Posts by: Tim J. Smith, PhD
A BISR analysis differs from standard CPC (cost per customer) and ROI (return on investment) calculations to reveal the true ROMI (return on marketing investment) after accounting for the fact that many of the purchases related to an advertisement or coupon would have occurred in the absence of the promotion.
More“I don’t subscribe to the notion that companies exist to create value strictly for their shareholders. I think they are there to…
MoreIn 2011, Netflix’s pricing and branding shuffle enraged customers. After taking a few back steps, Netflix is at it again for 2014. What makes Reed Hastings, CEO of Netflix, Inc. think he will succeed this time, given that customers and shareholders alike ranted hyperbolic disapproval at his earlier moves?
MoreWelcome to 2014. May you have a punk year: Hope => Vision => Action => Perseverance => Luck Hope is a choice.…
MoreIn his classic 1982 text “The Mind of the Strategist”, Kenichi Ohmae fathered the 3 C’s model of corporate strategy. What can a veteran strategy book tell us about contemporary pricing strategy? Surprisingly, quite a lot.
MoreDesperation to Euphoria in two letters: Aaaahhh, Aah. Ah. … Aha! Strategic success in business develops from differentiation. For some business activities,…
MoreWhat 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?
MoreTragedy to laughter in one word (read aloud with increasing speed): Yuck. Yuck yuck. …. Yuck yuck yuck yuck yuck yuck yuck…
MoreSaaS, 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?
MorePricing 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.
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