Session 5

Question 1

describe the key elements to realize the full benefits of pricing (think of some examples..)

Answer 1

1.PRICING STRATEGY
Determining profit-maximizing prices for clients based on their price sensitivity by using appropriate tools and techniques.

2. PRICING SETTING
   Determining profit-maximizing prices for clients based on their price sensitivity by using the appropriate tools and techniques.

3.PRICE GOVERNANCE
Defining and executing an approval process of prices within an organization to guarantee that prices are in line with the pricing strategy.

4. PRICE EXECUTION
   Executing defined policies and guidelines and minimize margin leakage on a daily basis.

Question 2

describe the relevance of value-based pricing

Answer 2

(graphic worth checking in notes)
(Old paradigm)
Product>Costs>Price>Value>Customers

(New paradigm)
Customers>Value>Price>Costs>Product

ADV:
Customer loyalty. When you know what they value your product at then you can adapt your product to better fit their values.

DIS
Fluctuating consumer preferences. Eroding profit margins.
Product>Costs>Price>Value>Customers

Question 3

describe the different approaches to prices and briefly indicate the activities that differentiate one method/approach from another

Answer 3

(NEED TO RESEARCH ANSWER TO THIS AND ADD INTO NOTES)