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Pricing
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Responsables du cours : Mr Kaï BANDILLA, Executive Vice-President, Simon-Kucher & Partners SKP et Pierre DESMET
Langage : English
Nb Hours : 12 - ECTS : 1,5 - Coefficient :
Course Objectives
The course is designed to provide students with an integrative framework for making pricing decisions.
The purpose of the course are to
help students learn to synthesize economic, marketing principles with accounting information
elaborate pricing alternatives within market, legal and corporate constraints.
Learning goals are :
acquiring a strategic framework for pricing decisions
understanding main issues in pricing
knowing objectives, interest and limitations of market research pricing tools
Content
The course is organized in four sessions that address the following objectives :
| (1) Pricing decision framework - |
Objectives
Costs, Demand and Competition
Laws and regulation
> Readings : Chap 1 & 2
> Exercises (worksheet) :
— Elasticities
— Margin rate
> Prepare
— Qual Prod
| (2) Pricing strategy - |
Review of main price strategies (non linear models, dynamic pricing)
Price and time (product life cycle, experience curve)
Product line pricing
Price Segmentation and Price differenciation (yield management)
> Readings : Chap 4, 5, 6
> Exercises (worksheet) :
— Bundling
— Yield exercises
— Yield management
| (3) Price setting tools and techniques - |
Psychological price methods
Conjoint analysis
Hedonic prices
International pricing decision (transfer price, grey market, currency instability and price corridor)
Price variations (introductory price, sales promotion)
> Discussion : Mr Alexis Trichet, Directeur du Département marketing Pro (ORANGE)
> Readings : Chap 3, 7
> Exercises (worksheet) :
— Psychological price
— Conjoint Analysis
— BPTO Brand price trade off
— Hedonic Prices
> Additional ressources
— Simon H., "Further Advances Of The Price Corridor Approach"
— Castronova E., "The price of a "man" and "woman" in a synthetic world" : a hedonic pricing model of avatar attributes in a synthetic world"
| (4) Price realization challenges : discount systems, price signalling |
Value difference processes for companies
Differentiated discounting methods
Price signalling
> Readings : Chap 12, 15, 16
Animation
Reading of a reference book on pricing (mandatory) Simon H., Jacquet F. and Brault F. (2000), La stratégie prix, Dunod, Paris
Lectures
Lectures and Q&A with two top managers.
Evaluation
Case study (group of 4, powerpoint presentation, 20’) :
— Nabaztag texte
— Nabaztag data
— Nabaztag Tool Psychologic price
— Nabaztag Tool Experimental data analysis tool
Readings
Nagle T., Hogan J., Zale J. (2010), The strategy and tactics of pricing (5th ed.), Prentice hall marketing series.
Phillips R. (2005), Pricing and Revenue Optimization, Stanford University Press.
Monroe K. (2003), Pricing : Making profitable decisions, 3rd Ed., McGraw Hill
Rafi M. (2005 ), The art of pricing, (how to find the hidden profits to grow your business), Crown Business
Simon H., Bilstein F. and Luby F. (2006 ), Manage for profit not for market share (a guide to greater profits in highly contested markets), Harvard Business School Press
Simon H., Jacquet F. and Brault F. (2000), La stratégie prix, Dunod, Paris
Desmet P. et Zollinger M. (1997), Le prix : de l’analyse conceptuelle aux méthodes de fixation, Economica, Paris
Other ressources
http://www.informs.org/Community/revenue-mgt
http://www.revenuemanagementconference.com/
http://www.sawtoothsoftware.com/conjoint-analysis-software
Glossaire prix
Find white papers on SKP site
Credoc (2006), Les moins de 30 ans ont une forte sensibilité au prix
Credoc (2005), La nouvelle sensibilité des consommateurs au prix
Hauser J. (1988), Competitive price and positioning strategies, Marketing Science, 7, 1, 76-1
Van Heerde H., Gijsbrechts E., Pauwels K. (2008) Winners and Losers in a Major Price War, Forthcoming, Journal of Marketing Research ; July, 16
Power point presentations in the private part of the site
Revues de référence
Journal of Product and Brand Management, Emerald
Journal of Revenue & Pricing Management , Palgrave
(Master Marketing Paris Dauphine- 2011)