...Q2 PRICING POLICY Pricing policy refers to how a company sets the prices of its products and services based on costs, value, demand, and competition. Managers should start setting prices during the development stage as part of strategic pricing to avoid launching products or services that cannot sustain profitable prices in the market. This approach to pricing enables companies to either fit costs to prices or scrap products or services that cannot be generated cost-effectively. Through systematic pricing policies and strategies, companies can reap greater profits and increase or defend their market shares. FACTORS INVOLVED IN PRICING POLICY The pricing of the product involves consideration of the following factors: (i) Cost Data in Pricing: Cost data occupy an important place in the price setting processes. There are different types of costs incurred in the production and marketing of the product. There are production costs, promotional expenses like advertising or personal selling as well as taxation, etc. They may necessitate an upward fixing of price. For example, the prices of petrol and gas are rising due to rise in the cost of raw materials, such as crude transportation, refining, etc. If costs go up, price rise can be quite justified. However, their relevance to the pricing decision must neither be underestimated nor exaggerated. For setting prices apart from costs, a number of other factors have to be taken into consideration. They are demand and competition. Costs...
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...Case Study Summary/Opinion I find the first article to be very inclusive and theoretical with some obvious strong points on pricing. It was very informative and well versed but a little bit outdated. Innovation and brand mystique can show disparities in pricing policy. The examples and theories were predicated on perfectly competitive industries or markets but even with practical type markets that are as close as it gets to perfectly competitive -like vegetables- there are still oscillating prices due to (inferred) quality. I find the section on artificial monopolies to be intriguing because it is something I would want to be a part of. The thought of being able to charge whatever amount comparative to the cost of unit production would be quite a profitable venture. Examples of this however don’t really work, and the checks and balances set up to evade those types of scenarios is so vast that it’s an honestly hard concept to tie down. Outside of a local power company, which can only moderately take advantage in certain locations does this even become pertinent. The natural monopoly details was even more captivating to me because prices would have to be “ready” to change to meet potential entrants into the market. Even then with a readily available price change, I’m glad that it mentioned that the original company would also have to be prepared to drop some of the higher cost buyers in their customer base. The bit on oligopoly markets was a more realistic and intellectually...
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...പുനത്തിൽ കുഞ്ഞബ്ദുള്ള രചിച്ച നോവലാണ് സ്മാരകശിലകൾ. നോവൽ സാഹിത്യത്തിനുള്ള 1978-ലെ കേരള സാഹിത്യ അക്കാദമി അവാർഡും 1980-ലെ കേന്ദ്ര സാഹിത്യ അക്കാദമി അവാർഡും ലഭിച്ച കൃതിയാണിത്.[1]പുനത്തിലിന്റെ മികച്ച കൃതിയായി സ്മാരകശിലകൾ കണക്കാക്കപ്പെടുന്നു.[2] വടക്കൻ മലബാറിലെ സമ്പന്നമായ അറയ്ക്കൽ തറവാടും അതിനെ ചുറ്റിപ്പറ്റിയുള്ള ഒരു വിഭാഗം ജനങ്ങളുടെയും കഥയാണ് ഈ നോവൽ പറയുന്നത്. ഖാൻ ബഹദൂർ പൂക്കോയ തങ്ങൾ, കുഞ്ഞാലി, പൂക്കുഞ്ഞീബി ആ‌റ്റബീ തുടങ്ങിയവരാണ് പ്രധാന കഥാപാത്രങ്ങൾ. ഈ നോവലിന് അവതാരിക എഴുതിയത് പ്രശസ്ത സാഹിത്യകാരൻ കോവിലൻ ആണ്. കേരള സാഹിത്യ ചരിത്രത്തില്‍ ഒരു സ്മാരകശിലയാകുകയാണ് പുനത്തില്‍ കുഞ്ഞബ്ദുള്ളയുടെ ‘സ്മാരക ശിലകള്‍’. കേരള സാഹിത്യ അക്കാദമി അവാര്‍ഡും കേന്ദ്ര സാഹിത്യ അക്കാദമി അവാര്‍ഡും ലഭിച്ച നോവലിന്റെ 65000ല്‍ അധികം കോപ്പികളാണ് ഇതിനകം വിറ്റഴിഞ്ഞിരിക്കുന്നത്. 