Ebook Principles of marketing (16/E): Part 2
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Ebook Principles of marketing (16/E): Part 2
www.downloadslide.netPARI 3: Designing a Customer Value-Driven strategy and Mix (Chapters 7-171Pricing StrategiesAdditional Considerationsp ha nt er P Ebook Principles of marketing (16/E): Part 2Previewln lh* p,wious «*«*><*• y°u UliapiCI IICYICW learned that price is an impor tant marketing mix tool tor both creating and capturing customer value. You explored the three main pricing strategies—customer value based, cost based, and competition based pricing and the many internal and external Ebook Principles of marketing (16/E): Part 2 factors that affect a firm's pricing decisions, hl this chapter, we'll look al some additional pricing considerations: new product pricing, product mEbook Principles of marketing (16/E): Part 2
ix pricing, price adjustments, and initiating and reacting to price changes. Wo close the chapter with a discussion of public policy and pricing.For owww.downloadslide.netPARI 3: Designing a Customer Value-Driven strategy and Mix (Chapters 7-171Pricing StrategiesAdditional Considerationsp ha nt er P Ebook Principles of marketing (16/E): Part 2worlds largest retailer, and Amazon, the planet's largest online merchant, bach combatant brings an arsenal of potent weapons to the battle. For now, the focus is on price. But in the long run, it'll lake much more than low prices to win this war. The spoils will go to the company drat delivers the Ebook Principles of marketing (16/E): Part 2best overall online customer experience and value for the price.AMAZON VS. WALMART: A Price War for Online SupremacyỂỂ 111 almart tv Amazon: Let's RumEbook Principles of marketing (16/E): Part 2
ble" read die 1 Al headline. All had Frazier. Coke has Pepsi. The w u Yankees have the white Sox. And now, die two ■ ■ retail heavyweights are waging www.downloadslide.netPARI 3: Designing a Customer Value-Driven strategy and Mix (Chapters 7-171Pricing StrategiesAdditional Considerationsp ha nt er P Ebook Principles of marketing (16/E): Part 2held low-cosi positions.Each side is formidable in its own right. Walmart dominates offline retailing. It's price-driven "Save money. live Roller." positioning has made it far and away the world's biggest retailer, and the world's largest company to boot. In turn, Amazon is the "Walmart of the WWY' Ebook Principles of marketing (16/E): Part 2our online general store. Although Walmart's yearly sales total an incredible $469 billion, more than 6.3 times Amazon's $75 billion annually, Amazon'Ebook Principles of marketing (16/E): Part 2
s online sales are 7.5 times greater than Walmart's online sales. By one estimate, Amazon captures a full one-third of all online buying worldwide.Whywww.downloadslide.netPARI 3: Designing a Customer Value-Driven strategy and Mix (Chapters 7-171Pricing StrategiesAdditional Considerationsp ha nt er P Ebook Principles of marketing (16/E): Part 2 of its business through its more than 11,000 brick-and-mortar stores—online buying accounts for only a trifling 2 percent of its total sales. But this battle isn't about now, it's about the future. Although still a small marketby Walmart's standards, online sales are growing at diree times the rale Ebook Principles of marketing (16/E): Part 2 of physical-world sales. Within the next decade, online and mobile buying will capture as much as a diird of all retail sales. Because Amazon owns onEbook Principles of marketing (16/E): Part 2
line, its revenues have soared an average of almost 30 percent annually over the past three years. Meanwhile, Walmart's earthbound sales have grown atwww.downloadslide.netPARI 3: Designing a Customer Value-Driven strategy and Mix (Chapters 7-171Pricing StrategiesAdditional Considerationsp ha nt er P Ebook Principles of marketing (16/E): Part 2r than any other company in history.Amazon has shown a relentless ambition to offer more of almost everything online. It started by selling only books, but now sells everything from books, movies, and music Io consumer electronics, home and garden products, clothing, jewelry, toys, tools, and even g Ebook Principles of marketing (16/E): Part 2roceries. Thus, Amazon's online prowess now looms as a significant threat to Walmart. If Amazon's expansion continues and online sales spurt as predicEbook Principles of marketing (16/E): Part 2
ted, the digital merchant will eat further and further into Walmart's bread-and-butter store sales.Walmart, the world's largest retailer, and Amazon, www.downloadslide.netPARI 3: Designing a Customer Value-Driven strategy and Mix (Chapters 7-171Pricing StrategiesAdditional Considerationsp ha nt er P Ebook Principles of marketing (16/E): Part 2ning the war will take much more than Just low prices.CHAPTER 11 I Pricing Stra.............But Walmart isn't about to let that happen without a fight. Instead, it's taking the battle to Amazon's home territory—the Internet and mobile buying. It Started with the tactics it knows best—low costs and p Ebook Principles of marketing (16/E): Part 2rices. Through aggressive pricing. Walmart is nowfighting for every dollar consumers spend online. If you compare prices at Walmart.com and Amazon.comEbook Principles of marketing (16/E): Part 2
