MKT9501 Strategy and Tactics of Pricing
3 Elective Credits
Pricing decisions determine sales volume and revenue, so pricing strategy and structure are vital to a company’s profitability and growth. Price determination is a top priority for managers in charge of marketing strategy or product strategy for existing or new products. Revenue and pricing are financial metrics considered to be table stakes for startups. Pricing is also a key variable for CFOs and controllers who have to forecast and manage the impact of pricing changes on a firm’s financial results in competitive markets.
MKT9501 is designed to provide you with the concepts, techniques and knowledge that will enable you to determine the best prices and pricing strategy for your business and identify ways to improve existing pricing practice in companies. In the first part of the course, we will cover the fundamental analytical tools and theoretical frameworks needed to analyze costs, customers, and competition in order to set a proactive pricing strategy. We will focus on articulating sources of customer value and introduce tools companies can use to charge for value. The second part of the course introduces examples of pricing tactics from a variety of industries, and in B2B and B2C contexts. Examples of topics included are dynamic pricing, price discrimination and versioning, product line pricing, pricing psychology, bundling and subscriptions. MKT9501 also explores how companies can respond to pricing pressures and (re)structure their revenue models to adapt to increased competition and technological disruptions in global and dynamic markets.
Pre-requisites: It is strongly recommended that students take ECN7500 Economic Analysis for Business Decisions before or concurrently with this course.