This course discusses the strategic element of Pricing in the Marketing Mix. Value creation in marketing is achieved via being able to capture it via Pricing. In this course we combine concepts and practice, providing a strong theoretical background and exercising the concepts via a Simulation we will use during the sessions and Class exercises and cases. The simulation will engage student teams in a real business scenario, applied to a service business and its Pricing strategies.
We will provide you a solid approach to Value Based Pricing and understanding of the different pricing strategies, together with the tools of financial analysis for pricing. We will conduct in class a price war, to show participants the right approach to handle these competitive loss-making situations. We will extensively use field examples, across many sectors and geographies.
Weekly - Available soon
Total - Available soon
The material for the course is available in the detailed syllabus in two levels: Recommended readings and additional readings (for those students who would like extra input).
Most used references include:
Thomas T. Nagle, Georg Müller (2018), The Strategy and Tactics of Pricing, 6th ed., Routledge Taylor and Francis Group
Dolan and Gourville (2014) Pricing Strategy, Core Curriculum Harvard Business School 8203, June
Thomas Nagle, Gerald Smith (1994) Financial Analysis for Profit Driven Pricing, Sloan Management Review Spring 1994 pp 71-84
Michael V. Marn, Eric V. Roegner, Craig C. Zawada (2010), The Price Advantage, 2nd edition, chapter 1 McKinsey & Company, John Wiley & Sons
Baker, Ronald J., (2006) Pricing on Purpose: Creating and Capturing Value (Hardcover) Wiley
The course will be a mix of theory, cases and discussions.
A hands-on approach to the subject will be used with many examples and material from the field.
A high student involvement is expected in class discussions and case recommendations and should be accompanied by thorough preparation of cases and readings that are available via the syllabus that can be accessed on line. For the cases the discussion questions will also be
We will use a simulation during the course.
The online material includes the presentation for the class together with the recommended and additional readings: the course allows for those who wish to explore the topic further to do so via extra material and advice, and we encourage you to do that.
We will have several individual assignments during the term that will be referenced in the detailed syllabus. There will also be a group assignment for the term.
20% Group assignment for the term (includes peer review with a weight of 20%). Teams should
involve students from more than one nationality, gender and from different backgrounds (e.g.
20% Class participation evaluation – we will have students discussing cases during several
sessions. Unjustified absence to any case discussion will mean a zero grade for that class’s
participation. Class participation grades will be based on the quality, listening evidence and
frequency of your participation in case discussions, with grades from A to D (zero).
20% Assignments/exercise write-ups (individual) –there will be several write-ups. The write-up
is strictly individual. Any plagiarism will be handled strictly and offenders will be punished
according with the University rules.
40 % Final exam
1. Pricing Fundamentals concepts and strategies – importance and determinants of cost. Pricing as a Key profit generator.
2. Value creation and customer value – calculating and measuring TEV. The alternative pricing strategies. Price sensitivity and its relevance.
3. The Role of costs in setting prices. Revisiting Financial Analysis for Pricing
4. Customer Value: Customer segmentation and Pricing Metrics
5. Role of Competition in Setting prices – How do we respond in a Price War and managing conflict thoughtfully
6. Special Topics: Distribution Channels and Legal aspects, other Pricing topics.
Programs where the course is taught: