...Product Line Pricing This note discusses the technical and managerial aspects of pricing a product line. Product lines are multiple variants of essentially the same product, where individual products in the line may vary by quantity (size) or quality. The discussion takes... For full abstract, click here Product Line Pricing This note discusses the technical and managerial aspects of pricing a product line. Product lines are multiple variants of essentially the same product, where individual products in the line may vary by quantity (size) or quality. The discussion takes... For full abstract, click here Product Line Pricing This note discusses the technical and managerial aspects of pricing a product line. Product lines are multiple variants of essentially the same product, where individual products in the line may vary by quantity (size) or quality. The discussion takes... For full abstract, click here Product Line Pricing This note discusses the technical and managerial aspects of pricing a product line. Product lines are multiple variants of essentially the same product, where individual products in the line may vary by quantity (size) or quality. The discussion takes... For full abstract, click here Product Line Pricing This note discusses the technical and managerial aspects of pricing a product line. Product lines are multiple variants of essentially the same product, where individual products in the line may vary by quantity (size) or quality. The discussion...
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...to clients from the comforts of my home and still earn a decent income to support my family. After a while, I came across the real estate note business. To understand this paper, let me explain what a real estate note is. A real estate note is a promise to pay. What you and I consider a mortgage or IOU that is registered at your local county courthouse. What I do is find these notes, determine their true value based off a formula and notify my list of buyers to see who is interested in making an offer. So now, I have created my home-based service off the current need within this market. The need is for professional note finders/locators. Buyers (or investors) are looking for good clean notes to invest in but don't necessarily have the time to spend researching every note they come across. They are will to pay for the service to be completed by a professional. Market Structure and Elasticity Currently my market structure is pure competition on the grounds that I must compete with other notes finders in order to locate, evaluate potential notes and close deals. This type of service is elastic because of the number of competitors and the fact that the clients could perform this service themselves with ample time and research. What makes a note finder effective is that we already have access to thousands of buyers and we screen notes for the value and turn over retention (of value). These services are directly influenced by the market conditions. How will I increase revenue...
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...Notes CIMA Paper P2 Management Performance For exams in 2013 theexpgroup.com CIMA P2 Performance Management ExPress Notes Contents About ExPress Notes 1. 2. 3. 4. Pricing and Product Decisions Cost planning and analysis Budgeting and Management Control Control/Performance Measurement of Responsibility Centres 3 7 22 31 37 Page | 2 © 2013 The ExP Group. Individuals may reproduce this material if it is for their own private study use only. Reproduction by any means for any other purpose is prohibited. These course materials are for educational purposes only and so are necessarily simplified and summarised. Always obtain expert advice on any specific issue. Refer to our full terms and conditions of use. No liability for damage arising from use of these notes will be accepted by the ExP Group. theexpgroup.com CIMA P2 Performance Management ExPress Notes START About ExPress Notes We are very pleased that you have downloaded a copy of our ExPress notes for this paper. We expect that you are keen to get on with the job in hand, so we will keep the introduction brief. First, we would like to draw your attention to the terms and conditions of usage. It’s a condition of printing these notes that you agree to the terms and conditions of usage. These are available to view at www.theexpgroup.com. Essentially, we want to help people get through their exams. If you are a student for the CIMA exams and you are using these notes for yourself only, you...
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...MODULE-5 Marketing Notes 20 MARKETING MIX I n the previous lesson you learnt that marketing identifies consumers’ needs and supplies various goods and services to satisfy those needs most effectively. So the businessman needs to: (a) produce or manufacture the product according to consumers’ need; (b) make available it at a price that the consumers’ find reasonable; (c) supply the product to the consumers at different outlets they can conveniently approach; and (d) inform the consumers about the product and its characteristics through the media they have access to. So the marketing manager concentrates on four major decision areas while planning the marketing activities, namely, (i) products, (ii) price, (iii) place (distribution) and (iv) promotion. These 4 ‘P’s are called as elements of marketing and together they constitute the marketing mix. All these are inter-related because a decision in one area affects decisions in other areas. In this lesson you will learn about the basic aspects relating to these 4‘P’s viz., product, price, place and promotion. OBJECTIVES After studying this lesson, you will be able to : • • • • • • • • explain the concept of marketing mix and its components; explain the meaning of product and its classification; state the various factors affecting pricing decisions; describe different methods of pricing; state the meaning of channels of distribution; identify the various channels of distribution; state the factors affecting choice...
