...Lourdes concern that if she has better information she can make better pricing decision and do better sales planning. While Greg will have better info for making process improvement which can reduce the cost. the information they have might lead to production in larger batches and lesser shipment. if they make better decision making, this will lead to higher profits and larger bonuses. Q3 What are the effect, if any, of changing the company’s costing method? Specifically, are the differences between these three methods significant in term of? a) Their effect on individual product costs? Changing the costing method does have material effects on product costs: ODD TGD Existing costing method 232.00 255.00 Proposed ABC method 211.96 295.08 “In-between” method 218.12 282.76 Both direct material and direct labor cost are mostly similar in all systems. The difference are in the assignment of overheads to product. Althought the production of the 2 products use different amount of overhead, they are still been allocated equally in the existing system The proposed ABC system uses multiple cost pools, which better effect the individual products consumption of overhead resources. The ODD get less overhead, so full reported cost go down (-8.6%)relative to the...
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...Survival Strategies: After Cost Cutting, Companies Turn Toward Price Rises --- They Don't Call Them That, But Some Trim Discounts And Add New Premiums --- Charging Extra for Odd Sizes By Timothy Aeppel 1,783 words 18 September 2002 The Wall Street Journal (Copyright (c) 2002, Dow Jones & Company, Inc.) Inside the walls of American industrial companies, something unusual is going on: an all-out search for new ways to charge more money without raising prices. Goodyear Tire & Rubber Co. has chopped discounts to its biggest distributors, which had been taking advantage of favorable prices to undercut Goodyear elsewhere. Jergens Inc., a Cleveland industrial parts maker, has started charging big premiums for small orders of fasteners that it used to price like larger orders. Union Pacific Corp. has started charging its rail-freight customers as much as 40% extra for faster delivery. Low inflation and fierce global competition are huge barriers to price increases. But in a weak economy, many companies have already jumped through hoops to cut costs and boost productivity. So now they need to find new ways to wring more money from their customers. For many industrial companies, there's some room to maneuver because they haven't looked at pricing this way before. Their businesses have run on bulk rates charged for commodities -- some of them measured by weight -- with big discounts for big volumes. Many are used to seeing prices go down over time, not up. The quest for ways to reverse that...
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...MANAGERIAL ECONOMICS DRM 12 VBHA SURENDAR CHHAJED MANONMANIAM SUNDARNAR UNIVERSITY ENROLLMENT NO:A11QO5166003 1. Explain Balance of Payments in detail? Balance of payments (BoP) accounts are an accounting record of all monetary transactions between a country and the rest of the world. These transactions include payments for the country's exports and imports of goods, services, financial capital, and financial transfers. The BOP accounts summarize international transactions for a specific period, usually a year, and are prepared in a single currency, typically the domestic currency for the country concerned. Sources of funds for a nation, such as exports or the receipts of loans and investments, are recorded as positive or surplus items. Uses of funds, such as for imports or to invest in foreign countries, are recorded as negative or deficit items. A country's balance of payments is said to be in surplus (equivalently, the balance of payments is positive) by a certain amount if sources of funds (such as export goods sold and bonds sold) exceed uses of funds (such as paying for imported goods and paying for foreign bonds purchased) by that amount. There is said to be a balance of payments deficit (the balance of payments is said to be negative) if the former are less than the latter. The two principal parts of the BOP accounts are the currentaccount and the capital account. The current account shows the net amount a country is ...
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...slow weekend sales at his restaurants. It was such a hit that Subway introduced the idea to all of its 33,000 outlets, and in 1 year it generated $3.8 billion in sales. One marketing consultant asks, “Is the $5 foot long just a flash in the pan, or is it a function of consumer price points and price elasticity that affect all markets?” What do you think? I think that it is a function of customer price point and elasticity that affects the markets because if the customer can now afford the product the demand for that product will increase. In the case of the Subway people didn’t purchase the product during weekends because it might have been expensive. 2. What does a price represent to the customer? Why is a customer orientation to pricing important? Price is the monetary value of a good or service. It is a measure of what a customer is required to give up in obtaining these goods or services. For an individual, price is a reflection of value. We, as individuals, may tend to pay no more than what we believe the good or service is worth. In the total marketplace, all potential customers evaluate the availability goods and services and therefore establish the demand for each. Value, like beauty, is in the eye of the beholder. When setting price for any good or service, it must involve an analysis of how the market views the value of that product or service. Entrepreneurs must develop a keen sensitivity to the psychological and economic thinking of their customers if they...
