Pricing Strategies: Measuring, Capturing and Retaining Value
The fastest and most effective way for a company to realize its maximum profit is to get its pricing right. However, pricing is managers' biggest marketing headache. It's where they feel the most pressure to perform and the least certain that they are doing a good job. Yet getting closer to the "right" price can have a tremendous impact, and slight improvements can yield significant results. The purpose is therefore to gain control over the pricing function.
The objective of this course in pricing strategies and tactics is to systematically present factors that have to be considered when setting price, and to show how pricing alternatives can be developed and analyzed. The course is designed to provide the students with an integrative framework for making pricing decisions.
The course covers economic aspects of pricing, strategy and tactics of market based pricing, in addition to psychological aspects of price sensitivity and decisions under incomplete information. Together these factors form a basis for analyzing pricing alternatives within legal, organizational, and competitive constraints.
Learning outcome knowledge
After the course the students have to:
- demonstrate knowledge of the different concepts, models, theories and tools covered by the course
- demonstrate knowledge of the assumptions on which the concepts, models and theories are based
- demonstrate a good understanding of the consequences of choosing a particular pricing approach to a specific problem
- demonstrate an ability to identify, evaluate and propose solutions to different pricing problems based on information about customer, competitors, and the general market situation
- Written assignment: 60%
- Written exam: 30%
- Class participation: 10%