Deloitte have announced the sixth edition of "The Strategy and Tactics of Pricing," the latest evolution of this comprehensive guide to price management. This updated managerial guide addresses how the rapid pace of technological advancement spurs new opportunities for business leaders to rethink their revenue models and better capitalize on this largely untapped source for driving growth. Deloitte's Georg Müller, Ph.D., and Thomas Nagle, Ph.D., two leading authorities on pricing strategy, are the co-authors. The latest edition captures firsthand insights gained from three decades of advising high-profile businesses on how to drive organic growth more profitably through strategic revenue management.
"Ineffective pricing prevents many companies from fully profiting on the potential value of their products and services," said Müller, managing director in Deloitte Consulting LLP's strategy service line and leader in the pricing and profitability management practice. "Companies must proactively manage and update their pricing strategies to succeed in an environment marked by digital disruption, regulatory changes and ever-smarter buyers. Price management cannot be treated as an episodic exercise in updating price lists."
What Companies Need to Know
The authors demonstrate the importance of making pricing decisions in anticipation of change, rather than in reaction to it. As companies manage new business realities and work to develop advanced pricing strategies, emphasis should be placed on the following:
- Evolve Through Disruption – New pricing models have disrupted entire industries as diverse as automotive, hospitality and entertainment; anticipating and preparing for disruption is critical for a company's survival.
- Avoid Pricing Mistakes – Pricing mistakes are often irreversible and cumulative, while proper execution can build market confidence and solidify trust and corporate reputation.
- Overcome Low Growth – As competition becomes more intense and growth opportunities more limited, companies should capitalize on driving increased profitability with their existing customers.
The rise of global competition, the increase in information available to customers, and the rapid pace of change in the way value is being created and delivered to customers are making many traditional pricing models irrelevant.
"Pricing requires a combination of both art and the science: collecting data and interpreting it to create actionable strategies that yield competitive advantage," said Nagle, senior adviser to Deloitte Consulting LLP and the book's original author. "Deloitte's central approach is that pricing remains fundamentally grounded by the value products or services deliver to customers because the customer ultimately validates price."
Müller and Nagle's latest book addresses how the power of machine learning and automation can revolutionize how business engage areas of revenue management. By understanding data, tracking pricing patterns and shaping buyer perceptions, state-of-the-art pricing systems can process extensive amounts of information near-instantaneously.
"We now see successful companies redesigning management structures to include new roles that oversee pricing strategy and leverage data analytics and artificially intelligent machines," added Müller. "These companies are embracing the future of pricing and taking the next step in the evolution of growth management."
This edition of "The Strategy and Tactics of Pricing" is published by Routledge and features new discussions on harnessing concepts of behavioural economics as well as an expanded exploration into big data analytics. A comprehensive, managerially focused text, it is a must-read for business students and professionals with an interest in strategic marketing and leveraging the power of strategic pricing to drive business performance.
For more information about "The Strategy and Tactics of Pricing" and how to purchase it, click on the link https://goo.gl/tQ5QJ8.