Pricing and Profit Strategies

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Course Overview

Global markets have become intensely competitive. With increasing supply there inevitably comes pressure on prices - a force that is set to continue and intensify as "Chindian", Eastern European and South American companies become more efficient and adventurous.

The result is unremitting pressure on profits and reducing return on product investments. Pricing, long perceived as an area too dangerous and too complex to interfere with, is now being examined by profit-oriented companies as the best option for revenue and profit growth.

Pricing is one of the most important tasks that any marketer can tackle. The impact of effective pricing on the bottom line is immediate and can be dramatic. Yet many marketers avoid pricing issues - often because they see it as too complex, too difficult, or the domain of another department in the company. This course presents modern pricing concepts and techniques in marketing terms that can be applied immediately.

Audience

This course is suitable for marketing personnel who are new to pricing or have limited experience of the subject. Familiarity with basic accounting concepts and spreadsheet tools will be helpful, but not essential.

Previous participants have included sales managers, account managers, product managers, marketing managers, pricing analysts and managing directors.

Skills Gained

Benefits for your organisation:

Your organisation will see an improved and more rational approach to setting, managing and changing prices. This will provide a number of key benefits, such as avoidance of margin loss caused by panic discounting and an ability to present and defend prices in the context of the customers' value proposition. Delegates will also learn techniques to maintain profitable prices even in a cost-cutting environment.

Benefits for you as an individual:

The course will enable you to approach your pricing tasks in a more logical and systematic fashion. It will improve your ability to assess the potential impact of your decisions on profitability by offering a variety of tools and techniques such as being able to analyse pricing situations and being able to calculate the profit impact of different pricing approaches and selecting the most suitable one for your situation.

You will learn how to:

• Describe and use key accounting concepts, theory and economics as applied to pricing decisions
• Understand and apply techniques such as competition based pricing, cost plus pricing, market pricing and value based pricing
• Understand the advantages and disadvantages of alternative pricing approaches
• Understand how pricing approaches change as the product progresses through its life cycle
• Add economic value to customer concept and use this when pricing new products or services
• Understand and apply a range of pricing tactics, achieving competitive superiority
• Deal with current issues such as price competition, price negotiation, discounting, commoditisation and price wars

Course Outline

• The fundamentals of pricing practice in modern enterprises
• Understanding theoretical concepts from economics, accounting, psychology and marketing in order to understand the complexity of the pricing challenge
• Using contemporary pricing methodologies
• Developing tactics that support pricing strategies
• Identifying significant issues confronting companies today
• building and pricing the value proposition
• dealing with price competition
• the dangers and follies of discounting
• how to stay out of price wars

• Case studies to illustrate pricing methodologies in practice

To take away from the course:

• Pricing tools such as price elasticity, alternative pricing methodologies
• Textbook on the strategy and tactics of pricing

Pricing and Profit Strategies / 0201