...strategic issues and problems The overall strategic issues revolve around achieving a ‘successful game organization’ by all standards, both domestically and internationally. The domestic components of success involves the participation of the local fans and population who must be seen to have patronized event as much as possible through fair pricing and proximity. The international yardstick for the measurement of the game relates to event organization, participation and patronage as well as meeting revenue targets. The major problems are how to strategically price tickets to the games to raise revenue and ensure equitable distribution, manage perception of observer-value judgment through television audience and other communication media worldwide in line with organizational objectives. There is also the need to ensure that, ticket pricing; accessibility, usage and the revenue implications help influence attendance to the games and perceptual value judgment of success (TV etc.) Analysis and evaluation Analysis of 2012 London Olympics games could be assessed using a SWOT management analytical tools and an examination of the strategic pricing policies and the tactical processes employed to manage the games to achieve projected goals. Strength: The provision of infrastructure and...
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...Tourism sector in Barcelona Tourism is something attractive to tourists because people attract people. According to the book La imagen percibida por los turistas de la ciudad de Barcelona by Espelt and Benito, conveys the idea of “priori perception is the mental construction that one makes about a place without having a physical connection with it; the in situ perception is the one that the tourist makes mixing the imagined and the reality; and the a posterior perception is the idealized one that we bring with us from the places” For over 200 years Barcelona was under Muslim rule and following the Christian reconquest it became a country of the Caroligian Empire. From the 15th to 18th centuries Barcelona entered a period of decline due to their economic and political independence management problem issues. A period of cultural recovery began in the mid 19th century with the arrival of the development of the textile industry and finally on the 20th century the widespread urban renewal throughout Barcelona city culminated in its landmark Eixample district as the place of the most distinctive Catalan art nouveau/modernista buildings area. Only 20 years ago from today, Barcelona hosted the Olympic games and this was the key issue to reafirm its potential as one of the attractive touristic city in Europe. Nowadays the economic crisis is affecting many different business markets and several of the companies are forced to close due to its incapability of maintaining a...
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...Strategic Export Pricing: A long and Winding Road The above qualitative journal will be critiqued by asking a series of questions using a two part process. The parts will be as follows, 1. Elements influencing the believability of the research – Focusing on what is expected from the research by asking questions about the researcher’s academic and professional qualifications 2. Elements influencing the robustness of the research – Many of the topics examined in research are of an abstract nature in that the particular experience may be interpreted differently by another individual Furthermore, the strengths and weakness concerning each area of the critique will be outlined. Elements influencing the believability of the research Writing Style: Is concise, correct, well organised but uses jargon in places but overall effectively written Author: Barbara Strottinger The paper does not mention the author’s academic qualifications or profession which is could be interpreted as lowering the merits of the paper. Report Title: Strategic Export Pricing -the long and Winding Road The title is clear, accurate and unambiguous/ written in 8 words Abstract: The abstract positively outlines an overview of the study, which looks at the primary reasons for exporting, home market saturation to advancement of new technology, leading to greater transparency in business...Therefore, making it harder to maintain cross market prices. The researcher clearly identifies the hypothesis...
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...Since the 1973 oil price shock, the history and behaviour of the Organization of Petroleum Exporting Countries (OPEC) have received considerable attention both in the academic literature and in the media. Many conflicting theoretical and empirical interpretations about the nature of OPEC and its influence on world oil markets have been proposed. The debate is not centred on whether OPEC restricts output, but the reasons behind these restrictions. Others explain production cuts in the 1970s in terms of the transfer of property rights from international oil companies to governments (Johany, 1980; Mead, 1979). Others explain output restrictions in terms of coordinated actions of OPEC members. Within the literature, OPEC behaviour ranges from classic textbook cartel to two block cartel (Hnyilicza and Pindyck, 1976), to clumsy cartel (Adelman, 1980), to dominant firm (Salant, 1976; Mabro, 1991), to loosely co-operating oligopoly, to residual firm monopolist (Adelman, 1982) and most recently to bureaucratic cartel (Smith, 2005). Others have suggested that OPEC oscillates between various positions but always acts as a vacillating federation of producers (see for instance Adelman, 1982; Smith, 2005). The existing empirical evidence has not helped narrow these different views. Griffin’s (1985) observation in the mid-1980s that the empirical studies tend to “reach onto the shelf of economic models to select one, to validate its choice by pointing to selected events not inconsistent...
