ISD, Dec '11

good evening

in going through this question, i prepared a few notes, which is an attempt to link several points (which are covered as different topics in separate chapters).

Kindly let me know if this summary or steps are logical

Pricing Decisions
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1. the organization (org) needs to decide on the competitive advantage (comp ad) strategy.

2. once the comp ad has been decided/achieved, it must be sustained. this is done trhu maintaing the value of a strategic capability (str cap), or rarity/uniqueness of str cap or the str cap being robust.

3. once the comp ad has been achieved, it must ALSO BE PROTECTED thru price based strategies, further differentiation or lock in

4. then we must benchmark to ensure that we are on track relative to competition.

5. then comes MARKETING. and we analyze the market, the customer, do mkt research, identify the target makt and finally the mkt mix is decidded on.

6. the mkting mix will decide the Pricing factors that need to be accounted for

7. and when looking at price, we look at the 4 Cs.

8. you then look at ur corp. objectives

9. these corp objs will decide the practical pricing methods

10. then lastly u will calculate prices either based on cost or on economics (demand/supply)

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thank u!