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Pricing for Profitable Decision Making

Assess the Value of Products to Consumers

Previously named: Pricing Strategies and Tactics

Professor Lakshman KrisnhamurthiIn a highly collaborative and interactive environment, you will learn the fundamental principles that should guide any coherent pricing strategy. Senior faculty will present a wide range of pricing issues and tactics, then lead you through a series of case studies and discussions — so you can immediately apply the theories and models you’ve learned to real-life examples.

Alongside your peers, you will discuss the costs relevant to a pricing decision, how to price based on value, the costs and benefits of segmentation, how to respond when a competitor cuts its price, what pricing metrics to use, how to use data to estimate price elasticities and how to price new products. You will leave the program armed with tools and knowledge to make smart pricing decisions and position your organization for profit.
  1. Managers responsible for making pricing decisions
  2. Engineering and finance executives
  3. Note to participants: While not highly technical, the program requires the ability to work with quantitative information and spreadsheets.
In this program, you will learn to:
  1. Integrate pricing into an overall marketing strategy
  2. Determine the proper role of costs in pricing
  3. Set prices in a highly competitive environment
  4. Assess the value of a product to a customer
  5. Set prices for new products
  6. Use data to estimate price elasticity
Setting a Pricing Strategy
  1. The pricing process
  2. Requirements for setting a pricing strategy
  3. Examples of pricing strategies

The Role of Costs in Pricing

  1. Types of costs and general myths
  2. How costs should affect pricing
  3. Differential impact of variable and fixed costs on pricing

Segmented Pricing

  1. Defining segmented pricing
  2. Types of segmented pricing: demographics, customer benefits, timing, quantity, location and bundling
  3. How to implement segmented pricing

Value Pricing

  1. Defining value pricing
  2. How to set prices by focusing on value to the customer
  3. Issues in implementing value pricing

Pricing in a Competitive Market

  1. Price wars
  2. Interaction between price and capacity
  3. Price and differentiation

New Product Pricing

  1. Factors to consider in setting price of new products
  2. Relationship between price elasticity and price
  3. How to set prices for new products

Pricing Metrics
  1. Understanding which pricing metrics are most important
  2. Techniques for measuring key pricing metrics
  3. Linking pricing metrics with pricing decisions
Lakshman Krishnamurthi - Academic Director; A. Montgomery Ward Professor of Marketing

Eric T Anderson - Hartmarx Professor of Marketing; Chair of Marketing Department; Director of the Center for Global Marketing Practice

Rakesh Vohra - Visiting Professor of Managerial Economics & Decision Sciences

Featured Faculty Video

  •   Professor Lakshman Krishnamurthi: How pricing strategies vary based on different market realities

What Past Participants Say

  • "The professors are experts and extremely enthusiastic with every topic. My expectation was to come away with three key tools, and I walked away with at least ten."
    - Product Director, Johnson & Johnson
  • "I would recommend this program to all managers and executives. Anyone dealing with pricing and value will benefit from this program!"
    - Sales Manager, James Hardie Building Products
  • "This program takes you away from your way of looking at pricing and opens many doors to broaden your horizon and force you to look at pricing differently."
    - Director of Pricing Development, Western Union FSI

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