Pricing for Profit
Given that a small increase of 1% in realized prices can lead up to a 11% increase in profits, getting the right price point and then rolling it out well is naturally important. Pricing is the one marketing decision that directly impacts both, the top line and the bottom line of firms and pricing decisions, the world over, are considered critical decisions for top management. However, many firms and managers lack a structured way to think about and implement pricing in their firms. Pricing decisions tend to be based on a seat of the pants approach, or be cost led or competitor led; this may work up to a point but leads to a dead end. Thus, firms need to understand and adopt well thought through pricing approaches in an increasingly competitive environment where a rising proportion of goods and services in India are sold in a ‘free’ market. Even administered prices in some industry sectors provide some leeway in pricing. In this milieu, it is important to develop and deepen managerial understanding of best practices in pricing, different approaches to pricing and customer responses to prices.
- To understand how consumers think about prices and to improve participants’ understanding of pricing approaches.
- To develop a systematic framework for assessing, formulating and implementing pricing approaches.
- To develop a proactive approach to pricing.
Pricing decisions are affected by economic, marketing, organisational and psychological factors and must be made within a prescribed legal framework. The programme revolves around (a) understanding how one may go about making effective pricing decisions while keeping in mind these factors, (b) understanding the strengths and weaknesses of different pricing approaches, (c) developing the thinking to choose the right pricing approach and right price level and (d) implementing the price approach in the face of competitive situations and reactions
- Determining value and price response models
- How customers view and react to prices
- Neurophysiological insights into pricing
- Costing, breakeven analysis and reacting to high volatility in costs
- Different approaches to pricing
- Value-based pricing
- Dynamic pricing
- Two-part pricing
- Everyday low price (EDLP) and promotions
- Pricing in the organized retail context
- Sales force and pricing
- Price framing, signalling and price wars
- What is the 'right' approach and 'right' price level
- Organising for and implementing the right pricing
Who should attend
Senior and top managers of private and public sector firms toward setting and managing the right price levels for their products and services within the framework of marketing and corporate objectives. Managers could be from the marketing, finance, information technology areas or from general management. Managers who are engaged in developing pricing systems and approaches in consumer markets and industrial markets would find this programme useful. Sample industries include hotels, airlines, energy, cruise liners, automobiles, fast moving consumer goods, switchgears, restaurants, internet service providers, consumer appliances, computers, bulk drugs, retailing, and petroleum products, among others, who would find this programme especially useful.