Executive Education

Pricing: Strategy and Tactics

Learn how to strategically manage pricing to defend or increase your profitability, even in highly competitive markets.

Register

Too often, managers treat pricing as a tactical problem. By pricing to cover costs, they undermine profit. By pricing for competitive advantage, they undermine value. In fact, pricing products and services is a strategic challenge that requires insight, analysis, and perspective.

This program introduces senior managers and executives responsible for pricing decisions and approvals to the theory and techniques needed to understand strategic pricing and implement it in their own organization. The program will help you use price to achieve strategic objectives, successfully introduce new products to the market, respond to significant price competition, achieve prices that reflect the true value of your products.

By attending this program, you will:

  • Explore the real financial implications of pricing decisions and when it makes sense to compete on price and when it doesn't.
  • Learn how to change customers' price perceptions to capture more value and determine which alternatives to price competition are appropriate for your business.
  • Use pricing strategically to guide a business to long-term profitability, rather than reacting to solve short-term.

DATES
October 31 - November 4, 2016

FEE
$9,985 (accommodations not included)

LOCATION
Chicago Booth, Gleacher Center, Chicago IL

Read Profile

Sanjay K. Dhar

James H. Lorie Professor of Marketing

Sanjay Dhar has been a Chicago faculty member since 1992. Many sources have recognized Professor Dhar for his excellence in teaching.

Read Profile

Georg Müller

Georg Müller is an associate partner at Monitor Deloitte and a senior leader of the firm’s pricing practice and co-lead of its analytics group. His client work focuses on helping companies make more profitable pricing decisions through better analytical insights, clearer linkages between customer needs and strategic choices, and improved organizational capabilities. He has worked in a variety of industry sectors that include publishing, distribution, technology, and consumer products.

The program was excellent. It opened the concept of marketing, gave me a broader and more strategic viewpoint to businesses and industries.

- Mariola de la Piedra, Brand Manager, Quala Peru


As a CFO of a small/mid-sized company, I found it very useful to listen to and interact with experts in marketing and pricing. Several of the presentations yielded new ideas which should be addressed in my company's strategic discussions.

- Tom Friezen, CFO, Dakota Growers Pasta Co.


Comprehensive, thought provoking, applicable. An overall excellent experience that provided me with a rigorous basis for making pricing and marketing strategy decisions.

- Mark Caylor, Manager, Commercial Transactions, Boeing Satellite Systems


Exceeded expectations! The topics covered were well integrated and organized. It is an excellent tool for organizations (at all levels) to understand the integration of the different functions/levels. Overall I am very satisfied with the logistics, materials and speakers. Despite the issue that not all the elements/topics discussed apply to my industry, it is a great tool for the day today business decisions

- Solimar Rodríguez, Pricing Analyst, Chevron Puerto Rico, LLC


Excellent program. It taught me to look beyond the obvious and ask the right questions to find the key drivers that bring value to the customer. Then and only then can you put a value added proposal of benefit to both parties.

- Allan Bonnell, BID Manager, Cargill Deicing Technology


Exceptional material, learning approach and instructors. This was the best investment in training I have made in several years.

- Travis R. Warren, Director of Marketing, T-Mobile, USA


From a sales perspective, this gave me great insight on the importance of communicating full value to our customers.

- Ray Wilson, Director Sales, MW Zone, Kellogg's Food Away From Home


High value seminar and discussions. Very thought provoking. I am eager to apply it and assist moving my company forward.

- Jeffrey Lillich, CFO, Tempur Pedic Inc.


I have attended similar programs at Harvard and Wharton and this program was far better than the other two.

- Cordt Huneke, President, KAI Digital Media


It was a very beneficial class and we actually used some of the strategies learned over the immediate week this weekend to put together a tiered multi-option unbundled value package for a quick turnaround government quote. The package was sent out on Monday and we secured every line item yesterday due to the presentation of the quote package.

- Chris Norch, President, Denison Industries


It was amazing how many insights were provided on pricing strategy and how to gain advantage through implementation of policy and consistently pursuing strategy.

- Susan Middleton, Sr. Director Strategy and Business Development, Harcourt Assessment


Managers who believe that the pricing process is under their control should take this course to understand the potential damage they could be driving to the profit of their companies, and also this course would help them to understand the challenges that are involved as decision maker.

- Francisco Canzoneri, Planning Supervisor, Petroleos de Venezuela


Overall, a very good course. Good content coverage and excellent translation of principles to real world situations. The instructors compliment each other well in areas of organization, experience and energy. Each seems very in touch with what is happening in industry and what are the current strategies for effective pricing tactics.

- John Eshleman, Site Manager, SPI Pharma


Pricing is one of the few things we can do that have an immediate effect on the bottom line. Having the tools to price more accurately in the market will helps us to do the best for our bottom line, while helping our customers understand our value which improves their bottom line.

