By Michael Armstrong
Designed for simple reference, this better half for managers and scholars incorporates a diversity of attempted and verified instruments along new administration ideas which have been built within the contemporary previous. summary: Designed for simple reference, this better half for managers and scholars encompasses a variety of attempted and established instruments along new administration recommendations which have been built within the fresh earlier
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Extra info for A handbook of management techniques : a comprehensive guide to achieving managerial excellence and improved decision making
An alternative model is the buyer/decision sequence: ᔢ problem recognition – establishing a need; ᔢ information search – seeking ways of satisfying the need that can be influenced by marketing; ᔢ evaluation of alternatives – this can be influenced by promoting the product or service; ᔢ purchase decision – to purchase or not to purchase, based upon the evaluation; ᔢ post-purchase behaviour – the degree of satisfaction or dissatisfaction will affect future purchasing decisions and sales tactics will aim to produce a positive reaction.
Any amount by which the selling price exceeds the variable cost of marginal outputs is then an extra or marginal contribution to the company’s net profits and fixed costs. Again, this is a manufacturing approach. Break-even analysis Break-even analysis uses the concept of a break-even chart to develop a system of target pricing in which the company tries to determine the price that will produce the profit it is seeking. Although profit related, this form of pricing is based on an analysis of total costs, upon which is superimposed an assessment of total revenue.
Perceived value pricing Perceived value pricing determines prices from assumptions made about the beliefs that consumers have of the value of the product to them. These assumptions may be founded on market research aimed at establishing in buyers’ minds values about the basic product and the various special features in the product that appeal to them. If the company charges more than the buyer-recognized value, sales will suffer. Revenue may also fall below attainable levels if prices are lower than the perceived value.