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Strategy and Tactics of Pricing : A Guide to Growing More Profitably

by: Nagle, Thomas; Hogan, John; Zale, Joseph

Strategy and Tactics of Pricing : A Guide to Growing More Profitably

by: Nagle, Thomas; Hogan, John; Zale, Joseph

ISBN 13:
9780131856776
ISBN 10:
0131856774
Edition: 4th
Format: Hardcover
Copyright: 01/01/2011
Publisher: Prentice Hall
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Summary

For Pricing Strategy or Pricing and Product Policy courses in MBA and/or advanced undergraduate marketing courses The Strategy and Tactics of Pricing provides a comprehensive, practical, step-by-step guide to pricing analysis and strategy development.

Preface

xiii

Acknowledgments

Tactical Pricing

(13)

Why Pricing Is Often Ineffective

(6)

The Cost-Plus Delusion

(3)

Customer-Driven Pricing

(1)

Competition-Driven Pricing

(1)

Asking the Right Questions

(1)

The Discipline of Strategic Pricing

(4)

Outline of the Book

(1)

Summary

(1)

Notes

(1)

Pricing Strategy

(13)

The Strategic Pricing Pyramid

(2)

Value Creation

(2)

Price Structure

(1)

Price and Value Communication

(1)

Pricing Policy

(1)

Price Level

(1)

Embedding the Strategy

(3)

Provide Incentives for Change

(1)

Set Appropriate Expectations

(1)

Provide the Knowledge and Skills to Change

(1)

Summary

(1)

Notes

(1)

Value Creation

(27)

The Role of Value in Pricing

(4)

Economic Value Estimation®: An Illustration

(6)

The High Cost of Shortcuts

(2)

How to Estimate Economic Value

(5)

Step 1: Study Customer Economics

(2)

Step 2: Quantify Value Drivers

(1)

Step 3: Estimate Differentiation Value

(1)

The Strategic Importance of EVE®

(1)

Value-Based Market Segmentation

(7)

Step 1: Determine Basic Segmentation Criteria

(1)

Step 2: Identify Discriminating Value Drivers

(1)

Step 3: Determine Your Operational Constraints and Advantages

(1)

Step 4: Create Primary and Secondary Segments

(2)

Step 5: Create Detailed Segment Descriptions

(1)

Step 6: Develop Segment Metrics and Fences

(2)

Summary

(1)

Notes

(2)

Price Structure

(27)

Price Metrics

(1)

Performance-Based Metrics

(1)

Creating Good Metrics

(2)

Managing Costs with Metrics

(1)

Price Fences to Operationally Segment Markets

(18)

Segmenting by Buyer Identification

(2)

Segmenting by Purchase Location

(1)

Segmenting by Time of Purchase

(3)

Segmenting by Purchase Quantity

(3)

Segmenting by Product Bundling

(3)

Segmenting by Tie-Ins and Metering

(2)

Segmenting by Product Design

(1)

Importance of Segmented Pricing

(1)

Summary

(1)

Notes

(2)

Price and Value Communication

(23)

Value Communication

(12)

Developing a Value Communication Message

(2)

Strategy 1: Economic Value Communication

(4)

Strategy 2: Economic Value Assurance

(2)

Strategy 3: Psychological Benefit Associations

(2)

Strategy 4: Psychological Benefit Assurances

(1)

Market Segments and Differentiated Values

(1)

Price Communication

(6)

Proportional Price Evaluations

(1)

Reference Prices

(2)

Perceived Fairness

(1)

Gain--Loss Framing

(2)

Summary

101

(1)

Notes

101

(3)

Pricing Policy

104

(20)

Organizing for Policy-Based Pricing

106

(3)

Creating and Managing Pricing Policies Strategically

109

(1)

Diagnosis

109

(5)

Price Banding

110

(2)

Price Waterfalls

112

(1)

Customer Profitability Analysis

112

(2)

Policy Development

114

(4)

Policies to Manage Price Expectations

115

(3)

Implementing Policies

118

(5)

Management Responsibility

118

(1)

Sales Force Buy-In

119

(2)

Prioritize and Sequence Challenges

121

(1)

Negotiate Transitions, Not Conclusions

121

(1)

Monitor and Measure Results

122

(1)

Summary

123

(1)

Notes

123

(1)

Price Level

124

(25)

The Price-Setting Process

125

(2)

Preliminary Segment Pricing

127

(9)

Value Assessment Options

127

(1)

The Preliminary Price Range

128

(3)

Pricing Strategy Options

131

(5)

Price Optimization

136

(6)

Profitability Analysis

137

(3)

Estimating Customer Response

140

(2)

Implementing New Prices

142

(3)

Communicating New Prices to the Sales Force

142

(2)

Communicating Price Increases to Customers

144

(1)

Summary

145

(1)

Notes

146

(1)

Appendix 7A Building a Managerial Price Sensitivity Analysis

146

(3)

Costs

149

(26)

The Role of Costs in Pricing

149

(1)

Determining Relevant Costs

150

(1)

Why Incremental Costs?

151

(3)

Why Avoidable Costs?

