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2) There are various pricing methods like markup pricing, target return pricing, and perceived value pricing that companies use to determine prices. Factors like price elasticity, reference prices, and product uniqueness also impact pricing decisions.
3) Developing an effective pricing strategy requires estimating demand curves, analyzing costs, and understanding competitive prices. Companies must also determine if they will use a penetration or skimming approach based on market conditions.
At the Advertising Research Foundation’s (ARF) 2011 annual re:think convention, a key issues forum presentation was held entitled Engagement as a Behavioral and Sales-Correlated ROI Proxy. Presenters included Robert Passikoff, President of Brand Keys, Inc. & Charles Kennedy
SVP of Sales and Strategy Research for ABC Television Network. Questions such as “What drives media engagement” were addressed. The Disney Media and Advertising Lab and the effects of cross platform consumption were discussed.
At the Advertising Research Foundation’s (ARF) 2011 annual re:think convention, a key issues forum presentation was held entitled Engagement as a Behavioral and Sales-Correlated ROI Proxy. Presenters included Robert Passikoff, President of Brand Keys, Inc. & Charles Kennedy
SVP of Sales and Strategy Research for ABC Television Network. Questions such as “What drives media engagement” were addressed. The Disney Media and Advertising Lab and the effects of cross platform consumption were discussed.
Reisman on FairPay at MITEF "Better Strategies for Monetizing Digital Offerin...Teleshuttle Corporation
(SEE UPDATE AND VIDEO*) FairPay presentation by Richard Reisman, Teleshuttle Coprporation at MIT Enterprise Forum of NYC "Better Strategies for Monetizing Digital Offerings" 12/1/11.
*FOR A MORE CURRENT VERSION OF SIMILAR PRESENTATION, SEE
Reisman FairPay Overview -- Adaptive Win-Win Relationships / Revenue Strategy - Latest Version
http://www.slideshare.net/rreisman/reisman-fairpay-overview
FOR VIDEO SEE
http://www.fairpayzone.com/p/blog-page_14.html
Whether you're managing your own business or working for a Fortune 500 company, Business Strategy is integral to your company's success. More Info At : http://learnppt.com/powerpoint/65_Pricing-Strategy-Toolkit-with-Excel-Model.php
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AI is all the rage in tech circles, and the press is awash in tales of AI entrepreneurs striking it rich after being acquired by one of the giants. As always, the realities of building a startup are different, and the path to success requires not just technical prowess but also thoughtful market positioning and business excellence.
In a talk of interest to anyone building or implementing an AI product, Matt Turck and Peter Brodsky leverage hundreds of conversations with AI (and big data) founders and hard-learned lessons building companies from the ground up to highlight successful strategies and tactics.
Topics include:
Successful data acquisition strategies
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Competing with the giants
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Reisman on FairPay at MITEF "Better Strategies for Monetizing Digital Offerin...Teleshuttle Corporation
(SEE UPDATE AND VIDEO*) FairPay presentation by Richard Reisman, Teleshuttle Coprporation at MIT Enterprise Forum of NYC "Better Strategies for Monetizing Digital Offerings" 12/1/11.
*FOR A MORE CURRENT VERSION OF SIMILAR PRESENTATION, SEE
Reisman FairPay Overview -- Adaptive Win-Win Relationships / Revenue Strategy - Latest Version
http://www.slideshare.net/rreisman/reisman-fairpay-overview
FOR VIDEO SEE
http://www.fairpayzone.com/p/blog-page_14.html
Whether you're managing your own business or working for a Fortune 500 company, Business Strategy is integral to your company's success. More Info At : http://learnppt.com/powerpoint/65_Pricing-Strategy-Toolkit-with-Excel-Model.php
Building an AI Startup: Realities & TacticsMatt Turck
AI is all the rage in tech circles, and the press is awash in tales of AI entrepreneurs striking it rich after being acquired by one of the giants. As always, the realities of building a startup are different, and the path to success requires not just technical prowess but also thoughtful market positioning and business excellence.
In a talk of interest to anyone building or implementing an AI product, Matt Turck and Peter Brodsky leverage hundreds of conversations with AI (and big data) founders and hard-learned lessons building companies from the ground up to highlight successful strategies and tactics.
Topics include:
Successful data acquisition strategies
Data network effects
Competing with the giants
A pragmatic approach to building an AI team
Why social engineering is just as important to success as groundbreaking AI technology
Rational processes and agility–can there be a bigger contradiction in terms? This presentation discusses the rational approach and proves that the separation of the ideas of agility and controlled processes base on a old-age misconception of the decision making mechanism in human brains. Agility and rational processes are similar schemes and Roman Mildner argues that we should stop arguing over it and move on to structuring development processes in a more constructive and effective way. By using the analogy of genetics and their role in organism development, Roman Mildner shows that every organization can create an environment in which projects can significantly increase their success ratio.
