Module 1: Introduction to Pricing

1. Overview of Pricing

1. 1. 1. 1. 1. Definition and Importance of Pricing
               • • Why pricing is critical to business success
                 • The impact of pricing on revenue and profitability
            2. The Role of Pricing in Marketing and Business Strategy
               • • How pricing fits into the marketing mix (4 Ps)
                 • Strategic role of pricing in competitive positioning
            3. Basic Pricing Concepts and Terminology

• • • • • • • Key terms: MSRP, discount, net price, etc.

2. Pricing Objectives and Strategies

1. 1. 1. 1. 1. Objectives of Pricing
               • • Profit maximization
                 • Revenue maximization
                 • Market penetration and market share
                 • Survival and status quo
            2. Common Pricing Strategies
               • • Cost Plus pricing
                 • Value Based pricing
                 • Competitionbased pricing
                 • Dynamic pricing
                 • Freemium and subscription models

 Module 2: Cost and Pricing

1. Understanding Costs

1. 1. 1. 1. 1. Types of Costs
               • • Fixed costs
                 • Variable costs
                 • Semi Variable costs
            2. Direct vs. Indirect Costs
               • • Examples and distinctions
            3. Breakeven Analysis
               1. • Calculating breakeven point
                  • Using breakeven analysis in pricing decisions
                    

2. CostBased Pricing Methods

1. 1. 1. 1. 1. Markup Pricing
               • • Definition and calculation
                 • Pros and cons
            2. CostPlus Pricing
               • • Formula and application
                 • Advantages and limitations
            3. Target Return Pricing

• • • • • • • Setting prices to achieve a specific return on investment

Module 3: Market and Competition Analysis

1. Market Demand and Elasticity

1. 1. 1. 1. 1. Demand Curve and Price Elasticity of Demand
               
               • • Understanding the demand curve
                 • Elastic vs. inelastic demand
            2. Factors Influencing Price Sensitivity
               • • Income effect, substitution effect, etc.
            3. Techniques for Measuring Price Elasticity
               • • Surveys, historical data analysis, A/B testing
                   

2. Competitive Analysis

1. 1. 1. 1. 1. Analyzing Competitor Pricing Strategies
               • • Competitor benchmarking
                 • Tools for competitive analysis
            2. Pricing in Different Market Structures
               • • Monopoly
                 • Oligopoly
                 • Perfect competition
                 • Monopolistic competition

 Module 4: ValueBased Pricing

1. Understanding Customer Perception of Value

1. 1. 1. 1. 1. Value Creation and Communication
               • • Customer value proposition
                 • Methods to communicate value
            2. Customer Willingness to Pay
               • • Techniques to measure willingness to pay
                 • Price sensitivity analysis

2. Implementing ValueBased Pricing

1. 1. 1. 1. 1. Techniques for Value Assessment
               • • Conjoint analysis
                 • Economic value estimation
            2. Case Studies of Successful ValueBased Pricing
               • • Real World examples and lessons learned

Module 5: Advanced Pricing Techniques

1. Dynamic Pricing

1. 1. 1. 1. 1. Definition and Examples
               • • Industries using dynamic pricing (e.g., airlines, hotels)
            2. Factors Influencing Dynamic Pricing
               • • Demand fluctuations, competitor actions, etc.
            3. Technology and Data Analytics in Dynamic Pricing
               • • Role of big data and AI in pricing

2. Price Discrimination

1. 1. 1. 1. 1. Types of Price Discrimination
               • • First Degree, second degree, and third degree
            2. Legal and Ethical Considerations
               • • Regulatory environment and ethical implications

3. Psychological Pricing

1. 1. 1. 1. 1. Influence of Psychology on Pricing
               • • Behavioral economics principles
            2. Techniques
               • • Charm pricing, price anchoring, bundling, decoy pricing

Module 6: Pricing in Practice

1. Pricing for New Products

1. 1. 1. 1. 1. Strategies for New Product Pricing
               • • Skimming vs. penetration pricing
            2. Launch Strategies and Adjustments
               • • Prelaunch, launch, and postlaunch pricing tactics

2. Pricing in Different Industries

1. 1. 1. 1. 1. Retail
               • • Strategies: discount pricing, loss leader pricing, everyday low pricing
                 • Case studies of successful retail pricing strategies
            2. Consumer Packaged Goods (CPG)
               • • Importance of branding and packaging in pricing
                 • Promotional pricing tactics
            3. Grocery
               • • Competitive pricing, price matching, and loyalty programs
                 • Impact of perishability on pricing
            4. Hard Tools and Industrial Products
               • • Pricing based on cost of production and durability
                 • B2B pricing strategies
            5. Technology and Electronics
               • • Rapid product lifecycle considerations
                 • Price skimming and penetration strategies
            6. Services
               • • Pricing based on time, expertise, and value delivered
                 • Subscription and membership models
            7. Pharmaceuticals and Healthcare
               • • Pricing based on R&D costs, regulatory environment, and insurance considerations
            8. Automotive
               • • Pricing models for new and used vehicles
                 • Financing and leasing options affecting pricing

Module 7: Pricing and Profitability

1. Impact of Pricing on Profitability

1. 1. 1. 1. 1. Profit Margin Analysis
               • • Gross margin, operating margin, net profit margin
            2. Contribution Margin and Pricing Decisions
               • • Role of contribution margin in setting prices

2. Pricing Analytics and Metrics

1. 1. 1. 1. 1. Key Pricing Metrics
               • • Price variance, price waterfall, price index
            2. Using Data for Pricing Decisions
               • • Data sources, analysis techniques, and tools

Module 8: Legal and Ethical Considerations in Pricing

1. Legal Aspects

1. 1. 1. 1. 1. Price fixing
            2. Predatory pricing
            3. Resale price maintenance
            4. Deceptive pricing practices
               

2. Ethical Considerations

1. 1. 1. 1. 1. Fair pricing practices
            2. Transparency in pricing
            3. Social responsibility in pricing decisions