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... In this course, students learn how businesses optimally create and capture value and how their abilities in doing so are impacted by various market forces and the strategic interaction among players in the industry. A good understanding of the 1 economic principles that govern the distribution of value in markets is critical to formation of a successful and sustainable business strategy. Learning Objectives: Understand and apply tools, concepts, and theories from microeconomics to perform industry and demand analyses. Apply demand and supply analyses in predicting market price and related dynamics in competitive markets. Understand the key tradeoffs between high margin and high volume of sales in pricing decisions, and choose different pricing strategies according to industry/market conditions or consumer characteristics. Predict competitors' actions and reactions using basic game theoretic methods. In the context of oligopoly market, analyze the direct...
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...SAP SD IMP NOTES ENTERPRISE STRCTURE CLIENT (Company)-A client is a self-contained technical unit. A client can be considered to be a synonym for group. Company Code • • • A complete Accounting unit can be representing as the smallest organizational unit of external accounting. At Company Code level we create Balance sheet required by law Profit and Loss statement. Each company code represents an independent accounting unit. Several company codes can use the same chart of account. Assignment Company code to company Company code to Credit control area Company code to Controlling area Company code to financial management area • (An FM Area is organizational unit which Plans, Controls and Monitors funds and commitment budgets) Controlling area to financial management area Controlling area to Operating Concern. Sales Organization • The highest-level of organizational unit in SD is Sales Organization. • Responsible for Distributing goods and services, Negociation sales conditions, Product liability and other customer rights of recourse. • Sales organization is also used to take for example a regional, national or international. • A sales organization assigned to a company code. Distribution Channel • Distribution Channel represents strategies to distribute goods and services to customer. • DC is assigned to a sales organization. The assignment is not unique. • You can share Customer, Material and Condition master data by maintaining a reference/common DC. Division • A Division...
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...1. Introduction and Problem Definition Jason Jowers, a newly minted MBA, had joined Atlantic Computer just four months ago as the youngest product manager. He would be responsible for developing the pricing strategy for the "Atlantic Bundle" (i.e., the new Tronn server and the PESA software tool), which had been developed specifically to meet an emerging basic server market, a new market to the company. But it had to compete with Zink server of Ontario Computer, its major rival in this market. 2. Situation analysis * External Analysis Since the basic server market had 36% compound annual growth rate through 2003, significantly higher than around 3% of high performance market, Atlantic Computer decided to penetrate the basic server market with its "Atlantic Bundle". But Atlantic Computer had no competitive market share in the basic market and had to fight against a strong competitor Ontario Computer which only focused on the basic server market with 50% revenue market share. In addition, for the business model of Ontario Computer that possessed “the most flexible and innovative supply chain strategy” was based on operational excellence, the company had been able to drive out many nonvalue-added costs and compete largely on price. For example, its major sales were generated online, saving lots of selling expenses. However, Atlantic Computer had already been a strong player with 20% of the revenue market share in high performance market, the largest market in servers...
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...price and quantity of the good that will be sold. We begin our study of monopoly by considering the price that the monopolist should charge.1 9.1 Simple Monopoly Pricing The object of the firm is to maximize profit. However, the price that the monopolist charges affects the quantity it sells. The relationship between the quantity sold and the price charged is governed by the (aggregate) demand curve q (p). Note, in order to focus on the relationship between q and p, we suppress the wealth arguments in the aggregate demand function. We can thus state the monopolist’s problem as follows: max pq (p) − c (q (p)) . p Note, however, that there is a one-to-one correspondence between the price charged and the quantity the monopolist sells. Thus we can rewrite the problem in terms of quantity sold instead of the price charged. Let p (q) be the inverse demand function. That is, p (q (p)) = p. The firm’s profit maximization problem can then be written as max p (q) q − c (q) . q It turns out that it is usually easier to look at the problem in terms of setting quantity and letting price be determined by the market. For this reason, we will use the quantity-setting approach. 1 References: Tirole, Chapter 1; MWG, Chapter 12; Bulow, “Durable-Goods Monopolists,” JPE 90(2) 314-332. 233 Nolan Miller Notes on Microeconomic Theory: Chapter 9 P ver: Aug. 2006 P0 A B D Q0 Q Figure 9.1: The Monopolist’s Marginal Revenue In order for the solution to be unique, we...
