Jean-Manuel Izaret, Arnab Sinha
Cost, competition, and customer value … are the three fundamental information sources for the development of any business strategy. The traditional pricing perspective, however, treats these information sources as inputs into price calculations… From this tactical perspective, customer value sets a price ceiling or a maximum price, while costs define the floor or the minimum price. To calibrate the range in between, leaders take competitor … [ Read more ]
Content: Quotation | Authors: Arnab Sinha, Jean-Manuel Izaret | Source: Boston Consulting Group (BCG) | Subjects: Marketing / Sales, Pricing, Strategy
The Unified Theory of Pricing
BCG has developed a unified pricing theory, manifested in a tool they call the Strategic Pricing Hexagon, by bringing all the disparate pricing ideas, and the drivers and forces behind them, into one master structure. This article shows how the Strategic Pricing Hexagon allows leaders to look beyond the numbers and develop a pricing strategy that can change the entire trajectory of their business and … [ Read more ]
Content: Article | Authors: Arnab Sinha, Jean-Manuel Izaret | Source: Boston Consulting Group (BCG) | Subjects: Marketing / Sales, Pricing
Pricing Fluency: A Program for Pricing Excellence
Pricing is the language of business. Through pricing, companies tell customers which products have the greatest value or when costs have gone up. Through pricing, companies can “ask” customers to change their behavior. A comprehensive “pricing fluency” program for the whole organization focuses on improving the pricing model with better policies for how prices are set, and improving the pricing platform for organizational implementation. The … [ Read more ]
Content: Article | Authors: Jean-Manuel Izaret, Rich Hutchinson, Sylvain Duranton | Source: Boston Consulting Group (BCG) | Subject: Pricing
The Multichannel Imperative
Multichannel retailing has become a market imperative. Consumers who shop in two or more channels are often much more profitable than single-channel shoppers—although they expect a seamless experience across stores, catalogs, Web sites, mobile sites, call centers, TV networks, and direct mail. It’s a daunting challenge, but retailers often overestimate its difficulty. Rather than focus only on big investments in technology integration, retailers should also … [ Read more ]
Content: Article | Authors: Jean-Manuel Izaret, Mary Egan | Source: Boston Consulting Group (BCG) | Subjects: Industry Specific, Marketing / Sales | Industry: Retail