guest lecture Flashcards
why is the jump from the first ( pricing firefighter) to the second stage ( policeman) of the framework is so important
pricing firefighter : is the baseline of pricing as there are no processes at all.
pricing policeman : there are already some processes where at least someone could say no for a discount gaining some control on pricing process. some pricing processes are at least needed to be able to monitor the price and increase profitability
it is considered the biggest step because some pricing process are atleast needed to be able to monitor your pricess and increase profitability. and in this case we are going from the “nothing” to “something.”
explain the price maturity framework and what each stage represent in practical terms of brands
there are 5 maturities of pricing
1_pricing firefighter : sales dominating pricess ( no processes) example, i have a volume so i lower my prices and sell more
2_ pricing policeman : some processes take place, at least 1 person who says no for a discount
3_ pricing partner: here you start thinking of the value , and what value means for customers and what it means for organization in term of pricing
4_ pricing scientists: optimization process take place through pricing analytics and AI ( Optimization based on tools and analytics)
5_ pricing masters : pricing is a strategic capability and they are excellent in executing it
