The podcast discusses strategic and effective price management, covering topics like pricing strategies, segmentation, perceived value, commercial policies, elasticity, optimization, and governance. It also explores value-based pricing and upcoming conferences on the topic.
The podcast emphasizes the need for companies to go beyond traditional pricing strategies and consider factors such as product life cycle, short-term and long-term pricing, and publishing or negotiating prices in order to effectively manage price outcomes.
The episode highlights the importance of customer segmentation based on behavior and creating effective commercial policies to influence customer behavior and achieve win-win situations, illustrating the significance of considering customer behavior rather than just characteristics when developing pricing strategies.
Deep dives
Broad Perspective on Pricing Strategies
The podcast episode discusses the importance of going beyond the traditional premium or low pricing strategies. It emphasizes the need to consider factors such as product life cycle, short-term and long-term pricing, and whether to publish or negotiate prices. Each decision made regarding price strategy has outcomes that need to be managed. The episode also highlights the significance of customer segmentation based on behavior rather than just characteristics. By understanding customer behavior, companies can create effective commercial policies to influence customer behavior and create win-win situations.
Diverse Pricing Methods and Value-Based Pricing
The podcast explores different pricing methods beyond the standard cost-plus approach. It discusses value-based pricing as a strategy for companies that have clear differentiation compared to their competitors. The episode addresses the importance of assessing differentiation against the market's next best alternative to determine the viability of value-based pricing. Additionally, it recommends segmenting pricing strategies based on different products, channels, and regions. By being intentional about pricing strategies and segmenting them, companies can achieve better outcomes.
Price Elasticity and Price Optimization
The podcast delves into the concept of price elasticity and its importance for companies to understand how sensitive their products or services are to price changes. The episode explains pricing power and highlights various methods to estimate price elasticity, going beyond simple volume versus price variations. It also touches on price optimization, emphasizing the need for companies to adapt to volatile market conditions by adjusting prices more frequently. The podcast briefly mentions the challenges of price implementation, governance, and change management, emphasizing the importance of overcoming resistance to change in price strategic management.
In this podcast Fred Zornig will briefly comment on the pillars of strategic and effective price management. Going through strategies, segmentation, perceived value, commercial policies, elasticity, optimization and governance.
The objective is give an idea of the topics that we will delve into during the workshop that will be held in Atlanta.
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