Technology for effective marketing pricing “How to”
The name and content of this module reflects several ideas based on an understanding of the role of pricing in achieving the highest economic goals of an enterprise related to the optimal increase in net profit, positive net cash flow and the market value of the enterprise.
First, it is a technology, i.e. a logical sequence of actions leading to the achievement of the goal: the creation of effective pricing for the company’s products. Practical pricing or pricing “As is” is often a continuous experiment to find the most optimal price, and on Monday the company thinks about increasing sales by reducing prices, and on Thursday recalls the need to increase profits by increasing prices. These “hesitations” from side to side mean that the company has not developed an optimal goal and pricing strategy. Even if frequent price fluctuations do not occur, then such an experiment constantly occurs in the heads of the management of such an enterprise. The reason for this is the same – the lack of a system of optimal solutions in the field of pricing for the long term.
Secondly, it is a technology to increase the efficiency of an enterprise by controlling the price of products (finished products, goods, works, services). The optimal price is a complex management object, since a large number of pricing factors simultaneously influence the decision on the optimal price. One of the most important factors is the need to cover the full costs of the enterprise and generate the required net profit. At the same time, the price should be accepted by consumers of the target segment, for which it should correspond to the consumer value of the products and consumer purchasing power, and also should be competitive, for which it is necessary to achieve better than the competitors’ product quality / price ratio. And that is not all. The pressure on the price is exerted by the phase of the product life cycle, the price elasticity of demand for the product, the cost structure of the enterprise, the economic conditions, the availability of a reserve of production capacity. Efficient pricing technology is a pricing technology that divides all pricing factors into major and additional pricing factors. One of the main factors are the higher economic goals of the enterprise and the magnitude of its costs. This provides a further search for the optimal price within the boundaries of efficiency while taking into account the purchasing power of consumers of the target segment and ensuring price competitiveness, as well as taking into account additional pricing factors, if their influence is not opposed to the influence of the main factors.
Thirdly, it is marketing pricing technology, which means that the decision on the best price is made taking into account the fact that “Pricing (Price)” is one of the seven components of an effective marketing strategy “7P”. This requires optimal coordination of the price decision with the decision about “Products (Product)”, the decision about the product distribution system (points of sale) “Place” and other components “Promotion Complex (Promotion)”, “Contact Personnel (People)” , “Process” and “Physical evidence of quality (Physical evidence)”. In this regard, the technology of effective marketing pricing includes the task of choosing the optimal pricing goal (from the full “library” of pricing goals), taking into account the product life cycle phase and market development forecast in the strategic foreseeable period, the task of choosing the optimal pricing strategy (from the full “pricing strategies), the problem of choosing the optimal pricing method (from the full” library “of pricing methods) and the problem of choosing the optimal tactics of hell price quotations (from the full price adaptation library).
“As it should,” which fundamentally distinguishes it from any “As is” technology or the practice of non-optimal pricing. Agree that the understanding that the price of products is really optimally defined means the seller’s confidence in the price. This is a very important psychological setting for any seller and frees up management time and intellectual abilities to search for other significant opportunities to increase enterprise efficiency.
The “How to” technology for effective marketing pricing is demonstrated in the end-to-end example of a real enterprise and one of its targeted marketing segments, which makes learning vivid and highly effective.
The “How to” technology for effective marketing pricing technology training module is included in the schedule of open training modules where you can find out the dates, venue and cost of participation.
Technology “How to” effective marketing pricing, which implements the director of marketing, must be consistent with the operating activities of the director of sales.