With increased globalization and competition, pricing is a burning issue for many businesses. This course has been designed to develop and improve your organisation’s pricing strategy. During this course you will learn to assess your pricing opportunities, utilize tools to measure value, understand the implications of product and market life cycles and determine when and how to increase price or stem price erosion.
You will learn to develop value pricing tactics to improve profitability and reduce your exposure to underpricing or over-pricing your product. In just two days, you will have new ideas and tolls that you can immediately apply to your business. “Strategic Pricing is a must for all those involved in the product and marketing professions. A great background for those new to the industry and extremely thought provoking for old hands”
By the end of this certification training course, participants will learn to:
- Develop pricing strategies that drive sales and profits successfully
- Build strategic pricing capabilities within your company
- Develop a template that provides a structure to identify the most profitable pricing opportunities
Strategic Pricing: The Background and Theory
- Competitive pressures
- The profit drivers
- Pricing theory
-
Supply/value chains
Strategic Pricing: The Importance of a Value-Based Approach
- Linking pricing to strategy and the significance of segmentation
- The 3C’s of pricing — customer value, competitors’ prices, and your costs
- Creating a framework to evaluate where to set price: based on customer value, costs, the differential advantage (competitors), and the company’s strategic objectives
Improving Pricing Decisions: Why You Must Relate Benefits and Customer Value to Price
- Measuring customer value - tools that rely on managerial judgment and formal market research
- Distinguishing between attributes, benefits, and values for effective pricing
- Segmenting based on customer dimension - the foundation for effective pricing
Using Tools to Establish and Measure Value
- Conducting a perceived value analysis
- Evaluating the perceived value map to develop strategic pricing options
- Reference pricing
- Price points
- Price sensitivity
- Measuring price elasticity
- Conducting a break-even analysis
- Conducting a pricing study with market research tools
Pricing Situations
-
Determining your position on the product or technology life cycle
-
Pricing new technologies and new product introductions
-
Pricing during competitive turbulence
- Pricing for mature markets
- The competitive bidding situation
E-Commerce and the Internet
- Pricing and e-commerce
- Internet pricing issues
Increasing Prices
- Why price cutting is dangerous
- Marginal pricing
- Premium pricing
- Managing aggressive competition
- The value of the brand
- How the product is offered
- Evaluating other pricing influences
Assessing your Leadership in the Market
-
Understanding the link between pricing, strategy, and segmentation
- Determining pricing latitude relative to elasticity
- Tiering, bundles and solutions
-
Evaluating other pricing influences
Stemming Price Erosion: How to Evaluate a Pricing Problem
- Discounting and its effects
- Evaluating your differentiation
- Customization
- Assessing the impact of branding and loyalty
- Identifying switching costs
- Determining if you have a pricing problem
Integrating Strategic Pricing Into Your Corporate Environment
- Creating a culture for effective pricing
- Linking pricing to your corporate objectives
- Pricing Analyst & Strategist
- Sales Managers
- Product Innovation Manager
- Product Manager/Director
- Trade Marketing Manager
- Commercial Pricing Manager
- Marketing and Communications Manager
- Commercial Analyst
- Business Analyst