TEDxTableMountain - 'The case for the maximum wage'leavesoflanguage
Understanding the true costs for South Africa - and the world - of excessive inequality and excessive wealth - and how we should consume less and share more for societies that serve everyone (including the currently very wealthy) even better.
If you’re considering NIH’s R15 grant, there are some facts you should know before you apply — including what the grant is, who is eligible to receive it, and what reviewers look for in R15 applications.
NIH designed the R15, or Academic Research Enhancement Award (AREA), to support biomedical and behavioral sciences research at small health professional schools. The grant aims to expose graduate and undergraduate students to scientific investigation and bolster the research environment at these smaller institutions.
Windermere Science Project stakeholder meeting presentations.
Grey on how invasive roach have caused changes to the dietary niche of native fish species, thereby altering the structure and functioning of the lake food web. Data derived from gut content and stable isotope analysis of contemporary & archived samples
Maximizing Profit Through Strategic Pricingrobertmckinney
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The thoughts here could apply to retail bankin or any form of retail consumer service business. Also visit my blog http://olusfile.blogspot.com for more insightful essaysg
This is useful for educators and learners of MBA, which is made in lucid style for easier understanding and to be a handy tool before exams or while teaching.
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Summary version of presentation by Lyle Walker, VP Marketing, KSS Retail, at "Pricing & Revenue Management Strategy for Retail," a conference produced by IQPC. April 26 - 28, 2011, Lake Buena Vista, FL.
Surviving the strategy consulting case interviewTop of Minds
Guide to surviving your strategy consulting case interview.
Focused on applicants to firms like McKinsey & Company, The Boston Consulting Group, Bain & Company, Roland Berger Strategy Consultants or Booz & Company.
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Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
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Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
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This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
1. Marketing
1
What is a cynic? A man who knows the price of Pricing Strategy
everything and the value of nothing.
& Policy
Dr. Paurav Shukla
Oscar Wilde (1854 - 1900)
Lady Windermere's Fan, 1892, Act III
3 4
Objectives The price game
Setting the Price Joel Urbany’s experiment
Adapting the Price You sell sunglasses for $10 with a unit cost of $7 and you are
thinking of cutting the price by 50c.
Initiating & Responding to Price Changes
According to the best sales estimate
• If you hold the price you will have a 100% chance of selling 1,000
units
• If you cut the price to $9.50 you have an 80% chance of selling
1,250 unit and a 20% chance of selling only 1,000.
What would you do?
Urbany, Joel E. (2001), “Are your prices too low?” Harvard Business Review, 79 (9), pp. 26-8.
5 6
Why do we pay (more…)? Some critical facts about pricing
Customers are willing to pay much more for a pack of Price is like a thermometer in that the higher we can push the price,
the better job we have done with uncovering consumer needs and
strawberry they buy at a sporting event than from a local designing the marketing mix.
grocery store…
It doesn’t take any marketing skill to sell a product at a “fire sale”
They are willing to pay more for a jeans they buy at price. Marketers earn their keep by getting a premium price for
Levis company store than for clothing they buy at products and services.
Tesco… Reference price is an important concept in pricing strategy. There
They pay more for “hot” items like Nintendo Wii than is an external reference price—what everyone else is paying for the
they should… product—and an internal reference price—what you think you
should pay given your past experience and the buying situation.
They want to purchase expensive perfume for gifts and
Price is the most abstract of any of the four marketing mix
for themselves rather than cheap perfume even though
elements. It is a signal of product quality and status. It is inherently
the cost of manufacturing is not much different… subjective and tied to consumer perceptions rather than objective
reality.
Dr. Paurav Shukla 1
2. Marketing
7 8
Why focus on pricing? The market dynamics
Price is determined by what the customer is willing to
pay,
pay not the cost to manufacture, distribute, and
promote.
