More and more leaders in the last few years have challenged their own pricing models, invested in price optimization, and confronted disruptive event after disruptive event, from the pandemic to inflation to supply chain constraints. But without an overarching pricing strategy ? and the structured framework to derive and support it ? these leaders have often overlooked opportunities to shape their markets to their advantage. The book is aimed at senior executives and business leaders who understand that pricing is a powerful lever, yet feel it is hard to act on. It offers the pricing…mehr
More and more leaders in the last few years have challenged their own pricing models, invested in price optimization, and confronted disruptive event after disruptive event, from the pandemic to inflation to supply chain constraints. But without an overarching pricing strategy ? and the structured framework to derive and support it ? these leaders have often overlooked opportunities to shape their markets to their advantage. The book is aimed at senior executives and business leaders who understand that pricing is a powerful lever, yet feel it is hard to act on. It offers the pricing strategies and tactics most leaders lack, with a logical, practical framework called The Pricing Triangle that will enable them to provide strategic pricing guidance to their functional teams with greater confidence, speed, and efficiency. The Triangle draws its shape from the need for companies to coordinate pricing decisions across three sets of three drivers: ? Inputs: Costs, competitors? prices, and most importantly, the value the company creates for customers ? Customer Behavior: Elasticity, price discrimination, and game theory ? Market forces: Commoditization, innovation, and market consolidation. The Strategic Pricing Triangle elevates the development of pricing strategy to the same level as other key strategies within the company.
Jean-Manuel Izaret (JMI) is the global leader of the Marketing, Sales and Pricing practice at Boston Consulting Group (BCG). Before that, he led the pricing practice for more than 12 years and grew the business more than ten-fold. JMI has supported many Fortune 500 companies in developing and implementing their pricing strategies. He has focused in particular on pricing model changes that entail complex transformations of organizations and often involve significant business model changes. He has published numerous articles on pricing and delivered a TED Talk on ?A new Netflix-style pricing model that could make medicine more affordable.? JMI received an engineering degree and his PhD from Ecole Centrale of Paris, and a Master?s in Economics from Institut d?Etudes Politiques of Paris.
Inhaltsangabe
Introduction: Changing the Pricing Conversation 1
Part I Rethinking Pricing Strategically 19
Part I 19
1 Three Information Sources 25
2 Four Economic Frameworks 40
3 Seven Games in the Strategic Pricing Hexagon 51
4 Six Market Forces 69
5 What the Hex? The Political Angles of Pricing Decisions 77
6 What's Next? The Design of Pricing Models 90
Part II Winning the Seven Pricing Games 107
Part II 107
7 The Value Game: When Art Trumps Science 109
8 The Uniform Game: The All- Time Classic 119
9 The Cost Game: Where Efficiency Reigns 134
10 The Power Game: When Every Move Counts 147
11 The Custom Game: Making Sense of the Chaos 163
12 The Choice Game: Framing Options for Customers 179
13 The Dynamic Game: When Everything Matters 194
Part III Changing Your Pricing Game 209
Part III 209
14 Innovation: Seizing a Step- Change Opportunity 211
15 As- a- Service: Growing with Your Customer 219
16 AI: Perfecting Price Differentiation 228
17 Channel: Going Direct to Consumers 237
18 Scale: Achieving the Ultimate Cost Advantage 246
19 Free: Competing with the Most Magical Price Point 254
Part IV Shaping Society Through Pricing Decisions 265
Part IV 265
20 Fairness: How to Differentiate Prices Across Customers 267
21 Equitable Pricing: How Buyers and Sellers Share Value 281
22 Access: How Pricing Can Eradicate Diseases 294
23 Green Premium: How to Shape Demand for Sustainable Solutions 308
24 Co2 : How to Encourage Lower Carbon Emissions 325
25 Impact: How Progressive Pricing Can Scale Social Ventures 337