Strategic Pricing and Dynamic Pricing: Pricing to Maximize Profits
| Start Date: | November, 2017 | End Date: | January, 2018 |
| Last Date for Application: | October 17, 2017 | Last Date for Early Bird: | October 5, 2017 |
| Programme Fee: |
23000 INR Plus, GST |
Early Bird Fee: |
23000 INR Plus, GST |
| Pay Now |
Pricing as a decision that directly impacts both the top line and the bottom line of firms. A small increase of 1 per cent in realized prices can lead up to 11 per cent increase in profits. Pricing decisions world over are considered critical decisions for top management. However, firms and managers need a structured way to think about and implement pricing in their firms. It is important to develop and deepen managerial understanding of best practice in pricing, different approaches to pricing, and customer responses to prices to realize large gains in profits with marginal increase in process. This programme will explore how a firm can optimize its prices given its strategic goals relating to profitability and/or market share. It will encourage managers to think proactively about pricing; to price appropriately according to the situation – for the short term, for the medium term and for the long term.
Programme Details
Dates : Programme will start on November 02, 2017
(Classes will be on weekends every 3-4 weeks)
Timings : 10:00 AM to 6:00 PM
Venue : Dubai
For further details, please contact
Mr. Ashwin Joshi
IIMA Executive Education, Dubai Branch | www.iima.ae
T: +971 585976526 | E: head-sgd@iima.ac.in
- Improve understanding of pricing approaches; how pricing interacts with various functions in the organization
- Develop a systematic framework for assessing, formulating, and implementing pricing approaches
- Develop a proactive rather than a reactive approach to pricing
- Understand and use relevant pricing tools at appropriate times and situations
Understanding the Economics and Consumer Context of Pricing
- Setting Pricing Goals and the Pricing Process
- Theories of Consumer Behavior: How customers think about prices
- Reference Prices
- Latitude of Price Acceptance
- Price Expectations
- How to analyze customer willingness to pay and response to price changes
- Conjoint Analysis
- Behavioral and Neuroscience Based Approaches.
- Role of Industry Structure in Pricing
- Supply and Demand Effects in Pricing
- Aspects of Price Discrimination
Costs, Break-even analysis, Competition and Influence of Cost Variations on Pricing
- Identifying relevant costs for making Pricing Decisions
- Pricing for profit-maximization – Break-even sales analysis
- How cost structures and variation in costs influence pricing strategy: Strategies for hedging demand and revenue risk
- Factoring in the competition in Pricing: Competitive analysis, Competitive strategy and Signaling
Revenue Management, Dynamic Pricing and Other Approaches to Pricing
- Overview of Variable Pricing: Revenue Management, Dynamic Pricing, Yield Management, Auctions, etc.
- Revenue Management: Introduction and Optimal Pricing
- Quantifying customer sensitivity to different elements of Dynamic Pricing structure
- Estimating customer response to Dynamic Pricing
- Dynamic Pricing via Capacity Management
- Pricing perishable products/Yield management
- Non linear and Peak-load pricing
- Dynamic Pricing – Benefits
- Multi-pricing in a segmented market: Two Part Pricing and All Units Quantity Discount Markdown Pricing Strategies and Dynamic Markdowns
- Data Analytics and Dynamic Pricing
- Pricing in Hotels and Airlines.
Contextual Pricing
- Value Based Pricing and Pricing software
- Nonlinear and Peak-load Pricing (telecom)
- Pricing Models on the Web
- Pricing of Data Services
- Pricing on Tenders and How to Beat L1
- Pricing in Retail, Consumer Durables, Automotive and Hospitals: The Manufacturer’s Perspective
Implementing Pricing
- Using Price Signaling
- Developing and Implementing Consumer Promotions
- Retail Pricing: Reacting to Price Discounts
- Loyalty vs. Profitability
- Price Communications and Price Led Positioning
- Using Neuroscience to Negotiate New Price Contracts: Structuring and Managing Price Negotiations
- Some Legal Aspects of Pricing
New Product Pricing
- Classifying Types of New Products: Overlap with Brands
- Pricing of Brand Extensions
- Pricing of “New” Products
This programme is designed for CEOs, CFOs, senior sales and marketing executives, entrepreneurs and people responsible for revenue maximization and pricing. Companies are encouraged also to send a person from the finance vertical so that there is a deeper and broader understanding within the firm about pricing that enables better communication about pricing between marketing, finance and other functional areas.
Target Sectors
Airlines, Hospitality, Retail, Telecom, Software, Logistics, Retail landlords, Digital e-commerce companies, etc.
A mix of pedagogical tools will be used – cases, lectures, discussions, presentations, audio-visuals, optimization tools and experiential exercises. A typical day would include about 4 classroom sessions of 75 minutes each with breaks in between for tea/coffee and lunch. Preparation for the class requires doing intensive reading of course material. For effective learning participants should budget approximately 15 hours of reading time in-between modules of 2 days.
The programme emphasises the problem-solving approach – the process of defining problems, specifying objectives, developing alternative courses of action, choosing the best alternative in an uncertain environment, organising people to implement the chosen alternative, coordinating their work, motivating, inspiring and developing them, and finally measuring and controlling their performance.
