Pricing Strategy - BUSI97001
Deciding how to price products and services depends heavily upon economic, marketing, and behavioral phenomena. This module will provide you with a systematic presentation of the factors that need to be considered when setting prices, and will show you how pricing alternatives can be developed. Whereas the emphasis of this module is on one aspect of the marketing mix (i.e., pricing), the pricing decision is not independent of other marketing decisions. As a result, this module will constantly integrate the pricing decision back into the marketing mix, and evaluate its effectiveness in achieving broader managerial objectives.
Module Aims & Objectives
The aims of this module are to teach you how to formulate, construct, and assess pricing strategies and tactics. To achieve these aims we use a combination of lectures, cases, class discussion, exercises, and a simulation to: (1) introduce well-known pricing tools, and (2) explore new approaches for solving pricing decisions. Topics will include fundamental analytical tools, theories, and conceptual frameworks needed for price strategy formulation; an in-depth treatment of the role of price in the firm’s value proposition to the customer and the determination of customer response to price; price promotions, reference prices, price customization and bundling.
Objectives for this module are:
• To familiarize you with the concepts, theory and latest thinking bearing on the key issues in pricing, taking the perspective of the marketing manager. This will be done primarily through lectures and assigned readings
• To provide you with an opportunity, through extensive case analyses and a practical simulation, to apply concepts and theory to the solution of pricing problems in marketing settings.
• To provide you with an opportunity, through the module project, to make an independent assessment of the pricing strategy or tactics used by a company or industry of your own choosing
• To provide you with a forum, both written and oral, in which you may further develop your business communication skills and receive feedback from your peers and the instructor