html5-img
1 / 14

ELC 310

ELC 310. Day 23. Agenda. 1 st round case grades 1 A, 2 B’s and 1 C+ More research and analysis! Fifth Student Case OSRAM Sylvania by Owen E-mail presentations at least 15 min before class so I may upload to web server

eben
Télécharger la présentation

ELC 310

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ELC 310 Day 23

  2. Agenda • 1st round case grades • 1 A, 2 B’s and 1 C+ • More research and analysis! • Fifth Student Case • OSRAM Sylvania by Owen • E-mail presentations at least 15 min before class so I may upload to web server • Case studies are tied to proceeding chapters, make sure you discuss the connection • Discussion/lecture Pricing and Distribution

  3. Case study Grading rubric (corrected) • Grade Generation for analysis • Demonstrated Mastery of Case Study 35% • Understanding of How Case Study Fits 35% • Presentation effectiveness 10% • Quality of PowerPoint 10% • Ability to Engage the Class in Discussion 10% • Grades will be posted Nov 25 & Dec 12

  4. Today OSRAM Sylvania (Owen) Pricing and Distribution Dec 5 Student evualations Logistics.com A & B (Steve) Build a Trusting Relationship with Customers Dec 9 Travelocity (Randy) The Future of Digital Marketing Dec 12 Citibank Online (Emlyn) Take Home Quiz #4 Assigned Dec 17 @ 1 PM Take Home Quiz #4 Due Written Case Study & Presentations Due Rest of Schedule ® Tony Gauvin, UMFK , 2007

  5. Overview • Introduction • Pricing Strategies • Standard price models • Incentives • B2B exchanges • Auctions • Distribution • Chanel conflicts • End to end system integration

  6. Introduction • Value = benefits – cost • Price for consumer is part of cost • Increased price means lower value • Price for producer is part of benefits • Increased price means higher value • Price part of total product package of benefits • Becomes a consumer decision variable • Digital technologies affect pricing in a few ways

  7. Price • Price must be between cost of production and value of product to consumer • Price too low means manufacture loses profit • Price too high means less consumer buy less product (which can also lead to lower profits) • Ideally, Price should extract maximum profitability from the product • Price based in supply and demand

  8. Equilibrium pricing Assumes perfect elasticity of supply and demand and perfect competition http://en.wikipedia.org/wiki/Supply_and_demand

  9. Pricing Models • Cost plus • Cost of manufacturing plus profit • Break even analysis • Break Even = Fixed Cost / (Unit Price - Variable Unit Cost) • Unit Price = (Fixed Cost/Break Even) – Variable Unit Cost; assuming a conservative estimate for Break Even units • Volume as a function of price point • Competitive Pricing • Penetration Pricing • Market building

  10. Incentive Sites • Add benefits to the consumer value proposition as a offset to price • Add customers • MyPoints • http://www.mypoints.com/ • Thank You network • https://www.thankyou.com/ • Cool Savings • http://www.coolsavings.com/

  11. B2B exchanges • Biggest promise from early ecommerce • Biggest bust • Insufficient incentives for potential participants to participate • Most B2B exchanges have failed • Tele Flower Auction (TFA) is an exception • Added reach (non domestic growers) to an existing process (Dutch flower auction) • http://www.tfa.nl

  12. Auctions • Reverse Auctions • Auctions off demand • Suppliers bid against demand • http://www.freemarkets.com/ • Forward Auctions • Auctions off supply • Buyers bid against supply • http://www.ebay.com

  13. Distribution • Methods of transportation and storage usually by intermediaries bringing products to consumers • Internet promise of disintermediation failed since intermediaries add value by • Matching buyers to sellers • Requisitioning (aggregation and disaggregation) • Problem solving • Big problem is channel conflict

  14. End to end system integration • Creating and capturing value in the supply chain (SCM or VCM) • Tighter integration between intermediaries • Better information flow • Wal-Mart • Inventory Management System • POS • Perpetual Inventory system • Backroom receiving system systems • Information available to distribution centers and partner vendors daily • Right products are on the right selves at the right time for the right price

More Related