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...*Price: The amount of money charged for a product or service, or the sum of the values consumers exchange for the benefits of having or using the product or service. > Major pricing strategies *Considerations in setting price [Figure 9.1], [Figure 9.2] -Customer perceptions of value = Price ceiling (No demand above this price) Assess customer needs and value perceptions -> set target price to match customer perceived value -> determine costs that can be incurred -> design product to deliver desired value at target price -Product costs = Price floor (No profits below this price) Design a good product -> determine product costs -> set price based on cost -> convince buyers of product’s value 1. Customer value-based pricing: setting the price based on buyers’ perception of value, rather than on the seller’s cost. a. Good value pricing: offering just the right combination of quality and good service that customers want at a fair price. E.g. Mcdonald’s offer value meals and dollar menu items. Small and less expensive models in Armani car companies. b. Value-added pricing: rather than cutting prices to match competitors, marketers adopting this strategy attach value-added features and services to differentiate their offerings and this supports higher prices. 2. Cost-based pricing: setting prices based on the costs for producing, distributing and selling the product, plus a fair rate of return for its effort and risk. E.g. Woolworth, Dell (lower...
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...Chapter 9 Pricing: Understanding and Capturing Customer Value Previewing the Concepts: Chapter Objectives 1. Discuss the importance of understanding customer value perceptions and company costs when setting prices. 2. Identify and define the other important internal and external factors affecting a firm’s pricing decisions. 3. Describe the major strategies for pricing imitative and new products. 4. Explain how companies find a set of prices that maximize the profits from the total product mix. 5. Discuss how companies adjust their prices to take into account different types of customers and situations. 6. Discuss the key issues related to initiating and responding to price changes. Just the Basics Chapter Overview Pricing is the second element in the marketing mix. It plays a powerful role, and that role is detailed in this chapter. There are several sections to this chapter and a lot of material to address. The chapter begins with discussing what a price actually is. It makes the point that price is more than just the money the buyer hands over to the seller—the broader view is that the price is the sum of all the values that the buyer exchanges for obtaining or using the product. There is also a brief discussion of dynamic- versus fixed-price policies, and how we as a society have evolved from dynamic to fixed and back to dynamic again. The chapter then moves into the heart of pricing. Both internal and external factors that...
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...Fig 1. The Modern Coffee Shop Marketplace A relatively mature market with fierce competition. The focus is on increasing Marketshare, mainly through outlet expansion, Premiumisation of products to Differentiate and increase prices to influence the average spend per visit; along with NPD and creating new channels to new markets, i.e. PRC. Specialists add value through their expertise and dramatic show of Barista skills. Brand Loyalty is low, with consumers under pressure due to static wages/rising prices. To offset, retailers offer miniatures/vending, improved convenience and create new occasions to visit stores. Fig 2. Porter’s Generic Strategies (1980) – Strategies to increase marketshare (outlet expansion) & loyalty Differentiation * | Premiumisation of products/services to differentiate & charge higher prices - Increasing spend per visit by consumer-driven N.P.D | Focus | A niche market strategy is not suitable; focus is on mass market & intense penetration with diversification of products/services | Cost Leadership | Low prices is not congruent to the Brand Values of Starbuck’s - Premium price for high quality products & customer service/experience | Fig 3. Porter’s 5 Forces - Market Attractiveness – 60% of consumers have not altered coffee habits in recession Competitive Rivalry Mature & Fierce * Branded coffee shops focus on premiumisation & quality of services - Barista expertise to emphasise their ‘added value’ * Independents...
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...Introduction Avon is a 125 year old beauty product manufacturer, who has for over a century left a mark on millions of people throughout hundreds of countries. Avon is most popular for their direct selling technique in which the company sells products directly to distributors or final consumers rather than to trading companies or other intermediaries in order to achieve greater control over the marketing function and to earn higher profits. While this method has proven to be successful for Avon and has certainly contributed to their longevity in the market, there are still crucial factors imposing on the company’s global presence throughout the world. The case study “Avon Calls on Foreign Markets” shed light on issues related to branding, pricing, promotion, as well as distribution. Throughout this analysis, I have identified the shortcomings of Avon over the decades and have also provided recommendations for moving forward. Global Branding Avon is known for their standardized branding, which allows the company to create a uniform global quality image while saving costs by using uniform ingredients and packaging. While this method may be helpful in increasing sales in Thailand as consumers prefer to buy beauty products made by foreign companies, this may not necessarily always work out to Avon’s advantage. For instance, Daniels et al (2011) reveals several barriers to uniform branding that Avon should most certainly be aware of. For many different countries and cultures, language...
