Pricing on Purpose: Creating and Capturing ValuePricing on Purpose explores the importance of pricing, one of the four Ps (product, promotion, place, and price) of marketing, that is largely ignored in business literature. Pricing is the opportunity for a business to capture the value of what it provides to the customer, and deserves as much attention as promotion, product and place in the marketing strategy of any business. This book calls attention to the market share fallacy, explains the difference between cost-plus pricing and value pricing, and provides best-practice pricing examples. It presents the theory of value—long established in the economics profession—and how any business can use various pricing strategies to communicate and capture the value of their products and services. |
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Page xii
... chapter on antitrust law presents a complicated range of works and opinions in a simple yet complete manner. It is quite useful to practitioners who are often limited in their ability to adopt more current approaches to price ...
... chapter on antitrust law presents a complicated range of works and opinions in a simple yet complete manner. It is quite useful to practitioners who are often limited in their ability to adopt more current approaches to price ...
Page xxi
... Chapter 9 that proves price determines costs, and not the other way around. Also, I owe them for the five Cs of value, the ten factors of price sensitivity, the seven segmentation strategies, and many other lessons I have learned from ...
... Chapter 9 that proves price determines costs, and not the other way around. Also, I owe them for the five Cs of value, the ten factors of price sensitivity, the seven segmentation strategies, and many other lessons I have learned from ...
Page 22
... Chapter 21—on various corporate functions. Because most companies are so caught up in efficiency and pro- ductivity quotas and working on their income statements, they are not build- ing their invisible balance sheet—of which the ...
... Chapter 21—on various corporate functions. Because most companies are so caught up in efficiency and pro- ductivity quotas and working on their income statements, they are not build- ing their invisible balance sheet—of which the ...
Page 26
... chapter is to exam- ine the flaws in the old theory in order to construct a better theory. After all, the theory that originally explained the Wright brothers' flying machine has been significantly enhanced by Boeing in order to keep ...
... chapter is to exam- ine the flaws in the old theory in order to construct a better theory. After all, the theory that originally explained the Wright brothers' flying machine has been significantly enhanced by Boeing in order to keep ...
Page 27
... chapter, and offer an Adaptive Capacity Model in order to allocate an organization's fixed capac- ity to maximize value. For now, let us look at the second element in the old theory—efficiency. Efficiency is a word that can be said with ...
... chapter, and offer an Adaptive Capacity Model in order to allocate an organization's fixed capac- ity to maximize value. For now, let us look at the second element in the old theory—efficiency. Efficiency is a word that can be said with ...
Contents
1 | |
7 | |
15 | |
25 | |
31 | |
41 | |
CREATING AND CAPTURING VALUE CHAPTER 7 THE INVISIBLE HAND NO ONE PERSON KNOWS HOW TO MAKE A PENCIL | 49 |
CREATING AND CAPTURING VALUE CHAPTER 8 A TALE OF TWO THEORIES | 63 |
CREATING AND CAPTURING VALUE CHAPTER 14 THE CONSUMER SURPLUS AND PRICE DISCRIMINATION | 175 |
CREATING AND CAPTURING VALUE CHAPTER 15 CUSTOMER SEGMENTATION STRATEGIES | 197 |
CREATING AND CAPTURING VALUE CHAPTER 16 PRICE DISCRIMINATION IN PRACTICE | 213 |
CREATING AND CAPTURING VALUE CHAPTER 17 THERE IS NO SUCH THING AS A COMMODITY | 235 |
CREATING AND CAPTURING VALUE CHAPTER 18 BAKERS LAW BAD CUSTOMERS DRIVE OUT GOOD CUSTOMERS | 249 |
CREATING AND CAPTURING VALUE CHAPTER 19 ETHICS FAIRNESS AND PRICING | 269 |
CREATING AND CAPTURING VALUE CHAPTER 20 ANTITRUST LAW | 283 |
CREATING AND CAPTURING VALUE CHAPTER 21 WHO IS IN CHARGE OF VALUE? | 307 |
CREATING AND CAPTURING VALUE CHAPTER 9 COSTPLUS PRICINGS EPITAPH | 87 |
CREATING AND CAPTURING VALUE CHAPTER 10 THE WRONG MISTAKES | 103 |
CREATING AND CAPTURING VALUE CHAPTER 11 PRICELED COSTING REPLACES COST ACCOUNTING | 121 |
CREATING AND CAPTURING VALUE CHAPTER 12 WHAT AND HOW PEOPLE BUY | 129 |
CREATING AND CAPTURING VALUE CHAPTER 13 THE VALUE PROPOSITION | 143 |
CREATING AND CAPTURING VALUE CHAPTER 22 PRICING ON PURPOSE GETTING PAID FOR THE VALUE YOUR COMPANY CREATES | 333 |
CREATING AND CAPTURING VALUE BIBLIOGRAPHY | 343 |
CREATING AND CAPTURING VALUE SUGGESTED READING | 355 |
CREATING AND CAPTURING VALUE INDEX | 367 |
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Common terms and phrases
activity-based costing airline antitrust laws behavior better brand buyers capacity capture Chapter charge commodity company’s competency competition competitors consumer surplus cost accounting cost-plus pricing create customer’s customers demand curve determine developed different prices discount Disney economic economists effect efficiency equation exist experience explain firm firm’s flight free market George Gilder higher price human ibid ideas important industry innovation intellectual capital iPod knowledge learning loyalty marginal market share million Nagle and Holden needs Neiman-Marcus offering organization penetration pricing percent Peter Drucker premium price discrimination price sensitive price theory Pricing on Purpose pricing strategies profit purchase revenue risk segments sell social sold Stanley Marcus Steven Landsburg subjective theory team members theory of value things Thomas Sowell tickets tion tomers understand utility value proposition wealth yield management
Popular passages
Page xv - THE ROAD NOT TAKEN Two roads diverged in a yellow wood, And sorry I could not travel both And be one traveler, long I stood And looked down one as far as I could To where it bent in the undergrowth...
Page xv - I shall be telling this with a sigh Somewhere ages and ages hence: Two roads diverged in a wood, and I— I took the one less travelled by, And that has made all the difference. —ROBERT FROST Chapter 2 Energy Strategy: The Road Not Taken?
Page 49 - I have never known much good done by those who affected to trade for the public good. It is an affectation, indeed, not very common among merchants, and very few words need be employed in dissuading them from it.
Page 49 - By preferring the support of domestic to that of foreign industry he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention.
Page 50 - How selfish soever man may be supposed, there are evidently some principles in his nature, which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it except the pleasure of seeing it.
Page 66 - There are some commodities the value of which is determined by their scarcity alone. No labour can increase the quantity of such goods, and therefore their value cannot be lowered by an increased supply. Some rare statues and pictures, scarce books and coins, wines of a peculiar quality...
Page 65 - Labour alone, therefore, never varying in its own value, is alone the ultimate and real standard by which the value of all commodities can at all times and places be estimated and compared.
Page 119 - Friends, Romans, countrymen, lend me your ears; •> I come to bury Caesar, not to praise him. The evil, that men do, lives after them; The good is oft interred with their bones; \ So let it be with Caesar.
Page 65 - The value of any commodity, therefore, to the person who possesses it, and who means not to use or consume it himself, but to exchange it for other commodities, is equal to the quantity of labour which it enables him to purchase or command.