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Marketing - Pricing

Pricing is one of the famous '4 P in Marketing'. Hence, it is a powerful issue in every marketing mix and marketing strategy. The links on this site lead to pricing-related knowledge, such as the relationship between price and profitability, pricing for different stages of the product lifecycle, how pricing is perceived by customers, different pricing strategies and more.
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Miscellaneous Articles
Ethical Pricing and Customer Perception of Price Fairness
Pricing in the Pharmaceutical Industry



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01 November 2007

"No Insult" Pricing and Promotions A smarter approach to winning back value-conscious retail customers.   
A Winning Tool to Manage Price: The Pricing Checklist This article provides managers with a set of winning pricing approaches that help the marketing department make pricing decisions that are proactive, strategic, and grounded in results.  
An international strategy for pricing and profits Developing an international pricing strategy for a new pharmaceutical product is a highly complex, two-step procedure.   
Banking Marketing - Pricing Strategies The settlement of a correct price, both for the market and the competition, is a significant element for the sector of financial – banking services. Another important factor to take into consideration is the fact that the banks do not settle only the prices for individual services, but also coordinate their prices for service packages.   
Core Competencies For Power Pricing The goal of this article is to help your firm attain maximum financial performance by improving its pricing thinking and to show how that improved thinking can translate into improved net price realization. By Hermann Simon  
Covert Pricing: Expanding Profitable Business Behind Enemy Lines One way to survive online price wars is to avoid them altogether. Covert pricing skirts the online dust-up by surreptitiously offering short-lived promotional prices to micro-segments of customers.   
Customer Price Awareness Psychology & Pricing  Customers’ price awareness and perception will often effect how price changes impact revenue. Both the availability and quality of price information, such as current interest rates and charges, as well as a bank’s image amongst customers, play an important role in determining this relationship.   
Differential pricing, the way forward This article discusses elements of differential pricing and how they can enhance the brand or destroy it. Summer 2002  
Don't Just Set Prices, Manage Them Strategically Many companies set their prices without doing anything to manage the pricing environment. The difference between price setting and pricing strategically is the difference between reacting to market conditions and proactively managing them.   
Finding New Answers To the Pricing Question What's It Worth to the Customer? The two most popular approaches to pricing a new product or service are cost and competitive positioning. But it’s time for a third option: an approach that focuses on value.  
Game Pricing Strategies: A Hypothesis Pricing strategy is an important but underappreciated part of game development; price can be a very powerful tool in marketing, and also in making more creative content possible.   
Gathering and Evaluating Data for Price Analysis This chapter addresses sources of price data, price data considerations, and the evaluation of price data elements.  
How Low Should You Go? In a Wal-Mart world, pricing right is trickier than ever. But undercutting your biggest rival may not be the answer. 2003  
Increasing Price Without Increasing Price Increasing profit growth in consumer business through smarter promotional strategy. While some investment is needed, our evidence that shows that taking steps to move away from deep discounting to consumers can deliver tangible benefits to all parties involved.  new
Individualized Pricing: Boosting Profitability with the Higher Art of Power Pricing  
Powerful Pricing Processes How to exploit Profit Potentials Hidden in Effective Pricing Processes   
Price Fixing and Minimum Resale Price Restrictions Are Two Different Animals Businesspersons making real-life pricing decisions need to know the difference.   
Price Optimization for Innovative Durable Goods In the durable goods sector, it is an illusion to believe profitable pricing results from cost analysis and target margins. The optimal launch of a product in this sector relies on more. The following article will show how profit potential can be increased through the effective use of market information.   
Pricing becomes a sciences How a company prices its products and services in increasingly seen as an important strategic tool linked to shareholder value  
Pricing impacts success in new product development Experts discuss pricing strategies.   
Pricing in the Marketing Mix These slides look at interactions between price and the other 3 P’s of the marketing mix.   
Pricing Opportunities in the Digital Age The study of pricing actually consists of four distinct processes: the creation of value-to-customer; the "price-setting" process that determines the split in value created between seller and buyer; the interactive jockeying for position between sellers; and the sellers' internal price implementation process. The Internet is affecting all four areas. Article from 2001  
Pricing: An Eternity of Frustration? Success in pricing is not an impossible task. As long as you know the rules.   
Setting the Right Price, at Internet Speed The article discusses pricing strategies in situations when product development cycles and industries are moving at "Internet speed". By Hermann Simon and Ulf Munack TOP
Stop Reacting to Buyers’ Price Expectations; Manage Them In this article adapted from the authors’ new book, The Strategy and Tactics of Pricing (Prentice Hall, 2010), coauthors Thomas T. Nagle, Joseph Zale and John Hogan explore how executives can create pricing policies that lead to profitable and productive customer relationships.   
Strategies against Price Wars in the Financial Service Industry  As many industries, the financial service industry –specifically in private banking - is currently in a ”price war”. Competitors battle it out with one another using price as their weapon. At the same time, however, they fail to differentiate their products or services sufficiently. This price war leads to enormous value losses. But why do price wars develop? And what strategies can financial institutions pursue to end, or even avoid, a price war?   
Subscription Pricing is Not a Silver Bullet  Especially in maturing markets, executive teams are discussing subscription pricing as a possible solution to revenue woes. Here's a quick overview of subscription pricing to enable CMOs to participate in these discussions with confidence.   
The (Marketing) Science of Pricing: Taking the Guesswork out of Your Biggest Marketing Challenge. Pdf-file  
The High Cost of Pricing - Pricing compliance to capture the full value of every sale  A pricing compliance strategy establishes the policies, processes and tools your sales force needs to realize the full value of every sale.   
The Implementation Challenge of Pricing Decision Support Systems for Retail Managers There has been an explosion in the availability of data and computing ability in retail management that has led to a new desire on the part of managers to implement demand based management. Demand based management uses statistical models to predict consumer price response using historical information.   
The ins and outs of monadic pricing This article reveals the typical errors commited in the Monadic approach and offers rules to help obtain better pricing information. 2003  
The New Value Equation There now appears to be a number of key pricing issues in the marketplace and these are briefly summarized.   
The Old Psychology of Internet Pricing What if you could use the Web to return to the old-world traditional markets where merchants sized up every customer and quoted an exclusive price to each one? You can. Rather than eliminating sophisticated pricing strategies, the Internet actually empowers them.   
The Sophisticated Pricing Of Services This article focuses on what makes pricing services different than pricing manufactured products, and it sketches some of the advanced techniques currently being used to price services. by Boris A. Simkovich TOP
The Volatility Advantage: How to Manage Commodity Price Swings What will jet fuel cost next month? What will electricity cost in 2008? Can anyone accurately predict commodity prices.  
Upend the Downturn with Strategic Pricing This article is from December 2008: If your pricing strategy is more than a few months old, it’s already obsolete. The global economic crisis has whipsawed the primary drivers of pricing.  
Using Pricing To Increase Customer Loyalty The article discusses 7 pricing schemes for customer loyalty as elements of value-oriented customer loyalty programs. By Stephan Butscher  
Value Destruction by Price Promotions? – The Case of the European Automobile Industry Due to the abolition of two important legal restrictions (Rabattgesetz and Zugabeverordnung) in August 2001 the marketing instrument of price promotions is much more widely applied in the German car retail market than only some years ago. We explore the impact of automobile price promotions on shareholder value.   
When to Punish or Reward Own Customers? The authors ask two seemingly simple but critical questions: (1) When should firms reward or punish their own current customers? And (2) when can such targeted pricing be profitable in a competitive setting?   
When You've Lost the Power to Set Prices With consumers and corporate clients feeling the pinch of a tight economy, you may feel it would be counterproductive to raise prices. But there's no reason to feel powerless.   
Where is it heading? The role of pricing is rapidly changing. The Internet, the emphasis on shareholder value, and the availability of increasingly more sophisticated methods to measure value and price effects have begun to pull pricing to the forefront of strategic thinking. To take advantage of these changes, CEO's and managers should consider the five steps described in this article. By Hermann Simon  