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...university to attempt to provide both nutritious and palatable food for diverse student body. With little alternative to the food provided on-campus, students often have to rely on the cafeteria service to supply them with their daily caloric intake. Add to this the caveat of international students from all over the world and the problem becomes even more challenging A unique challenge is dealing with the adjusting to a diet that is based on principals foreign to the student. For example, a school that provides a vegetarian diet would be a unique experience for many international students. Living in such a context may be challenging for them. As such, how does this experience with such a diet impact the student’s perception of the food services? In addition, does such an experience with the food have any affect on the students’ satisfaction with the university? Student satisfaction is a critical component in students’ persistence to complete their degree (Schreiner & Nelson, 2014). Many studies have examined student satisfaction (Douglas, Douglas, McClelland, Davies, 2014; Gruber et al., 2014; Schreiner & Nelson, 2014). However, a closer examination of the impact of international students’ perceptions of vegetarian...
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...increasingly ecologically conscious marketplace in New Zealand. In this context, the new environmental friendly products called Standard Eco-Shack and Urban Eco-Shack invented by Doug and Paul will be launched to penetrate the market. The challenges of marketing strategy will be faced by Doug and Paul because these two owners have no experience on marketing. In order to attract the customer attention and preference, brand positioning and value-based pricing strategy will be used to implement as marketing programs. In the long-run sustainability and growth, Doug and Paul will consider using the loyalty program to keep long term relationship with customers. Table of Contents Executive Summary 1 1.0. Introduction 3 1.1. Purpose 3 1.2. Case Summary 3 1.3. Relevant marketing theory definition and explanation 4 2.0. Problem/Issues Identification 5 3.0. Issue Analysis 6 3.1. Market Segmentation 6 3.2. Targeting consumers 7 3.3. Product positioning and branding strategy 8 3.4. Marketing mix (only pricing strategy focus) 8 3.5. SWOT Analysis 9 4.0. Recommendations/Choices of Solution 10 5.0. Conclusion 11 List of Reference 13 1.0. Introduction 2.1. Purpose Many organizations spend a lot of time, resources, and energy setting up the new business from sustainability to growth. Festus M Epetimehin (2011) stated that although it is important to replace lost business, one of the primary goals should be to keep existing customers...
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...The customer–marketing experience on premium products (brands) 1.0 Introduction / Needs and Wants The content of marketing included the important concept which is the customer needs and wants of a product by research and development. This are consist of measuring the product value, the advantages of a product to a customer, the pricing, quality of product. Furthermore there are also including of the place and the promotion of the product. 1.1 Needs Needs that defined as the natural sight of a human personality that needed something very important and must have condition in daily life but it can be affected by the marketing environment. There are such as the physical needs including foods, clothes, and accommodation; while the social needs including belonging and affection and last which is the individual needs such as knowledge and self-expression. According to Kotler and Keller (2009) needs are the basic human requirements. People need foods, air, water clothing, shelter to survive and people also have strong needs for recreation, education and entertainment. 1.2 Wants Wants that defined as the human needs that shaped by culture, individual personality and the demand to have something, which are products and services. According to Boyd, Walker and Larreche (1998) wants reflect a person’s desires and preferences for specific ways of satisfying a basic needs. For example, a company needs office space and its top executives want an office at a prestigious address in midtown...
