Strategic Pricing for Products and Services
1h 17mBeginner2022-01-14
Authors
Stefan Michel
Professor at IMD, Author, International Marketing Consultant
Course details
Whether you work at a large company, startup, or small business, strategic pricing is the most important decision related to your long-term profitability. In this course, professor and pricing expert Stefan Michel outlines the key elements of strategic pricing and provides a step-by-step guide for your products and services.
Get hands-on experience with real-world scenarios and explore effective pricing strategies on the ground. Develop practical tools that you can put to use in your own unique environment. Stefan covers essential topics like how to research your customers' willingness to pay, analyze your competitive landscape, and identify and communicate the best price for your product or service. By the end of this course, you’ll have gathered new insights and sharpened your pricing mindset, making your business more profitable and customer-centric.
Get hands-on experience with real-world scenarios and explore effective pricing strategies on the ground. Develop practical tools that you can put to use in your own unique environment. Stefan covers essential topics like how to research your customers' willingness to pay, analyze your competitive landscape, and identify and communicate the best price for your product or service. By the end of this course, you’ll have gathered new insights and sharpened your pricing mindset, making your business more profitable and customer-centric.
Skills covered
Business StrategyBusiness Analysis and StrategyLeadership and ManagementDeep Dive (X:Y)
Concepts
Introduction
- The power of strategic pricing
- Set the best pricing with the 4C marketing framework
- Define your pricing challenge
Define Your Business Model and Strategy
- Business model first, then pricing strategy
- Define your pricing objectives and constraints
- Identify your price carriers
- Calculate variable costs, fixed costs, and break-even point
Create a Price Value Positioning Map
- Identify the job-to-be-done to articulate your value proposition
- Define your value proposition
- Create a price value positioning map
Research Your Customer's Willingness to Pay
- Analyze customer price sensitivity
- Analyze customer trade-offs in pricing a product or service
- Observe and experiment to find your best price
Identify the Best Price and Communicate It Effectively
- Run what-if scenarios with three different prices
- Decide on the best price based on impact
- Communicate your price effectively
Conclusion
- Value-based pricing is both customer and profit oriented
- Pricing excellence is an organizational capability