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Introduction
Competitor-based pricing is a method
that sets the price based on the average or benchmark price of the competitors.
Pricing is what marketing is all about. The whole point of the practice of
marketing is to ensure the long-term survival of the company and survival
will only be assured if the company is profitable in the long-term. However,
pricing is more than a scorecard, the better the company's marketing, the
higher the profit (in the long-term at least). Pricing is also a dynamic
element of the marketing mix. Price can affect the way customers behave and
because "price" is perceived as being the single largest indicator
of value, it will impact on their perceptions of the company's offering
versus that of the competition.
Setting the right price is always a
challenge. If the product is sold at a premium price, profitability increases
but its volume of sale decreases. If the product is sold economically, it
might result in a higher sale but the margins shrink. Therefore, setting the
right price is a perennial challenge. This programme will help the
participants to address this challenge.
Objective
after taking this training,
participants will:
• Learn the various stages in setting
a price of the product, advantages and disadvantages of different pricing
methods;
• Learn to calculate prices using
different approaches;
• Develop competence to choose the
correct pricing strategy to fit a firm’s overall objectives;
• Learn some of the economic theories
underlying the marketer’s view of price and value.
Who should Attend
This learning programme is suitable
for Entrepreneurs, Directors, Marketing/Sales professionals and all those who
are involved in taking the decision about the price of the product.
Unique Programme takeaway:
How to become a “Market Leader” in a
particular industry is always a challenge for the
companies who are “Market Challengers” or “Market Followers” or those who
work in niche markets. The participants will get a strategic plan for their
movement to “Premium Pricing”. It may be noted that this is an indigenously
development documents and participants and they will not get it in any book
or website.
Agenda
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Introduction to Product Pricing
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Eight Stages of setting the Product Price
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Price sensitivity – what type of buyer my product has?
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Price and Costs
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Dimensions of the quality of the product/service and its
impact on the price
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Breakeven Analysis
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Introduction to the Product Pricing Strategies
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Understanding Price and Quality Matrix –Premium Pricing,
Penetration Pricing, Economy Pricing & Price Skimming
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Price and Distribution Matrix – Market Leader, Market
Challenger, Niche Marketer & Market Follower
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Strategy to become a Market Leader
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Strategies to initiate Price Cuts
Ø Strategies
to Price Increase
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