MIT/ILP Calendar Event
Pricing 4Dx (live online)
OverviewPricing 4Dx will help managers increase their level of pricing sophistication and mitigate the mistakes many firms make regarding pricing strategy. We will discuss the "zone of indifference" and how to establish the broad value band within which prices need to be set. Participants will learn about correct survey techniques to ask the right pricing questions before a product is launched, and will practice calculating price elasticities for different customers?some are willing to pay more! They will explore the pricing spectrum, from a primitive, "gut-feel" approach to complex segmentation, and learn how to apply pricing metrics to make better decisions. Participants from a variety of industries will collaborate virtually and team up on projects that test their new pricing knowledge. This is a technical class that requires the use of spreadsheets and data analysis in the online environment.
Participants in this program will interact in real time with high-quality video lessons, other participants, and faculty through personalized avatars in an immersive, virtual classroom. High speed internet with appropriate bandwidth and the interest and ability to use the required technology and software are critical success factors.
Participants will meet from 10:00 AM - 12:00 PM during the week of the sessions, however they should plan to stay up to 30 min longer, if needed. The sessions planned are:
April 25 - May 10, 2017:
Tuesday, April 25 through Thursday, April 27
Tuesday, May 2 through Thursday, May 4
Wednesday, May 10
The program will be conducted in an online environment where participants can view video lessons and complete group action learning activities led by the faculty. This rich, engaging experience can be accessed by participants wherever they are in the world at the times the sessions are delivered and bridges the energy, exploration and idea flow of physical learning into a personalized online experience.
Two webinars will be offered in advance of the program start. Participants should plan to attend one of them to meet other participants, propose project ideas and form 2-3 person project groups. One Gmail address per project group is required in order to utilize Google Sheets during exercises.
Participants in this program will learn:
- How the traditional 3 Cs of pricing?cost-based, competition-based and customer-based?often backfire
- How to calculate the Economic Value to the Customer (EVC), use it as a pricing formula, and understand its practical implementation in a firm
- What is meant by the ?zone of indifference?
- How to use conjoint calculations to find the right product-based price segmentation
- How to perform elasticity analyses, breakeven analyses, and why
- Ways to overcome common data challenges through regression interpretation
How much should an organization charge for a new product? Can pricing performance be improved for existing products? Setting the right price for a product or service is not easy. Pricing decisions can have a significant and often immediate effect on an organization's bottom line, yet there is much confusion about how best to determine and execute a successful pricing strategy. This program is designed to demystify the science behind purchase behavior and provide participants with a logical and systematic approach to crafting an optimal price structure.
ILP members receive a 15% discount on all MIT Sloan Executive Education open enrollment programs held in Massachusetts. ILP members receive a 15% discount on all MIT Professional Education courses. To obtain the discount code, click here (you must be signed in to this website as an ILP member to access the code).