- Mark Hart, Marketing Manager, Elanco Animal Health


Pricing strategy and tactics provided an excellent insight into the arts and science of the often maligned 'P' for marketers charged with the responsibility of harvesting the costs and efforts of the other 3 'P's', this was an invaluable exercise. Thank you! Highly interesting, entertaining and understandable.

- Angus Hastie, International Marketing Manager - Pricing, Roche Molecular Systems


Pricing Strategy and Tactics provided effective tools I plan to take back to the office. The tools reviewed in our session will allow us to be more proactive in establishing our pricing strategy. We will be better prepared to quickly address changes in market conditions.

- Mark Pieroni, Director of Finance, Scientific-Atlanta, Inc.


The class is an absolute requirement for any person who is tasked to be a change agent for their organization's pricing strategy

- Michael Maddie, Finance Manager, Best Buy


The class was very thought provoking and informative. It encourages participants to get involved and share experiences whereby you learn from your peers. I would recommend it for all companies no matter their market position.

- Joe Hermes, Vice President Sales, Dawn Food Products


The course provided me with an understanding and opportunity to validate my company's pricing and value-selling processes as well as the opportunity to learn of new, leading-edge ideas that will be extremely valuable to me in adjusting our strategies and tactics for improved performance.

- Andrew Slusher, Vice President, Pricing and Yield Management, Yellow Freight System, Inc.


The course provides a great perspective on our pricing issues—many of which are common even across company size and industry and different paths to manage pricing profitably.

- Josh Susser, Senior Analyst - Business Development, ECMC Group


The instructors provided excellent insight and real world illustrations of the strategic power of pricing structure and policy in business. Everyone in management will benefit from these principles and techniques

- Charlie H. Rogers, Director of Customer Service, FMC FoodTech Inc.


The investment we made in this program will be returned many times over. Our team has begun to identify several areas that will be 'quick wins' and the class isn't over yet. Strategy, not just tactics, is now center stage and attainable. Thanks for an excellent road map.

- Dere' Newman, President, Mr. Longarm Inc. Specialty Products


This class met all of my expectations: taught by thought leaders who live these issues, a new perspective on pricing challenges and a strategic model for framing a response and purposeful tactics to start taking action. Our first successful activity will pay for the class.

- James Davis, VP, Business Mgr.- Metals, NIBCO Inc.


This course helped me understand/measure where we are today versus where we need to be in utilizing our pricing to support our desired growth. Thank you!

- Lucrese Gomez, Business Director Dextrose, Corn Products International


This session crosses all department lines, sales, marketing, and finance. It will increase our awareness that how we go to market 'together' is better than going to market with our own agendas.

- Matt Byrne, National Account Manager, United States Gypsum Company


This was an excellent class that touched on the key strategic points on pricing, profit, and understanding risks and understanding how to promote value of your products and services.

- A.J. White, VROD Assembly Process Lead, Harley Davidson Motor Company


Very focused, practical. It gives the right basic framework to think about pricing as a major profitability driver.

- Antonio Ferreira Managing Director, Johnson & Johnson Produtos Proffissionais - Brasil

This program is designed for senior managers and executives of companies who analyze, recommend, or approve pricing decisions. It is especially valuable for directors of marketing, finance, sales, and planning and for managing directors and presidents of smaller companies who are introducing new products, facing significant price competition, or failing to achieve prices that reflect the value they deliver.

Program Outline 

Strategic Versus Tactical Pricing: Asking the Right Questions

  • Why pricing "to cover costs" undermines profit 
  • Why pricing "to achieve sales goals" wastes profit
  • Why pricing "for competitive advantage" undermines value
  • What objectives lead to profitability and long-term competitive advantage
  • What role pricing has in the overall marketing strategy

Strategic Pricing Tools and Application

  • Determining the product/service economic value
  • Creating tiered offerings to drive margin and growth
  • Using price analytics to identify opportunities for policy and process change

Setting Profit Maximizing Prices

  • The role of value
  • Segmented pricing
  • Accounting for price sensitivity factors
  • Managing price over the lifecycle

Pricing Psychology

  • Understanding how customer information processing strategies affect price perceptions and judgments
  • Determining effective pricing communication tactics
  • Managing customer risk to maximize value

Costing and Financial Analysis

  • Determining the relevant costs for pricing
  • Calculating break-even sales changes
  • Analyzing the profitability of price changes

Managing Price Competition

  • Mastering the pricing "game" and planning for profitable competition
  • Using information strategically
  • Managing resources for competitive advantage
  • Understanding the legal issues in pricing

Organizational Transformation

  • Building a pricing capability
  • Roadmap for transitioning to strategic pricing
  • Planning for organizational change
  • Getting the sales force on board
  • Creating systems for measurement and control