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...Your Final Exam is scheduled for next Wednesday. You can take the exam beginning Wednesday Feb 8, 2012 at 12.00 Noon. The Exam window will close on Friday Feb 10, 2012 at 12.00 Noon. You will have two hours, at one sitting, to finish the exam. The current technology does not enable us to monitor the exam, so I will make it "open book". While you have three days to take the exam, I strongly recommend that you take it early on Wednesday or Thursday. In the past, students have encoutered numerous problems if they wait till the last minute such as technology failure, personal or family problems. You will answer a total of 5 questions (2 Problems and 3 short essay Questions). The problems will be focussing on Triangular Arbitrage, and Derivatives. The essay questions will be identical to the ones in the review sheet. More on this in the Adobe session scheduled for Thursday Feb 2, 2012. FINANCE 6644: Global Financial Strategy Krishnan Dandapani January 2012 Final Exam Review Questions Instructions A. Please be concise and precise in your answers. B. Practice answers for closed book, class room setting. C. Suggested length: minimum one page; maximum two pages per question. D. You would answer 5 questions or Problems in two hours in final exam. Questions 1. Ethical Standards a. Can a multinational firm adopt varying ethical standards [such as with regard to product safety...
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...good. PREPARING FOR EXAMS Make sure you have noted the correct date, time, duration and place for the exam. Start a revision schedule for the exam several weeks beforehand – many rehearsals is a key to success and if you have not planned to set aside time over many days to rehearse and rehearse, you may fail. Prioritise the material to be studied by looking at the core issues and the questions in past exam papers. To prepare an answer to a likely question, make up a plan in note form, to outline of how you would answer a likely question, using headings and sub-headings. Use diagrams and acronyms to emphasise the linkages or associations between concepts because associations help memory. Think about one or two examples that you will use to illustrate your mastery of the concepts – location, size and so on. Make sure you take at least one five-minute break every study hour, and do not study too late on the night before the exam (about two or three hours should be OK). Do a quick review of your notes on the morning of the exam to freshen your memory. Take a spare pen or biro to the exam room. TAKING EXAMS Choose a seat away from the aisles and the invigilator’s desk (where early finishers hands in their booklets), to reduce distractions during the exam period. Read the exam paper instructions carefully to ensure you know how many questions have to be answered and if any are compulsory. This reading includes the very important Examiner’s Ruling. Then, read...
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...marketing, and statistics. 2. Decide economic goals for the firm and develop optimal decisions that will bring the firm closest to those goals. 3. Define supply, demand, and equilibrium price. 4. Apply the concepts of price elasticity, cross-elasticity, and income elasticity. 5. Specify the components of a regression model that can be used to estimate a demand equation. 6. Define production function, and explain the difference between a short-run and a long-run production function. 7. Distinguish between economic cost and accounting cost. 8. Describe the key characteristics of the four basic market types used in economic analysis. 9. Cite the main differences between monopolistic competition and oligopoly. 10. Analyze the practice of cartel pricing. 11. Illustrate game theory, and explain how it helps better understand mutually interdependent management decisions. 12. Define the cost of capital, and demonstrate how it is calculated. Credits Upon completion of this course, the students will earn three (3) hours of college credit. Course Structure 1. Unit Learning Objectives: Each unit contains Unit Learning Objectives that specify the measurable skills and knowledge students should gain upon completion of the unit. 2. Unit Lesson: Each unit contains a...
