Pricing Revealed: What Every Product Manager Should Know

483
-1

Published on

Pricing Revealed, What Every Product Manager Should Know : Talk by Mark Stiving at SVPMA Monthly Event June 2013

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
483
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Pricing Revealed: What Every Product Manager Should Know

  1. 1. Capture  More  Value  from  Your  Products  and  Capabili7es  
  2. 2. Mark  Sving  •  Director  of  Pricing  at  Maxim  Integrated  •  Ph.D.  in  pricing  from  UC  Berkeley  •  1996-­‐2000  Professor  of  Markeng  at  Ohio  State  –  Pricing,  market  research,  markeng  models  •  Currently  teach  pricing  with  UC  Irvine  •  “Impact  Pricing:  Your  Blueprint  for  Driving  Profits”  •  Blogger  at  PragmacPricing.com  •  Frequent  speaker  and  coach  on  pricing  2  
  3. 3. WHAT  IS  PRICING?  
  4. 4. Pricing  is  …  Complex  Powerful  Important  Fun  Psychological  Qualitave  Quantave  Never  perfect   Specific  Customizable  Dependent  Emoonal  Informaon  Secret  Risky  Instantaneous  Grading  Common  Dynamic  A  process  
  5. 5. Pricing  is  …  Complex  Powerful  Important  Fun  Psychological  Qualitave  Quantave  Never  perfect   Specific  Customizable  Dependent  Emoonal  Informaon  Secret  Risky  Instantaneous  Grading  Common  Dynamic  A  process  
  6. 6. Pricing  is  …  Complex  Powerful  Important  Fun  Psychological  Qualitave  Quantave  Never  perfect   Specific  Customizable  Dependent  Emoonal  Informaon  Secret  Risky  Instantaneous  Grading  Common  Dynamic  A  process  
  7. 7. Pricing  is  …  Complex  Powerful  Important  Fun  Psychological  Qualitave  Quantave  Never  perfect   Specific  Customizable  Dependent  Emoonal  Informaon  Secret  Risky  Instantaneous  Grading  Common  Dynamic  A  process  
  8. 8. Pricing  is  …  Complex  Powerful  Important  Fun  Psychological  Qualitave  Quantave  Never  perfect   Specific  Customizable  Dependent  Emoonal  Informaon  Secret  Risky  Instantaneous  Grading  Common  Dynamic  A  process  
  9. 9. Pricing  is  …  Complex  Powerful  Important  Fun  Psychological  Qualitave  Quantave  Never  perfect   Specific  Customizable  Dependent  Emoonal  Informaon  Secret  Risky  Instantaneous  Grading  Common  Dynamic  A  process  
  10. 10. Pricing  is  …  Complex  Powerful  Important  Fun  Psychological  Qualitave  Quantave  Never  perfect   Specific  Customizable  Dependent  Emoonal  Informaon  Secret  Risky  Instantaneous  Grading  Common  Dynamic  A  process  
  11. 11. Pricing  is  …  Complex  Powerful  Important  Fun  Psychological  Qualitave  Quantave  Never  perfect   Specific  Customizable  Dependent  Emoonal  Informaon  Secret  Risky  Instantaneous  Grading  Common  Dynamic  A  process  
  12. 12. Pricing  is  …  Complex  Powerful  Important  Fun  Psychological  Qualitave  Quantave  Never  perfect   Specific  Customizable  Dependent  Emoonal  Informaon  Secret  Risky  Instantaneous  Grading  Common  Dynamic  A  process  
  13. 13. Pricing Captures Value
  14. 14. Key Takeaway #1Know your Value –Charge what your customers areWilling To Pay
  15. 15. Will  I?  Which  one?  Value  
  16. 16. Will  I?  
  17. 17. Will  I?  
  18. 18. Customers making the “Will I?”decision are not price sensitive
  19. 19. Which  One?  
  20. 20. Price has a powerful impact whencustomers choose “Which one?”
  21. 21. Differenaon  
  22. 22. Value is Differentiation
  23. 23. Percepons  
  24. 24. VALUE  IS  PERCEIVED  DIFFERENTIATION    Create  it  Find  it  Communicate  it  
  25. 25. Key Takeaway #1Know your Value –Charge what your customers areWilling To Pay
  26. 26. Different  willingness    to  pay  Segmentaon  
  27. 27. Is it fair?
  28. 28. Key Takeaway #2Segment Your Pricing –Charge more to customers who arewilling to pay more.
  29. 29. CharacteristicsTransaction infoBehaviorsProductsHow?
  30. 30. CustomerCharacteristicsSegmentaon  
  31. 31. CustomerCharacteristicsTransaction infoSegmentaon  
  32. 32. CustomerCharacteristicsTransaction infoProductSegmentaon  
  33. 33. Behaviors
  34. 34. Products
  35. 35. Key Takeaway #2Segment Your Pricing –Charge more to customers who arewilling to pay more.
  36. 36. Por`olio  Versions    Complements  
  37. 37. Anchoring
  38. 38. Will  I?  Which  one?  Complements  
  39. 39. Complements?  
  40. 40. 510  Acres  
  41. 41. 25,000  Acres  
  42. 42. Por`olio  Google  -­‐  $1.70  per  Android  device    Apple  -­‐  $576.30  per  iOS  device  Source:  CNN  Money  –  Asymco:  Google  makes  only  $1.70  a  year  per  Android  device  
  43. 43. Gefng  Paid  for  Free  •  Free  samples  •  Free  trials  •  Free  informaon  (like  now)  •  Pay  as  you  wish  •  Free  network  membership  •  Ad  supported  (sponsors)  •  Freemium  
  44. 44. Key Takeaway #3Build a Product Portfolio!VersionsComplements
  45. 45. Key  Takeaways  1.  Know  your  value  –  Charge  for  it  2.  Segment  your  pricing  3.  Build  a  product  por`olio  
  46. 46. www.PragmacPricing.com  ms@MarkSving.com  

×