Notes
Another good podcast with Frank Frohmann.
Always a pleasure to listen to Frank’s ideas as you can always learn something.
My key takeaways (some already embedded in my thought rationale and some that pushed me from my comfort zone):
Pricing is a strategic and profitability key lever for all companies (Price, Volume, Mix, Cost Equation) - Where price leads/impacts all the other variables
Price is part of the marketing mix, although the most relevant one as it is the key driver of the customer decision, due to the price/value ratio (derived from the willingness to pay).
Price is not only a value capture activity, but also a value generating one via, Pricing Models and Pricing Schemes and Pricing Strategies.
Digitalization has complexified the overall pricing process in 4 main areas: (i) Segmentation (ability to), (ii) the product bundle being priced (Product+ Service+ Data), (iii) Sales channels definition, (iv) and time, via the possibility of dynamic pricing and all that it entails.
On top, digitalization allows the use of new tools to do pricing like Social Listening and use of extended Expert Judgements studies, before not withing reach, improving the data mosaic a “pricer” has access to make pricing decisions.
