How Should they Affect Pricing Decisions? Difficult Comparison Effect

In most companies, there is ongoing conflict between managers in charge of covering costs (finance and accounting) and managers in charge of satisfying customers (marketing and sales). Accounting journals warn against prices that fail to cover full costs, while marketing journals argue that customer willingness-to-pay must be the sole driver of prices. The conflict between these views wastes company resources and leads to pricing decisions that are imperfect compromises. Profitable pricing involves an integration of costs and customer value. To achieve that integration, however, both need to let go of misleading ideas and form a common vision of what drives profitability.decision, pricing, cost

Marketing Innovation through Price

The factors that influence pricing strategy change over the life of a product concept. The market defined by a product concept passes through four phases: development, growth, maturity, and decline. Briefly, the changes in the strategic environment over those phases are as follows: Market development. Buyers are price insensitive because they knowledge of the product’s benefits. Both production and not a threat since the potential gains from market development exceed those from competitive rivalry. Pricing strategy signals the product’s value to potential buyers, but buyer education remains the key to sales growth. Market growth. Buyers are increasingly informed about product attributes either from personal experience or from communication with innovators. Consequently, they are increasingly responsive to lower princes. If diffusion strongly affects later sales, price reductions ca substantially increase the rate of market growth and the product’s long-run profitability. Moreover, cost economies accompanying growth usually enable one to cut price while still maintaining profit margins. Although competition expansion, generally precluding the advent of price competition. Price-cutting to drive out competitors may occur, however. Cost advantages associated with sales volume are substantial if current market share is expected to determine which competing technology becomes the industry standard, or if capacity outstrips sales growth.market, strategy, price, competition

The Employee Stock Ownership Plan

The market approach values a corporation by reference to market-derived pricing multiples extracted from actual sales of comparative companies or securities. The most common market approach business/stock valuation methods are (1) the guideline merged and acquired company method and (2) the guideline publicity traded company method. All business/stock valuations are based on hypothetical sales transactions. In the market approach, there is a hypothetical sale of the corporate stock. The fact the company does not actually sell its stock does not invalidate the use of the market approach. Likewise, the fact that the company does not actually sell its assets does not invalidate the use of the asset-based approach. In a hypothetical sale of the corporate asset, a hypothetical BIG tax liability would be paid.price, gains tax, securities, transactions, stock, investment

Competitive Product Advantages

Cost advantages may be either internal or external. Internal economics of scope, scale, or experience, and external economies of focus or logistical inte¬gration, enable a company to produce some products at a lower cost than the competition. The coordination of pricing with suppliers, although not actually economizing resources, can improve the efficiency of pricing by avoiding the incrementalization of a supplier's nonincremental fixed costs and profit. Any of these strategies can generate cost advantages that are, at least in the short run, sustainable. Even cost advantages that are not sustainable, however, can generate temporary savings that are often the key to building more sustainable cost or product advantages later. Even when a product's physical attributes are not readily differentiable, opportunities to develop product advantages remain. The augmented product that customers buy is more than the particular product or service exchanged. It includes all sorts of ancillary services and intangible relationships that make buying the same product from one company less difficult, less risky, or more pleasant than buying from a competitor. Superior augmentation of the same basic product can add substantial value in the eyes of consumers, leading them to pay willingly what are often considerable price premiums.decision, investments , cost.

THE ANALYSIS AND THE ROLE OF THE FACTORS INFLUENCING PERCEPTIONS OF VALUE

In most companies, there is ongoing conflict between managers in charge of covering costs (finance and accounting) and managers in charge of satisfying customers (marketing and sales). Accounting journals warn against prices that fail to cover full costs, while marketing journals argue that customer willingness-to-pay must be the sole driver of prices. The conflict between these views wastes company resources and leads to pricing decisions that are imperfect compromises. Profitable pricing involves an integration of costs and customer value. To achieve that integration, however, both need to let go of misleading ideas and form a common vision of what drives profitability.decision, pricing, cost

Issues Related to a Reasonableness of Executive Compensation Analysis

In most companies, there is ongoing conflict between managers in charge of covering costs (finance and accounting) and managers in charge of satisfying customers (marketing and sales). Accounting journals warn against prices that fail to cover full costs, while marketing journals argue that customer willingness-to-pay must be the sole driver of prices. This article will further explain these reasons to conduct an independent reasonableness of executive/professional practi¬tioner compensation analysis. In addition, this article will discuss many of the typical factors that the independent analyst will consider in assessing the reason¬ableness of executive compensa¬tion for controversy, taxation, corporate planning, and corpo¬rate governance purposes.decision, pricing, tax

How Should they Affect Pricing Decisions? Difficult Comparison Effect

In most companies, there is ongoing conflict between managers in charge of covering costs (finance and accounting) and managers in charge of satisfying customers (marketing and sales). Accounting journals warn against prices that fail to cover full costs, while marketing journals argue that customer willingness-to-pay must be the sole driver of prices. The conflict between these views wastes company resources and leads to pricing decisions that are imperfect compromises. Profitable pricing involves an integration of costs and customer value. To achieve that integration, however, both need to let go of misleading ideas and form a common vision of what drives profitability

Integration Perspectives of the Communication Management within Organizations’ Policy

While the marketing specialists reach the conclusion that building a brand in the XXI century signifies customer relationship development in a permission marketing approach, the public relations starts to be the pillar of the brand strategy. The target public coverage level and frequency, the coordinates in which advertising proved to be traditionally more efficient than public relations, will become less relevant in the future. In this new context, the marketing professionals will be more interested by notions as “commitment” and “involvement” which will be focused on public relations tools as: customers’ information, rather than the products promotion; the gain of trust rather than the gain of time; initiation of dialog rather than submission of messages.public relations, communication management, internal communication, CSR

Elaboration of Marketing Strategies and Programs Through the Integration of the Sustainable Development’s Objectives

Simultaneously with the manifestation of the availability of the company/organization to include in its activities and politics objectives of sustainable development and social responsibility, concrete marketing steps are required, in form of a number of activities that contribute effectively to achieving such objectives. Therefore, series of steps of the complex process of reflection and strategic planning should be taken in a logical and consistent manner, thus these steps that can adapt and "tone" according to the specific activities that the company operates.marketing, integration, strategic planning

DEFINING ASPECTS OF SETTING THE PRICE ACCORDING TO THE CUSTOMER AND THE COMPETITION

Few managers, even those specializing in marketing, think strategically aboutpricing. Consider your experiences and observations. Were the pricingdecisions you encountered made in reaction to a pricing problem, or werethey planned to exploit an opportunity? Did the company arrive at thosedecisions by analyzing only the immediate impact on profitability, or did it alsoconsider how the reactions of customers or competitors might change thepicture? Did the decisions focus purely on price, or did they involve alignmentof a marketing program to support the pricing decision? Few companiesproactively manage their business to create the conditions that foster moreprofitable pricing