The buying context
• Buying situation
• Differences in customers
• Perceptions of customers
Core dimension of the product
• Level of involvement
• Understanding of the product
9 10
Price and Perceived Value: The Economic Price and Perceived Value: The Economic
Perspective Perspective
Objective Value
Perceived Marketing
Benefits Efforts
Perceived Value
Objective Perception Perceived Willingness
Price of Consumer’s Incentive to Purchase
Price of Price Value to Buy
Substitutes = [Perceived Value – Price]
Product Price
Perceived
Costs
Firm’s Incentive to Sell
So, according to the economic perspective, consumers will purchase whenever = [Price – COGS]
Cost of Goods Sold
Perceived Value > 0
£0
11 12
The behavioural component Developing a pricing strategy
Consumer Willingness Economic Utility Fairness of the
to Buy
= of the Transaction + Transaction
1. Relative Incentives
Perceived Value – Actual Price
Actual Price
2. Reference Prices
Actual Price – Reference Price
Perceived Value – Actual Price
3. Cost of Goods Sold
Actual Price – COGS
4. Nature of the product
discretionary vs. necessary
luxury vs. utilitarian Doyle, P. (2002), Marketing management and strategy, Harlow: Prentice Hall.
Dr. Paurav Shukla 2
3. Marketing
13 14
Setting pricing policy Identification of price competitiveness
1. Selecting the pricing Identify the dimension of quality
objective
Weight quality dimension
2. Determining demand Measure competitors along dimensions
Discover price quality preferences
3. Estimating costs
4. Analyzing competitors’
costs, prices, and offers
5. Selecting a pricing
method
6. Selecting final price
Kotler, P. (2003), Marketing management, Upper Saddle River, NJ: Prentice Hall
15 16
Setting pricing objectives Penetration vs. Skimming
Survival Determinant Penetration Skimming
Maximizing sales revenue Objective Long-run market share Short-run profit
Maximizing profit Demand Price elastic Price inelastic
Competition Deter new competitors Accept new competitors
Maximizing growth (unit sales) Few barriers to entry High barriers to entry
Market penetration Product Image seen unimportant Seeks prestige image
Experience curve Long PLC Short PLC
Market skimming Price Pressure for prices to fall Prices can be sustained
Inelastic demand Promotion Customers understand product Unfamiliar product
Unique and patented product
Distribution Existing system Unfamiliar channels
Uncertain product and marketing cost
Production High scale economies Few scale economies
Capacity constraints in production
Finance High investment Low investment
High perceived value
Product quality leadership
Doyle, P. (2002), Marketing management and strategy, Harlow: Prentice Hall.
17 18
Price-quality strategies Determine demand
Price
High Medium Low Each price the company might charge will lead to a
different demand and will therefore have a different
impact on its marketing objectives.
High Premium High Super
The demand curve shows the number of units the
Product Quality
Value Value Value
market will buy in a given time period at alternative
prices.
In the normal case, demand and price are inversely
Medium
Med Overcharging Good-Value related, that is, the higher the price, the lower the
Value
demand.
False
Rip-Off Economy
Low Economy
Doyle, P. (2000), Value-based marketing: Marketing strategies for corporate growth and shareholder value,
Chichester: Wiley.
Dr. Paurav Shukla 3
4. Marketing
19 20
Price elasticity and performance Factors affecting price sensitivity
Unique value
Substitute awareness
Difficult comparison
Total expenditure
End benefit
Shared cost
Sunk investment
Price quality
Inventory
21 22
Methods of estimating demand Estimating & analyzing costs
Lab test
Field test (in store)
Natural experiment
Low Price Costs Competitors’ Customers’ High Price
prices and assessment
No possible prices of of unique No possible
profit at substitutes product demand at
this price features this price
23 24
Pricing Methods Promotional Pricing
Markup Pricing Loss-leader pricing
Largely used in SMEs
Special-event pricing
Unit cost = variable cost + (fixed cost/unit sales)
Markup price = unit cost / (1 – desired return on sales)
Cash rebates
Target Return Pricing Low-interest financing
Largely used in public sector Longer payment terms
Target return price = unit cost + (desired return x invested Warranties & service contracts
capital)/unit sales
Psychological discounting
The firm here should keep a clear focus on break even point
Perceived Value Pricing
Going-Rate Pricing
Sealed-Bid Pricing
Dr. Paurav Shukla 4
5. Marketing
25 26
Selecting final price Price-Reaction Program
Hold our price
Influence of other marketing mix elements Has competitor No at present level;
cut his price? continue to watch
Company pricing policies competitor’s
Impact of price on other parties Yes No No price
Is the price Is it likely to be How much has
likely to
significantly Yes a price cut?
permanent Yes his price been
cut?
hurt our sales?
By less than 2% By 2-4% By more than 4%
Include a Drop price by Drop price to
cents-off coupon half of the competitor’s
for the next competitor’s price
purchase price cut
Kotler, P. (2003), Marketing management, Upper Saddle River, NJ: Prentice Hall
27
When your competitor delivers more for
less
Dr. Paurav Shukla 5