The purpose of this course is to dispel the misconception that pricing is the simple process for calculating the correct price of a product.
Over the years, leading companies have realized that the pricing strategy requires active management. What have to be managed are the choices of how to communicate price and value, what perceptions to encourage during negotiations, and what decisions to make on completing for market share.
Today, leading companies rely on the principles of strategic price management to effectively influence the customers' willingness to pay. In practice, companies do not respond to the demand curves, but instead actively displace them.
Profitable price management extends beyond simple demand and elasticity concepts. It should also be possible to influence perceptions of monetary and psychological value and consumer decisions.
The principles of strategic price management are increasingly being adopted by leading companies. But they still face problems in implementing them. The training material of this course is optimized around the Value Cascade, which organizes topics and case studies around 6 separate categories.
The course shows managers how to move from tactical optimization, with no ability to influence the market, to strategically managing it. Thus, pricing becomes an integral part of a profitable growth strategy, rather than just a rough device for promoting sales and salvaging market share.
The course helps function managers get rid of the wrong thinking patterns regarding pricing policy, which often lead to conflict and bad decisions. The goal of price management is to find the combination of margin and market share that maximizes profitability in the long run.