Category strategic management

Pricing Strategy


While developing your pricing strategy, it is important to remember that there is an implicit relationship between price and value. We expect to pay more for gourmet food than for fast food and for a luxury car than for an economy model. At the same time, value is a matter of opinion, not fact.In order to get this information, you need to use a research tool that will give you the data in a clear, concise, objective manner. Because if you are researching eBay pricing and sell-through rate data by "eye-balling it" on eBay, you're very likely going to miss something.Product line pricing strategies can be further complicated by competitive activity by product, not exclusively by line. If you have five competitors for one of your products in the line, and then only two competitors for the other products in the line, you might use a different price strategy for the product with lots of competition, than the other line products.The challenge for businesses with this strategy will come from having too many competitors in the market. If there are too many competitors, each with a full line of products in the varying stages of the product life cycle, buyers will find it difficult to make decisions based on quality or service or value for the price.For new product in a new market, the cost mark-up is the most popular method. There is no need to think about pricing at all, just simply add an amount of profit on top of the cost and that is the final price.

At first, the method may seem attractive but eventually the sellers will find out that their profit is not up to their expectation, and the customers are suspicious of the attractive price.Pricing your product or service is one of the most important issues that you need to tackle. You must be wondering as to what is the procedure to follow to develop the best pricing strategy for your company. While there is no particular approach that you must adopt, definitely, there are some important things that you should bear in mind while creating one.Other factors that affect your pricing strategy are the economics of your business. Depending on the current situation of your business's performance, your mark-on has to ensure sufficient profits to sustain your business. Sometimes, to increase your sales volume, you can lower your mark-on to price selected merchandise.Today's buyers prefer to waiting for the 1st price reduction before they come in - to see some flexibility on the part of the seller.

The bigger the "hair cut" the more assured the buyer feels about getting a deal. A steal, even! Exactly the same way one feels at the mall when a $400 jacket is on sale for 75% off!Businesses using market penetration pricing are usually trying to penetrate the market by growing their share of the market. They assume that the lowest price will win market share. Make sure that if you use this pricing strategy that you test your market, your price sensitivity and your price elasticity or in-elasticity first.This pricing strategy is also used in product line pricing. This strategy bundles, and usually packages, like products together to be priced as companions (for example, a mixer and a mixing bowl) and as captives (for example, pens that have to have a specific refill (not generic), razors that can only use a specific blade, etc.).

Services And Trends of Trade Service Solutions


Trade services are soon emerging as one of the crucial areas for research and policymaking in terms of the global trade scenario. A General Agreement of Trade-in-Service (GATS) was implemented back in 1995. However, it was only recently that there was the realization of close link ups between goods and service exports, and the development of an improved information system, that researchers have given greater significance to trade certain aspects for instance "Comparative Advantage" and "Trade Liberalization".

However, since efficient research on this same lagged, the negotiations and policy analysis have to supplement whatever assessment can be gained on the service sector.An essential cause for the lack of systematized structured facts and data concerning services exports is due to the diverse nature of the industries that constitutes it. The World Trade Organization clearly defines 12 service industries, where every industry segment highlights a distinguished trait, measurement concerns and economic incidence. Furthermore, each service industry section has four trade modes in it and that trade in services comprise of imports and exports as well.Recently, there has been a rise in the trade servicesorganizations providing a shared data platform, over multiple vertical markets to enable the trading members interact with others and operate their regular business.

The features and functions of trade and service companies are built on this aspect. At the same time, constituents in every market need the appropriate business information on which certain time-sensitive and critical decisions depend. Essential information generally source from incongruent sources and hence, organizations need to come up with a procedure to efficiently interpret and manage it. Eminent trade in service enterprises specializes in the following sections:-These services help them in gaining a competitive advantage over the other market players.Recently, numerous service providers in trade services offering in the product and pricing data to the electrical industry have come with up innovative pricing solutions. To elucidate, solutions that offer an internet base user data system thereby providing end consumers and users with an advanced and detailed outlook on every manufacturer price as well as product developments in the future years. The admission to these systems in customized for every single distributor available via a secure username and password. To share few names would be the electrical pricingand copper pricing.

