Product Pricing Strategies
What are you doing in the current economic environment to keep customers, generate revenue, and not get into a pricing trap that is impossible to climb out of when the economy turns around?
The most important element of an effective market strategy is the ability to maximize and protect the price of the product. Price is the final measure of customer value and competitive advantage.
Strategic Pricing clarifies the relationship between market segmentation and price, and delivers the tools your organization needs to stay focused on value as you determine break-even, define price elasticity, and analyze tradeoffs between features and price points. Using strategic pricing tools yields a better positioning approach.
This course brings new perspectives for determining product and service pricing to managers across the organization. Get timely insights into strategies you can employ now.
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Benefits
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Contents
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Who Should Attend
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Instructor
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Hours & Credits
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Strategic Pricing will help you determine the appropriate price to capture the value you provide to your customers:
- Understand how costs, competition, and customer values influence the price you choose
- Determine how customer values drive segmentation decisions, which in turn affect the benefits customers seek and the price they are willing to pay
- Use tools to conduct break-even analysis, measure price elasticity, and evaluate features/price trade-offs through relationship analysis
- Identify lifecycles to establish prices for current and future market conditions
- Decide when and how to raise prices
- Address price erosion situations
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Strategic Pricing: The Importance of a Value-Based Approach
- Linking pricing to strategy and the significance of segmentation
- The 3C’s of pricing—customer value, competitors’ prices, and your costs
- Creating a framework to evaluate where to set price: based on customer value, costs, the
differential advantage (competitors), and the company’s strategic objectives
Improving Pricing Decisions: Why You Must Relate Benefits and Customer Value to Price
- Measuring customer value—tools that rely on managerial judgment and formal market research
- Distinguishing between attributes, benefits, and values for effective pricing
- Segmenting based on customer dimension—the foundation for effective pricing
Using Tools to Measure Value
- Conducting a perceived value analysis
- Evaluating the perceived value map to develop strategic pricing options
- Measuring price elasticity
- Conducting a break-even analysis
- Performing trade-off analysis
- Conducting a pricing study with market research tools
Pricing Through the Product or Service Life Cycle
- Determining your position on the product or technology life cycle
- Pricing new technologies and new product introductions
- Pricing during competitive turbulence
- Pricing for mature markets
Increasing Prices
- Assessing your leadership in the market
- Understanding the link between pricing, strategy, and segmentation
- Determining pricing latitude relative to elasticity
- Evaluating other pricing influences
Stemming Price Erosion: How to Evaluate a Pricing Problem
- Evaluating your differentiation
- Assessing the impact of branding and loyalty
- Identifying switching costs
- Determining if you have a pricing problem
Integrating Strategic Pricing Into Your Corporate Environment
- Creating a culture for effective pricing
- Linking pricing to your corporate objectives
Pricing Workshop
The application workshop helps you to: measure customer values, segment based on these values,
determine the best price, and assess price sensitivity.
Participants will determine:
- What customers value versus the features and benefits we provide
- How customers perceive value
- How our offer compares with those of competitors
- What strategic pricing options they may consider
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This course is designed for executives who have a direct role in developing and implementing their company’s product pricing strategy. Participants represent senior level marketing, sales, product management, product development, business development, finance, and marketing team members.
For instance: product managers will gain insight on how to value a new offering; financial officers will benefit by assessing pricing implications to the bottom line; marketing management will gain a better positioning strategy for the entire product line; and sales managers will be able to better negotiate price with their customers. |
| Schedule |
Day 1 - 8:30 AM to 5:00 PM
Day 2 - 8:00 AM to 4:00 PM
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CEU :
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1.45 |
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CPE :
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16 |
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| Download Course Brochure (PDF) |
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Course Instructor
Mary Abbazia click for bio
Special Features
Preview the Strategic Pricing course in the September 2008 Technology Marketing Center executive interview with the instructor, Mary Abbazia, Avoiding Technology Price Erosion. 
Also, check out these webinars, with Mary Abbazia and Tom Niehaus, February 2009, Smart Pricing Strategies in a Challenging Economy, white paper Pricing in a Down Economy; and Pricing for Green, with Mary Abbazia and guest, Tom Spitale, October 2008.
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The California Institute of Technology Industrial Relations Center is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education |
| on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasba.org. |
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Comments from Past Participants
“Caltech IRC’s course on Strategic Pricing is excellent. I found the information on how to price technology products invaluable. We will definitely apply this to our new products.”
James Jackson
General Manager
VSFusion, A Baker Hughes -
CGGVeritas Company
“The course content is excellent, and I thought the dialogue with the instructor was the most valuable part of this program. The mixing of ‘stories’ with learning materials and fact is a great way to learn.”
Craig Shull
Director, Marketing Strategy
Salesforce.com
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