Pricing Strategy

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What is this course about?

Marketing

Price is the most important decision we will make as marketers. It is what brings profit into the company. It’s proof that all our other marketing activities are working. But, pricing is also one of the most misunderstood fields of business. Many companies actually devote the least amount of time to it - either because they don’t fully understand how it works or because they think it’s boring. Now, if you think that price setting is at all dry or boring, think again. In this course, you’ll see how good pricing practices can transform every type of business - big or small. Each lesson is full of fun and interesting characters, each of whom will teach you another foundation of pricing. Journey with us to the scenic mountain tops of southern Italy, where Alessandro the mango seller will teach us about the relationship between price and value. Meet Bob the Baker, who will show us how a clever understanding of business models helped him transform his bakery into the artisan store it is today. Step into the shoes of a newly minted CEO coming face to face with competition for the first time. Watch how, like a game of chess, each must be able to predict each other’s moves in the risky game of price setting. Spend a day with Fiona the fish seller, in the lovely port city of Ferncomb. See how she uses her knowledge of the volume-price tradeoff to determine the perfect price for her fish. Those are just some of the characters you’ll meet in this fresh new take on pricing strategy. In this course, you’ll learn: • How your business model affects your prices • When you should worry about price wars • How to know if you have a structural advantage • Whether cost-based pricing or value-based pricing is right for you • How to determine the elasticity of your product • And so much more!

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Syllabus

How can it be that one of the most important parts of marketing is one of the least understood?

It’s because many companies view pricing as a fairly simple operation. They believe that pricing is as simple as covering their costs and then deciding what profit they want to make.

However, it’s a little more nuanced - and interesting! - than just that. In this course we’ll learn how to account for all of the factors that pricing depends on. We’ll look at the market, your customers, demand elasticity, psychological factors, and more. All of this will paint a much richer picture of what pricing entails. And with this knowledge under your belt, you’ll be able to turn Price into another powerful tool in your marketing arsenal.

In this course, you’ll learn:
• When it’s ok to lose customers...and when it isn’t
• How pricing is more complex than many companies believe
• How to calculate your volume-margin tradeoff and increase your profit
• Why you must be willing to let your business model evolve...and how to do so
• And so much more!

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What can a mango seller teach you about the art of pricing?

Quite a lot, actually! In this lesson, you’ll meet Alessandro the Italian mango seller. Together, we’ll take a look at his business model and see how he uses price differently in different situations. We’ll learn about where price comes from and how it’s used by marketers to communicate with customers.

We’ll learn:
• What price is and where is comes from
• How it works
• Why it’s such a crucial marketing tool

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Businesses don’t make money on their own! In order to ensure you make profit, you must have a smart business model. One which fits your product, market, and costs. Which takes advantage of your strengths and accounts for your weaknesses. How do you come up with such a business plan? And if you already have a plan in place, how do you finetune it so that it’s even more perfect?

In this lesson, you’ll meet Bob the Baker. You’ll watch how his business grows from a simple bakery to a serious money making machine. And all thanks to his advanced understanding of business models...

In this lesson, we’ll learn:
• How different business models work
• How your business model must account for your costs
• Different types of costs and how they fit into the picture

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“No competition, no progress.” This quote from Bela Karolyi is often true when it comes to products in the marketplace. Competition certainly keeps companies on their toes, making sure that they are constantly re-evaluating and improving their offerings. It’s clear that competition has a huge effect on the Product aspect of marketing. But what about the Price side of things?

How do we use the marketing tool of Price to keep our customers in a competitive space? How do we react to our competitor’s prices? What effects will this have on our customers?

That’s what we’ll be talking about in this lesson.

In this lesson you will learn:
• How your prices affect your competitors
• How their price affect you
• What a price war is
• When a structural advantage can save the day

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I hope you’re ready for church, because today we’re about to meet a priest with some strong opinions on pricing. Through studying the pricing philosophy of the medieval Thomas Aquinas, we’ll catch a glimpse into the many different perspectives that people today have on pricing.

By the end of the lesson, you’ll gain a deeper understanding into the strengths of each approach...and the weaknesses.

In this lesson, you’ll learn:
• The ins and outs of three different pricing approaches
• When you can benefit from your competitors prices 😱
• Why profit might be a bit more complicated than you think
• How to help your customers give an ACCURATE answer to the question, “How much are you willing to pay?” 🤔

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Life is all about balance and pricing strategy is no different. That’s what Fiona the fish seller learned, when she decided to experiment with her prices. It took a few tries, but eventually she found the perfect balance between profit margin and sales volume. And you can do the same!

Join us for this lesson and learn all about how to find your optimal volume-margin tradeoff.

In this lesson you’ll learn:
• When it’s ok to lose customers 👋🏽
• How to find your ideal price point
• Why you can raise prices for some products, but not others 🧮
• How to calculate the elasticity of your product

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How do you calculate the price of a product that is completely new to the market? Pricing takes on a whole new challenge, when you are a pioneer in your field. When there is no precedent to let you know how much customers are willing to pay for your product. When the customers themselves might not even know!

That’s where conjoint analysis comes in to save the day. With this method you’ll learn how to calculate the value of your product’s individual components. You’ll see which combinations customers will pay more for and which ones they’ll pay less for.

All this will help set your product up for a perfect debut into the market. 🎉

In this lesson, we’ll learn:
• How conjoint analysis isn’t as hard as you think 🤔
• How to calculate the part-worth of an object
• Two popular approaches for entering the market 👣

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How rational are your purchasing choices? What about those of your friends and family? If you’re like most of us, you have some pretty interesting ways of deciding when to spend, when to splurge, and when to save.

In this lesson, we’ll look a little closer at some of these decisions. We’ll look into the mysterious process that happens in the customer’s head as they contemplate the price tag of an item. How do they decide what is a good price and what is a bad price?

We’ll learn about psychological phenomenon like:
• Innumeracy
• Prospect theory 🤑
• Anchoring
• Mental accounts 🧠

See you there!

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What does pricing look like from a legal perspective? How does the law strive to protect the customer? How does it protect the seller?

In this lesson, we’ll catch a glimpse into the world of pricing law. We’ll hear about a lawsuit that was brought against Shell Uk and how Marcel used the principles of Pricing Strategy to defend against it:

We’ll learn:
• What is means to “bully retailers” 👿
• What pricing collusion is
• How Marcel defended against these accusations 👩🏼‍⚖️

See you there!

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