149 Control w it h fairness in transfer pricing A transfer price is useless unless unit managers feel they are being treated fairly while top management retains control Robert G. Eccles It seems straightforward on the face of it: when a unit in a company sells a product to another unit‚ it ought to charge a fair price. That price may be based on what it cost to make the product‚ or on the market price of the product‚ or on some combination of these two. But as most managers
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MARKETING Session III: Pricing Policy Question I: Why is pricing policy so important in the marketing mix of a product ? What is pricing? Pricing is the process of determining what a compagny will receive in Exchange for its products. Pricing strategy is important for several aspects in the compagny wich are: Survival : short-term objectives are set in order to survive Profit :the objective is to maximise profits Return on investment : prices are set to attain a specified return on
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MKT 521 *Psychological Pricing S*trategy {draw:frame} Reference Pricing.- Any business can leverage on reference pricing by positioning their product in the market place along with high value or luxury items to make consumers perceive that its product fits into the same category. However‚ if consumers feel that the product does not belong in that category the pricing and positioning strategy will not work and be it counterproductive for the product and the company. Two common forms of
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PRICING METHODOLOGY Pricing methods adopted by an organization determines the values attached to its products. Pricing determinant can be Internal or External. An Internal pricing determinant is one that is controlled by the marketer while the external is not controllable by the marketer. We shall be considering the following types of pricing models: PRICE DISCRIMINATION: Price discrimination is the practice of setting a different price for the same product in different segments to the market.
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Read about Integrated Marketing Communication (IMC) marketing approach. Group 1: Company A is Sony Company B is LG Group 2: Company A is Canon Company B is Panasonic Group 3: Company A is HTC Company B is Samsung Instructions: 1) Locate the company A’s website. 2) Look for the key message/messages of the company A. 3) Locate a recent company A’s video commercial (on the television or from Youtube) or a print advertisement. What is the key message/messages
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Discussion issue 2: Since the early part of 2001‚ it has been notices that Samsung has been increasingly successful in repositioning the brand of its various products a higher level competing with market leaders like Sony and Apple. Research and find out how their advertising and promotion strategy was changed to achieve these objectives. Any comments and suggestions. Answer: Samsung Group‚ belongs from South Korea‚ which is also the world’s second largest conglomerate by revenue has different
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studyLG believes in honest pricing and not being gimmicks of discounts and price reduction as lure. Their strength of marketing is consumer pool‚ good products and pricing power. * Its product designs are centred on the middle & upper class and the ads screened highlight the product features. * Its employees are totally committed to quality and innovation. They chant “TPI 50 and TDR”‚ which signifies‚ total productivity innovation and tear down re-engineering. Through this method the
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President and CEO of Samsung‚ South West Asia‚ the 58-year-old Lee has been busy turning all Samsung strategies on their heads. The Korean consumer electronics giant is now reaching deeper and wider into the Indian market‚ tempting consumers with technologically advanced products specially tailored to their needs. Showrooms are being brought under a common umbrella brand and now‚ a new facility may well become a manufacturing hub for Samsung worldwide. Not that Lee views his "strategy revitalisation"
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International Pricing-15 What is a Price? * Revenue received by a business in exchange for benefits provided * Customers give-up in exchange for the benefits they receive * Costs include: money‚ time effort‚ opportunities General Factors in Price Determination * True markets (customers have options) price determined by a combo of cust/co. issues including: * Pricing obj. of business‚ business constraints‚ gen pricing strategies‚ customer influences‚ competitive forces
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MANAGING TRANSFER PRICING Sarbanes-Oxley requires a company to establish that it has internal controls to ensure accurate financial reporting and that the auditor attest to the assessment of those controls. An obvious concern for all multinationals after SOX is whether there are effective controls in place to deal with transfer pricing exposure. An increasingly important element of transfer pricing documentation relates to the influence of legislation‚ ethical standards‚ and associated matters
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