1977ല്‍ പുറത്തിറങ്ങിയ ഈ നോവലിന്റെ ആദ്യ ഡി.സി പതിപ്പ് പുറത്തിറഞ്ഞിയത് 1993ലാണ് . നോവലിന്റെ 19ാം പതിപ്പാണ് ഇപ്പോള്‍ പുറത്തിറങ്ങിയിരിക്കുന്നത്. അതിപുരാതനവും തകര്‍ച്ചയുടെ വക്കിലെത്തിയതുമായ ഒരു പള്ളിയും പള്ളിക്ക് ചുറ്റുമുളള മനുഷ്യ ജീവിതങ്ങളുടെ കഥകളുമാണ് ‘സ്മാരക ശിലകള്‍’ പറയുന്നത്. മനുഷ്യരേയും പ്രകൃതിയേയും ചൂഴ്ന്നു നില്‍ക്കുന്ന ഒട്ടനവധി കെട്ടുകഥകള്‍ എല്ലായിടത്തുമുണ്ട്. അത്തരം മിത്തുകളെ പൊലിപ്പിച്ച് നോവലിന്റെ രൂപഭംഗി കൂട്ടാന്‍ മനപ്പൂര്‍വ്വമായ ഒരു ശ്രമവും നടത്താന്‍ പുനത്തില്‍ സ്മാരക ശിലയില്‍ ശ്രമിച്ചിട്ടില്ല. ഏതു മനുഷ്യനും ഇതിഹാസവല്‍കരിക്കുന്ന പ്രവണത എല്ലായിടത്തുമുണ്ട്. എന്നാല്‍ കെട്ടുകഥകളെ ജീവിത ഗന്ധിയായ കഥകളാക്കി മാറ്റുകയാണ് പുനത്തില്‍ ഇവിടെ ചെയ്തിരിക്കുന്നത്. ഖാന്‍ ബഹദൂര്‍ പുക്കോയ തങ്ങളാണ് നോവലിലെ പ്രധാന കഥാപാത്രം.അദ്ദേഹത്തിന് ചുറ്റുമുള്ള ജീവിതങ്ങളുടെ...
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...Basic Pricing Policy and Concepts It is the government’s policy to obtain its products and services through contracting at fair and reasonable prices. What seems like a fairly easy undertaking is a bit more complex than the term implies. There are several factors to consider when a purchase is made. Regardless of the service or product being sought, what is fair and reasonable as it relates to price is a matter of good personal judgment. Because determining what is reasonable is determined by personal judgment, government contracting individuals may not agree on what is a reasonable price. On factor to consider when deciding on the reasonableness of the price is quality. It is expected that we will pay a little more for good quality product than we would for what would be considered “normal”. Other factors include the amount of time given to make the purchase and if there is a particular brand that is being sought. An emergency purchase is usually a bit more expensive than a purchase in which more time is available to research and negotiate price. Oftentimes, name brand items cost more than their generic or non-named counterparts. Pricing Restraints in Government Contracting The average consumer determines what they are willing to pay for a particular good/service using their own personal judgment; what is good to them. They are spending their own money and therefore don’t have to answer to anyone. They are free to purchase from whomever and where ever they choose....
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...Introduction Company Overview Coca-Cola is the most recognized brand name in the world. Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy the Company’s beverages at a rate of 1.6 billion servings a day. Their product portfolio includes sparkling beverages such as Coca-Cola®, Coke Zero™, Diet Coke®, Sprite® and Fanta®, and still beverages, such as juice and juice drinks, waters, enhanced water, sports and energy drinks, teas, coffees, dairy and soy-based drinks, and beverages with added nutritional benefits. The Coca-Cola Company, along with more than 300 bottling partners worldwide, provides more than 3,300 beverage products in more than 200 countries in which Coca Cola company operates. Their global system includes approximately 700,000 associates and its headquarters are in Atlanta, Georgia. The company segmented the whole market using geographical parameters into three segments: * Established countries: Austria, Greece, Italy, Cyprus, Northern Ireland, Republic of Ireland and Switzerland. * Developing countries: Croatia, Hungary, Estonia, Latvia, Lithuania, Poland, The Czech Republic, Slovenia and Slovakia. * Emerging countries: Belarus, Bosnia and Herzegovina, Republic of Macedonia, Bulgaria, Armenia, Moldova. Montenegro, Nigeria, Romania, Russia, Serbia and Ukraine. The segmentation for the segments is based on different criteria: * Socio-economic similarities * GDP per capita * Consumption of...
