ECN 112 Chapter 17 Lecture Notes
... Capture theory is the theory that regulation helps producers to maximize economic profit. It assumes that the cost of regulation is high, and as a result, regulation will increase the surplus of small, easily identifiable groups with low organization costs. D. Natural Monopoly 1. A natural monopoly ...
... Capture theory is the theory that regulation helps producers to maximize economic profit. It assumes that the cost of regulation is high, and as a result, regulation will increase the surplus of small, easily identifiable groups with low organization costs. D. Natural Monopoly 1. A natural monopoly ...
Cost-plus pricing
... A price taker firm facing long-run product-mix decisions • In the long-term a firm can adjust the supply of resources that are committed to it – Therefore the sales revenue from a product or service should be sufficient to cover all of the resources that are committed to it. • Periodic profitabilit ...
... A price taker firm facing long-run product-mix decisions • In the long-term a firm can adjust the supply of resources that are committed to it – Therefore the sales revenue from a product or service should be sufficient to cover all of the resources that are committed to it. • Periodic profitabilit ...
Chapter 14
... • To promote both new and existing products effectively to consumers. • Point-of-purchase (POP) adver tising Displays or demonstrations that promote products when and where consumers buy them, such as in retail stores. • Promote goods and services at trade shows. ...
... • To promote both new and existing products effectively to consumers. • Point-of-purchase (POP) adver tising Displays or demonstrations that promote products when and where consumers buy them, such as in retail stores. • Promote goods and services at trade shows. ...
Pricing-strategies1
... of enticing people to buy The aim is to gain an early customer base Once the product has been launched and built up a customer base the firm may raise the price Likely to be used with a price elastic product ...
... of enticing people to buy The aim is to gain an early customer base Once the product has been launched and built up a customer base the firm may raise the price Likely to be used with a price elastic product ...
Chapter Notes - Michael Kistler
... 3.) Implementing the Marketing Concept a. Identify the market i. Market – a description of a unique group of prospective customers a business wants to serve and their location. ii. Target market – a clearly defined segment of the market to which a business wants to appeal. b. Develop a Marketing Mi ...
... 3.) Implementing the Marketing Concept a. Identify the market i. Market – a description of a unique group of prospective customers a business wants to serve and their location. ii. Target market – a clearly defined segment of the market to which a business wants to appeal. b. Develop a Marketing Mi ...
SUPPLY In the world of business supply means the amount of a
... In the world of business supply means the amount of a commodity or service that producers are willing to sell in the market under various conditions. Economists are concerned with the market as a whole. They want to know how much of a certain economic product sellers will supply at each and every po ...
... In the world of business supply means the amount of a commodity or service that producers are willing to sell in the market under various conditions. Economists are concerned with the market as a whole. They want to know how much of a certain economic product sellers will supply at each and every po ...
Business Environment Economic Systems
... ◦ This can mean roads or hospitals, i.e. The amount of hospitals not built in terms of hospitals per mile ...
... ◦ This can mean roads or hospitals, i.e. The amount of hospitals not built in terms of hospitals per mile ...
Chapter 1 – Marketing is All Around Us Marketing is a process P P P
... 7 Functions of Marketing ...
... 7 Functions of Marketing ...
Chapter 1 section 3
... Example: For Sony, the customers are the retail stores and the consumers are the actual people who buy the product from the retailer and use it. Example 2: A parent buys a kids cereal and is the customer but the consumer is the child the parent is buying the cereal for. Sometimes you are both ...
... Example: For Sony, the customers are the retail stores and the consumers are the actual people who buy the product from the retailer and use it. Example 2: A parent buys a kids cereal and is the customer but the consumer is the child the parent is buying the cereal for. Sometimes you are both ...
The Marketing Mix - EMS Secondary Department
... • After-sale service – this is when companies still have contact with customers even after they have bought the product – For example, if you buy a car and it goes wrong, an example of good after-sales service would be that company providing a courtesy car ...
... • After-sale service – this is when companies still have contact with customers even after they have bought the product – For example, if you buy a car and it goes wrong, an example of good after-sales service would be that company providing a courtesy car ...
Marketing Foundations
... customers’ needs and wants in order to make a profit • Businesses must accomplish 3 activities: o Identify needs of customers o Develop and market products or services o Operate a business profitably ...
... customers’ needs and wants in order to make a profit • Businesses must accomplish 3 activities: o Identify needs of customers o Develop and market products or services o Operate a business profitably ...
Price
... sum of values exchanged for the benefits of having or using the product or service Also known as rent, tuition, fee, fare, rate, • Pricing best practices: interest – Develop a 1% pricing mindset Historically, most pricing – Consistently deliver more value was dynamic, arrived at through negotiation ...
... sum of values exchanged for the benefits of having or using the product or service Also known as rent, tuition, fee, fare, rate, • Pricing best practices: interest – Develop a 1% pricing mindset Historically, most pricing – Consistently deliver more value was dynamic, arrived at through negotiation ...
Marketing Management
... – Continuous, quality-based process – Ability to create effective awareness ...
... – Continuous, quality-based process – Ability to create effective awareness ...
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.