Designing and Pricing Product Lines

(Other Class Offerings)

This one-day course is valuable to both those who are involved in the design of new products as well as product and brand managers are responsible for pricing product lines. A key consideration in product design should be the trade-off between what a customer is willing to pay for various potential features and what it costs to provide them. A basic approach to designing a product (good or service) that will maximize its profit contribution from its primary target market is presented. Next the potential challenges of providing a product line that targets multiple segments, such as the potential for unprofitable cannibalization, are discussed along with ways of optimally dealing with them through effective price and product design. the course will also reveal how profits can be increased by offering and optimally pricing bundles of products and services along with (and often instead of) the individual offerings.

Outline

How price should influence product design decisions

Viewing product features as an investment in increasing the customer's willingness to pay
Segmenting the market and identifying targets for different products
Choosing and prioritizing target markets

Designing an ideal product for a target segment

Estimating the willingness to pay for features
Determining the cost of adding new features
Prioritizing feature design

Designing optimal product lines

Using a product line to target multiple customer segments
Accounting for cannibalization and how to use price and product design to minimize its negative effects
Customer psychology and the pricing of product lines
Product lines and competition

Using bundled pricing to improve product line and product mix profitability

How optimal bundling can increase profits
Pure bundling versus mixed bundling

Pricing new products

Pricing for short run returns
Skimming
Penetration pricing

Developing a long run product line strategy

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	Home About�SMD Services Resources Contact�Us Discuss Designing and Pricing Product Lines (Other Class Offerings) This one-day course is valuable to both those who are involved in the design of new products as well as product and brand managers are responsible for pricing product lines. A key consideration in product design should be the trade-off between what a customer is willing to pay for various potential features and what it costs to provide them. A basic approach to designing a product (good or service) that will maximize its profit contribution from its primary target market is presented. Next the potential challenges of providing a product line that targets multiple segments, such as the potential for unprofitable cannibalization, are discussed along with ways of optimally dealing with them through effective price and product design. the course will also reveal how profits can be increased by offering and optimally pricing bundles of products and services along with (and often instead of) the individual offerings. Outline How price should influence product design decisions Viewing product features as an investment in increasing the customer's willingness to pay Segmenting the market and identifying targets for different products Choosing and prioritizing target markets Designing an ideal product for a target segment Estimating the willingness to pay for features Determining the cost of adding new features Prioritizing feature design Designing optimal product lines Using a product line to target multiple customer segments Accounting for cannibalization and how to use price and product design to minimize its negative effects Customer psychology and the pricing of product lines Product lines and competition Using bundled pricing to improve product line and product mix profitability How optimal bundling can increase profits Pure bundling versus mixed bundling Pricing new products Pricing for short run returns Skimming Penetration pricing Developing a long run product line strategy (Learn More) (Go to Top)
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