The Strategy and Tactics of Pricing

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  • Edition: 5th
  • Format: Hardcover
  • Copyright: 2010-03-02
  • Publisher: Routledge

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Supplemental Materials

What is included with this book?


For undergraduate introduction to Market Pricing courses.

A comprehensive and practical, step-by-step guide to pricing analysis and strategy development.

The Strategy and Tactics of Pricing shows readers how to manage markets strategically rather than simply calculate pricing based on product and profit in order to improve their competitiveness and the profitability of their offers. The fifth edition contains a new chapter on price implementation and several updated examples on pricing challenges in today's markets.

KEY BENEFIT: The Strategy and Tactics of Pricing shows readers how to manage markets strategically-rather than simply calculate pricing based on product and profit-in order to improve their competitiveness and the profitability of their offers.

KEY TOPICS: Strategic Pricing; Value Creation; Price Structure; Price and Value Communication; Pricing Policy; Price Level; Pricing Over the Product Life Cycle; Pricing Strategy Implementation; Costs; Financial Analysis; Competition; Measurement of Price Sensitivity; Ethics and the Law

MARKET: For those interested in learning about market pricing

Table of Contents

Prefacep. xiii
Strategic Pricingp. 1
Coordinating the Drivers of Profitability
Cost-Plus Pricingp. 2
Customer-Driven Pricingp. 3
Share-Driven Pricingp. 4
What Is Strategic Pricing?p. 5
Value Creationp. 7
Price Structurep. 9
Price and Value Communicationp. 11
Pricing Policyp. 12
Price Levelp. 13
Implementing the Pricing Strategyp. 14
Summaryp. 15
Notesp. 16
Value Creationp. 17
The Source of Pricing Advantage
The Role of Value in Pricingp. 18
How to Estimate Economic Valuep. 21
Competitive Reference Pricesp. 21
Estimating Monetary Valuep. 23
Monetary Value Estimation: An Illustrationp. 26
Estimating Psychological Valuep. 32
Psychological Value Estimation: An Illustrationp. 32
The High Cost of Shortcutsp. 36
Value-Based Market Segmentationp. 38
Determine Basic Segmentation Criteriap. 40
Identify Discriminating Value Driversp. 41
Determine Your Operational Constraints and Advantagesp. 41
Create Primary and Secondary Segmentsp. 42
Create Detailed Segment Descriptionsp. 44
Develop Segment Metrics and Fencesp. 44
Summaryp. 46
Notesp. 46
Price Structurep. 47
Tactics for Pricing Differently Across Segments
Price-Offer Configurationp. 50
Optimizing an Offer Bundlep. 51
Designing Segment Specific Bundlesp. 53
Unbundling Strategicallyp. 54
Price Metricsp. 55
Creating Good Price Metricsp. 56
Performance-Based Metricsp. 60
Tie-Ins as Metricsp. 61
Price Fencesp. 63
Buyer Identification Fencesp. 64
Purchase Location Fencesp. 65
Time of Purchase Fencesp. 66
Purchase Quantity Fencesp. 68
Summaryp. 70
Notesp. 71
Price and Value Communicationp. 72
Strategies to Influence Willingness-to-Pay
Value Communicationp. 73
Adapting the Message for Product Characteristicsp. 74
Adapting the Message to Purchase Contextp. 81
The Buying Processp. 82
Multiple Participants in the Buying Processp. 86
Price Communicationp. 87
Proportional Price Evaluationsp. 87
Reference Pricesp. 88
Perceived Fairnessp. 90
Gain-Loss Framingp. 91
Summaryp. 93
Notesp. 93
Pricing Policyp. 96
Managing Expectations to Improve Price Realization
Policy Developmentp. 99
Policies for Responding to Price Objectionsp. 100
The Problem with Ad Hoc Negotiationp. 100
The Benefits of Policies for Price Negotiationp. 102
Policies for Different Buyer Typesp. 103
Policies for Dealing with Power Buyersp. 108
Policies for Managing Price Increasesp. 110
Policies for Leading an Industry-Wide Increasep. 111
Policies for Transitioning from Low One-Off Pricingp. 112
Policies for Dealing with an Economic Downturnp. 114
Policies for Promotional Pricingp. 115
Summaryp. 117
Notesp. 117
Price Levelp. 118
Setting the Right Price for Sustainable Profit
The Price-Setting Processp. 119
Defining the Price Windowp. 121
Establishing an Initial Price Pointp. 123
Pricing Objectivesp. 125
Defining the Price-Volume Trade-offp. 129
Estimating Consumer Responsep. 131
Communicate New Prices to the Marketp. 137
Summaryp. 140
Notesp. 140
Pricing Over the Product Life Cyclep. 141
Adapting Strategy in an Evolving Market
New Products and the Product Life Cyclep. 141
Pricing the Innovation for Market Introductionp. 143
Communicating Value with Trial Promotionsp. 144
Communicating Value with Direct Salesp. 145
Marketing Innovations Through Distribution Channelsp. 146
Pricing New Products for Growthp. 146
Pricing within a Differentiated Product Strategyp. 147
Pricing within a Cost Leadership Strategyp. 148
Price Reductions in Growthp. 149
Pricing the Established Product in Maturityp. 150
Pricing a Product in Market Declinep. 153
Alternative Strategies in Declinep. 154
Summaryp. 155
Notesp. 156
Pricing Strategy Implementationp. 158
Embedding Strategic Pricing in the Organization
Organizationp. 160
Resale Price-Fixing or Encouragementp. 312
Vertical Price-Fixingp. 312
Direct Dealing Programsp. 314
Resale Price Encouragementp. 314
Price and Promotional Discriminationp. 315
Price Discriminationp. 315
Defenses to Price Discriminationp. 317
Promotional Discriminationp. 318
Competitive Injury, Defenses, and Indirect Purchasersp. 319
Using Nonprice Variables to Support Pricing Goalsp. 320
Vertical Nonprice Restrictionsp. 320
Nonprice Incentivesp. 322
Other Pricing Issuesp. 322
Predatory Pricingp. 322
Price Signalingp. 322
Summaryp. 323
Notesp. 323
Indexp. 331
Table of Contents provided by Ingram. All Rights Reserved.

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Customer Reviews

Practical tool combining theory and useful examples July 31, 2011
This textbook is great. What is written in it is soooo true, simple and easy to understand. The concepts are quite complex but once you understand how to dissect things properly to see the proper causal relationships that impact price, demand, labor, etc you will be seeing with a new pair of gl[censored]. I highly recommend adding this textbook to your library. Great read!!!
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The Strategy and Tactics of Pricing: 5 out of 5 stars based on 1 user reviews.

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