Wednesday, October 5, 2011

Topic 6 - Continued

For all products, a value proposition is a necessary attachment.

"This product is worth ________ to this target segment because ______________________________________________"

The price/worth should be a $ value or a relationship to competing products and the "because" statement should be a description of the value perceived by the target customers.

Asset-revenue generating efficiency (ARGE):

- Optimise return by stimulating revenue from highest yield segments.
- Manage price also to optimise the profit mix and return on assets employed.
- Allocate volume/capacity and price differently to different segments and behaviours
- Manage prices through optimised yield.

Strategies for managing demand:

- Use price to regulate demand (damper in peaks to stimulate in troughs)
- Stimulate forward commitments
- Modify time/product offers
- Adjust communication strategy to demand patterns


No comments:

Post a Comment