, you’ll find a price war raging across a broad range of products.In a price war, Walmart would seem to have the edge. Low costs and prices are in tl»www.downloadslide.netPARI 3: Designing a Customer Value-Driven strategy and Mix (Chapters 7-171Pricing StrategiesAdditional Considerationsp ha nt er P Ebook Principles of marketing (16/E): Part 2r another. But Amazon is not like mast other competitors. Its network is optimized for online shopping, and the Internet seller Isn't saddled with the costs of running physical stores. As a result. Amazon has been able to match or even beat Walmart at its own pricing game online, rhe two giants now Ebook Principles of marketing (16/E): Part 2seem pretty much stalemated on low prices, giving neither much of an advantage there. In fad, in the long run, reckless price culling will likely do mEbook Principles of marketing (16/E): Part 2
ore damage than good to both Walmart and Amazon. So, although low prices will be crucial, they won't be enough Io win over online buyers. Today's onliwww.downloadslide.netPARI 3: Designing a Customer Value-Driven strategy and Mix (Chapters 7-171Pricing StrategiesAdditional Considerationsp ha nt er P Ebook Principles of marketing (16/E): Part 2upper hand on most of Ihe important nonprice buying factors. Ils made for online distribution network speeds orders lo buyers' homos quickly and efficiently including same day delivery in some markets. Amazon's online assortment outstrips even Walmart's, and the Web wizard is now moving into groceri Ebook Principles of marketing (16/E): Part 2es, an area that currently accounts for 55 percent of Walmart's sales. As for Amazon's lack of physical stores no problem. Amazon's heavily used mobilEbook Principles of marketing (16/E): Part 2
e app lets customers shop Amazon.com even as they are browsing Walmart's stores. Finally. Amazon's unmatched, big data-driven customer interface creatwww.downloadslide.netPARI 3: Designing a Customer Value-Driven strategy and Mix (Chapters 7-171Pricing StrategiesAdditional Considerationsp ha nt er P Ebook Principles of marketing (16/E): Part 2By contrast. Walmart came late to online selling. It's still trying to figure out how to efficiently deliver goods into the hands of online shoppers. As its online sales have grown, the store-based giant has patched together a makeshift online distribution network out of unused corners of its store Ebook Principles of marketing (16/E): Part 2distribution centers. And the still-mostly-store retailer has yet to come close to matching Amazon’s online customer buying experience. So even with iEbook Principles of marketing (16/E): Part 2
ts impressive low-price legacy, Walmart finds itself playing catch-up online. "WV're starting to gain traction," says Walmart's CEO, but "we still havwww.downloadslide.netPARI 3: Designing a Customer Value-Driven strategy and Mix (Chapters 7-171Pricing StrategiesAdditional Considerationsp ha nt er P Ebook Principles of marketing (16/E): Part 2ils will go to the company that delivers the best overall online customer experience and value for the price.Ifcvl ISucctwH «a Gsttr tm&M; ijxcwn) © d»jilshle |' fứamflb catch up, Walmart is investing heavily to create a next generation fulfillment network. Importantly, it's taking advantage of a ma Ebook Principles of marketing (16/E): Part 2jor asset that Amazon can't match an opportunity to integrate online buying with its massive network of brick and-morlar Slones. For example, WalmartEbook Principles of marketing (16/E): Part 2
is experimenting with fulfilling online orders more quickly and cheaply by having workers in stores pluck and pack items and mail or deliver them Io cwww.downloadslide.netPARI 3: Designing a Customer Value-Driven strategy and Mix (Chapters 7-171Pricing StrategiesAdditional Considerationsp ha nt er P Ebook Principles of marketing (16/E): Part 2combining its online and offline operations, Walmart can provide some unique services, such as free and convenient pickup and returns of online orders in stores (Walmart's site gives you three buying options: "online," "in-store," and "site-to-store"). Using Walmart's Web site and mobile app can als Ebook Principles of marketing (16/E): Part 2o smooth in-store shopping. They let customers prepare shopping lists in advance, locate products by aisle to reduce wasted shopping time, and use theEbook Principles of marketing (16/E): Part 2
ir smartphones at checkout with prekxidedwww.downloadslide.net348 PART 3 Designing a Customer Value-Driven Strategy and MilObjective OutlinepHOBJECTIVwww.downloadslide.netPARI 3: Designing a Customer Value-Driven strategy and Mix (Chapters 7-171Pricing StrategiesAdditional Considerationsp ha nt er P Ebook Principles of marketing (16/E): Part 2rices that maximizes the profits from the total product mix. Product Mix Pricing Strategies (pp 350-352)OBJECTIVE 3Discuss how companies adjust their prices to take into account different types of customers and situations. Price Adjustment Strategies (pp 352-360)OBJECTIVE 4Discuss the key issues rel Ebook Principles of marketing (16/E): Part 2ated to initiating and responding to price changes. Price Changes (pp 360-365)OBJECTIVE 5Overview the social and legal issues that affect pricing deciEbook Principles of marketing (16/E): Part 2
sions. Public Policy and Pricing (pp 365-367)digital coupons applied automatically. Customers who pick up online orders in the store can pay with cashGọi ngay
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