Positioning & Pricing Strategy
Introduction
The difference between successful and struggling organizations often lies in their ability to capture value through strategic pricing. This intensive program moves pricing beyond a simple numerical exercise and establishes it as a powerful strategic tool for market positioning and profit optimization.
By combining the latest knowledge with hands-on simulations, participants will learn to develop and execute a strategic pricing architecture that sustainably enhances business performance and aligns with overall corporate strategy.
How you will benefit
- Gain up-to-date knowledge on the most effective pricing methodologies, shifting from cost-plus to value-based approaches.
- Learn to use pricing as a strategic lever to achieve major business goals, such as market share growth, profit maximization, or competitive deterrence.
- Develop increased confidence in performing complex pricing analysis and making defensible, data-driven pricing decisions.
- Understand whether the company is underpricing or overpricing, and implement strategies (such as discount control and enforcement) to fix margin-eroding problems.
- Create a sophisticated understanding of customer price sensitivity, willingness-to-pay (WTP), and psychological reactions to various price structures.
- Accurately assess the P&L and financial outcomes of all proposed pricing changes and portfolio adjustments.
Who should attend
This course is appropriate for anyone with responsibility for developing or implementing pricing decisions for products or services. Division managers, marketing managers, brand or product managers, financial managers, business development officers, and consultants will find this course useful.
What you will cover
Focuses on establishing a rational, profit-maximizing price floor by analyzing internal costs and competitive actions.
- Economic Value to Customers (EVC): Calculating and justifying value-based prices.
- Cost-Structure Analysis: Understanding cost types (fixed, variable, marginal) and the limitations of cost-plus pricing.
- Competitive Strategy: Analyzing competitor pricing and developing strategies to optimize bids and avoid price wars.
Explores how customer psychology and market conditions affect pricing decisions, enabling greater value capture.
- Price Sensitivity: Measuring Price Elasticity of Demand (PED) and identifying factors that influence customer willingness to pay.
- Creative Pricing Tactics: Applying psychological principles (e.g., charm pricing, anchoring) to influence buyer perception.
- Revenue Management: Implementing yield optimization strategies based on demand and capacity forecasting (including a simulation exercise).
Details advanced strategies for pricing across product portfolios and managing complex B2B sales negotiations.
- Strategic Product Line Pricing: Developing tiered (Good-Better-Best) and captive pricing models.
- Bundling and Price Customization: Designing optimal product bundles and using "price fences" to effectively segment customers (e.g., volume discounts, geographic pricing).
- B2B Negotiation: Mastering value negotiation techniques for contracts, long-term agreements, and complex B2B pricing simulations.
Covers the implementation, governance, and future direction of strategic pricing within the organization.
- Willingness to Pay (WTP) Measurement: Utilizing methods like auctions and market research principles to accurately gauge WTP.
- Modern Revenue Model Design: Transitioning to and optimizing Subscription, Usage-Based, and Freemium models.
- Pricing Governance: Establishing controls to minimize "Price Waterfall" leakage and developing a strategic pricing roadmap for sustained profitability.
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