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...Analyzing Managerial Decision: iTunes Music Pricing by HCM-540, MBOL5, Health Care Organization Instructor: Saint Leo University Distance Learning November 10, 2013 Abstract Apples’s Itunes music store came upon the music industry in 2003. It quickly became supreme within the music industry. The iPod, Apple’s MP3 players, and iTunes software were all interfacing, making it one of the more popular technology favorites among consumers. At odds with iTunes were the music companies crying foul over infringement and pricing. Buying overpriced CDs were quickly becoming a thing of the past. Music had been illegally accessed through peer-to-peer file sharing networks. With the recognition that music was being stolen, other ways were being developed by those with a stake in earning a profit. The industry had to decide if it should allow piracy to continue of develop variable pricing alternatives. This paper takes a look at alternative pricing in the case study, iTunes Music Pricing. At the conclusion, readers will have a better understanding of variable pricing policies. Introduction Variable pricing represents a concept use, by Apple, to describe the structure of pricing to advertise downloadable data. Variable pricing involves the different cost of a product for based on the preferences of the producers. This varies from the model of flat pricing, where one fixed price is applied to those items that are the same. Content of purchased songs, all cost one...
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...Marginal Cost Based Pricing in Transport Key Implementation Issues from the Economic Perspective Erik Verhoef, Free University Amsterdam Paper prepared for IMPRINT 1. Introduction Marginal cost pricing in transport is a ‘hot’ topic, in at least two senses. First, as is well known, over the last decade(s), sophisticated pricing policies in transport have evolved from a primarily academic, theoretical construct, to a realistic and seriously considered option for many areas – urban and non-urban – around the world. This is due to (at least) two simultaneous, interacting developments, viz. the steady growth in transport related problems such as congestion and emissions on the one hand, and the development of technologies enabling automated charging on the other. So, marginal cost pricing in transport is ‘hot’ in the sense that many governments, at different spatial levels, seriously explore the possibilities for implementing some form of pricing policies aimed at the containment of transport-induced externalities. At the same time, such proposals are rarely met by great public enthusiasm, making it a ‘hot’ topic from the political viewpoint in that policy makers might easily burn their hands when proposing to drastic pricing reforms in transport. A very common result is that proposals for pricing schemes often end up in the proverbial wastebasket long before a first penny was to be actually charged. Apparently, the implementation of marginal cost based pricing in transport is not...
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...PRICING Price is the amount of money need to pay for using a goods or service, or the sum of the values that customers exchange for the benefits of having or using the goods or service. Price is the major factor affecting buyer choice and still remains one of the most important elements determining firm’s market share and profitability. OBJECTIVES Pricing objectives can be classified into four major group: profitability objectives, volume objectives, meeting competition objectives, and prestige objectives. DiGi company objective is meeting competition objectives because DiGi have to set prices to match industry leaders such as celcom or maxis. DiGi focus on competition in services. DiGi also using value pricing strategy to emphasizing benefits a product provides in comparison to the price and quality levels of competing offerings. STRATEGY The alternatives pricing strategy are skimming pricing strategy, penetration pricing strategy, and competitive pricing strategy. DiGi using competitive pricing strategies. Competitive pricing means pricing that design to deemphasize price as a competitive variable by pricing a goods or services at the general level of comparable offerings. DiGi use this techniques to entice customers purchase services from them. DiGi try to reduce the emphasis on price competition by matching other firms’ prices and concentrating their own marketing efforts on the product, distribution, and promotion elements of the marketing mix. POLICY Pricing policies...