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...together or work at odds with one another to deliver a coherent whole? What elements are missing? The “Fair and Square” repositioning strategy is a value-based proposition, where J.C. Penney (JCP) is attempting to capture more value through everyday low prices (EDLP) and alter the perception of customers to see JCP as an everyday shopping experience versus a store that thrives on deals and promotions. This issue that JCP is running into is price is not a way to create value, it is a strategy to capture value. A company strategy that is focused on price neglects the value creating elements of the marketing mix that really create long-term value and success of the overall strategy. Neglecting to conduct market research to assess customers’ current perception of JCP and their thoughts on the pricing change was the first critical mistake. In terms of performance, JCP knows they are positioned between price-oriented mass merchandisers, such as Wal-Mart and Target and higher end department stores like Macy’s and Nordstrom. However,...
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...I. Major Steps in Merchandise Buying and Handling A. Merchandise management is the analysis, planning, acquisition, handling, and control of the merchandise investments of a retail operation. Exhibit 9.1 illustrates the major steps in the merchandise management process. 1. Analysis is used in the definition because retailers must be able to correctly identify their customers before they can determine the needs and wants of their consumers. 2. Planning is included because retailers must often purchase their merchandise six to 12 months in advance of the selling season. 3. The term acquisition is used because, with the exception of service retailers, merchandise needs to be bought from others, either distributors or manufacturers. 4. Handling ensures that the merchandise is where it is needed and in the proper shape to be sold. 5. Control of the large dollar investment in inventory is important to ensure an adequate financial return on the retailer’s merchandise investment. . B. Merchandising, though only a subfunction of retailing, is its heartbeat. It is the day-to-day business of all retailers. As inventory is sold, new stock needs to be purchased, displayed, and sold once again. II. Dollar Merchandise Planning A. A high build up of inventory indicates that either the retailer has too much money tied up in inventory or is not making the sales it was expecting and is heading for trouble. Likewise, a retailer who is frequently out of stock...
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...- Organization and Management……………………………12 * Classification from Retailer’s point of view……………………………..14 * Positioning of the Retail store…………………………………………………16 * Location * Merchandise Assortment Planning * Merchandise Pricing at Crossword * Communication via promotions * Competitive Objectives & Its Competitors………………………………22 * What Lies Ahead & Challenges……………………………………………….23 * The CD with the report contains- 1) Interview in a video format of the CEO of CROSSWORD. 2) Video of the store layout of two locations in Pune namely Kalyani nagar & S.B.Road. 3) Softcopy of the Final Report References……………………………………………………………………………..24 ABSTRACT “Making Crossword Was A Dream, A Belief, and A Passion. The Dream Was To Make A World-class Book Shop, The Belief Was That Books Make A Difference, And The Passion Was In The Magic Of Books And For Delighting Customers.” Mr.R.Sriram (CEO Crossword) Retailing...
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...to explain them in the context of how a real-world or hypothetical business is able to capitalize on them. - E-marketing- The strategic process of distributing, promoting, pricing products, and discovering the desires of customers using digital media and digital marketing. - Characteristics of e-marketing: Addressability- The ability of a marketer to identify customers before they make a purchase. Example- digital media technology makes it possible for customers to identify themselves and provide information about their product needs and wants before their purchase. Social Network- Web-based meeting place for friends, family, coworkers, and peers that allow users to create a profile and connect with other users for purposes to get acquainted, to keeping in touch. Example- By becoming “friends” with other consumers on these social networks, companies are able to gain more access to consumer preference. Interactivity- Allows customers to express their needs and wants directly to the firm in response to its marketing communicators. Example- Having a feedback page that the firm offers to customers. Accessibility- The ability to obtain digital information. Example- Firms can go to different websites to request ideas for new products. Connectivity- Use of digital networks to provide linkages between information providers and users. Example- Is one of the key contributions of social networking, connecting customers with marketers as well as with other customers. Control-...
