July 2010
Monthly Archive
Wed 21 Jul 2010
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marketing No Comments
•Predatory pricing: Selling at unreasonably low prices to lessen competition.
•Price discrimination: The use of different prices for different customers.
•It is illegal if a price advantage is granted to one, but not another, where both compete and the articles are similar.
•Granting promotional allowances must be done on a proportionate basis to all customers.
Wed 21 Jul 2010
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marketing No Comments
•Quantity discount: The more you buy, the cheaper it becomes– cumulative and non-cumulative.
•Trade discounts: Reductions from list for functions performed– storage, promotion.
•Cash discount: A deduction granted to buyers for paying their bills within a specified period of time, (after first deducting trade and quantity discounts from the base price)
Wed 21 Jul 2010
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marketing No Comments
•Market-Skimming Pricing: Setting a high initial price for a new product.
•Works if product is new, distinctive and desired
•Early in Product Life Cycle, when demand inelastic
•Protected by entry barriers, e.g. patents
•Market-Penetration Pricing: Setting a low initial price for a new product.
•Works if large market, elastic demand
•Economies of scale are possible
•Fierce competition
Wed 21 Jul 2010
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marketing No Comments
•In pricing, an organization first must decide on its pricing goal.
•The next step is to set the base price for a product.
•The final step involves designing pricing strategies that are compatible with the rest of the marketing mix.
•Many strategic questions must be answered:
•Will our company compete on the basis of price or other factors?
•What kind of discount schedule (if any) should be adopted?
Wed 21 Jul 2010
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marketing No Comments
•Uses price as a method to build long-term relationships with the best customers
•Focuses on giving better deals to better customers
•Goal is to price relative to the value of the customer to the firm, while building loyalty and stimulating repeat buying
Wed 21 Jul 2010
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marketing No Comments
•some firms feel price is the main competitive tool, that customers always want low prices
•other firms are looking for ways to add value, thereby being able to avoid low prices
•sometimes prices have to be changed in response to competitive actions
•many firms would prefer to engage in nonprice competition by building brand equity and relationships with customers
Wed 21 Jul 2010
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marketing No Comments
•In price competition, a seller regularly offers products priced as low as possible and accompanied by a minimum of services.
•In nonprice competition, a seller has stable prices and stresses other aspects of marketing.
•With value pricing, firms strive for more benefits at lower costs to consumer.
•With relationship pricing, customers have incentives to be loyal– get price incentive if you do more business with one firm.
Wed 21 Jul 2010
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•how does a company decide what price to charge for its products and services?
•what is “the price” anyway? doesn’t price vary across situations and over time?
•some firms have to decide what to charge different customers and in different situations
•they must decide whether discounts are to be offered, to whom, when, and for what reason
Wed 21 Jul 2010
In human resources or industrial/organizational psychology, 360-degree feedback, also known as ‘multi-rater feedback’, ‘multisource feedback’, or ‘multisource assessment’, is employee development feedback that comes from all around the employee. “360″ refers to the 360 degrees in a circle. The feedback would come from subordinates, peers, and managers in the organizational hierarchy, as well as self-assessment, and in some cases external sources such as customers and suppliers or other interested stakeholders. It may be contrasted with upward feedback, where managers are given feedback by their direct reports, or a traditional performance appraisal, where the employees are most often reviewed only by their manager.
It got its name because it provides information from many directions. If you picture the individual being assessed as holding a compass, which person’s peers are responding to the survey from 90 degrees, the direct reports from 180 degrees, internal customers from 270 degrees, and supervisor(s) from 360 degrees. It expands the very private coaching relationship into a wider and more realistic forum, providing frank evaluation by direct reports, peers and others.
The results from 360-degree feedback are often used by the person receiving the feedback to plan their training and development. The results are also used by some organizations for making promotional or pay decisions, which is sometimes called “360-degree review.”
Implemented with care and training to enable people to better serve customers and develop their own careers, 360 degree feedback is a positive addition to your performance management system. Started haphazardly, because it’s the current flavor in organizations, or because “everyone” else is doing it, 360 feedback will create a disaster from which you will require months and possibly years, to recover.
360 degree feedback is a method and a tool that provides each employee the opportunity to receive performance feedback from his or her supervisor and four to eight peers, reporting staff members, coworkers and customers. Most 360 degree feedback tools are also responded to by each individual in a self assessment.
360 degree feedback allows each individual to understand how his effectiveness as an employee, coworker, or staff member is viewed by others. The most effective 360 degree feedback processes provide feedback that is based on behaviors that other employees can see.
The feedback provides insight about the skills and behaviors desired in the organization to accomplish the mission, vision, and goals and live the values. The feedback is firmly planted in behaviors needed to exceed customer expectations.
People who are chosen as raters, usually choices shared by the organization and employee, generally interact routinely with the person receiving feedback.
The purpose of the 360 degree feedback is to assist each individual to understand his or her strengths and weaknesses, and to contribute insights into aspects of his or her work needing professional development. Debates of all kinds are raging in the world of organizations about how to:
select the feedback tool and process,
select the raters,
use the feedback,
review the feedback, and manage and integrate the process into a larger performance management system.
Wed 21 Jul 2010
1. Define Quality in Terms of Customers and Their Requirements:
- Buyer must clearly quantify or specify requirements.
- Buyer must clearly communicate requirements through RFPs, negotiation process, and performance feedback sessions.
2. Pursue Quality at the Source:
- Cross-functional teams should visit and evaluate potential suppliers.
- Suppliers should be involved in the development stage of the buyer’s requirements.
3. Focus on objective rather than subjective analysis:
- Develop objective supplier measurements.
- Use data from measurements to award future business, identify performance improvement opportunities, and provide feedback and quality expectations to the supplier.
4. Emphasize Prevention Rather than Detection of Defects :
- Avoid nonconformance of products.
- Select suppliers that have systems, processes and methods in place to prevent defects.
- Use of supplier quality certifications and corrective action requests support prevention of defects.
5. Focus on process rather than output:
- Shift from a product to process orientation.
- Focus on the process that creates the output rather than the output. If the process is correct, the output should be quality.
- Suppliers must provide evidence of process capability.
6. Strive for zero defects:
- Philip Crosby defines zero defects as conformance to requirements.
- Optimize your supply base to ensure capable suppliers. Average supplier quality should increase as lower performers are eliminated.
7. Establish continuous improvement as a way of life:
- Shift performance targets upward once a supplier achieves current levels.
- Use Value Analysis to improve products and processes.
- Work to develop your supplier’s performance capabilities.
8. Make quality everyone’s responsibility:
- Buyers and sellers must assume ownership for total quality across the supply chain.
- Making quality each participant’s responsibility is essential for total supply chain quality.
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