1. Bringing Discipline to Pricing

1. Bringing Discipline to Pricing - BringingDisciplineTo...

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Bringing Discipline To  Pricing Presented To: M.s  Maryyam Khan 1
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Company competing in many locations and market  segments Sales branches forced to discount heavily are making little  or no profit, but those that can sell near or above list price  are doing quite well. It is the market environment— 1. The level of competitiveness (a key driver of supply)  Compare       With  3
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Pricing In The E-Channel The Internet and similar digital networks appear to be  great price equalizer because of their price transparency.  But an e-channel can do more than undersell competitors;  it can also conflict with and undermine it’s owners  standard channel. Two Ways To Avoid This Problem 4
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Limit your customers’ ability to play arbitrage games- purchasing identical products or services, or packaged  combinations of both, through more than one channel. Look for opportunities to target customer segments that  have not so far been addressed.  Cont.… 5
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By grouping sales branches together in a meaningful way,  a company takes the first step toward developing the  ability to price its goods and services optimally.  It can then plot the historical pricing transactions of sales  branches in similar competitive environments, develop a  way to reduce the variations between high and low pricing  performers within each of them, and launch the new  organization-wide pricing discipline.  A   New  Pricing  Process 6
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The first step in the new pricing process is to develop a  supply-and-demand framework by understanding the  supply-and-demand characteristics of a specific market or 
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This note was uploaded on 02/08/2012 for the course ECONO 205 taught by Professor Bringingdecipline during the Spring '11 term at Instituto Balseiro.

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1. Bringing Discipline to Pricing - BringingDisciplineTo...

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