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...ASSIGNMENTS FOR MARKETING PRINCIPLES Assignment #1 – An Introduction to Marketing Read chapter 1. Be prepared to answer the following questions if called on. 1. What is marketing? 2. What is a market? 3. Define the terms ultimate consumers and organizational buyers. Give examples of each. 4. What is a target market? Why do most organizations focus on satisfying the needs of one or more subgroups of a market rather than the entire market? 5. What are the four controllable marketing mix factors that make up the organization’s marketing program? 6. What are uncontrollable environmental factors? 7. Identify and describe the four distinct stages or eras of the market orientation. 8. Is marketing good or bad for a society. Support your answer. Find an article that supports your argument and attach a copy. Be prepared to discuss your article in class. Consider a society with no marketing. Assignment #2 – Strategic Planning and the Strategic Marketing Process Read chapter 2. Be prepared to answer the following questions if called on. 1. What is strategic planning and why is it important? 2. Identify and define the three organizational levels. 3. What is a mission statement? 4. What are organizational objectives (goals)? Give some examples of different types of objectives (goals) organizations might pursue. 5. What are organizational strategies? 6. What is business portfolio analysis? Draw an example of a growth-share...
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...“Reflect” Questions - based on the lessons so far 1) Explain the difference between standardisation and customisation. Standardisation means that companies learn to operate as if the world were one large market – ignoring regional and superficial differences (Levitt). To speak specifically, executives aim to sale the global products what are the best-value product with high quality, best technology and low prices in different national markets. Its mission is modernity and its mode, price competition, even when it sells top-of-the-line, high-end products. It knows about the one great thing all nations. Moreover, the strategy of standardization not only responds to worldwide homogenized markets but also expands those markets with aggressive low pricing. Furthermore, the standardisation pays more attention on the extras such as status, brand image and promotion. And the total cost of designing is lower than that of customization. While, compared to customization, it focuses on understanding customers. To be speak specifically, depending on the cultural diversity, the executives pay more attention on realizing the choice criteria of customers, the purchase ways of customers, the purchase frequency. Its mission is to design the different products based on the different needs of different national customers. It knows a lot about a great many countries and congenially adapts to supposed differences. Moreover, due to the different designs, it need to pay more cost on...
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...Pricing to Market and the Real Exchange Rate Author(s): Hamid Faruqee Reviewed work(s): Source: Staff Papers - International Monetary Fund, Vol. 42, No. 4 (Dec., 1995), pp. 855-881 Published by: Palgrave Macmillan Journals on behalf of the International Monetary Fund Stable URL: http://www.jstor.org/stable/3867601 . Accessed: 22/02/2013 10:54 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. . Palgrave Macmillan Journals and International Monetary Fund are collaborating with JSTOR to digitize, preserve and extend access to Staff Papers - International Monetary Fund. http://www.jstor.org This content downloaded on Fri, 22 Feb 2013 10:54:55 AM All use subject to JSTOR Terms and Conditions IMFStaffPapers Vol. 42, No. 4 (December1995) © 1995International Fund Monetary Pricing to Market and the Real Exchange Rate HAMID FARUQEE* Thispaper investigates the consequences of pricing to marketfor exchange ratepass-through and real exchange rate dynamics across differentpatterns of trade. Under two-way, intraindustrytrade-where...
