• 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
A Case Study on Performance Solutions Group, LLC.
A Case Study on Performance Solutions Group, LLC.

... marketing strategies that will appeal to very specific market segments that act and live in similar  ways. Marketers can assess how people spend their time, what interests them, or how they  consume products. This approach is becoming more popular than using the typical segmentation  types because n ...
Criterions
Criterions

Select this.
Select this.

... People behaviour and consumer behaviour effect some influences. Their penetration and final repercussion in particular purchase decision is unique – individual. However : some are in their purchase behaviour in some spheres more similar then others. This similarity is very sought and used value in f ...
Marketing Management - 6 (Available)
Marketing Management - 6 (Available)

... Segment marketing offers several benefits over mass marketing. The company can create a more fine-tuned product/service offer and price it appropriately for the target audience. The choice of distribution channels and communications channels becomes much easier. And the ...
IOSR Journal of Business and Management (IOSR-JBM)
IOSR Journal of Business and Management (IOSR-JBM)

... recent times, organizations have not just competing locally but globally, following the advent of globalization (Kohli & Jaworski, 1990). This stiff competition in the marketing environment implies that it is the organization that possesses the best competitive strategy that will perform well. Anoth ...
Terra Lycos Segmentation and Positioning
Terra Lycos Segmentation and Positioning

... About Travelocity Travelocity strives to give its customers the information they need to make the most educated shopping and buying decisions possible. Travelocity has private marketing agreements with many travel companies, under which Travelocity agrees to do special promotions, e-mail campaigns, ...
Marketing Mix Analysis of a Company
Marketing Mix Analysis of a Company

... The first step of marketing process starts with the needs, wants, and demands of human being. By understanding and identifying these needs, wants, and demands, a company will decide what to offer to the market. This “what to offer” means anything that will satisfy those needs and wants including tan ...
Marketing Management
Marketing Management

... Importance of Marketing : Financial success of any organization depends upon marketing ability of that organization. There should be sufficient demand for products & services so the company can make profit. Therefore many companies created chief marketing officer (CMO) position to put marketing on a ...
Digital Marketing and eCRM
Digital Marketing and eCRM

... eCRM Benefits & Opportunities  Less expensive to retain one customer than to acquire one:  reduced promotion costs  higher response rates to promotional efforts  sales teams are more effective when they know customers  loyal customers cost less to service  increase up and cross sell  from a ...
Chapter 2 - TestBankTop
Chapter 2 - TestBankTop

... 18. Now that your employer has classified his SBUs, the next step to take in using the BCG approach is to determine ________. a. what role each will play in the future b. the tactical plan c. the three-year budget d. the profit center e. none of the above (Answer: a; p. 40; Challenging; LO2) 19. Whi ...
Marketing Management
Marketing Management

... chosen target markets and develop strong, profitable, long-term relationships with customers. For this they need to understand consumer markets- who buy cameras and why do they buy? What are they looking for in the way of features and prices, and where do they shop? Atlas also sells cameras to busin ...
THE MARKETING BUSINESS CASE FOR DIVERSITY
THE MARKETING BUSINESS CASE FOR DIVERSITY

... partners are increasingly global and multicultural; firms must be positioned to relate to them. The needs and expectations of customers for products and services are diverse and firms must be able to understand, connect and respond to those diverse needs and expectations. As firms seek competitive a ...
market - Glencoe
market - Glencoe

... and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. ...
The Apple-Cinnamon Cheerios War
The Apple-Cinnamon Cheerios War

... depends on the prices of all products. (And on all their advertising and other marketing mix variables, though that is not the focus here.) So, this is econometric estimation with dozens of endogenous variables. Where the literature in general hits a rough patch is finding enough instruments for all ...
Relationship Marketers
Relationship Marketers

... future value of the customer exceeds the acquisition costs for that customer. When you broaden the acquisition effort, be prepared for lower response rates. The greater its profits from retention, the greater a firm's customer acquisition investment should be. The higher the percentage of the initia ...
- The University of Adelaide
- The University of Adelaide

... market-oriented reforms of 1993 were eroded. The government showed that it would still intervene administratively in the grain sector. As a result, a provincial governor’s “Rice Bag” responsibility system, a decentralisation of the grain system by developing responsibility for local grain balancing ...
impact of the antecedent factors on the performance of malaysian
impact of the antecedent factors on the performance of malaysian

... 1987 to 1997, show that product adaptation, product strength, promotion adaptation, promotion intensity, price adaptation, competitive pricing, channel relationships and type of channels form an export marketing strategy. In the assessment of the suitability of a specific strategy, performance is ge ...
defence economic trends in the pacific
defence economic trends in the pacific

... protectionist measures (predatory pricing, product differentiation, intellectual property) • increase the sunk cost of its activity • use the first mover advantage and continuous innovation to stay ahead of competition ...
Part II The 8-Step Clustering Approach to Agroenterprise Development
Part II The 8-Step Clustering Approach to Agroenterprise Development

Chapter 02: Strategic Planning for Competitive Advantage
Chapter 02: Strategic Planning for Competitive Advantage

... Name: ...
international marketing strategy for herborist
international marketing strategy for herborist

... Marketing Department is divided into Brand Department, Product Department, CRM Division and Media Communications Department. The reason why they have these different departments division is that along with brand expansion of the market segments, they need to meet new requirements and add some areas. ...
Marketing -introduction
Marketing -introduction

... May result in high pressure sales tactics Makes more sense when new product’s benefits are hard to understood ...
$doc.title

Retailers
Retailers

... • Amount of service • Self-service • Limited service • Full service ...
Chapter 1 Welcome to the World of Marketing: Create and Deliver
Chapter 1 Welcome to the World of Marketing: Create and Deliver

... A production orientation works best in a seller’s market when demand is greater than supply because it focuses on the most efficient ways to produce and distribute products. Essentially, consumers have to take whatever is available. Under these conditions, marketing plays a relatively insignificant ...
< 1 ... 25 26 27 28 29 30 31 32 33 ... 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