Pricing Strategy to Maximize Shareholder Value

Course Outcomes:

Pricing presents marketing 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 changes in pricing practices across a range of professional 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

Course Outline:

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:

• 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

Target Audience:

Any sales, marketing or product personnel whose responsibility is to develop an effective pricing and communication strategy for products/services