BUKD-M 574 Performance Driven Pricing
- 12 weeks
- 3.00 credits
- Prerequisite(s): Core 2
Throughout your career you will likely face pricing decisions. Price is the easiest and quickest of all marketing actions to adjust and which also has a sizable impact on profit. Yet setting an optimal or “best” price and managing such prices across hundreds and thousands of solutions are daunting tasks.
Using approaches based on microeconomic principles, research in finance and marketing, and work from the consulting community, you will learn how to set prices for new products and manage and change prices of existing solutions to meet your marketing and financial objectives.
Being customer-focused when setting and managing pricing is a hallmark of the pricing course. Related to new products, you will learn how to develop pricing strategies that focus on capturing the value your product provides to customers as opposed to focus on a more “cost recovery” approach. Because historical data does not exist for new solutions, different approaches must be employed. You will learn how to assess customer value and how to link value to price. You will also learn to use an analytical value-based tool to help you pursue a value-based pricing approach.
We will also examine a range of approaches for understanding customer price sensitivity that will allow you to be truly customer centric in managing price over time. Following this perspective, you will learn how to increase prices without hurting demand as well as lower prices in a strategic way to achieve your desired outcomes without harming your quality reputation or igniting a price war.
The pricing knowledge and tools you will gain from the class are applicable to both B2C and B2B contexts. Related, channel issues complicate the pricing picture, but we will gain some insights on how to price throughout the channel as well.