Strategic Pricing Capability (PowerPoint PPTX Slide Deck)

PRICING STRATEGY PPT DESCRIPTION

Explore our Strategic Pricing Capability framework, crafted by ex-McKinsey & Big 4 consultants. Enhance your pricing strategy with actionable insights on Human, Systems, and Social Capital. Strategic Pricing Capability is a 23-slide PPT PowerPoint presentation slide deck (PPTX) available for immediate download upon purchase.

Explore Slides inside the Deck:

Strategic Pricing Actions and Capital Investment Investing in Human Capital for Pricing Strategy Building Strategic Pricing Capability: Key Components

Pricing isn't just a matter of a good Pricing Strategy and tactics. By investing in specific areas of organizational capital—specifically, Pricing Capital—we can foster a Strategic Pricing Capability.

This framework breaks down the 3 forms of Pricing Capital:

1. Human Capital – Human Capital refers to the Pricing professionals who have deep understanding of all elements and implications of the organization's Pricing Strategy.

2. Systems Capital – Systems Capital refers to the software and hardware infrastructure needed to perform Pricing analyses and implement our resultant Pricing Strategy.

3. Social Capital – Social Capital is the internal, organizational “glue” that coordinates and holds together the many participants and stakeholders in the Pricing process.

To develop Pricing as a strategic capability, we must make appropriate investments across all 3 forms of Pricing Capital.

This presentation also discusses the 3-phase process to build Pricing as a strategic capability. This process starts at the high level of overall capital budgeting decisions; and ends with us making Pricing decisions and taking Pricing actions. Having Pricing has a strategic capability is a source of sustainable Competitive Advantage.

This deck also includes slide templates for you to use in your own business presentations.

The Strategic Pricing Capability framework is not just theoretical; it provides actionable insights and practical steps for implementation. The PPT outlines the critical role of Human Capital, emphasizing the need for pricing professionals to possess a deep understanding of corporate strategy, product range, and market dynamics. Systems Capital is equally crucial, involving the integration of sophisticated software and hardware to perform comprehensive pricing analyses and implement strategies effectively. Social Capital, the organizational "glue," ensures seamless coordination among stakeholders, fostering a collaborative environment essential for strategic pricing.

The presentation also details a 3-phase process for building a Strategic Pricing Capability, starting with capital investment decisions and ending with actionable pricing decisions. This structured approach ensures that investments in pricing capital are balanced and aligned with organizational goals. The deck includes templates to facilitate the application of these concepts in your own business context, making it a valuable resource for any organization looking to gain a competitive edge through strategic pricing.

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PRICING STRATEGY PPT SLIDES

Strategic Pricing Actions and Capital Investment

This PPT slide outlines the critical phase of pricing decisions within a strategic pricing framework, emphasizing 3 essential forms of Pricing Capital: Human, Systems, and Social Capital. Investment in these capitals directly influences the ability to implement pricing strategies successfully. Insufficient Pricing Capital can lead to misjudgments in customer profitability and lifetime value (LTV), resulting in unprofitable deals. Adequate investment in Pricing Capital provides a strategic edge, enabling organizations to respond swiftly to market fluctuations and adjust pricing strategies. A robust pricing capability supports current actions and fosters innovation, such as developing usage-based pricing models to enhance customer engagement and revenue streams. Organizations are urged to assess and strengthen their pricing capabilities for better outcomes.

Investing in Human Capital for Pricing Strategy

This PPT slide focuses on Human Capital in pricing strategy, emphasizing the critical role of pricing professionals. Key areas of expertise include analyzing break-even points, financial implications of price changes, customer sensitivity to pricing, and understanding customer lifetime value. Training field sales personnel in fundamental pricing knowledge and using benchmark data against competitors are essential considerations, despite challenges in assessing these benchmarks. Three core methods for enhancing Human Capital in pricing are hiring new talent, training existing employees, and expanding the pricing experience of current staff. Familiarity with various pricing theories is necessary to inform strategic decisions, even if not directly applied.

Building Strategic Pricing Capability: Key Components

This PPT slide outlines essential components for developing a Strategic Pricing Capability, focusing on 3 key capitals: Human, Systems, and Social. Human Capital refers to the expertise of pricing professionals who understand the implications of pricing strategies within the corporate strategy, including products, services, and market dynamics. Systems Capital encompasses the technological infrastructure, including software and hardware, necessary for data collection, sharing, and analysis to support pricing strategies. Social Capital represents the organizational cohesion among stakeholders, fostering collaboration and alignment in pricing decisions. Successful pricing strategy implementation requires buy-in from stakeholders and strong customer relationships, highlighting the interconnectedness of these capitals in building effective pricing capabilities.

Source: Best Practices in Pricing Strategy, Capital Budgeting PowerPoint Slides: Strategic Pricing Capability PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting