1. Pricing strategyLearnppt.com

2. PRODUCT OVERVIEW This is a proven framework used by global strategyconsulting firms for Fortune 500 companies. Learn thismethodology and enrich your expertise. Then, savetime by lifting slides directly from this presentationinto your own. This toolkit provides an in depthdiscussion on Pricing Strategy, including Skimmingversus Penetration, Pricing Tactics, Product AdoptionLifecycle, Price Curve Analysis, and Price SensitivityAnalysis. Includes a Pricing Sensitivity FinancialModel built in Excel. 3. DETAILED DESCRIPTION The Pricing Strategy Toolkit includes both a 40-slidePowerPoint and a Price Sensitivity Excel Financial Model.The PowerPoint portion contains instructional slidesaround developing a solid pricing strategy, as well asdocumentation for the included financial model. It is divided into 5 sections: Pricing Strategy (7 slides) Pricing Approach (8 slides) Price Sensitivity Analysis (10 slides) Pricing Tactics and Terminology (11 slides) 4. Pricing Strategy This first section presents a detailed discussionaround the overarching pricing strategy of PriceSkimming or Penetration Pricing.These two strategies are compared and put intothe context of where your product sits along theProduct Adoption Lifecycle.Advantages and disadvantages are enumeratedfor both Price Skimming strategy and PenetrationPricing strategy. 5. Pricing Approach This section focuses on the quantitative approachto calculating your optimal price point, based onyour selected pricing strategy. We walk through athree-phase approach to determining theappropriate price point:1) data collection, 2) analysis and insights, and 3)pricing. Price curve analysis is introduced, alongwith several examples illustrating how price curveanalysis is used. 6. Price Sensitivity Analysis The focus of this section is price sensitivity modeling. We walk througha five-step process to deriving a formula for price sensitivity. Thisprocess addresses, defines, and teaches the following concepts: 9drivers to price sensitivity, elasticity factors, and threshold of noelasticity. The 9 drivers to price sensitivity are as follows: Reference Price Effect Difficult Comparison Effect Switching Costs Effect Price-Quality Effect Expenditure Effect End-Benefit Effect Shared-cost Effect Fairness Effect The Framing Effect 7. Pricing Tactics and Terminology This toolkit closes with overviews for a number of pricing tactics. Thesepricing tactics are as follows: Value Pricing Loss Leader Pricing Psychological Pricing Going Rate Pricing / Price Leadership Tender Pricing Price Discrimination Predatory Pricing Absorption Pricing Marginal Cost Pricing Cost-Plus Pricing