Pricing Strategy to Maximise Value

Duration: 2 Days

Overview

Outline

Pricing presents managers with one of their most powerful levers for maximizing profits and shareholder value. This course addresses strategic and tactical pricing issues and identifies profit-boosting techniques in pricing practices across a range of operational and industrial contexts.

 

The course establishes a foundation for effective pricing decisions, by covering:

 

  • Importance of pricing to the bottom line

  • Relationship between costing and pricing

  • Key economic, analytical and behavioral concepts associated with costs

  • Customer behavior and competition

  • Dynamic pricing,

  • Segment pricing,

  • Pricing structures, bundling and promotions

  • Practical applications of these approaches within specific industry contexts

Issues & Challenges with Pricing Products

  • Pricing strategies and approaches

  • How costs affect prices

  • Pricing factors: problems and issues

  • Distinguishing successful pricing strategies from unsuccessful pricing strategies

  • Align pricing with other marketing mix elements

Factors Affecting Pricing Decision: Internal vs. External

  • Role of demand

  • Influences of supply

  • Elasticity of demand and the impact on pricing

  • Pricing & its relationship to forecasting

  • Pricing & regulatory environment

Pricing Influence Puzzle

  • Growing movements towards greater corporate responsibility

  • The Business Roundtable and Davos Manifestos

  • The concept of Stakeholder capitalism

Refocusing the way you operate

  • Customers & Value

  • Industry & Competition: Porter's Model & Market share issues

  • Costs/Profit: Impact of profitability when dealing with cost & volume

  • Types of costs to consider: Fixed and variable, Direct and Indirect

  • Marketing Mix: How it affects pricing strategies

  • Impact of Life-cycle state on products, technology & market adoption