Activity 3: Develop a Pricing Policy
Activity Three: Develop a Pricing Policy (Steps 19-23):
Develop a pricing policy to improve the Company’s market share and returns.
Prices never seem to be simple or stable. Most markets press you to change your price. You need a pricing policy to govern your Company’s actions when it faces these pressures. This activity develops that pricing policy. It helps you anticipate the pricing pressures you may face by helping you understand the likely direction of your market’s future long and short term prices. It then looks for opportunities to change your prices compared to those of your competition to increase your profits or your market share. You change your prices by adjusting the pricing process you use to develop a price for each product and customer. This pricing process often changes the level at which the company prices its products. You implement a change in the price level by choosing specific price-based segments and then using the components of price to isolate the price changes to those chosen segments.
|Project the direction of future prices and margins.|
|Step 20:||Set Objectives and Pricing Guidelines to exploit near term price opportunities.|
|Step 21:||Look for opportunities to change price to gain or save share.|
|Step 22:||Change the pricing process according to the direction of industry prices.|
|Step 23:||Adjust the level of price by targeting price-based segments with the four components of price.|
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