Below you will find some of the tools that we can use to help optimize pricing strategies, tactics, and execution.
There is no right price without clear objectives, but getting that clarity is often harder than it seems like it should be. The Objective Setting Tool provides some easy methods to prioritize business and marketing objectives. The Business, Marketing, and Pricing Objective guides provide instructions on how to use the tool as well as the overall process of determining the right objectives for pricing.
Price positioning ultimately is judged by the customer. This makes segmentation and targeting an important pre-step for pricing strategy. These guides and tools explore the segmentation process and provide some aids to prioritizing targets.
Price / value maps are visual tools that improve understanding of price positioning and the value drivers that support it. They are also useful for setting future product development and communication priorities.
Having a big sale, on-site celebrity, or other event? Be sure to announce it so everybody knows and gets excited about it.
One way to determine prices is by defining a premium or discount index versus a benchmark. There are, however, different types of prices that
may serve as indexes and choosing the wrong one can lead to bad decisions. These tools and guides discuss the index-setting process and provide some aids to help.
Understanding price elasticity is crucial if one seeks to improve results through better pricing. Yet, calculating elasticity can be an infuriatingly complex task. These tools and guides explain the process of how to collect data for pricing, estimate price elasticity and provides some simple examples of different approaches. The demand curve generator is a simple, wisdom-of-the crowds tool that can help different points of view into a consensus around the impact of pricing changes. It is good for workshops and for hypothesis formation.
The promotion ROI calculator is a simple, tactical planning tool that estimates the profitability of a typical CPG trade promotion through a retailer, given expected lifts and investments.
Price waterfalls are powerful tools to monitor how different price and trade elements drive net sales.
Price Ladders are a simple, visual tool to compare price ranges around one's own or competitive codes and to monitor compliance with pricing guidelines.