This program helps dispel the myths and ambiguities of setting prices and inspires you with invaluable theories, tools and strategies to help you successfully navigate the complicated world of pricing. In this program senior faculty of the Kellogg School’s Marketing Department highlight the fundamental principles that should guide the formulation of a coherent pricing strategy. What costs are relevant in the pricing decision? How does one price based on value and what are the consequences? What are the costs and benefits of segmentation? How should you respond when a competitor cuts their price?
Product Week You may combine this program with Innovating New Products and Services toparticipate in Product Week. When taken consecutively, these programs are offered together at a discounted price. Combining the programs provides a week long executive level summary of the approach to managing product portfolios taught in the highly acclaimed Kellogg MBA program.
Upcoming Sessions (Fee includes lodging and most meals)
This program is designed for all managers responsible for making pricing decisions, as well as for engineering and finance executives. While not highly technical, the program requires the ability to work with quantitative information and spreadsheets.
In this program, you will learn to:
Integrate pricing into an overall marketing strategy
Determine the proper role of costs in pricing
Set prices in a highly competitive environment
Understand the interaction between pricing and distribution
Assess the value of a product to a customer
Determine when to use alternative pricing tactics
Setting a Pricing Strategy
The pricing process
What is required to set a pricing strategy?
Examples of pricing strategies
Issues in Pricing and Distribution
Pricing through a distribution channel
Pricing to coordinate the channel
Dysfunctional channel pricing strategies
The Role of Costs in Pricing
Types of costs and general myths
How should costs affect pricing?
Differential impact of variable and fixed costs on pricing
What is segmented pricing?
Types of segmented pricing including demographics, customer benefits, timing, quantity, location and bundling
How to implement segmented pricing
What is value pricing?
How to set prices by focusing on value to the customer
Issues in implementing value pricing
Pricing in a Competitive Market
Interaction between price and capacity
Price and differentiation
New Product Pricing
Factors to consider in setting price of new products
Rakesh Vohra - John L. and Helen Kellogg Professor of Managerial Economics & Decision Sciences; Director of the Center for Mathematical Studies in Economics & Management
Featured Faculty Video
Professor Lakshman Krishnamurthi: How pricing strategies vary based on different market realities
What Past Participants Say
"The professors are experts and extremely enthusiastic with every topic. My expectation was to come away with three key tools, and I walked away with at least ten." - Product Director, Johnson & Johnson
"I would recommend this program to all managers and executives. Anyone dealing with pricing and value will benefit from this program!" - Sales Manager, James Hardie Building Products
"This program takes you away from your way of looking at pricing and opens many doors to broaden your horizon and force you to look at pricing differently." - Director of Pricing Development, Western Union FSI
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