Executive Education

Pricing: Strategy and Tactics

This program illustrates how companies can manage pricing
in highly competitive markets.

April 2 6, 2012
September 24 28, 2012
Pricing: Strategy and Tactics
Too often, managers treat pricing as a tactical problem in financial analysis or sales
management. In fact, pricing products and services is a strategic problem that requires
coordination of many functional areas. The ability to manage effective pricing affects
a companys growth and profitability more quickly and directly than any other
strategic decision.

During this seminar participants

will learn to:
n Change customers price perceptions to capture more For More Information Contact:
value. Executive Education
n Standardize discounting criteria to enable salespeople The University of Chicago
to respond more quickly and consistently with price Booth School of Business
offers that meet customers needs. 450 N. Cityfront Plaza Drive, Suite 514
Chicago, IL 60611-4316
n Evaluate the real financial implications of pricing decisions.
chicagoexec.net
n Use pricing strategically to guide a business to long-term
profitability, rather than reactively to solve short-term Angela Tong
problems. Associate Director of Executive Education
Tel 312.464.8732
n Determine when it makes sense to compete on price and Fax 312.464.8731
when it does not. angela.tong@ChicagoBooth.edu
n Determine which value-added alternatives to price
competition are appropriate for your business.

Kilts Center for Marketing

Executive Education courses in marketing are based on
the cutting-edge research of the University of Chicago Booth
School of Business faculty, sponsored by the James M. Kilts
Center for Marketing. The Center sponsors a wide variety of
research, ranging from basic research into the determinants
of consumer behavior and analytical models of marketing
activities to more applied research on current marketing
practices and tactical issues.

From a sales perspective, this gave me great insight on the

importance of communicating full value to our customers.
Ray Wilson, Director Sales, MW Zone
Kelloggs Food Away From Home

This was an excellent class that touched on the key strategic

points on pricing, profit, and understanding risks and under-
standing how to promote value of your products and services.
A. J. White, VROD Assembly Process Lead
Harley Davidson Motor Company
Who Should Attend
This seminar is designed for senior managers and
executives of companies in business-to-business, service,
and consumer markets, who analyze, recommend, or
approve pricing decisions. It is especially valuable for
directors of marketing, finance, sales, and planning
and for managing directors and presidents of smaller
companies, who are introducing new products, facing
significant price competition, or failing to achieve
prices that reflect the value they deliver.
Program Dates and Fees
#12C55001 April 26, 2012 ($8,295)
#12C55002 Sept. 2428, 2012 ($8,295)
This course begins at 8:30 a.m. on Monday
and ends at noon on Friday.
The program fee includes tuition, lunches, coffee breaks,
and all educational materials. The fee is subject to change
and payable in advance upon confirmation of registration.
Chicago Booth reserves the right to cancel any program.
The Setting
Classes are held at the University of Chicago Booth School
of Business Gleacher Center, 450 North Cityfront Plaza Drive,
situated along the Chicago River (one block east of Michigan
Avenue) in the heart of the downtown area known as The
Magnificent Mile. Gleacher Center is within walking distance
of some of Chicagos most exciting retail and entertainment
areas. Gleacher Center, which also houses Chicagos top-ranked
Executive MBA, Evening MBA, and Weekend MBA Programs,
provides state-of-the-art classrooms that complement the
exceptional quality of the programs content and faculty.
Accommodations
The University of Chicago Booth School of Business has
reserved a limited block of rooms at the InterContinental Chicago
hotel. Single or double rooms are available at a discounted
rate. Contact the InterContinental Reservations Department
by telephone at 312.944.4100 or by fax at 312.321.8725.
Participants must contact the hotel directly to reserve
accommodations. Three weeks prior to the programs start
date, or once the block is filled, the hotel cannot guarantee
accommodations. Participants should identify themselves as
registrants in Pricing: Strategy and Tactics at the University of
Chicago Booth School of Business.
About Chicago Booth
A University Steeped in Excellence
The University of Chicago has a long history steeped
in a tradition of academic excellence and innovation.
That commitment to discovery has translated into
enduring contributions to the world. Among its
faculty, researchers, students, and graduates are 87
Nobel laureates. Current faculty include eight Nobel
prize winners, 13 MacArthur Fellows (commonly
known as a genius grant), and three Pulitzer Prize
winners, among countless others.
A Leader in Business Education
The University of Chicago Booth School of Business,
founded in 1898, has been a leader and innovator
in the field of business research and education. It
was the first business school in the country to offer a
PhD program, the first to publish a scholarly business
journal, the first to offer an executive MBA program
for experienced managers, the first to have a Nobel
laureate on its faculty, and the first to have six Nobel
Prize winners on its faculty. Chicagos close ties with
many of todays business leaders and its grounding
in the real world have helped Chicago Booth maintain
its reputation as one of the worlds leading centers of
business education and research. With its reputation,
commitment to academic research, and high quality
faculty, Chicago Booth carries a prestige that few
can match.
Collaborate and study at a top ranked,
world-renowned global business school
n BusinessWeek ranked Chicagos Full-Time MBA
Program first in its biennial rankings (2010), while
the Executive MBA was ranked second (2009).
n The Economist ranked Chicagos Full-Time MBA
Program first globally (2010).
n U.S. News & World Report (2011) rated Chicago
Booth second in finance, third in accounting,
and fifth overall of full-time programs, first among
part-time MBA programs, and second among
executive MBA programs.
n Forbes ranked Chicagos Full-Time MBA Program
third (2011).
We are more than a business school.
We are a business force.
Unparalleled IDEAS THAT PEOPLE WHO CREATE
Intellectual FUNDAMENTALLY LASTING VALUE
curiosity, honesty, SHAPE MARKETS
exchange, and rigor AND BUSINESSES
Program Outline

