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Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
Marketing And Business Planning
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Marketing And Business Planning

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Marketing And Business Planning

Marketing And Business Planning

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  • 1. The Price's Perspective Maximum Profit Now Orlando Moreno omoreno@hotmail.com 408.656.2498
  • 2. Agenda  Introduction  The Pricing Manager’s Goals  What’s Stayed the Same  What’s Changed  Why Things are Tougher Now  The Case for Improved Analytics 2 omoreno@hotmail.com 408.656.2498
  • 3. The Problem Demand Planning Systems X Supply Planning Systems X Price Planning Decisions not united, not optimized for profit Systems 3 omoreno@hotmail.com 408.656.2498
  • 4. Why I Am Here  Ran Intel’s MMBP for four years  Not perfect, but pretty good  Personal interest in advancing the art & science of pricing  Therefore became investor in & friend of Rapt  Enjoy discussing the whole pricing process  Even without being able to use Intel’s data 4 omoreno@hotmail.com 408.656.2498
  • 5. The Pricing Manager’s Goals Maximize profit while meeting the company’s short-term commitments and long-term strategic objectives 5 omoreno@hotmail.com 408.656.2498
  • 6. “Tools” Have Changed Mostly in Appearance… …and in Complexity 6 omoreno@hotmail.com 408.656.2498
  • 7. Basic Strategies Remain the Same  Methods  Value  Penetration  Skim  Follower  Cost Different pricing methods available to remain consistent with brand and competitive positioning 7 omoreno@hotmail.com 408.656.2498
  • 8. As Do Basic Pricing Frustrations “Well, I just talked to customer X, and they said…” Sales VP 8 omoreno@hotmail.com 408.656.2498
  • 9. However…. Much has changed ...Leaving Less Time To “Get It Right”... 9 omoreno@hotmail.com 408.656.2498
  • 10. Product Lifecycles Are Getting Shorter ... Sales Time 386 486 Pentium® Pentium II 10 omoreno@hotmail.com 408.656.2498
  • 11. ...Thereby Pressuring All Marketing Functions  Product management  Communication  Positioning  Line item strategy  Channel relations  Development  And of course...pricing 11 omoreno@hotmail.com 408.656.2498
  • 12. Dealing with a Globalized Economy As Well Originally, Enter “Dell” and mostly other direct corporate, sellers… mostly US/Europe, mostly While Asia personal explodes as a account producing AND sales consuming region, Then consumer with enormous buyers, thru retail number of small channels dealers All This With Standardized Products and Prices 12 omoreno@hotmail.com 408.656.2498
  • 13. And Finally…  Product complexity – bundles, “solutions”, configurations  Uncertain demand across boundaries and segment  Factory execution risk given reduced inventories  Increasing earnings pressure  Distributed ownership of the marketing “4 P’s”  More diverse customer expectations and behavior  More complex laws (e.g. antitrust) 13 omoreno@hotmail.com 408.656.2498
  • 14. What All This Add Means Results? Smarter customers, shorter pipelines Implication? Need for more pricing precision 14 omoreno@hotmail.com 408.656.2498
  • 15. Meeting the Challenges  Requirements  Good, real-time data  Good processes  Good people  Good tools  Implications  Automate (across the chain)  Optimize (the pricing decision)  Automation will likely NOT be driven by pricing teams 15 omoreno@hotmail.com 408.656.2498
  • 16. Therefore, for the Pricer… Exquisite Focus on Data and Analysis 16 omoreno@hotmail.com 408.656.2498
  • 17. Find the Curve Get a quantitative handle on how your markets will Volume respond to price. Be relentless is finding this data Price 17 omoreno@hotmail.com 408.656.2498
  • 18. Fill the Curve Offer as many products as the factory can deliver V and as the customer can o understand* l u m e *Airline problem Price 18 omoreno@hotmail.com 408.656.2498
  • 19. Move the Curve Evaluate new products, or product V features, to o l change the u customer’s m e perception of value Price 19 omoreno@hotmail.com 408.656.2498
  • 20. Getting from Here to There  Technology for data capture is critical  Integrate, automate analytical business processes  Consider experiments with the 4P’s  Take advantage of recent advances in pricing intelligence software 20 omoreno@hotmail.com 408.656.2498
  • 21. Imperative to Focus on TOOLS  Intelligent pricing software can now  Uncover (then optimize) price / demand relationships  Deal with complex product offerings, lifecycles  Factor in the competition  Connect pricing and supply  Must and can work with people and business processes, but choose… Market math and decision science versus simple arithmetic 21 omoreno@hotmail.com 408.656.2498
  • 22. There is Upside for Those Who “Get It”  Created Intel’s system integrating supply, demand and pricing  Retained oversight of this for ten years, regardless of his job Uncertainty, rapid change and complexity => a great time to manage pricing 22 omoreno@hotmail.com 408.656.2498
  • 23. 23 Questions ? Orlando Moreno omoreno@hotmail.com 408.656.2498 omoreno@hotmail.com 408.656.2498

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