3.4 Decision making and operational performance

The document on "Pricing Decisions" outlines various strategies businesses use to set product prices throughout its life cycle, from research and development to decline. It covers penetration pricing, where low initial prices aim to gain market share; price skimming, where high initial prices capitalize on early demand before lowering them; and dynamic pricing, where prices are adjusted frequently based on customer and market conditions, often using technology to track changes in demand.

The document on "Distribution (Place) Decisions" outlines the crucial role of place in marketing, encompassing both physical and virtual locations where products are available. It discusses the various distribution channels available to firms, including direct selling, retailing, wholesaling, and e-commerce. Emphasizing the shift towards multi-channel approaches, it explores traditional (long), modern (medium length), and direct (short) distribution channels, detailing the roles of manufacturers...

The document on Unit Cost and Efficiency explores operational efficiency in business operations, emphasizing how effectively resources like machinery, materials, and labor are utilized to maximize outputs. It introduces LUCC (Labour, Unit Cost, Capacity, Capacity Utilisation) as critical factors for improving efficiency, with methods such as increasing capacity utilization, enhancing labor productivity, and adopting lean production techniques. The concept of unit cost is highlighted as a key ind...