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...Marketing and Supply Chain Dominoz cast study While prices of Dominoz in china are slightly lower than in US, store sales volume is more than double the US average. Unlike in US, where home delivery is dominant, in china it accounts for only 10-15% of volume. The International Marketing Challenge As in case of Dominoz, the product completely deviates from local teastes and customs in china. International markets offer vast opportunities for firms with a product or service in high demand. Howeer globalization also brings about intense competition in markets that in the past have been domincated by domestic firms. Newness, cultural adaptation, attractiveness, and appropriate marketing strategies can help tremendously. Following are the factors for success in international markets: 1. Accurate assessment of market potential 2. Selection of right product mix 3. Appropriate adjustment in distribution 4. Pricing 5. Packaging 6. Advertising Assessing Market potential To assess market potential, firms seek to identify the aggregate demand for a product and estimate the costs associated with product introduction and distribution. Population growth provides a coarse estimate of future market potential and so do consumption patterns, which are dynamic. Accessibility, profitability and market size all play a major role in deciding market priority. Globalization and Localization in International Markets Striking a balance between globalization and localization...
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...and the rest is from overseas purchases. Admittedly, consumption of the luxury products is beneficial for economy, but overseas purchase is an issue that has negative impact on economic development of China due to capital outflow. World Tourism Cities Federation (2014) shows that 44% of the Chinese tourists travel abroad for shopping. The huge price gap between Mainland China and some other countries is the most important reason that result in overseas purchase. Therefore, there is a debate about whether or not to cut down tariffs of the luxury products to solve this problem. Although cutting down tariffs of the luxury goods seems to be an effective way to attract Chinese consumers to make their purchases domestically, in this case, cutting down the tariffs of the luxury products is useless, because reducing import duties has little effect on the price of domestic luxury products. Instead, it is the pricing strategies of international luxury companies that play a more important role in the Chinese market, which price the luxury products very high in the Chinese market. This literature review will demonstrate that much lower price of the luxury products in overseas market is the most important reason that result in Chinese consumers' overseas purchase. However, cutting...
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...Service Marketing SETTING PRICES AND IMPLEMENTING REVENUE MANAGEMENT Professor: Faye Alcayde Presented by: Carag, Klark Joshua Dela Cruz, Ruth Angela Fenomeno, Dunhill Paolo Munoz, Karl Maywin Palad, Ray Angelo Posada, Rodrigo Effective Pricing is Central to Financial Success “Marketing is the only function that brings operating revenues to the organization.” Business model it is a mechanism whereby through effective pricing, sales are transformed into revenues, costs are covered and value is created for the owners of the business. Pricing the services a firm offers is not easy, because not everyone has the same reaction/ perception of it if the price is right or not. Prices when it comes to the service industry can be sometimes unethical of price discriminatory because sometimes not everything can be executed well due to the Ex. weather, time, risks and delays. Objectives for establishing prices It is not easy to decide prices. Businesspersons must know how to create good profit while at the same time establish a demand, create a need and create a good customer base. * Seek profit * Cover costs * Build demand * Build a user base Generating Revenues and Profits Financial success is essential to all businesses because it makes the business run. A firm aims to maximize its gains & profits for the long run. Prices should be based on knowledge, competition, price elasticity of market segments and the perception of the people to your service...
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...4. MICRO ENVIRONMENT (Porter 5 forces) 5 5. SWOT MODEL 5 5.1 Strengths 5 5.2 Weaknesses 6 5.3 Opportunities 7 5.4 Threats 7 6. CHALLENGES 7 7. MARKETING INFORMATION 7 8. CRITICAL ANALYSIS OF THE CURRENT PLAN 8 9. POTENTIAL STRATEGIC OPTIONS FOR VISIT BRITAIN 8 10. RECOMMENDATIONS WITH JUSTIFICATION OF THE CHOSEN STRATEGIC OPTIONS 9 11. MARKETING MIX 9 References 18 1. INTRODUCTION: As a marketing consultancy team, we have been asked to review the current marketing plan of Visit Britain that was put together by an inexperienced marketing team. Visit Britain is a large tourist organisation, whose aims is to increase inbound tourism in Great Britain and to improve Britain’s ranking in the eyes of international travellers but also to expand the tourism industry. (VisitBritain, 2013) This report will require a Marketing This audit will critically analyse the current plan, it will identify areas that needs improvement on the plan also recommending strategies and tactics that can help Visit Britain to achieve their objectives with justification. This report will explore the macro environment, the micro environment and the internal environment of visit Britain using PESTEL, SWOT, and 5 PORTAL FORCES Models. Few growth strategic options will also be recommended justifying one of the only one of the strategy then growth marketing mix will be outlined in support of the strategic options recommended. 2. SITUATIONAL ANALYSIS The first decade...
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