Pricing Strategy for Mid-MarketCompanies www.ShortTrackCEO.com www.ShortTrackCEO.com ©20...
SYSTEM FOCUS2 www.ShortTrackCEO.com ©2010 ShortTrack CEO
MARKET QUADRANT REQUIRES PLANNING Foundation Market • Product /...
GOAL IS TO INFLUENCE MARKET F M Even if y...
PRICING REINFORCES YOUR POSITIONING • Who buys from you – Competitive positioning...
PRICING • What is your pricing strategy? – Cost plus? – Match competition? – Undercut competiti...
PRICING • Pricing strategies can be complex – Can support or “fight” your brand and positioning •...
PRICING • Alignment creates “harmony” – Price is final piece of brand puzzle in most buyers’ minds • P...
PRICING • Changing pricing is important – Parker Hannifin CEO defined its strategy • Pricing alig...
PRICING • In B2B, how do salespeople damage brands? – Always lowering prices to “get the s...
PRICING • How does pricing affect revenue and profits? – Price sensitivity, or “elasticity” affe...
PRICING • What is the easiest way for most mid-market companies to increase profits 5%? • Raise ...
PRICING • What might a pricing audit reveal? – Raise some prices – Keep some same – Lower s...
PRICING BOARD RESULTS14 www.ShortTrackCEO.com ©2010 ShortTrack CEO
PRICING • Add completed reports to strategy binder • Will use for next module15 www.Short...
• Download our eBook for More – http://www.shorttrackceo.com/mid-market-ceo-ebook/16 ...
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Pricing Strategy for Mid-Market Companies

Pricing is a strategic decision that should tie into brand strategy and positioning.
Published on: Mar 4, 2016
Published in: Business      
Source: www.slideshare.net


Transcripts - Pricing Strategy for Mid-Market Companies

  • 1. Pricing Strategy for Mid-MarketCompanies www.ShortTrackCEO.com www.ShortTrackCEO.com ©2010 ShortTrack CEO
  • 2. SYSTEM FOCUS2 www.ShortTrackCEO.com ©2010 ShortTrack CEO
  • 3. MARKET QUADRANT REQUIRES PLANNING Foundation Market • Product / service • Sales force • Purpose • Marketing strategy • Culture • Brand strategy • Competitive Company positioning Value • Profitability • Good skills • Capacity • Hiring success • Productivity • Motivation • Cash flow • Accountability Operations People3 www.ShortTrackCEO.com ©2010 ShortTrack CEO
  • 4. GOAL IS TO INFLUENCE MARKET F M Even if your foundation was viable Are you influencing your yesterday, will it be market or is your market viable tomorrow? influencing you? Do you have the right Does the validated balance between assessment of your investing in today and people guarantee you’ll investing in tomorrow? achieve your public and private agenda? O P4 www.ShortTrackCEO.com ©2010 ShortTrack CEO
  • 5. PRICING REINFORCES YOUR POSITIONING • Who buys from you – Competitive positioning – Competitive advantage – Brand strategy – Distribution strategy – Pricing strategy5 www.ShortTrackCEO.com ©2010 ShortTrack CEO
  • 6. PRICING • What is your pricing strategy? – Cost plus? – Match competition? – Undercut competition? – Don’t have one? • Pricing is one of classic “4Ps” of marketing – Product, Price, Place, Promotion6 www.ShortTrackCEO.com ©2010 ShortTrack CEO
  • 7. PRICING • Pricing strategies can be complex – Can support or “fight” your brand and positioning • Key is to align pricing strategy with – Value proposition – Competitive positioning – Brand strategy7 www.ShortTrackCEO.com ©2010 ShortTrack CEO
  • 8. PRICING • Alignment creates “harmony” – Price is final piece of brand puzzle in most buyers’ minds • Price creates value perception – Grey Goose vs. Smirnoff8 www.ShortTrackCEO.com ©2010 ShortTrack CEO
  • 9. PRICING • Changing pricing is important – Parker Hannifin CEO defined its strategy • Pricing alignment with brand strategy – Product leadership = higher prices – Operational excellence = lower prices – Customer intimacy = midrange to higher prices9 www.ShortTrackCEO.com ©2010 ShortTrack CEO
  • 10. PRICING • In B2B, how do salespeople damage brands? – Always lowering prices to “get the sale” • Devalues offering unless value proposition is operational excellence – Give other incentives instead of just lowering price10 www.ShortTrackCEO.com ©2010 ShortTrack CEO
  • 11. PRICING • How does pricing affect revenue and profits? – Price sensitivity, or “elasticity” affects volume • For non-economists, shows slope of demand curve – Flat means market not sensitive to price changes – Vertical means market very sensitive11 www.ShortTrackCEO.com ©2010 ShortTrack CEO
  • 12. PRICING • What is the easiest way for most mid-market companies to increase profits 5%? • Raise prices – Evaluate first – Should We/Can We™ will reveal impact • People involved – Sr. mgmt/CEO – Sales and marketing teams – Finance12 www.ShortTrackCEO.com ©2010 ShortTrack CEO
  • 13. PRICING • What might a pricing audit reveal? – Raise some prices – Keep some same – Lower some • Will make right choices if – Match pricing to strategy and understand elasticity13 www.ShortTrackCEO.com ©2010 ShortTrack CEO
  • 14. PRICING BOARD RESULTS14 www.ShortTrackCEO.com ©2010 ShortTrack CEO
  • 15. PRICING • Add completed reports to strategy binder • Will use for next module15 www.ShortTrackCEO.com ©2010 ShortTrack CEO
  • 16. • Download our eBook for More – http://www.shorttrackceo.com/mid-market-ceo-ebook/16 www.ShortTrackCEO.com ©2010 ShortTrack CEO

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