Strategic PRICING and Dynamic PRICING : PRICING to Maximize Profits
Program Duration: 9 course days
Program Period: From November 03, 2017 to January 13, 2018
Dates: Nov 2017 - Jan 2018
Session Timings: 10:00 AM to 5:00 PM
Venue: Dubai
Leadership Level: C Suite , Senior Managers, Middle to Senior Managers, Owners / Partners , Entrepreneurs
Last Date To Apply: October 17, 2017
Institute: Indian Institute of Management, Ahmedabad, India

Introduction

Pricing as a decision that directly impacts both top line and the bottom line of firms. A small increase of 1 per cent in realized prices can lead up to 11 per cent increase in profits. Pricing decisions world over are considered critical decisions for top management. However, firms and managers need a structured way to think about and implement pricing in their firms. It is important to develop and deepen managerial understanding of best practice in pricing, different approaches to pricing, and customer responses to prices to realize large gains in profits with marginal increase in process. This programme will explore how a firm can optimize its prices given its strategic goals relating to profitability and/or market share. It will encourage managers to think proactively about pricing; to price appropriately according to the situation - for the short term, for the medium term, and for the long term.


Duration of Programme

This will be a 9 day programme (2+2+2+3) beginning November 2017. 

Program Objective


  • To improve understanding of pricing approaches; how pricing interacts with various functions in the organization
  • To develop a systematic framework for assessing, formulating, and implementing pricing approaches
  • To develop a proactive rather than a reactive approach to pricing.
  • To understand and use relevant pricing tools at appropriate times and situations

 

 

Curriculum

Understanding the Economics and Consumer Context of Pricing

• Setting Pricing Goals and the Pricing Process

• Theories of Consumer Behavior: How customers think about prices

• How to analyze customer willingness to pay and response to price changes.

• Role of Industry Structure in Pricing

• Supply and Demand Effects in Pricing• Aspects of Price Discrimination

Costs, Break-even analysis, Competition and Influence of Cost Variations on Pricing

• Identifying relevant costs for making Pricing Decisions

• Pricing for profit-maximization - Break-even sales analysis

• How cost structures and variation in costs influence pricing strategy: Strategies for hedging demand and revenue risk

• Factoring in the competition in Pricing: Competitive analysis, Competitive strategy and Signaling

Revenue Management, Dynamic Pricing and Other Approaches to Pricing

• Overview of Variable Pricing: Revenue Management, Dynamic Pricing, Yield Management, Auctions, etc.

• Revenue Management: Introduction and Optimal Pricing

• Quantifying customer sensitivity to different elements of Dynamic Pricing structure

• Estimating customer response to Dynamic Pricing

• Dynamic Pricing via Capacity Management

• Pricing perishable products/Yield management

• Non linear and Peak-load pricing• Dynamic Pricing - Benefits

• Multi-pricing in a segmented market: Two Part Pricing &All Units Quantity Discount Markdown Pricing Strategies &Dynamic Markdowns

• Data Analytics and Dynamic Pricing

• Pricing in Hotels and Airlines.

Contextual Pricing

• Value Based Pricing and Pricing software

• Nonlinear and Peak-load Pricing (telecom)

• Pricing Models on the Web

• Pricing of Data Services

• Pricing on Tenders and How to Beat L1

• Pricing in Retail, Consumer Durables, Automotive and Hospitals: The Manufacturer´s Perspective

Implementing Pricing

• Using Price Signaling

• Developing and Implementing Consumer Promotions

• Retail Pricing: Reacting to Price Discounts

• Loyalty vs. Profitability

• Price Communications and Price Led Positioning

• Using Neuroscience to Negotiate New Price Contracts: Structuring and Managing Price Negotiations

• Some Legal Aspects of Pricing

New Product Pricing

• Classifying Types of New Products: Overlap with Brand

• Pricing of Brand Extensions

• Pricing of "New" Products

Participants

This programme is designed for CEOs, CFOs, senior sales and marketing executives, entrepreneurs and people responsible for revenue maximization and pricing. Companies are encouraged also to send a person from the finance vertical so that there is a deeper and broader understanding within the firm about pricing that enables better communication about pricing between marketing, finance and other functional areas.

 

Target Sectors

Airlines, Hospitality, Retail, Telecom, Software, Logistics, Retail landlords, Digital e-commerce

Faculties

Goutam Dutta
Prof., Ph.D. (Northwestern University, USA), PGDM (XLRI), B.Tech. (IIT Kharagpur)

https://www.iima.ac.in/web/faculty/faculty-profiles/goutam-dutta

 

 

 

Arvind Sahay
Prof., Ph.D. (University of Texas, Austin), PGDM (IIMA), B.Tech.(IIT Kanpur)

(Faculty Chair)

https://www.iima.ac.in/web/faculty/faculty-profiles/arvind-sahay

 

 

 

Satish Deodhar
Prof., Ph.D. The Ohio State University

https://www.iima.ac.in/web/faculty/faculty-profiles/satish-deodhar

 

 

Investment in the Future

Learning Model

Pedagogy

A mix of pedagogical tools will be used - cases, lectures, discussions, presentations, audio-visuals, optimization tools and experiential exercises. A typical day would include about 4 classroom sessions of 75 minutes each with breaks in between for tea/coffee and lunch. Preparation for the class requires doing intensive reading of course material. For effective learning participants should budget approximately 15 hours of reading time in-between modules of 2 days.

The programme emphasises the problem-solving approach - the process of defining problems, specifying objectives, developing alternative courses of action, choosing the best alternative in an uncertain environment, organising people to implement the chosen alternative, coordinating their work, motivating, inspiring and developing them, and finally measuring and controlling their performance.

Alumni Status

Participants who are attending short-duration Executive Education Programmes for the first time, on or after April 1, 2012, will have to attend for a total of 21 days in one or more programmes in order to be eligible for alumni status and alumni identity card, both of which will be awarded on the payment of a one-time alumni fee of INR 10,000.

Admissions

Selection

Seats are limited. Selection for the programme will be based on academic and professional achievements and on first-come, first-served basis.

Registration process

Last Date to submit Application : October 17, 2017

Enrollment Confirmation to Applicants : October 20, 2017

Course Fee Payment by Participants : Within 5 days of Confirmation

Course Material Distribution to Participants : October 24, 2017

Course Inauguration & 1st Module Class : November 02, 2017

Programme fee Fee includes Tuition fee, Course Material, Lunch, Tea, Coffee, Snacks, and Certificate.

Testimonials