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What decisions should the pricing function be making? Where should a corporation position the pricing function? How should the pricing function be structured? We have been asking this question for past two decades but still don’t have a definitive answer nor a standard template. Why? What is so odd about pricing decisions that makes organizational design choices regarding the pricing function difficult?
More In “Marketing Malpractice”, Clayton Christensen noted that 90% of consumer products launched annually fail. While several factors can be attributed to the failures, the fundamental reason continues to be the inability to satisfy consumers’ needs profitably. In this article, we provide a comprehensive approach that would enable organizations to sustain profitable products and retire the unprofitable ones.
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Tragedy to laughter in one word (read aloud with increasing speed): Yuck. Yuck yuck. …. Yuck yuck yuck yuck yuck yuck yuck…
More SaaS, DaaS, IaaS, and other “X-as-a-Service” business models are proven market disruptors in information technology industries. Executives at enterprise IT solution providers are creating, adapting, or adjusting to competitors’ XaaS business models. But successfully implementing an XaaS business model requires a new approach to both pricing and revenue capture for IT services. What is that new approach?
More Why did market segmentation arise? How did it evolve to today’s Social Media? What are the key properties of well composed market segments? How are segments broadly defined in consumer markets? Read as Jim reviews this important principal of defining market strategies
More In traditional sense “discrimination” is a word with a negative connotation. However, in the pricing context, by discrimination I mean that I will make some customers pay more and some customers pay less for the same product. However that is pure discrimination and by no means an art. Discrimination becomes an art only when all the subjects concerned accept the price they pay without a grudge.
More Apple recently announced that the new iPad mini will be priced slightly higher than the current iPad mini, while the price of the original iPad will remain the same. Is Apple making itself less competitive in the wake of the release and lowered prices of its competitors’ tablets or is Apple maintaining a luxury brand image by keeping its prices above the market?
More Pricing Strategy: Setting Price Levels, Managing Price Discounts, and Establishing Price Structures by Tim J. Smith, PhD has been reviewed in September 2013 issue of the Journal of Revenue and Pricing Management by Sarah Keast, Lecturer in Economics, Plymouth Graduate School of Management and Plymouth Business School, UK. In her words, “Tim Smith successfully combines the theories and methods from marketing, economics, strategy, and decision making in one very accessible text on the strategies and methods of price setting.” Thank you Sarah Keast and JRPM. It is an honor.
More “I know he’s a good general, but is he lucky?” Napoleon Bonaparte Failures happen. The question is will you learn the right…
More Twitter is going public. Will the IPO properly value the company and reward investors? Will profits flow?
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