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...and not only is it the most expensive, but in many areas such as quality of care, America is no where near the top among developed countries (Davis, Stremikis, Squires, & Schoen, 2014). The purpose of this paper is to show how democratic leadership along with power-coercive and empirical-rational can help implement this new healthcare law. This paper will also discuss the importance of committees and economics on this new law. Democratic Leadership To enact such a massive law as the affordable care act one must be willing to work and listen to others to get the best information on this topic. In this type of leadership it is of the utmost importance for the leader to have participation from the group. There are major political differences in the United States right now. Using this type of leadership would bring representatives from both sides of the aisle together. This type of leadership uses open discussion and questions to help come to a conclusion. Many people do not like to be told what to do just because someone says to do it. This type of leadership would not only help people work together for one common goal, but it will also bring about the best ideas because it opens a dialogue from a group that otherwise may not have discussed this together. This type of leadership has been found to be highly...
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...make informed decisions, hopefully leading to products that consumers want in sufficient numbers to achieve commercial success. Forecast future trends - marketing research can not only provide information regarding the current state of the market but it can also be used to anticipate future customer needs. Firms can then make the necessary adjustments to their product portfolios and levels of output in order to remain successful. Q2: Explain the difference between primary research and secondary research? Primary Research vs. Secondary Research Primary research and secondary research are two terms that are to be understood differently due to the fact that they differ in their concepts and methods. One of the major differences between primary and secondary research is that primary research is conducted with the help of the primary sources available whereas secondary research is conducted on the basis of some data collected from someone who had got it from some source. Let us take an example to point out the difference between primary research and secondary research. Interviewing someone is primary data and it would lead to conducting primary research because of the fact that you conduct the research from the source itself. Imagine you have written a book based on the interview that you have conducted. If...
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...CONTANT INDEX S/L 1 2 CONTANT NAME What is Price Importance of Price PAGE 1 2 4 4 9 9 9 14 16 16 17 22 23 27 30 32 32 34 36 48 49 50 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Objectives of Pricing Pricing Techniques Categories of Pricing Methods New Product Pricing Policies Product Mix Pricing Strategies Product Line Pricing Five geographical strategies Pricing in Practices Two-Part Tariff with Two Consumers Bundling in Practice Pricing science Pricing of Multiple Products Products with Interrelated/Interdependent Demand Pricing Practices in Market Economy 25 Theories To Get You Started Arbitrage pricing theory Cost-of-production theory of value Multiple-product Pricing Multi-product pricing Conclusion 1 Pricing Practices Pricing practices sometimes seem peculiar. When first-class hotel rooms in London, Tokyo, or Paris go for $300 to $500 per night, Holiday Inns offers Weekend WebSaversSM rates at Chicago’s O’Hare International Airport from as low as $62.48 per night—more than 50 percent off regular prices. Not to be outdone, Howard Johnson’s says vacations are more fun with family package rates up to 70 percent off regular prices. Meanwhile, Marriott offers advance purchase rates on the Internet for as low as $59 per night at the Courtyard Marriott Village at Lake Buena Vista, Florida. At the Hilton Durham, in North Carolina, weekday rates are $109.95 and $89.95 on the weekend. What is going on here? Rather than a mad scramble to build market...
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...2.1 Assess the main barriers to marketing planning. According to Business Dictionary, marketing planning “refers to the process of analyzing one or more potentially interesting marketplaces in order to determine how a business can optimally compete in them.” There are numerous barriers in marketing planning such as: Target Market When a company is uncertain about its target market and whether it is the right one may stand as a barrier for marketing planning. The reason that companies have target markets is to be able to work their way towards that target. The product or service that they will be designing will be according to the characteristics and tendencies of that target. In the case of Athena Milk, the company used an endorser such as Anne Curtis; a strong, independent working woman. Environmental Barriers Environmental barriers include factors such as social, legal economic, political, technological, and ethical norms; it may post major barriers to marketing planning by placing restrictions or limitations in the way the business interacts with the environment. (Scheid, 2011) Regulations may prevent comparison marketing when market surveys indicate the best form of marketing as comparing the product with the competitor’s substandard product. Cultural Barriers Cultural barriers are essentially factors that have to do with how the customers are raised or what has been accustomed to them. Factors that are included in cultural barriers are language, behavior,...
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