http://jtonedm.com/2008/07/07/heres-why-decisions-matter-to-the-8-ps-of-marketing/ James Taylor on Everything Decision Management Sun, 21 Mar 2010 19:03:55 -0700 http://wordpress.org/?v=2.9.2 hourly 1 http://jtonedm.com/2008/07/07/heres-why-decisions-matter-to-the-8-ps-of-marketing/comment-page-1/#comment-10529 Per Sjofors Tue, 08 Jul 2008 14:26:59 +0000 http://jtonedm.com/?p=287#comment-10529  James,   Thanks for shining the light on the most ignored of the 4 P's, Pricing. Pricing is  becoming  more dynamic, and the various price  optimization software packages  available  from the dozen or so vendors can help some companies with their pricing  challenges.    But  price  optimization software is not for every enterprise; these packages require vast amounts of transactions to be effective, so unless your company is in the Fortune 500 AND the goods you are selling are  relativity  cheap, they are not for you.     For other companies, a process called Value  Optimized  Pricing typically yields a 10 - 20%  increase  in revenues. How can this be? A VOP enables companies to price their product to meet the true value  perceptions  of their  customers.    Well, all companies tries this, but the information base for the price decisions are typically really poor - instead of  statistically  significant data from their marketplace, most companies rely on personal  opinions. Personal  opinions from a few sales people who wants cheaper prices because that makes their life easier;  personal  opinions from the finance dept who wants higher price and higher profit margins;  personal  opinions from a few marketing people with a "gut feel" (also called wild guess) for what the market will bear;  personal  opinions from a few executives with "industry experience"  (also called educated guess).  All in all, not a very  scientific  way to price, and no wonder that a using the right  process, and the right decision support for pricing,  yield substantial gains.   Per Sjofors Founder, CEO   Atenga Inc www.atenga.com    James,  
Thanks for shining the light on the most ignored of the 4 P’s, Pricing. Pricing is  becoming  more dynamic, and the various price  optimization software packages  available  from the dozen or so vendors can help some companies with their pricing  challenges.    But  price  optimization software is not for every enterprise; these packages require vast amounts of transactions to be effective, so unless your company is in the Fortune 500 AND the goods you are selling are  relativity  cheap, they are not for you.  
 
For other companies, a process called Value  Optimized  Pricing typically yields a 10 – 20%  increase  in revenues. How can this be? A VOP enables companies to price their product to meet the true value  perceptions  of their  customers.    Well, all companies tries this, but the information base for the price decisions are typically really poor – instead of  statistically  significant data from their marketplace, most companies rely on personal  opinions. Personal  opinions from a few sales people who wants cheaper prices because that makes their life easier;  personal  opinions from the finance dept who wants higher price and higher profit margins;  personal  opinions from a few marketing people with a “gut feel” (also called wild guess) for what the market will bear;  personal  opinions from a few executives with “industry experience”  (also called educated guess).  All in all, not a very  scientific  way to price, and no wonder that a using the right  process, and the right decision support for pricing,  yield substantial gains.
 
Per Sjofors
Founder, CEO  
Atenga Inc
http://www.atenga.com  

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