Pricing for Profit

Course details

This programme aims at orienting senior managers of private and public sector firms toward setting and managing right price levels for their products and services. Managers who are engaged in developing pricing systems and approaches in consumer markets and in industrial markets would find this programme useful. Example industries include hotels, airlines, energy, cruise liners, automobiles, fast moving consumer goods, switchgears, restaurants, internet service providers, consumer appliances, computers, bulk drugs, retailing, petroleum products.

Objectives

• To improve understanding of pricing approaches
• To develop a systematic framework for assessing, formulating, and implementing pricing approaches

Pricing decisions are affected by economic, marketing, organizational, and psychological factors, and must be made within a prescribed legal framework. The programme revolves around

• making effective pricing decisions while keeping in mind these factors
• understanding the strengths and weaknesses of different pricing approaches
• developing the thinking to choose the right pricing approach and right price level
• implementing the price approach in the face of competitive situations and reactions.

Content

• Determining value and price response models
• How customers view and react to prices
• Costing and breakeven analysis for products and services
• Different approaches to pricing

Value based pricing

Dynamic pricing

Bundling

Two-part pricing

EDLP and promotions

Pricing in the organized retail context

Sales force and pricing

• Price framing, signaling, and price wars
• What is the "right" approach and "right" price level
• Organizing for and implementing the right pricing

Apart from lectures and group discussions, the programme will provide an opportunity to participants to see current pricing approaches in different industries. There will also be group work to develop pricing.