Pricing is vital to the profitability of every business yet often those responsible for determining it have had little or no formal guidance in the concepts and techniques that should underpin it. Get it wrong and you may alienate your customers, price yourself out of the market or eat into your profit margins.
Pricing is vital to the profitability of every business yet often those responsible for determining it have had little or no formal guidance in the concepts and techniques that should underpin it. Get it wrong and you may alienate your customers, price yourself out of the market or eat into your profit margins.
This briefing takes a business-oriented, cross-functional view to pricing. It examines the impact of competition, customer perceptions and expectations, and the position of price in a coherent marketing strategy. It addresses the key issue of elasticity and sensitivity to volume from strategic, marketing and financial points of view. If you grapple with pricing decisions in your business, you will find this briefing an invaluable guide to profitable price setting.
Contents include:
- A framework for pricing
- Generic pricing strategies
- Understanding the competition
- The drivers of consumer price sensitivity
- Price as part of the marketing mix
- Price, value and profitability
- Analyzing the financial impact
- Cost structure and pricing behavior
- Cost plus pricing revisited
- Pricing, business objectives and value creation
