Top 6 – April 2007
Published April 1, 2007
Sales Performance, IP, and Volume Chasing
- Don’t let inertia or apathy allow poor performance to persist. Make decisions and take action.
- Specific promotional events that are part of the industry wide annual promotional plan do not necessarily imply bad pricing practices. As the GM case points out, tactical moves should not be confused with strategic directions.
- Patent are not a one-size-fits-all intellectual property solution. Consider the options of Utility Patents, Design Patents, Trade Secrets, Trademarks, and Copyrights. Use them in combination, as standalone, or as part of a long-term sequential strategy. human voice and participate in their conversations.
- Marketing variables other than price are often more efficient at driving volume.
- Most companies, but not all, do not face an elasticity of demand sufficient to warrant a price decrease to “grow volume”.
- Low Performing Salespeople cost far more than their salary, they carry the opportunity cost of lost business.
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About The Author
Tim J. Smith, PhD, is the founder and CEO of Wiglaf Pricing, an Adjunct Professor of Marketing and Economics at DePaul University, and the author of Pricing Done Right (Wiley 2016) and Pricing Strategy (Cengage 2012). At Wiglaf Pricing, Tim leads client engagements. Smith’s popular business book, Pricing Done Right: The Pricing Framework Proven Successful by the World’s Most Profitable Companies, was noted by Dennis Stone, CEO of Overhead Door Corp, as "Essential reading… While many books cover the concepts of pricing, Pricing Done Right goes the additional step of applying the concepts in the real world." Tim’s textbook, Pricing Strategy: Setting Price Levels, Managing Price Discounts, & Establishing Price Structures, has been described by independent reviewers as “the most comprehensive pricing strategy book” on the market. As well as serving as the Academic Advisor to the Professional Pricing Society’s Certified Pricing Professional program, Tim is a member of the American Marketing Association and American Physical Society. He holds a BS in Physics and Chemistry from Southern Methodist University, a BA in Mathematics from Southern Methodist University, a PhD in Physical Chemistry from the University of Chicago, and an MBA with high honors in Strategy and Marketing from the University of Chicago GSB.