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...in making pricing decisions and presents a process for cost and pricing analysis. Reviews the concept of value creation and examines a variety of pricing policies and techniques that can be incorporated into a marketing strategy to achieve stated objectives. Examines pricing strategy over the life cycle of products. INSTRUCTIONAL MATERIALS Required Resources Nagle, T. T., Hogan, J., & Zale, J. (2011). The strategy and tactics of pricing: a guide to growing more profitably (5th ed.). Upper Saddle River, NJ: Prentice Hall/ Pearson. Supplemental Resources Berry, L. L., & Yadav, M. S. (1996). Capture and communicate value in the pricing of services. Sloan Management Review, 37(4), 41-51. Marn, M. V., Roegner, E. V., & Zawada, C. C. (2003). Pricing new products. The McKinsey Quarterly, (3), 40-49. Nagle, T. T., & Cressman, G. E., Jr. (2002). Don’t just set prices, manage them. Marketing Management, 11(6), 29-33 Simon, H., & Dolan, R. J. (1998). Price customization. Marketing Management, 7(3), 11-17. Smith, G. (1995). Managerial pricing orientation: The process of making pricing decisions. Pricing Strategy & Practice, 3(3), 28-39. COURSE LEARNING OUTCOMES 1. Analyze the key elements of strategic pricing and the role of pricing decisions in marketing strategy. 2. Evaluate the impact assessing value has on pricing strategy and profitability, and the importance of market segmentation. 3. Analyze the application of various pricing strategies...
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...Managerial Economics MBA 540 Chapter 7 Case Analyzing Managerial Decisions: iTunes Music Pricing 1. Provide an argument for why a variable pricing policy might increase the sales revenue from Apple’s Music Store. The music industry is big business and for many years, consumers have obtained music in many ways other than purchases, which is known as piracy. Today, consumers can purchase music through file-swapping networks, thus leading to a decline in the music industry’s total revenue. In 2003, after agreement with individual music companies, Apple Inc. gave customers the opportunity to purchase and download digital music and audio books through Apple’s iTunes Music Store awaiting at least some revenue from downloaded music (Brickley, Smith, & Zimmerman, 2009). At that time, Apple’s managerial staff set the product price at $.99 per song for all digital music. In 2005, the Music Store sales soared, thus encouraging record companies to ask for a more variable pricing policy. The record companies requested the price for popular songs to increase in price and the older songs to drop in price (Brickley, Smith, & Zimmerman, 2009). In 2009, after negotiations between Apple and the record companies, Phil Schiller, Apple’s senior vice president, announced Apple’s iTunes store would offer music at three prices - $.69, $.99 and $1.29 (Breen, 2009). The variable pricing policy went in effect April 2009 at Apple’s iTunes Music Store (Breen, 2009) and not long after, almost...
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...Identify the adjustments made to the approximate price level on the basis of discounts, allowances, and geography. Discuss the laws and regulations affecting specific pricing practices. LO4 1-3 Arriving at the Final Price The TATA NANO The Car Priced at one Lakh 1-4 Opening Story – The NANO Car FIGURE 14-1 The six steps in setting price. The first three steps were covered in Chapter 13 and the last three steps in Chapter 14. LO1 1-5 Elements making up a Price – Recap of Chapter 13 FIGURE 14-2 Four approaches for selecting an approximate price level LO1 1-6 Establishing an ‘Appropriate Price Level’ Selecting an Appropriate Price Level Demand-Oriented Pricing Approaches Skimming Pricing Penetration Pricing Price Lining Prestige Pricing LO1 1-7 Establishing an ‘Appropriate Price Level’ FIGURE 14-3 Demand curves for two demand-oriented pricing approaches LO1 1-8 Establishing an ‘Appropriate Price Level’ Selecting an Appropriate Price Level Demand-Oriented Pricing Approaches Odd-Even Pricing Target Pricing Bundle Pricing Yield Management Pricing LO1 1-9 Establishing an ‘Appropriate Price Level’ Selecting an Appropriate Price Level Cost-Oriented Pricing Approaches Standard Markup Pricing Cost-Plus...