154

(3)

Avoiding Misleading Accounting

157

(1)

Estimating Relevant Costs

158

(6)

Activity-Based Costing

164

(1)

Percent Contribution Margin and Pricing Strategy

165

(2)

Managing Costs in Transfer Pricing

167

(5)

Summary

172

(1)

Notes

172

(3)

Financial Analysis

175

(38)

Breakeven Sales Analysis: The Basic Case

177

(3)

Breakeven Sales Incorporating a Change in Variable Cost

180

(2)

Breakeven Sales with Incremental Fixed Costs

182

(2)

Breakeven Sales Analysis for Reactive Pricing

184

(1)

Calculating Potential Financial Implications

185

(2)

Breakeven Sales Curves

187

(4)

Watching Your Baseline

191

(1)

Covering Nonincremental Fixed and Sunk Costs

192

(1)

Case Study: Ritter & Sons

193

(8)

Summary

201

(1)

Notes

201

(1)

Appendix 9A Derivation of the Breakeven Formula

202

(2)

Appendix 9B Breakeven Analysis of Price Changes

204

(8)

Summary

212

(1)

Acknowledgments

212

(1)

Competition

213

(28)

Understanding the Pricing Game

215

(1)

Competitive Advantage: The Only Sustainable Source of Profitability

216

(4)

Reacting to Competition: Think Before You Act

220

(7)

How Should You React?

227

(4)

Managing Competitive Information

231

(6)

Collect and Evaluate Information

232

(2)

Selectively Communicate Information

234

(3)

When Should You Compete on Price?

237

(1)

Summary

238

(1)

Notes

238

(3)

Pricing in Channels of Distribution

241

(24)

Value and Pricing Between Channel Partners

242

(1)

Manufacturer--Retailer Relationships

243

(7)

Channel Pricing for Pull Brands

245

(2)

Channel Pricing for Push Brands

247

(2)

Resale Margin Maintenance

249

(1)

Distributor Relationships

250

(2)

Driving Volume with Channel Partners

252

(5)

Dealing to Induce Trial

252

(2)

Defensive Dealing

254

(2)

Trade Dealing

256

(1)

Negotiating with Power Buyers

257

(5)

Summary

262

(1)

Notes

262

(3)

Pricing over the Product Life Cycle

265

(16)

New Products and the Product Life Cycle

265

(2)

Pricing the Innovation for Market Introduction

267

(3)

Communicating Value with Trial Promotions

268

(1)

Communicating Value with Direct Sales

269

(1)

Marketing Innovations Through Distribution Channels

270

(1)

Pricing New Products for Growth

270

(4)

Pricing the Differentiated Product

271

(1)

Pricing the Low-Cost Product

272

(1)

Price Reductions in Growth

273

(1)

Pricing the Established Product in Maturity

274

(3)

Pricing a Product in Market Decline

277

(1)

Alternative Strategies in Decline

277

(1)

Summary

278

(1)

Notes

279

(2)

Price and Value Measurement

281

(40)

Types of Measurement Procedures

282

(6)

Uncontrolled Studies of Actual Purchases

283

(1)

Historical Sales Data

283

(1)

Panel Data

284

(1)

Store Scanner Data

285

(2)

Analyzing Historical Data

287

(1)

Experimentally Controlled Studies of Actual Purchases

288

(6)

In-Store Purchase Experiments

289

(2)

Laboratory Purchase Experiments

291

(3)

Uncontrolled Studies of Preferences and Intentions

294

(6)

Direct Questioning

295

(1)

Buy-Response Surveys

295

(1)

Attribute Positioning

295

(3)

Depth Interviews

298

(2)

Experimentally Controlled Studies of Preferences and Intentions

300

(10)

Simulated Purchase Experiments

300

(1)

Trade--Off (Conjoint) Analysis

301

(9)

Using Measurement Techniques Appropriately

310

(6)

Using Judgment for Better Measurement

311

(3)

Using Internet-Based Techniques

314

(1)

Outside Sources of Data

314

(1)

Selecting the Appropriate Measurement Technique

315

(1)

Summary

316

(1)

Notes

317

(4)

Ethics and the Law

321

(24)

Ethical Constraints on Pricing

321

(4)

The Legal Framework for Pricing

325

(1)

The Effect of Sarbanes-Oxley on Pricing Practices

325

(1)

Price Fixing or Price Encouragement

326

(2)

Horizontal Price Fixing

327

(1)

Resale Price Fixing or Encouragement

328

(2)

Vertical Price Fixing

328

(1)

Direct Dealing Programs

329

(1)

Resale Price Encouragement

330

(1)

Price and Promotional Discrimination

330

(5)

Price Discrimination

331

(1)

Defenses to Price Discrimination

332

(1)

Promotional Discrimination

333

(2)

Competitive Injury, Defenses, and Indirect Purchasers

335

(1)

Using Nonprice Variables to Support Pricing Goals

335

(2)

Vertical Nonprice Restrictions

335

(2)

Nonprice Incentives

337

(1)

Other Pricing Issues

337

(1)

Predatory Pricing

337

(1)

Price Signaling

338

(1)

Summary

338

(1)

Notes

338

(7)

Name Index

345

(2)

Subject Index

347

Amazon no longer offers textbook rentals. We do!

Strategy and Tactics of Pricing : A Guide to Growing More Profitably

Strategy and Tactics of Pricing : A Guide to Growing More Profitably

9780131856776

0131856774

Summary

Table of Contents

Supplemental Materials

Write a Review

Amazon no longer offers textbook rentals. We do!

Strategy and Tactics of Pricing : A Guide to Growing More Profitably

Strategy and Tactics of Pricing : A Guide to Growing More Profitably

9780131856776

0131856774

Summary

Table of Contents

Supplemental Materials

Write a Review

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