How to Price Spare Parts More Profitably: panies take full advantage of the opportunity spare part pricing offers. In fact, they deal with the complexity of pricing thousands of parts by resorting to standardized and undifferentiated “rule of thumb” customer complaints. This article was written by Richard Zinoecker, who is a Director at Simon-Kucher & Partners. He can be reached by e-mail at richard.zinoecker@simon-kucher.com. T he importance of after-sales business has increased steadily over the
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Parle-G, the price warrior It's a brand that has held its price line at Rs 4 for 25 years now -- the price was last raised in 1994 by 25 paise. So, it's not for nothing that Parle-G is the world's largest-selling biscuit by volumes. [pic] Not that the company didn't try to raise prices to offset the overall hike in costs. Three years ago it did so, but quickly rolled it back after volumes fell sharply and consumers wrote to lodge their protest. "We want to cater to the masses and have consciously
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profit maximising. One reason why firms might depart from profit maximisation is that it is difficult for them to identify their profit maximising output, as they cannot accurately calculate marginal revenue and marginal costs. Often the day-to-day pricing decisions of businesses are taken on the basis of “estimated demand conditions” rather than a systematic calculation of a demand curve. Most modern businesses are multi-product firms operating in a range of separate markets. The amount of information
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charge consumers a premium price because of actual or perceived differences in the quality / performance of a good or service.Conditions necessary for price discrimination to workEssentially there are two main conditions required for discriminatory pricing * Differences in price elasticity of demand between markets: There must be a different price elasticity of demand from each group of consumers. The firm is then able to charge a higher price to the group with a more price inelastic demand and a
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Ford Motor Begin New Pricing Strategy Price is not just a number on a tag. It means everything to a manufacture like Ford Motor, because price is related to Ford's income, cost, revenue, employee benefit and etc. Price is the only one element of the marketing mix that produces revenue; the other elements produce costs. Ford Motor must understand making a proper pricing strategy is very important. The relationship between price and demand is the higher the price, the lower the demand. As
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Evaluate the four pricing options available to Atlantic Computer. What would be the most effective pricing strategy for Atlantic Computer? Why? Jowers has four pricing options for Atlantic Computers. He must decide to either: 1) keep the company's tradition of charging for software and providing PESA software for free, 2) charge a price equal to what the customer would pay for four Ontario Zink servers, 3) charge a price based on a cost-plus approach to pricing PESA, or 4) charge a price based on
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Hfd 2 . - Choice of country • Geographic Map Major cities Square miles Population figures • Target group Customer profile ( what would your ideal customer be ) o Habits o Work o Income o Marriage status o Social status • Potential market calculate by use of customer profile the potential market for example. 1.000.000 women 15% is your customer profile Potential customers 150.000 How often do the customer buy the
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In our opinion, Dell’s segment growth strategy is likely to be success because it satisfies customers’ needs, reduces average cost per unit, and allows the company to be competitive in the global market. First, Dell’s segment growth strategy is able to satisfy consumers’ need. According to the case, the company provided the newest and best technologies to upmarket because the company knew that the consumers are willing to pay a premium price to have such a product. Certainly, we think Dell is right
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Kentucky Fried Chicken Four P¶s of Marketing mix. Introduction KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky. KFC is a brand and operating segment, called a "concept" of Yum! Brands since 1997 when that company was spun off from PepsiCo. KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of roasted chicken
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''t,' t. a. Survival b. current profit maximization c. market shareleadership @ vroductquality leadership which of thefollowingpricingobjectives mostused a university? is by Partial costrecoverv d 'bFull costrecovery Social price @ d. Cost-plus pricing underrrs,rrft\fsh'c {tr-rf r,th'6'market consists manybuyersand sellers of who I. c. d. oligopolistic competition pure monopoly 8. u 9. astheir major objectiveif they aretroubledby too muchcapacity, heavycompetition changing or consumer wants
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