UNIVERSITI MALAYSIA SARAWAK Assignment EBA 6423 Strategic Marketing Individual Assignment Case 1: Price the Product Name: Martina ak Minggat Matrix no: 12030020 Prepared for: Prof Dr Ernest Cyril De Run CASE STUDY 1: Which option would you choose‚ and why? 1. No. Pricing the entire menu at $1.29 would make things simple for the company and consumers‚ as well as offering the most potential profit per item. However‚ the challenge would be to convince consumers that the $1
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A Problem with Price A Problem of Price This vignette is characteristic of what happens when buyers are asleep at the wheel. Sue Jones is a newly promoted buyer that is paying close attention to details of her new job. Sue finds that the companies that have bided in this process are all within about $50 of one another. The strange thing about thus is not the fact that the bids are so close but that the winning bid is not low enough. How does she get her cost down even lower? Sue should focus
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Value Chain (OMVC) – Jan 2013 | Mercedes-Benz | Contents: * Introduction – page 2 * Product Design and Development Process – page 2 * Manufacturing Process and Process Strategy – page 4 * Five Critical Dimensions of Product Quality – page 6 * References – page 9 Introduction Mercedes-Benz is a multinational division of the manufacturer Daimler AG from German and the brand is used for luxury automobiles‚ buses‚ coaches‚ and trucks. Mercedes-Benz’s headquarter is in Stuttgart
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Price setting is a key strategy decision. Pricing decisions affects the number of sales and amount of money a company makes. There are many ways to set prices‚ the simplest approaches are demand-oriented and cost-oriented price setting. Demand-oriented price setting approaches consist of Marginal analysis‚ price sensitivity‚ value in use pricing‚ and reference prices. Cost-oriented setting approaches consist of markups‚ Average-cost pricing‚ types of cost‚ and break-even analysis. Some price objectives
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Promotion type Advertising in women’s magazines Selling toys in entire product line Day time television talk show and soap opera Price policy The old guard believed that their success had come from a moderately priced product line. The new manager‚ Asthalter and Weinschreider‚ thought many exciting new product ideas could not followed the policy that keep prices below $5 level. Developing the ATV Explorer Product name ATV (All-Terrain Vehicle) Product features it could carry 200 pounds;
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that the price Mediquip was proposing was not very attractive and his offer was “much above the rest” of the offers‚ especially those from Sigma and FNC. The main reason why Mediquip lost the bid is because the sales engineer focused on the technology itself and the technical specs of the CT scanner to explain why the price was relatively high‚ instead of working out a convenient price with the Hospital managers. The salesman was given “a second chance” to be more convincing and lower the price since
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tendency to balance and equilibrium. The following three points define why Wal-Mart can be analyzed using Structural function theory: They keep their prices low but make profits on high volume and fast turnover. Wal-Mart is most admired for its reputation in cost cutting and low prices. Wal-Mart is known to have very low and cheap prices for their products. It stops the need to go look for a bargain at other stores because we know that we won’t find a better deal elsewhere. This way
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Question 5 – Transfer Price Division A‚ which is part of the ACF Group‚ manufactures only one type of product‚ a Bit‚ which it sells to external customers and also to division C‚ another member of the group. ACF Group’s policy is that divisions have the freedom to set transfer prices and choose their suppliers. The ACF Group uses residual income (RI) to assess divisional performance and each year it sets each division a target RI. The group’s cost of capital is 12% a year. Division A Budgeted
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I. Identification of the major problem The used of faulty electronics ( faulty fuel pump made by supplier Robert Bosch ) to some models of Mercedes Benz which resulted to a great issue of poor quality problem‚ unstoppable increase in labor cost‚ downsizing the workforce resulting to high unemployment rate and the rising international competition among its rival manufacturer. II. Potential Issues to Consider Amidst rising international competition‚ German companies and banks have
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product‚ process‚ customer‚ distribution‚ finance & administration. Yet care should be taken that personal viewpoints do not hinder potential opportunities. This is because threats at often times also represent opportunities. The SWOT analysis for Mercedes Benz (division of DaimlerChrysler group)‚ can be construed as follows (Refer to Fig.1 in Appendix). 1.2.2 PESTEL ANALYSIS PESTEL (P-Political‚ E-Economic‚ S-Sociological‚ T-Technological‚ E-Environmental‚ L-Legal)‚ is used by businesses
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