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【正文】 tations22Signode? 1. What price strategies can you remend to Signode?? 2. What suggestions do you have for pensation for the sales force?? 3. The sales force offers to increase sales by 510% if we allow additional price flexibility. Assume the price flexibility will reduce prices by 4% on average, should you accept the offer? Show with calculation why you should accept the offer or not.? 4. Do you see any error in Signode’s present allocation of its marketing resources to different segments? What error do you see? What might be the explanation?? 5. Any brand strategy suggestions for Signode?23Metrics? What is a metric?? What is a bad metric?? What is the cost of using the wrong metric?? Good metrics24Good Metrics? 1. Are some of your customers substantially more expensive to serve?? 2. Can you attract additional customers at a lower price?? 3. Can you link your price to cost to serve to drive expensive customers to your petitors while attracting noncostly customers to you?? 4. Can you enforce your metric?? 5. Does your metric fit channel selling habits, customer buying habits, and sense of fairness?25Quantity Discounts? Typology:– No discounts– All units discounts– fixed plus variable– variable 1 plus variable 2– fixed 1 plus variable 1 and fixed 2 plus variable 226Why Quantity Discounts?? 1. keep big customers? 2. match petition? 3. save costs? 4. enable price discrimination– Larger buyers are more price elastic/price sensitive– Larger buyers may have more options– A second or third dress/cup of coffee/ has less value? 5. block new petitive entry 27Product Line Pricing? A line of substitutes (for example car models)– Image building– Market expansion – Segmentation– Price defense– Entry point/model? A line of plements (for example restaurant + theater)– Bundling/Merging demand curves– Tieins28Price Discrimination? Capturing the customer surplus: Charge customers according to how much they value the product.– Need to know the price a customer is actually willing to pay – Need to separate customers according to their willingness to pay more/less– Need to keep your highpaying customers customers happy29Fences? Buyer identification? Purchase location? Purchase timing? Purchase quantity? Product bundle? Tieins? Product design30Price Communication? 1. Percentages or numbers? ? 2. Don’t talk price, talk value? 3. Price cues? 4. Price endings? 5. Sale anyone?31Price Framing? The power of three? Start from the top? Reference prices? Prospect Theory32Body of Knowledge? Focusing on losing fewer customers is the quickest road to greater profits? The less you talk price, the higher the price you will get? Finance is wrong when they tell us people do not like risk? More information sells more product? The center is better33Body of Knowledge? If you want to tempt customers, distract them first? If you can not distract them, make them sad? Send men to women and send women to men? Beautiful women reduce men’s ability to (dis)count? Getting little favors gets you to getting big favors34Blockbuster Video? 1. As Mike tries to survive, peting with Blockbuster, what is the right pricing strategy for Mike?? 2. What is the price Mike should ask Mr. Atkins for his store? Identify and calculate different possible prices35Channel Pricing and SubOptimization? Suboptimization: A system consist of subsystems. When subsystems optimize performance, system performance is not optimized. Suboptimization is the core issue of channel performance and channel management 36SubOptimal Pricing37Question? Demand for Crocodile shirts is very price elastic. Prior experience shows that a 20% off sa
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