Chapter 10 – Pricing, understanding and capturing
... decisions to form a consistent and effective integrated marketing program Companies often position their products on price and then tailor other marketing mix decisions to the prices they want to charge Target costing reverses the usual process of first designing a new product, determining its cost ...
... decisions to form a consistent and effective integrated marketing program Companies often position their products on price and then tailor other marketing mix decisions to the prices they want to charge Target costing reverses the usual process of first designing a new product, determining its cost ...
Setting Prices Based on Customer Input: A
... Well, maybe. If it’s not done right. Common wisdom suggests that the last person you should ask about price is a prospective customer. And there’s some truth to that. How can you expect objectivity from a person who benefits greatly from a low price for your goods or services? Unfortunately, you som ...
... Well, maybe. If it’s not done right. Common wisdom suggests that the last person you should ask about price is a prospective customer. And there’s some truth to that. How can you expect objectivity from a person who benefits greatly from a low price for your goods or services? Unfortunately, you som ...
Which of the following is most closely associated with a proactive
... who didn’t have the opportunity to go. The experience of the Tse family is an example of which offering? A. A tangible good with accompanying services B. A hybrid C. A pure service D. A major service with accompanying minor goods and services 18) Best Buy will often try to sell the buyer of a high-e ...
... who didn’t have the opportunity to go. The experience of the Tse family is an example of which offering? A. A tangible good with accompanying services B. A hybrid C. A pure service D. A major service with accompanying minor goods and services 18) Best Buy will often try to sell the buyer of a high-e ...
Setting the Target Market
... Cost Plus Pricing – adding a mark up to the cost of production. Competitor based – charging the same price as competitors (the market price) Skimming – high price initially. For new and unique products. • Penetration – charging a low price to get a foothold into the market. New products only. ...
... Cost Plus Pricing – adding a mark up to the cost of production. Competitor based – charging the same price as competitors (the market price) Skimming – high price initially. For new and unique products. • Penetration – charging a low price to get a foothold into the market. New products only. ...
08-2 Price Planning 2_-_price_planning
... Break Even Point (BEP) – the point where sales revenue equals the costs and expenses of making and distributing a product. Job One for any business is to know their break even point ...
... Break Even Point (BEP) – the point where sales revenue equals the costs and expenses of making and distributing a product. Job One for any business is to know their break even point ...
Marketing mix of XY company
... History and business development Company mission and business focus 2. Target market and target consumers 3. Product policy Assortment, quality Brand, logo, external product features Innovations, services 4. Pricing policy Price strategy and price setting Fundamental price and their co ...
... History and business development Company mission and business focus 2. Target market and target consumers 3. Product policy Assortment, quality Brand, logo, external product features Innovations, services 4. Pricing policy Price strategy and price setting Fundamental price and their co ...
Consumer Market Pricing
... Purchasing power parity (PPP) measures how much of a product a certain country’s currency can purchase. Pricing for local markets typically uses PPP to establish each price. ◦ Companies have two methods of setting prices in global markets: Standard global price: difficult to establish because of a ...
... Purchasing power parity (PPP) measures how much of a product a certain country’s currency can purchase. Pricing for local markets typically uses PPP to establish each price. ◦ Companies have two methods of setting prices in global markets: Standard global price: difficult to establish because of a ...
PowerPoint - New Mexico FFA
... containers are legal documents. The United States Department of Agriculture regulates truthful labeling on all pesticide containers. ...
... containers are legal documents. The United States Department of Agriculture regulates truthful labeling on all pesticide containers. ...
Pricing Strategies – An Overview (8/04)
... additional profits off the early adaptors and those that feel compelled to have the new price early. Seen often in the electronics sector, for example, the success of a skimming strategy often depends on consumer’s viewing the products as being significantly distinctive from other product options. T ...
... additional profits off the early adaptors and those that feel compelled to have the new price early. Seen often in the electronics sector, for example, the success of a skimming strategy often depends on consumer’s viewing the products as being significantly distinctive from other product options. T ...
Pricing Info from Market-Oriented Pricing: Strategies for
... stay out pricing – the firm prices lower than demand conditions require, so as to discourage market entry by new competitors. bundle pricing – a set of products or services are combined and a lower single price is charged for the bundle than would be the case if each item were sold separately. value ...
... stay out pricing – the firm prices lower than demand conditions require, so as to discourage market entry by new competitors. bundle pricing – a set of products or services are combined and a lower single price is charged for the bundle than would be the case if each item were sold separately. value ...
Pricing in Imperfectly Competitive Markets
... with switching to a new product • There may also be a cost associated with finding out what products are available and at what price • In equilibrium, firms can have market power if these costs are sufficiently high ...
... with switching to a new product • There may also be a cost associated with finding out what products are available and at what price • In equilibrium, firms can have market power if these costs are sufficiently high ...
Chapter 24: Exam practice question
... (HL) Discuss the benefits mobile phone producers could gain by adopting a more social approach to marketing their products. ...
... (HL) Discuss the benefits mobile phone producers could gain by adopting a more social approach to marketing their products. ...
week seven Discussion Question 1 · Due Date: Day 2 [Main forum
... cost of the vehicle is displayed as being much lower than the original price. I believe this is an example of demand-based pricing. GM, in an effort to drive sales up, has temporarily lowered its prices on brand new 2009 vehicles. However, once the economy improves and/or people begin buying new car ...
... cost of the vehicle is displayed as being much lower than the original price. I believe this is an example of demand-based pricing. GM, in an effort to drive sales up, has temporarily lowered its prices on brand new 2009 vehicles. However, once the economy improves and/or people begin buying new car ...
Thoughts from the Front Lines: Teaching the Large Section
... income levels – Elasticity (demand) tends to be greater in countries where there are many competitors ...
... income levels – Elasticity (demand) tends to be greater in countries where there are many competitors ...
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.