Book description
The most neglected element of the marketing mix can have an unrivalled impact on the bottom line. Smarter Pricing helps managers make more intelligent pricing decisions, implement pricing strategies and structures more effectively in the market and capture more value for their business.
At no time has effective pricing been more significant. Buyers are getting stronger, markets more transparent, and manufacturers in new powerhouses such as China, are becoming more and more competitive.
Recent McKinsey survey of 2500 companies calculated that a 1% increase in price improves operating profit by 11.1%.
Smarter Pricingis a good, hands-on book on pricing for practising managers, providing a developed mix of techniques through international examples from a range of sectors that bring pricing theory into a real-world context.
Smarter Pricingjoins the developing suite of FTPH books offering executives focused and practical advice on decisive business challenges.
Smarter Pricing is a fast and focused companion to practical price management, for executives and marketers in every sector.
Table of contents
- Copyright
- Acknowledgements
- Upwards, not downwards
- Pricing by voodoo or bingo? – there’s a better way
-
Customers: smarter ways to understand them
- When they say price, they really mean value
- What would you pay for this? Perils and pitfalls of pricing research
-
Price discrimination – segmenting by price sensitivity
- Price–volume relationship
- Buying more as the price rises!
- Driving miles to buy cheap petrol
- Nine effects to reduce price sensitivity
- Different customers, different sensitivity
- The answer is price discrimination
- Different segments, different brands
- Chapter summary
- Management questions for your business
-
Going further – references and additional reading
-
Customers behaving badly – how pricing can help
- Pricing that brings unsatisfactory behaviour
- Pricing to help customers behave profitably
- Charge them for what they don’t eat!
- The ultimate price promise
- Mini-bar barrier lifted
- Pricing that impacts consumption
- Ten dollar bills feel more than $100 on the card
- Early payment, less commitment
- Men don’t read price tags
- Price stimulates behaviours – manage that knowledge well
- Chapter takeaways
- Management questions for your business
-
Going further – references and additional reading
-
Competitors: smarter ways to outwit them
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Standing out from the crowd – pricing’s role in positioning and differentiation
- Up-market or down-market?
- What is positioning?
-
Price – a quality indicator . . . and more
- How price can communicate the position on the quality spectrum?
- How price can convey accessibility
- How price can convey that it is easy to do business
- How price can reassure
- How price conveys security
- How price can convey differentiation
- How price conveys exclusivity
- How price conveys indulgence
- How price can convey aspiration
- Dynamic market . . . relativities change
- You’ve got to be different: ban commodity thinking
- Differentiation is the lifeblood – there are three types
- Looking for new points of difference
- Chapter takeaways
- Management questions for your business
-
Going further – references and additional reading
-
Competing with value players – hit back with benefits
- New threat – deep discount
- No room for haughty brand supremacy
- Look at the Wal-Mart way and look out!
- Fight back with benefits
- Ten strategies to beat the value players
- You cannot hold all the business
- Chapter takeaways
- Management questions for your business
-
Going further – references and additional reading
-
Fighting price wars – planning to escape pain
- What is a price war, where do they happen?
- Does a price war make sense?
- Volume increases rarely match the original profit foregone
- Any advantage is short-lived
- And customers get the wrong message
- Strategic shakeouts don’t happen
- How price wars really start
- Avoid, avoid, avoid
- Kick ’em with non-price responses
- Fear and emotion to fight price cuts
- Be creative and selective in your responses
- If you have to fight, punch hard, once
- Retreating may be the most profitable strategy
- Prepare now
- Chapter takeaways
- Management questions for your business
-
Going further – references and additional reading
-
Standing out from the crowd – pricing’s role in positioning and differentiation
-
Company success: smarter ways to capture value
-
Fixing the right price – structures, segments and stairways
- How could we set the price?
- Pricing objectives
- Life-cycle pricing
- Next step: develop a price structure
- Reward high users with multi-dimensional prices
- It’ll cost you more later
- Different segment, different price
- Leading customers up price stairways
- Block out competitors – pair up product and system
- Hot sauce calls for a refreshing bundle
- When they bundle, I’ll be different
- Confused by prices? That’s the intention
- End confusion, risk a price war
- Price structure gets golfers out on the links
- It’s new, what should I charge?
- Chapter takeaways
- Management questions for your business
-
Going further – references and additional reading
-
Communicating prices – creating positive perceptions
- Pricing cues – the magic of 99p
- Err . . . I don’t know how much it is normally
- Seeing something else pricey loosens the wallet
- Threshold price points
- Price presentation
- The Machiavellian way to communicate
- Divide and conquer
- Here is the price . . . plus one last benefit
- Love discounts, hate surcharges
- Why should I clear my own table?
- What a rising price says about you
- Chapter takeaways
- Management questions for your business
-
Going further – references and additional reading
- Why pay more? How to get higher prices
-
Fixing the right price – structures, segments and stairways
-
Pricing success and executive summary
-
Pricing success – keeping discipline, measuring results
- Higher prices (but higher discounts)
- Co-ordinating pricing decisions – how does it happen?
- Sales force giving it away?
- Managing pricing discipline
- Prevent profit leakage
- When ‘strategic’ really means loss-making
- How do you measure success?
- Difficult but important
- Chapter takeaways
- Management questions for your business
-
Going further – references and additional reading
- Smarter pricing – the five-minute version
- The last word on price
-
Pricing success – keeping discipline, measuring results
Product information
- Title: Smarter Pricing: How to capture more value in your market
- Author(s):
- Release date: January 2005
- Publisher(s): Pearson Education Canada
- ISBN: 9780273706137
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