Programme

PGP

Term

IV

Academic Year

2021-22

Course title

Pricing

Area

Marketing

Credits

1.25

Instructor(s)

Prof. Arvind Sahay

Course Description & Objectives

Objectives: This course provides an opportunity for the participants to develop a systematic framework for assessing, formulating and implementing pricing approaches within the context of a business decision. Of the 4Ps in marketing, pricing is the only P that generates revenues for the firm; all the other Ps spend money for the firm. The one topic that top management can be relied on to be willing to listen to is pricing as it impacts the top line and bottom line directly and immediately Unfortunately, because of this immediate impact, many managers tend to jump into a pricing decision and ask questions later leading to pricing decisions which are sub-optimal at best and value destroying at worst leading in some cases to the firm’s loosing its competitive position Pricing decisions are affected by economic, marketing, organizational, and psychological factors, and must be made within a prescribed legal framework. The course revolves around (a) understanding how consumers view and react to pricing, (b) understanding the strengths and weakness of different pricing approaches (c) getting familiar with new pricing approaches (d) developing the thinking to obtain the right price and (e) understanding how one may go about making effective pricing decisions while keeping in mind these factors and how to implement the chosen price approach. To achieve this objective, we will learn appropriate concepts, methods, and explore new approaches for formulating pricing strategy. This course is less about the mechanics of setting a price – it is more about understanding the process of making pricing decisions. This course will combine both, developing a proper pricing perspective, and using relevant tools in setting and implementing a price approach. At the end of the course, you should have developed a framework for thinking about pricing that you can apply in your workplace.

Pedagogy

o Case Discussions For all case discussions, it will be assumed that each participant has read and is fully prepared to discuss the case in class. The objective is to play the role of the decision-maker in the case and use the data and information available in the case to do the relevant analyses and make recommendations. Students should have prepared the case and be able to take and defend a position in the class.   o Lecture/Discussions These sessions will allow us to examine principles, models, theories, and their application to pricing decisions.   o Participant Limit. Participation will be limited to 50 students to accommodate presentations.