Responsables du cours : Kaï BANDILLA et Pierre DESMET

Langage : English Nb Hours :12 ECTS :1,5 Coefficient : 1

With the support of Simon, Kucher & Partners (SKP)

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 - 14/1
 Objectives
 Costs, Demand and Competition
 Laws and regulation

> Readings : Chap 1 & 2

(2) Pricing strategy - 21/1
 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

> Discussion : Mr Damien Robert, Senior Pricing manager (DISNEYLAND resort Paris)

(3) Price setting tools and techniques - 28/1
 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)

> Readings : Chap 3, 7,

(4) Price realization challenges : discount systems, price signalling 4/2
 Value difference processes for companies
 Differentiated discounting methods
 Price signalling

> Readings : Chap 12, 15, 16

> Discussion : Mr Alexis Trichet, Directeur du Département marketing Pro (ORANGE)

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 4 participants)

Books

 Simon H., Jacquet F. and Brault F. (2000), La stratégie prix, Dunod, Paris

Additional suggestions
 Desmet P. et Zollinger M. (1997), Le prix : de l’analyse conceptuelle aux méthodes de fixation, Economica, Paris
 Monroe K. (2003), Pricing : Making profitable decisions, 3rd Ed., McGraw Hill
 Nagle T. and Holden R. (2002), The strategy and tactics of pricing, Prentice hall marketing series.
 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

Other

Find white papers on SKP site

Power point presentations in the private part of the site