Griffin_16
... tangible factors that the consumer can see or touch (the physical product and its packaging) and numerous intangible factors such as image, installation, warranties, and credit terms. ...
... tangible factors that the consumer can see or touch (the physical product and its packaging) and numerous intangible factors such as image, installation, warranties, and credit terms. ...
International Marketing
... options to consider the cost factor (2) • Marginal-cost pricing – represents a more polycentric approach – is based upon an assumption that some of the product costs, such as administration costs and advertising at home are irrelevant overseas • research and development costs, engineering costs hav ...
... options to consider the cost factor (2) • Marginal-cost pricing – represents a more polycentric approach – is based upon an assumption that some of the product costs, such as administration costs and advertising at home are irrelevant overseas • research and development costs, engineering costs hav ...
AQA ECON3 – June 2013 – Q7 – Model Answer
... of whom have any power to control prices within the market, whereas a monopoly sees one large firm dominating the market, and they have the ability to restrict supply to the market in order to raise prices. In a perfectly competitive market, because it is assumed that both consumers and producers ha ...
... of whom have any power to control prices within the market, whereas a monopoly sees one large firm dominating the market, and they have the ability to restrict supply to the market in order to raise prices. In a perfectly competitive market, because it is assumed that both consumers and producers ha ...
Things I should have learned in marketing
... Distribution and logistics are part of this element of the marketing mix ...
... Distribution and logistics are part of this element of the marketing mix ...
Chapter 13 Pricing Strategies
... Leader pricing is when firms temporarily cut prices on a few items to attract customers. Loss leader is if the item (leader) is priced below the store’s cost. High-low pricing is alternating between regular and “sale” prices on the most visible products offered by a retail firm. Resale price mainten ...
... Leader pricing is when firms temporarily cut prices on a few items to attract customers. Loss leader is if the item (leader) is priced below the store’s cost. High-low pricing is alternating between regular and “sale” prices on the most visible products offered by a retail firm. Resale price mainten ...
business strategy and pricing
... of competition: • Perfect competition. This form of market consists of many small suppliers and customers none of which can influence the market. There is free entry and exit from the market and all supply identical products. Here, suppliers must charge the market price. They cannot charge more beca ...
... of competition: • Perfect competition. This form of market consists of many small suppliers and customers none of which can influence the market. There is free entry and exit from the market and all supply identical products. Here, suppliers must charge the market price. They cannot charge more beca ...
Basic Marketing Concepts
... Customers buy a product. Consumers use a product. How might this confuse marketers? ...
... Customers buy a product. Consumers use a product. How might this confuse marketers? ...
Chapter 14: Promotion and Pricing Strategies.
... • Setting an intentionally high price relative to the prices of competing products. • Helps marketers set a price that distinguishes a firm’s high-end product from those of competitors. Penetration Pricing • Setting a low price as a major marketing weapon. • Often used with new products. Everyday Lo ...
... • Setting an intentionally high price relative to the prices of competing products. • Helps marketers set a price that distinguishes a firm’s high-end product from those of competitors. Penetration Pricing • Setting a low price as a major marketing weapon. • Often used with new products. Everyday Lo ...
PRICING ADVISOR - Professional Pricing Society
... should be associated with clear market statements of their purpose and clear turning points where prices will resume to a more healthy position in order to avoid tipping off an unnecessary and industry destructive price war. (Using price promotions to “maintain” volumes is likely to be a less than f ...
... should be associated with clear market statements of their purpose and clear turning points where prices will resume to a more healthy position in order to avoid tipping off an unnecessary and industry destructive price war. (Using price promotions to “maintain” volumes is likely to be a less than f ...
Segmented Pricing
... A segmented pricing strategy is a natural extension of a company's market segmentation st rategy. Segmentation can be an effective response to variations in segment price sensitivity and a useful tool for differentiation from competitors. In industries with high fixed costs, s uch as cell phone carr ...
... A segmented pricing strategy is a natural extension of a company's market segmentation st rategy. Segmentation can be an effective response to variations in segment price sensitivity and a useful tool for differentiation from competitors. In industries with high fixed costs, s uch as cell phone carr ...
Monopoly -Price Discrimination
... • First degree (Perfect Price Discrimination) – Extract almost all of the Consumer Surplus » Able to get a different price for each unit sold » Moves consumer along the Demand Curve ...
... • First degree (Perfect Price Discrimination) – Extract almost all of the Consumer Surplus » Able to get a different price for each unit sold » Moves consumer along the Demand Curve ...
Product and profit life cycles
... Time Product Class: Evolution in demand for a general class of products Product Form: Evolution in demand for products and services that serve the same ...
... Time Product Class: Evolution in demand for a general class of products Product Form: Evolution in demand for products and services that serve the same ...
Click to edit Master title style
... Goods and Services 8. Developing Marketing Strategies 9. Promoting and Distributing ...
... Goods and Services 8. Developing Marketing Strategies 9. Promoting and Distributing ...
Marketing Mix
... What do Marketing Departments do? • They need to focus on the customer and understand who their customers are. • They must identify the customers needs • They must anticipate their needs in the future • They must also meet those needs when the customer requires it. ...
... What do Marketing Departments do? • They need to focus on the customer and understand who their customers are. • They must identify the customers needs • They must anticipate their needs in the future • They must also meet those needs when the customer requires it. ...
Managerial Economics
... BMW and Lexus (provide same level of technology and comfort than higher-priced competitors, but at a lower sticker price) Porsche (higher price, but significantly greater quality) Ferrari and Aston Martin (charge a very high price, but promise top line performance and quality) There is also ...
... BMW and Lexus (provide same level of technology and comfort than higher-priced competitors, but at a lower sticker price) Porsche (higher price, but significantly greater quality) Ferrari and Aston Martin (charge a very high price, but promise top line performance and quality) There is also ...
Marketing Study Guide
... d. Pricing – deciding how much to charge for goods and services in order to maximize profits. e. Product/Service Management – obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities. f. Promotion – communicating with potential customers to inf ...
... d. Pricing – deciding how much to charge for goods and services in order to maximize profits. e. Product/Service Management – obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities. f. Promotion – communicating with potential customers to inf ...
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.