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...the technological world. Technological intermodal transportation is driven and also challenged by four factors including policy and regulatory issues, measuring, understanding, and in the changing customer requirements the role of intermodalism is being responded to. Technological intermodalism has highly contributed in the hyper competition of supply chains in a global marketplace thus leading to quality production of the supply chains due to the competition thereof. The second factor that challenges the technological intermodal transportation is the need to have a reliable and a flexible respond to the changing customer requirements with seamless integrated fright coordination. The third factor is the knowledge of the future and the current intermodal operations options and alternatives, the challenges associated with the application together with the potential for improved communication and information. The better management of the existing infrastructure constrains and coordination of the improved infrastructure is also a factor that challenges the technological intermodal transportation. Positive impact on intermodal transportation Pricing The continued growth of intermodal transportation has led to the increased regulations on pricing whereby, research reforms are considered to be the main barriers to the urban and the interurban road transport pricing. The marginal cost based...
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...Performance Measurement & Control | BHP Billiton & PotashCorp: Chinese distribution | Transfer Pricing | | Your Name | 1/17/2011 | | Contents Executive Summary 3 Introduction 4 Transfer Pricing 4 Transfer Pricing: Cost rates, dual rates & market prices 7 PotashCorp Transfer Pricing policy 9 Performance Management issues 12 Conclusions 14 References 15 Appendix 16 Executive Summary In the constantly improving transfer pricing laws of China and given the Chinese fertilizer market’s future potential, it is worth to enter the market with a BHP Billiton’s division established there. The planned imports from PotashCorp provide the possibility for the use of transfer pricing to improve tax efficiency and thus the benefit of the whole organization. If performance measurement tools are used, this may underestimate the performance of the division using most of the methods such as market price and dual cost. The cost plus method turns out to be more on the division’s side but as the Chinese prices are lower than that of the world, the conditions appear to be supporting the method as beneficial to the company as a whole while the division is able to generate revenues for company at a low tax. Performance measurement tools seem to be less beneficial for large divisions based organization, where differences in dynamics render the largely homogeneous performance measurement indicators unable to serve the intended purpose. Introduction ...
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...Competitive Strategies and Government Policies Get Tutorial by Clicking on the link below or Copy Paste Link in Your Browser https://hwguiders.com/downloads/eco-365-week-5-learning-team-b-competitive-strategies-government-policies/ For More Courses and Exams use this form ( http://hwguiders.com/contact-us/ ) Feel Free to Search your Class through Our Product Categories or From Our Search Bar (http://hwguiders.com/ ) Competition and Policies Influencing the Airline Industry Emerging Companies, Mergers, Globalization, Pricing, and Profits The airline industry is characterized by increased levels of competition as a result of new companies that venture into the market. Such new entrants bring about an increased level of competition for the existing volumes of consumers that the different airlines have to share. Mergers occur when two companies come together to combine resources, market share, and experience to acquire a better position in the market. Mergers also create a greater pool of resources and stability, which is attractive to consumers. Globalization brings about a higher level of travelling where people will be moving from one point to another. As a result, airline services will be at a greater demand and hence increase business. However, this will also mean that airlines from foreign nations can access any region and as a result there is greater competition (Botten & McManus, 1999; University of Phoenix, 2011). Pricing, Sustainability of Profits,...
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...Intelligent pricing is one of the most important elements of any successful business venture. Yet many entrepreneurs fail to educate themselves adequately about various pricing components and strategies before launching a new business. Smart small business owners will weigh many marketplace factors before setting prices for their goods and services. As the Small Business Administration (SBA) indicated in The Facts About Pricing Your Products and Services, "you must understand your market, distribution costs, and competition. Remember, the marketplace responds rapidly to technological advances and international competition. You must keep abreast of the factors that affect pricing and be ready to adjust quickly." Cost Factors and Pricing There are three primary cost factors that need to be considered by small businesses when determining the prices that they charge for their goods or services. After all, price alone means little if it is not figured within the context of operating costs. A company may be able to command a hefty price for an item, only to find that the various costs of producing and delivering that item eliminate most or all of the profit that it realizes on the sale. It should also be noted that service businesses often find it more difficult to accurately gauge their costs, especially in the realm of employee hours. A freelance copyeditor may find that one 2,500-word article takes twice as long to complete as another article of the same size because of differences...
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