Archives tagged: market share

Marketing Industry Survey Reports—Clients and Agencies May Not Be On the Same Page

By James T. Berger February 23, 2018

Clients growing and expanding their in-house agencies was among the “troubling trends” uncovered in the survey. Another problem area expressed by agency executives was “a decline in commitment from their clients to their partnership, and a lack of understanding of the value they offer as an agency partner.”

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Strategic Movements: February 2018

By Tim J. Smith, PhD February 23, 2018

Margrethe Vestager, EU’s antitrust chief, hit Qualcomm with a EUR 977 million fine for anticompetitive practices. Crime: contracts with rebates paid to Apple for using Qualcomm chips exclusively and had a dominant position.

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Value on the Table vs. Capturable Value

By Tim J. Smith, PhD January 30, 2018

In this article I will review some of the issues engaged and practices suggested by different authors, and then offer the Half-Gains Double-Losses rule to define the capturable value from the economic value to customer and therefore drive a price recommendation for guiding the pricing decision.

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Strategic Movements: December 2017

By Tim J. Smith, PhD December 22, 2017

The Federal Aviation Administration is contemplating an $8 increase on domestic round-trip ticketing fees.  In response, Delta Air Lines Inc. claims that for every $1 increase in facility charges, passenger demand declines by more than 1%. That would imply a primary demand elasticity of about three. Seems right. So, an $8 facilities charge increase would decrease flight travel by 8%.

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Strategic Movements: October 2017

By Tim J. Smith, PhD October 18, 2017

Sonos Inc. felt the heat of Amazon’s Alexa in the in-home wireless sound movement.  What to do?  If you can’t beat them, join them.  Working with Amazon, Alphabet, and Apple, Sonos is planning to make smart speakers for all of them.  Smart move Sonos for the increasing Smart Home.

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Strategic Movements: September 2017

By Tim J. Smith, PhD September 14, 2017

Wendy’s achieved another quarter of same store sales growth.  Was it their sassy social media campaign that reminds detractors of the existence of refrigerators?  Was it their new menu items?  Or was it the fast food chain’s competitive pricing? Of the three, I think it was their social media campaign that propelled otherwise strong product and pricing strategy to outperform.

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Give-Get

By Tim J. Smith, PhD August 24, 2017

I have seen three or four multinationals, and four to six local suppliers sell the same core product in the same country, at roughly the same price. Because there is so much competition in these markets, customers ask for discounts and drive suppliers to bid against each other to win their business. It is hard to make a stable supplier business in these situations. How can one win? And, what does value-based pricing have to contribute to these markets?

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Strategic Movements: August 2017

By Tim J. Smith, PhD August 24, 2017

What better way to attract customers than with a discount? I’ll tell you what is a better way: Redefine your business into something customers actually want to engage as a first resort, not as a cheap resort.

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Valuing Benefits: Weighted Average or Economic Impact?

By Tim J. Smith, PhD July 19, 2017

Because the exchange value approach examines the focal product against its next nearest competitor from the viewpoint of a specific market segment, it creates a focused picture of how an offering is likely to be evaluated by that specific segment. If more segments and competitors are to be considered, more models of the Exchange Value to Customer are needed. This leads to better and more accurate pricing on a segment-by-segment basis.

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Rules of Retailing and Changing

By James T. Berger July 19, 2017

Prof. Haskett defines the “wheel of retailing” as the concept where retailers enter the market through low-price strategies to build market share. With the high market share, the retailer would shift its strategy from attracting new customers to increasing profit margins through higher pricing. In implementing the higher pricing strategy, the retailer opens spaced for a new lower price retailer to come into the market as the wheel turns.

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