SOLUTION: MM 15E Friends University Chapter 15 & 16 Marketing Management Reflection Paper

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Reflection Paper Each week you succeed congruity a 250-350 order impercipient proposition on the view weeks’ lore, and how it has artful your intention way, crop, and professional breath. This proposition should be an convenience for you to muse on your idiosyncratic lore process—challenges, moments of solution, activity experiences, lections, and interactions. The museion succeed be inveterebuke on the lections the citation books. Your museion succeed be inveterebuke on the assigned lections of the weeks. Reflections must encounter the forthcoming criteria: - 250-350 order calculate - Describe your “take-away” from the assigned lection. This may detail to idiosyncratic insights gained, parallels to gone-by treatment experiences, or parallels to observations of gone-by treatment you accept conversant in other organizations. (8 Weekly Reflection Papers @ 20 purposes each) Chapter 16 Developing Pricing Strategies and Programs Copyright © 2016 Pearson Education, Inc. 16-1 Learning Objectives 1. How do consumers way and evaluate costs? 2. How should a congregation set costs initially for products or services? 3. How should a congregation amalgamate costs to encounter varying circumstances and opportunities? 4. When and how should a congregation inaugurebuke a cost change? 5. How should a congregation counter-argument to a competitor’s cost transmute? Copyright © 2016 Pearson Education, Inc. 16-2 Understanding Pricing • Pricing in a digital world ✓ Get second vendor cost comparisons ✓ Check costs at the purpose of purchase ✓ Name your cost and accept it met ✓ Get emanations free ✓ Mentor customer proceeding & tailor offers ✓ Give customers avenue to extraordinary costs ✓ Negotiate costs online or plain in person Copyright © 2016 Pearson Education, Inc. 16-3 Understanding Pricing • A changing pricing environment – Sharing economy – Bartering – Renting Copyright © 2016 Pearson Education, Inc. 16-4 Understanding Pricing • How companies cost – Small companies: boss – Large companies: division/emanation line managers • How companies should cost – Understanding of consumer pricing psychology – a immanent access to enhancement, amalgamateing, and changing costs Copyright © 2016 Pearson Education, Inc. 16-5 Consumer Psychology and Pricing Reference costs Price-virtue inferences Price endings Copyright © 2016 Pearson Education, Inc. 16-6 Reference Prices Copyright © 2016 Pearson Education, Inc. 16-7 Setting the Price Copyright © 2016 Pearson Education, Inc. 16-8 Step 1: Selecting the Pricing Objective Survival Maximum current acquisition Maximum chaffer divide Other objectives Product-quality leadership Maximum market skimming Copyright © 2016 Pearson Education, Inc. 16-9 Step 2: Determining Demand • Cost sensitivity • Estimating demand curves – Surveys, cost experiments, & statistical analysis • Cost elasticity of demand Copyright © 2016 Pearson Education, Inc. 16-10 Figure 16.1 Inelastic And Elastic Demand Copyright © 2016 Pearson Education, Inc. 16-11 Price Sensitivity Copyright © 2016 Pearson Education, Inc. 16-12 Step 3: Estimating Costs • Types of costs and levels of production – Fixed vs. inconstant costs – Entirety costs – Average cost Copyright © 2016 Pearson Education, Inc. 16-13 Step 3: Estimating Costs • Accumulated emanationion – Experience/lore curve Copyright © 2016 Pearson Education, Inc. 16-14 Step 3: Estimating Costs • Target costing – Cost less desired acquisition margin Copyright © 2016 Pearson Education, Inc. 16-15 Step 4: Analyzing Competitors’ Prices • Firm must obtain?} competitors’ costs, costs, & reactions into account – Value-priced competitors Copyright © 2016 Pearson Education, Inc. 16-16 Step 5: Selecting a Pricing Method • Figure 16.4: three major considerations in cost – Costs = cost floor – Competitors’ costs = orienting purpose – Customers’ toll of unique features = cost ceiling Copyright © 2016 Pearson Education, Inc. 16-17 Step 5: Selecting a Pricing Method • Markup pricing – Add a model markup to the emanation’s cost Copyright © 2016 Pearson Education, Inc. 16-18 Step 5: Selecting a Pricing Method • Target-repay pricing – Cost that yields its target rebuke of repay on investment Copyright © 2016 Pearson Education, Inc. 16-19 Figure 16.5 Break-Even for Target-Return Price Copyright © 2016 Pearson Education, Inc. 16-20 Step 5: Selecting a Pricing Method • Perceived-value pricing – Inveterebuke on buyer’s copy of emanation, channel deliverables, protection virtue, customer support, and softer attributes (e.g., class) Copyright © 2016 Pearson Education, Inc. 16-21 Step 5: Selecting a Pricing Method • Value pricing • EDLP – High-low pricing • Going-rebuke pricing Copyright © 2016 Pearson Education, Inc. 16-22 Step 5: Selecting a Pricing Method • Auction-type pricing English (ascending) Dutch (descending) Sealed-bid Copyright © 2016 Pearson Education, Inc. 16-23 Step 6: Selecting the Decisive Price • Additional factors to selecteded decisive cost: ✓ Impact of other chaffering activities ✓ Congregation pricing policies ✓ Gain-and-risk-sharing pricing ✓ Impact of cost on other parties Copyright © 2016 Pearson Education, Inc. 16-24 Adapting the Price • Geographical pricing – Barter – Compensation deal – Buyback arrangement – Offset Copyright © 2016 Pearson Education, Inc. 16-25 Adapting the Price • Cost discounts and allowances Copyright © 2016 Pearson Education, Inc. 16-26 Adapting the Price • Promotional pricing: • Loss-leader pricing • Extraordinary plaint pricing • Extraordinary customer pricing • Cash rebates • Low-interest financing • Longer cancelment terms • Warranties/service contracts • Psychological discounting Copyright © 2016 Pearson Education, Inc. 16-27 Adapting the Price • Cost discrimination Customersegment pricing Product-form pricing Image pricing Time pricing Location pricing Channel pricing Copyright © 2016 Pearson Education, Inc. 16-28 Adapting the Price • Cost discrimination – Yield pricing Copyright © 2016 Pearson Education, Inc. 16-29 Initiating and Responding to Price Changes • Initiating cost cuts – Excess fix capacity – Domination of chaffer • Price-cutting traps – Cost concessions – Low-quality – Fragile chaffer divide – Shallow pockets – Cost war Copyright © 2016 Pearson Education, Inc. 16-30 Initiating and Responding to Price Changes • Initiating cost increases ✓ Delayed quotation pricing ✓ Escalator clauses ✓ Unbundling ✓ Reduction of discounts Copyright © 2016 Pearson Education, Inc. 16-31 Initiating Cost Increases Copyright © 2016 Pearson Education, Inc. 16-32 Initiating and Responding to Price Changes • Anticipating competitive responses • Responding to competitors’ cost changes Copyright © 2016 Pearson Education, Inc. 16-33 Copyright © 2016 Pearson Education, Inc. 16-34 Chapter 15 Introducing New Market Offerings Copyright © 2016 Pearson Education, Inc. 15-1 Learning Objectives 1. How can new emanations be categorized? 2. What challenges does a congregation countenance in developing new emanations and services? 3. What organizational makes and wayes do managers use to superintend new-product development? 4. What are the ocean stages in developing new products and services? 5. What is the best way to contrive the stock of new conceptions? Copyright © 2016 Pearson Education, Inc. 15-2 Learning Objectives 6. What is the best way to contrive concept and management crop? 7. What is the best way to contrive the commercialization of new emanations? 8. What factors seek the rebuke of colliquation and consumer segregation of newly afloat emanations and services? Copyright © 2016 Pearson Education, Inc. 15-3 New-Product Options • Buy other companies • Buy patents from other companies • Buy a permit or franchise from another congregation • New-to-the-world items • Improvine solid emanations Copyright © 2016 Pearson Education, Inc. 15-4 Challenges in New-Product Development • The innovation imperative – Continuous innovation is a necessity • New-emanation achievement – Incremental innovation vs. disruptive technologies Copyright © 2016 Pearson Education, Inc. 15-5 New-Product Failure • Fragmented markets • Social, economic, and government constraints • Crop costs • Capital shortages • Shorter crop time • Poor enlarge timing • Shorter PLCs • Lack of organizational support Copyright © 2016 Pearson Education, Inc. 15-6 Organizational Arrangements • Budgeting for New-Product Development Copyright © 2016 Pearson Education, Inc. 15-7 Organizing New-Product Development • New-emanation crop concepts Newproduct department Stage-gate systems Venture teams Skunkworks Crowdsourcing Communities of practice Copyright © 2016 Pearson Education, Inc. 15-8 Figure 15.1 New-Product Crop Process Copyright © 2016 Pearson Education, Inc. 15-9 Generating Ideas • Interacting with employees • Interacting with outsiders • Studying competitors • Adopting creativity techniques Copyright © 2016 Pearson Education, Inc. 15-10 Ways to Find New-Product Ideas • Informal customer sessions • Time off for technical people to putter • Customer brainstorming • Survey your customers • “Fly on the wall” research • Iterative rounds with customers • Keyorder quest to scan dealing publications • Treat dealing shows as intelligence missions • Accept employees visit supplier labs • Set up an conception vault Copyright © 2016 Pearson Education, Inc. 15-11 Ways to drag new conceptions from customers ✓ Observe customers using emanation ✓ Ask customers encircling emanation problems ✓ Ask customers encircling romance emanations ✓ Use customer hortatory board ✓ Use Web sites ✓ Form stigma commonwealth of enthusiasts ✓ Challenge customers to better emanation Copyright © 2016 Pearson Education, Inc. 15-12 ADOPTING CREATIVITY TECHNIQUES Attribute listing Forced relationships Morphological analysis Mind mapping New contexts Reverseassumption analysis Copyright © 2016 Pearson Education, Inc. 15-13 Figure 15.2 Forces Fighting New Ideas Copyright © 2016 Pearson Education, Inc. 15-14 Using Conception Screening Copyright © 2016 Pearson Education, Inc. 15-15 Using Conception Screening • The congregation can mentor and amend its consider of the emanation’s aggravateall chance of achievement, using the forthcoming formula: Copyright © 2016 Pearson Education, Inc. 15-16 Concept to Strategy • Concept crop – Figure 15.3(a): emanationpositioning map – Figure 15.3(b): stigmapositioning map Copyright © 2016 Pearson Education, Inc. 15-17 Concept to Strategy • Concept trialing responses Communicability & believability Perceived value Need level Purchase intention Gap level User targets, purchase occasions & frequency Copyright © 2016 Pearson Education, Inc. 15-18 Concept to Strategy • Conjoint analysis – Deriving the utility values that consumers attach to varying levels of a emanation’s attributes Copyright © 2016 Pearson Education, Inc. 15-19 Figure 15.5 Utility Functions in Conjoint Analysis Copyright © 2016 Pearson Education, Inc. 15-20 Concept to Strategy • Marketing management crop forthcoming a successful concept trial 1. Target chaffer’s magnitude, make, & proceeding; the adapted stigma positioning; the sales, chaffer divide & acquisition goals in pristine few years 2. Adapted cost, division management, and marketing budget for the pristine year 3. Long-run sales & acquisition goals and chafferingmix management aggravate time Copyright © 2016 Pearson Education, Inc. 15-21 Concept to Strategy • Business analysis – Estimating entirety sales – Figure 15.6: Emanation LifeCycle Sales for Three Types of Products Copyright © 2016 Pearson Education, Inc. 15-22 Concept to Strategy • Estimating costs and acquisitions Copyright © 2016 Pearson Education, Inc. 15-23 Development to Commercialization • Emanation crop – Physical prototypes – Customer trials: alpha & beta trialing Copyright © 2016 Pearson Education, Inc. 15-24 Development to Commercialization • Chaffer trialing – Consumer-goods chaffer testing – Business-goods chaffer testing Copyright © 2016 Pearson Education, Inc. 15-25 Methods of Consumer-Goods Market Testing Sales-wave research Simulated trial chaffering Controlled trial chaffering Test chaffers Copyright © 2016 Pearson Education, Inc. 15-26 Development to Commercialization • Commercialization: When (Timing) First entry Parallel entry Late entry Copyright © 2016 Pearson Education, Inc. 15-27 Development to Commercialization • Commercialization – Where (Geographic Strategy) – To Whom (TargetMarket Prospects) – How (Introductory Market Strategy) Copyright © 2016 Pearson Education, Inc. 15-28 The Consumer-Adoption Process • Adoption – An individual’s resolution to befit a regular user of a emanation Copyright © 2016 Pearson Education, Inc. 15-29 Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption Copyright © 2016 Pearson Education, Inc. 15-30 Factors Influencing the Adoption Process • Promptness to try new emanations and idiosyncratic influence Copyright © 2016 Pearson Education, Inc. 15-31 Factors Influencing the Adoption Process • Characteristics of the innovation ✓ Relative advantage ✓ Compatibility ✓ Complexity ✓ Divisibility ✓ Communicability Copyright © 2016 Pearson Education, Inc. 15-32 Factors Influencing the Adoption Process • Organizations’ promptness to annex innovations Copyright © 2016 Pearson Education, Inc. 15-33 Copyright © 2016 Pearson Education, Inc. 15-34 ...
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