Using Social Media to Build Viral Customer Trust


As the Wall Street Journal reported recently, sixty-five percent of all U.S. adults now use social-networking sites, up from 61% a year ago and just 5% in 2005. This is no big surprise for those of us who use social media for business, but it does underline the fact that social media is here to stay and that we would all be wise to explore the uniquely personal customer interactions it makes possible.As a marketing tool, social media is invaluable. It's free, millions of potential customers use it, and it's designed for SEO. While this is also probably old news, what many business owners are failing to recognize is the potential social media has to affect a business' reputation-and not always in a good way.Public interactions with customers happen every day online. On a business' website, customers post comments or questions. On a forum, customers discuss a business' products or services. But on a social network, those same sorts of customer comments reach a much wider audience-an audience of your customers, their friends and families and your competition.

Social networks are designed to encourage participation and conversation. This is wonderful for friends and families trying to keep in touch, but, if not managed carefully, it can become a huge problem for businesses.Many (maybe even most) businesses are built around customer service. Without solid customer care, a good business can go bad, and fast. Reputation has always mattered for business and now word-of-mouth is word-of-status-a single unhappy status update can do more damage than an in-person conversation ever could. On social networks social interaction isn't just public, it's virally public and in real time. Everyone sees a complaint when it appears and, more importantly, they see your response to that complaint. If you haven't thought through your social networking etiquette, you might just post something you'll regret.

The best way to handle this social animal is to develop an internal social media customer service policy. Discuss best practices with staff and quiz them on how to handle different sorts of customer feedback. Provide a script with a list of appropriate responses to some of your most common requests. Make sure to tell your staff when they can offer discounts or specials and remember the gum analogy: if you give it to one customer, you better be prepared to give it to the entire class.If you don't feel that you can trust your staff to follow your strict social media customer service policy, you can easily restrict access to your company account so that only the best customer representatives can post. Remind them often that every single interaction has a large audience.The good side of all this is that you can quickly build an excellent online reputation by making the most of social media. Customers can tell when another customer is being unreasonable just as easily as you can, and that helps your case considerably. If you handle your social media interactions well, you will build a powerful network of trust. This network may be more robust than any traditional network you could hope to build. As our technology provides us with tools that blur the line between personal and public, we will all be well advised to think carefully about how we play the field.

Application of Analytics


In this article we will talk about some of the successful applications of analytics. We will start this week with 2 different examples which I was reading recently from a podcast of Accenture and then move to some of the other industrial examples.1. Harrah's EntertainmentGary Loveman, CEO of Harrah's, was presenting at an event and sitting in the front row were all of his competitors. He stood up, he showed slide after slide that showed precisely how they use their loyalty card, how they did the analysis, what kinds of metrics they looked at. And their competition was writing everything down.

Finally, after about an hour of this, someone raised their hand and said, "Dr. Loveman, doesn't it bother you that your competitors are taking down every word you said?" He just looked quizzically at them for a minute and said, "No, not really, because by the time they figure out how to do what I just described to you, we will be so far ahead of them that they will never be able to catch up."2. A. C. Milan: A professional football club based in Milan, Lombardy and one of the most successful organizations.3.

Financial Industry (Credit Card) - Marketing Analytics: .4. Progressive Insurance Industry (Motorcycle Insurance) - Pricing & Risk Analytics: .That is really what makes analytics a sustainable differentiating strategy for these companies. It is because it is not about a single insight; it is about a set of processes they have, a way of using data and incorporating it into their decision making, that really helps them transform their business. It makes them much more able to maneuver changing business conditions; it makes them much more likely to anticipate changes in customers and markets; and, most importantly, it allows them to come up with different scenarios and understand how they ought to react to these changing market conditions.