BU352 Lecture Notes - Lecture 14: Profit Margin, Value-Based Pricing, Tim Hortons
Document Summary
Pricing effectiveness: when in the development cycle did pricing come u, who is involved in setting prices and how, what are you trying to achieve with your price, answering some of those questions through survey: 14% talk about pricing in the launch cycle and post launch. Half companies don"t do research on pricing. 53% of organizations don"t have people in the organization that are dedicated to pricing this is important to consider because pricing is the only way to monetize on products and get revenues. Strategic pricing: proactive management of pricing to market conditions to align with company"s strategic goals, company"s goals and objectives, product concept, market and competitive overview, identification of customers and pricing objectives, pricing setting and management, measurement and feedback. Resulting in unit costs increasing as volumes decrease as overhead costs are re-allocated result is overpricing in weak.