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...AEM 4160: Strategic Pricing Professor: Jura Liaukonyte Exam 2 – March 14, 8:40 AM Suggestion: do not delay studying till the last minute. Do not hesitate to contact me to ask questions or to schedule an appointment. I will also answer your questions via email. Exam is cumulative but there is more weight put on the material presented after EXAM 1. There will be approximately 30% of questions (or total points) from Lectures 2 through 8 (excluding the cases and articles) There will be approximately 70% of questions from Lectures 9 through 13 (including cases) Remember that some of the material discussed in Lectures 9-13 actually relies on your complete understanding of prior lectures. Reading Lecture Notes: Lectures 2 through 8 Lecture Notes: Lectures 9 through 13 HBS cases: o Advance Selling for Services o Pricing Information: How to Customize Both the Product and Its Price o Merck: Pricing Gardasil o The UCLA Medical Center: Kidney Transplantation Some highlighted topics Beyond the problems solved and discussed during the lectures and in HW3 and HW4 the following list should serve as a reminder of what we covered in lectures 9 through 13. Please refer to EXAM 1 handout for topics covered in lectures 2 through 8. • Services Pricing • Advanced booking • Pricing with capacity constraints • Uncertainty in demand • How to calculate optimal booking limit • Overage, underage costs • Optimal protection level and critical ratio •...
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...Benefits of product variety Factors limiting product variety Strategic considerations in product-line pricing III. Quantitative Analysis: We will first consider the product-line design and pricing decisions for the case when CSC can offer only one version. In this case, the product-line design only involves selecting the “right” version to offer. Note further that targeting/positioning decision is synonymous with pricing decision in this case because the price selected by CSC completely determines which of the potential 5 segments will actually buy the version introduced by CSC. In the second part of this document, we consider the multi-version case. a) Single-Version Case: Decisions Rule: Choose the version which gives the highest contribution margin Options: (i) “Student” version; (ii) “Commercial” version; (iii) “Industrial” version Optimization Procedure (Managerial Logic): The managerial logic involved in this case can be represented by the following decision tree: [pic] In the decision tree, there are two levels of decisions/optimizations. The first level involves selection of the model to introduce. The second level decision is the targeting/positioning/pricing decision. In the figure above, Consultants refers to the fact that targeting includes Consultants and more high-end segments (i.e. Large Corporations and labs). Note that with any decision tree analysis, to reach a conclusion, we have to work backwards. The managerial...
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...(4-6) paragraph journal entry in which you: 1. Describe your unique selling proposition (USP). Next, explain the key aspects of your business, products, or services that make them unique when compared to your competition (e.g., Southwest Airlines’ USP is providing customers with low airfare without compromising service and comfort). 2. Describe the marketing objectives of your company. Your marketing objectives should, at a minimum, address potential customer profile and market segmentation. Explain the manner in which you conducted your secondary market research. 3. Use at least two (2) quality references. Note: Wikipedia and other Websites do not qualify as academic resources. Note: Insert the information from the completed Journal 3 entry into “Section 3: Unique Selling Proposition” in the provided Marketing Plan Template (located in Week 1). Section 4: Pricing and distribution Strategy You will now consider your company’s strengths and weakness, along with your product or service price. Use the Internet to research strategies for conducting a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis. Based on your company’s market information, consider the strengths and weakness of your company and its products or services. Write a four to six (4-6) paragraph journal entry in which you: 1. Determine the key strengths and weaknesses of your company, as well as...
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...Services Inc. And its associated competitor’s, the information that has been gather will cover the following: * Market Structure * Elasticity of the product * pricing relate to elasticity of your product * changes in marginal cost and marginal revenue * suggestions on non-pricing strategies * Types of non-pricing strategies that will you used to increase barriers to entry. * changes with in the business operations alter the mix of fixed and variable costs in line with your strategy. Thomas Money Service Inc. Business Proposal Market structure The Thomas Money Service started out as a Consumer finance company but after being open for over six years they decided to Branch out to equipment financing company this company is part of a Pure Competition market structure they. Elasticity of the product The falling economy caused a not only the economy to suffer but also several forestry states which for the first time in the history of the company the seen a 30 % decrease in profits. marginal cost and marginal revenue The company repossessed over 500 pieces of equipment during the past year and found that the selling price should be $1,732 (use the table to show figures) nonpricing strategies / Besides your pricing decisions, what are your suggested nonpricing strategies? What nonpricing strategies will you use to increase barriers to entry?ausedd How could changes in your...
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