Don't Just Set Prices: Manage Them Strategically

Produced

• 2005

Key Features

57-minute VHS or DVD video

This training session covers four pricing stategies most marketers overlook, what supply chain managers have learned about driving prices, when price sensitivity is actually a response to poor pricing policies, how your pricing policies set expectations in the minds of your customers, the invalid belief that customers understand the value of what they are buying, and when you shouldn't listen to your customers.

Traditional pricing methods involve charging as much as you can in order to maximize profits, but not so much that there is a negative impact on sales. This method presents a dilemma when a customer rejects your price.  Does it mean that the price is too high? According to Tom Nagle, maybe not. Price levels are only the visible tip of the iceberg in pricing strategy.

Nagle states that in order to help customers to pay for product value, you can't just set a value-based price. You need to approach your markets proactively instead, with communications that justify your price in terms of value. You need to manage a price structure that tracks with value, and a pricing process that forces customers to acknowledge value with their pocketbooks.

This program features Tom Nagle.  He is the author of the seminal work The Strategy and Tactics of Pricing. Dr. Nagle has been a professor of marketing and strategy at the University of Chicago and Boston University. He is a graduate of Penn State University and received his PhD from UCLA.

 

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