Ethical Pricing and Customer Perception of Price Fairness

5 Must Know Pricing Strategy Ethics Issues Over the years, governments have put laws on the books for the most heinous of fraudulent pricing strategies, but even then some tactics are considered quite unethical, and you may be committing these missteps without even knowing. To better protect you and your business, here are some of the most common pricing practices that sit on a razor’s edge of ethics and legality.  
Are pharmaceutical prices just? A discussion of business, values, and ethics  
Environmentally Responsible Energy Pricing The purpose of this report is to ascertain the energy prices needed to reflect the environmental costs imposed by energy, thus providing economic incentives for energy usage that will reflect the full social cost. The report develops energy user fees under a variety of assumptions. 1992   
Ethical Pricing Pricing is an issue that often generates intense debate. The Ethical Pricing Project is looking to quantify some of the issues in this area. 2004  
Ethical Pricing Survey Report Findings from an online survey into consumer perceptions towards ethical pricing practices.   
Ethical Pricing Website    
Ethics, Pricing and the Pharmaceutical Industry Ethical obligations of pharmaceutical companies to charge fair prices for essential medicines are explored. The moral issue at stake here is distributive justice. 1992  
Price discrimination: Main information dimensions and ethical concerns.   
Socially Responsible Pricing: Lessons from the pricing of AIDS drugs in developing countries This article examines socially responsible pricing in the form of differential pricing across markets taking into account ability to pay and social welfare. 2004  
The Ethics of Price Discrimination Price discrimination is the practice of charging different customers different prices for the same product or service. The ethical status of price discrimination is ambiguous: while many people intuitively consider it unfair, economists argue that in many cases the practice is likely to lead to higher welfare than the uniform pricing alternative. 2009   


Pricing in the Pharmaceutical Industry

Are pharmaceutical prices just? A discussion of business, values, and ethics  
Ethics, Pricing and the Pharmaceutical Industry Ethical obligations of pharmaceutical companies to charge fair prices for essential medicines are explored. The moral issue at stake here is distributive justice. 1992  
Money-Back Guarantee … and other ways you never thought to sell your drugs To help pharma companies adapt to the growing demand for cost effectiveness, Thomas Nagle, a Monitor Group partner and specialist in strategic pricing, prescribes three value-based pricing models designed to boost the health of pharma industry while protecting the “well-being of the healthcare systems and the patients it serves.”  
Pharmaceutical Pricing Strategies Optimizing returns throughout R&D and marketing. 228 page Management Report. Pdf-file 2003  




The $100 Zerophobia
By Naseem Javed
Consumers all over the world have always found comfort in things that are often priced at the 99 cent range, regardless of whether it's a small item at $9.99 or $99,000 for a big ticket item.


Free: The Future of a Radical Price
by Chris Anderson
In his revolutionary bestseller, The Long Tail, Chris Anderson demonstrated how the online marketplace creates niche markets, allowing products and consumers to connect in a way that has never been possible before. Now, in Free, he makes the compelling case that in many instances businesses can profit more from giving things away than they can by charging for them. Far more than a promotional gimmick, Free is a business strategy that may well be essential to a company's survival.

The Art of Pricing : How to Find the Hidden Profits to Grow Your Business
by Rafi Mohammed
The Art of Pricing is the first practical, easy-to-understand guide to solving one of the most important dilemmas in business: how to use price to uncover a product’s hidden profits and find new opportunities for growth.

Pricing on Purpose : Creating and Capturing Value
by Ronald J. Baker
The book presents the theory of value— long established in economics—and details how any business can use various pricing strategies to create, communicate, and capture the value of their products and services. It takes a new approach of focusing on the external value as perceived by the customer and advocates matching price to value.

The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making
by Thomas T. Nagle, Reed K. Holden, Reed Holden
Practical in focus and lively in style, the book provides a comprehensive, managerially-focused, integrated, step-by-step guide to pricing analysis and strategy development. New to this third edition are: an updated, practical guide to legal limitations on pricing; a chapter on pricing in and through channels of distribution; an expanded and revised chapter on managing value perceptions and price expectations; and more examples particularly relating to e-commerce.

Pricing for Profitability: Activity-Based Pricing for Competitive Advantage
by John L. Daly
Only when a price is set appropriately does a company make both a sale and a profit. Just as activity-based costing and activity-based management revolutionized the cost accounting world, activity-based pricing will bring a disciplined approach to developing pricing. Activity-based pricing examines the relationships between price, cost and sales volume and how this relationship effects profitability. Pricing for Profitability joins the disciplines of marketing, economics, business strategy, engineering and cost accounting to achieve maximum profitability.




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Status: 03. Juli 2015