Organisations are using pricing strategies to drive more profitable growth in response to relentless pressure to produce profits.

Although pricing is an easy-to-understand marketing mix element, changing prices can have an impact on the company, the products and portfolio. An uncoordinated pricing strategy or trial-and-error approach to pricing can reduce a firm’s bottom line.

Learning Outcomes:

• Understand the framework that supports a set of pricing strategies
• Identify customer value as the basis for successful pricing and understand how dynamic customer needs can influence pricing decisions
• Examine the fundamental basics for pricing like the economics of supply & demand and the overall determinants of demand
• Plan and create relevant pricing strategies for the products

Course Outline:

Introduction: Purpose of the course & expectations

• Warm-up exercise: “The Price is Right”

Issues & Challenges with Pricing Products

• Pricing factors: problems
• 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

• Customers & Value
• Industry & Competition: Porter’s Model & Market share issues
• Costs/Profit: Impact of profitability when dealing with cost & volume
• Marketing Mix: How it affects pricing strategies
• Impact of Life-cycle state on products, technology & market adoption
• Exercise: Your Pricing Strategy

Who Will Benefit?

Any sales, marketing or product personnel of the management team whose responsibility is to develop an effective pricing and communication strategy for their products/services.