Features such as the materials, scent, size, or the taste, Service providers outline or detail what they do best. ...
1. Marketing is an organizational function and a set of processes for
... 1. Marketing is an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. 2. Marketing is about satisfying customer needs and wants. 3 ...
... 1. Marketing is an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. 2. Marketing is about satisfying customer needs and wants. 3 ...
Ind. 3.02 * Select a target market appropriate for venture/product to
... Producing one product is cost effective for businesses Disadvantages The diversity of the audience Since customers are so ...
... Producing one product is cost effective for businesses Disadvantages The diversity of the audience Since customers are so ...
Value Proposition
... Create satisfied, loyal customers Capture customer lifetime value Increased share of market and share of customer ...
... Create satisfied, loyal customers Capture customer lifetime value Increased share of market and share of customer ...
Marketing-Notes
... Place includes all of the methods used to get a product or service into the hands of the customer. In the case of a retail operation, place simply refers to the site of the retail outlet or store. For a manufacturer, however, place refers to all the modes of transportation used to deliver manufactur ...
... Place includes all of the methods used to get a product or service into the hands of the customer. In the case of a retail operation, place simply refers to the site of the retail outlet or store. For a manufacturer, however, place refers to all the modes of transportation used to deliver manufactur ...
Ind. 3.02 * Select a target market appropriate for venture/product to
... Producing one product is cost effective for businesses Disadvantages The diversity of the audience Since customers are so ...
... Producing one product is cost effective for businesses Disadvantages The diversity of the audience Since customers are so ...
![[Pricing Electronic Services] Lecture 1](http://s1.studyres.com/store/data/008358052_1-26d5d79b0371f61e177ed3b8219b5b57-300x300.png)
[Pricing Electronic Services] Lecture 1
... maximization in mind. They might try to gain larger market share cooperate with competitors focus on improving brand recognition over short term profits set low prices on new products to penetrate the market before competitors use discounts, rebates, and price bundling techniques ...
... maximization in mind. They might try to gain larger market share cooperate with competitors focus on improving brand recognition over short term profits set low prices on new products to penetrate the market before competitors use discounts, rebates, and price bundling techniques ...
Marketing Is All Around Us
... Process of gathering information, storing it, and analyzing it Companies continually collect said info through market research studies The better your information, the better decisions you can make! ...
... Process of gathering information, storing it, and analyzing it Companies continually collect said info through market research studies The better your information, the better decisions you can make! ...
SpotNomics
... The Malta Competition and Consumer Affairs Authority (MCCAA) was established on 23 May 2011 with the coming into force of Chapter 510. The law provides for the establishment of an Authority to promote, maintain and encourage competition, to safeguard the interests of consumers and enhance their welf ...
... The Malta Competition and Consumer Affairs Authority (MCCAA) was established on 23 May 2011 with the coming into force of Chapter 510. The law provides for the establishment of an Authority to promote, maintain and encourage competition, to safeguard the interests of consumers and enhance their welf ...
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.