Editor's Note: If you are interested in becoming an expert on Strategy Development, take a look at Flevy's Strategy Development Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.
Pricing Strategy: To Skim or to Penetrate?
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Pricing is arguably the most critical component of your marketing mix. It directly drives how your product is positioned and what target segment you go after.
Below, we have 5 documents that help you determine and craft a robust pricing strategy for your product or service. They range in topics from covering the basic question of skimming vs. penetration, pricing increase, pricing strategy by offering, and more.
Pricing Strategy Toolkit
https://flevy.com/browse/business-document/pricing-strategy-226
This toolkit provides an in-depth discussion on Pricing Strategy. Topics include: Skimming vs. Penetration, Consumer Adoption Curve, Price Curve Analysis, Price Sensitivity Analysis, Pricing Tactics, and more.
Pricing Strategy Implementation Toolkit
https://flevy.com/browse/business-document/pricing-strategy-implementation-toolkit-726
This framework is focused on the point at which we ask the customer for a price increase. None of the strategic value of a pricing recommendation matters unless we take action with the customer. There are several tools and approaches that could make the increase more successful.
Best Practices in Price Increase Execution
https://flevy.com/browse/business-document/best-practices-in-price-increase-execution-681
In many industries, price is a crucial lever for driving higher profitability. Applying best practices to the tactical execution of a price increase can significantly improve yield and help the organization to “kick-start” a successful long-term price management system.
Pricing Strategy Template
https://flevy.com/browse/business-document/pricing-strategy-template-319
The determination of product pricing is the responsibility of the Product Manager, but many departments in a firm will want to influence this process, particularly Sales and Finance. This Word document provides a format to enable communication and collaboration when creating a pricing structure for your product.
Pricing Strategy Workshop
https://flevy.com/browse/business-document/pricing-strategy-workshop-764
This is a presentation used for conducting a pricing workshop. Topics covered include: Pricing framework & Implementation, OEM Pricing, Distributor Pricing, New Product Pricing, Bundle Pricing, and more.
47-slide PowerPoint presentation
There are 3 common approaches to pricing: Cost-based Pricing, Competitive Pricing, and Value-based Pricing.
Value-based Pricing offers numerous distinct advantages over the other 2 pricing methodologies. It is particularly suitable for situations where you are entering a new market, offering a [read more]
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"Strategy without Tactics is the slowest route to victory. Tactics without Strategy is the noise before defeat." - Sun Tzu
For effective Strategy Development and Strategic Planning, we must master both Strategy and Tactics. Our frameworks cover all phases of Strategy, from Strategy Design and Formulation to Strategy Deployment and Execution; as well as all levels of Strategy, from Corporate Strategy to Business Strategy to "Tactical" Strategy. Many of these methodologies are authored by global strategy consulting firms and have been successfully implemented at their Fortune 100 client organizations.
These frameworks include Porter's Five Forces, BCG Growth-Share Matrix, Greiner's Growth Model, Capabilities-driven Strategy (CDS), Business Model Innovation (BMI), Value Chain Analysis (VCA), Endgame Niche Strategies, Value Patterns, Integrated Strategy Model for Value Creation, Scenario Planning, to name a few.
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