Value-based Pricing Strategies

One of the most powerful "P" in the marketing mix is pricing. There is no bigger leverage for profit and revenue than pricing. Over the last decade, the world of pricing has been changing at a fast pace. There has been a development of new dynamic pricing strategies, an explosion of new pricing tools and tactics, and a focus on smarter buyers. The implementations of consumption-based pricing strategies that are occurring are indicative of these changes. The field of pricing is developing fast, and you simply cannot keep up with everything! Focusing on "Sell value, not price" - this course concentrates on pricing strategies and tactics from both theoretical and applied contexts, while also addressing the notion of "Impact pricing: balancing the trilemma of people, planet, and performance".

In today's increasingly interconnected world, businesses are not only evaluated based on their financial performance but also on their impact on society and the environment. Impact pricing delves into the complex interplay between profitability, social responsibility, and environmental sustainability. It involves making pricing decisions that not only drive revenue and profit but also consider the welfare of people and the planet. Balancing these three pillars - people, planet, and performance - presents a significant challenge for businesses, as they must navigate ethical considerations, societal expectations, and environmental concerns while remaining competitive in the market.

This course will explore how businesses can adopt pricing strategies that align with their values and contribute positively to society and the environment. By examining case studies and real-world examples, participants will gain insights into the opportunities and challenges associated with impact pricing. Additionally, they will learn how to integrate sustainability principles into their pricing decisions, enhance brand reputation, and create long-term value for all stakeholders.

The substantial content of the course concentrates on two aspects:

• how companies attempt to capture value and profits and
• the behavioral or psychological aspects of consumer price acceptance.

The traditional economic perspective on product pricing is therefore combined with a behavioral or psychological perspective to provide a more realistic understanding of how consumers respond to a firm's pricing decisions. An additional focus will be made on pricing dynamics and the reaction by competitors at the company and product level to various pricing practices and tactics. The materials used in the course are intended to provide you with a comprehensive exposure to making managerial pricing decisions.

GEST-S 442 equips students with conceptual frameworks that help to better design and implement pricing strategies. Two main questions will be answered:

1. Does your pricing strategy provide you with a competitive advantage?
2. Is your pricing process one of your core competencies?

The course is designed to serve as a review and in-depth study of the theory and practice of strategic pricing (LO 2.1.). We will explore the theory and applications of pricing concepts through a mix of lectures, assignments, cases, simulation games, guest lectures, and a final field project.

The goal of this course is to help students develop a comprehensive understanding of how pricing strategies can be developed and executed in a dynamic and competitive global, sustainable, and digital environment. Students will be exposed to the most recent theories and methods, analytical techniques, and current best practices for developing pricing strategies (LO 2.1.).

At the end of the course, students will be able to (see Graduate Profile: LO = Learning Objectives
https://www.ulb.be/servlet/search?q=&l=0&beanKey=beanKeyRechercheFormation&RH=1571625036018525&s=CATEGORIE_ASC&natureFormation=ulb&anneePostbac=CFR6 :

• Adopt a scientific approach to data collection, research and analysis and communicate results using clear, structured, and sophisticated arguments (LO 2.1.)
• Display critical thinking and develop autonomous learning strategies and techniques (LO 2.2.)
• Integrate sustainable development into problem analysis (LO 1.1.)
• Master and apply key economic and management concepts, frameworks, and theories in a professional context to identify a business opportunity and create a relevant innovative solution for it (LO 1.2.)