Profit Parabolas: Bringing Science to the Art of Pricing
Pricing is becoming more science than art. But because the science is complex, most managers rely heavily on art-or instinct. As a result, they almost always miss the pricing sweet spot. A powerful, fact-driven tool called the profit parabola can help managers monitor competitors’ prices, learn how their pricing affects their own position, respond intelligently to competitors’ moves, and test incrementally or radically different pricing … [ Read more ]
Content: Article | Authors: Marin Gjaja, Peter Stanger, Wouter-Jan Schouten | Source: Boston Consulting Group (BCG) | Subjects: Marketing / Sales, Pricing
To Spend or Not to Spend: A New Approach to Advertising and Promotions
Trying to outshout the competition in an environment that is increasingly cluttered and expensive can lead to frustration and low returns. Managers can increase returns immediately and dramatically with a zero-based budgeting approach to advertising and promotions. In allocating investments according to the distinctive needs of brands, regions or countries, and market segments, companies can free up as much as 20 percent of their A&P … [ Read more ]
Content: Article | Authors: Emile Gostelie, Mark Kistulinec, Rich Hutchinson, Wouter-Jan Schouten | Source: Boston Consulting Group (BCG) | Subject: Marketing / Sales