Strategic versus Tactical Pricing: Costing and Financial Analysis

Asking the Right Questions
n Why pricing to cover costs undermines profit
n Why pricing to achieve sales goals wastes profit
n Why pricing for competitive advantage undermines
value
n What objectives lead to profitability and long-term
competitive advantage
n The role of pricing in the overall marketing strategy
n Determining the relevant costs for pricing
n Calculating break-even sales changes
n Analyzing the profitability of price changes
Managing Price Competition
n Mastering the pricing game
n Planning for profitable competition
n Using information strategically

Strategic Pricing Tools and Applications n Managing resources for competitive advantage

n Determining the product/service economic value n Understanding the legal issues in pricing

n Creating tiered offerings to drive margin and growth

Organizational Transformation
n Managing negotiations to avoid the price trap
n Building a pricing capability
n Shoring up your pricing process to stop price leaks
n Roadmap for transitioning to strategic pricing
n Using price analytics to identify opportunities for
n Planning for organizational change
policy and process change
n Winning support by demonstrating success
Setting Profit Maximizing Prices n Getting the sales force on board
n The role of value n Creating systems for measurement and control
n Segmented pricing
n Accounting for price sensitivity factors
n Using price to achieve strategic objectives
n Managing price over the lifecycle

Pricing Psychology Set prices to maximize profit,

PRICE not just margin or market share.
n Overall price perceptions and price competition LEVEL
Manage pricing proactively
n Understanding how customer information to influence expectations,
PRICING POLICY
processing strategies affect pricing not in reaction to them.
perceptions and judgments Justify your prices in terms
of customer economics,
n Determining effective pricing VALUE COMMUNICATION not your economics.
communication tactics
Make pricing align with value
n Managing customer risk to PRICE STRUCTURE
delivered and cost to serve,
not products sold
maximize value
Create good values that
n Quantifying customer risk of customers will pay for, not
product/service benefits VALUE CREATION great products and services
that customers would like.eeeeee
n Strategies to manage actual
and perceived risk of purchase
Comments from Past Participants

Comprehensive, thought provoking, applicable. An
overall excellent experience that provided me with a
rigorous basis for making pricing and marketing
strategy decisions.
Mark Caylor, Manager, Commercial Transactions,
Boeing Satellite Systems

The seminar forces you to think out-of-the-box. It

gave me new tools to help drive solutions in my work.
Rick Morgin, Director of Finance,
The Seagram Beverage Company

Great programit is unique and gives a clear

competitive advantage in market pricing management
to the participant. Phenomenal class in which I
learned a lot. A must for anyone in sales or pricing
influenced positions.
Carlton B. Dallas, General Manager, ChevronTexaco
Eastern Caribbean, SRL

The instructors provided excellent insight and real

world illustrations of the strategic power of pricing
structure and policy in business. Everyone in
management will benefit from these principles
and techniques.
Charlie Rogers, Director of Customer Service, FMC
FoodTech Inc.

Great course, packed full of valuegreat tool set that

is highly applicable to real world pricing tactics.
Adrian Hurditch, Senior Manager Strategic Pricing, Gleacher Center is part of the University of Chicago Booth School
T-Mobile USA of Business. Overlooking the Chicago River, its state-of-the-art
classrooms are only steps away from Chicagos Magnificent Mile.

Learning, Reflection, Custom Executive

and Action (LRA)
Transform knowledge gained at Chicago Booth
into results for you and your company.
Chicago Booths programs provide a web tool
thats easy to use, intuitive, and encourages
you to:
n articulate your goals,
n specify implementation plans, and
n track your progress toward meeting
these goals.
Extend learning beyond the classroom and turn
your learning goals into concrete results.
Education Programs
Chicago Booth creates custom executive
education programs that capitalize on the
Chicago Approach, which is the very best
disciplined approach to conceptual knowledge
and academic theory with practical, real world
application delivered by faculty of one of
the worlds top business schools. These
components of Chicagos programs are all
keys to driving your corporate competitive
advantage through effective human capital
investments. Through deep thinking and high
impact results, Chicago Booth writes the rules
that business follows. Partnering with us today
will drive your business success tomorrow!
Outstanding Booth Faculty
The University of Chicago Booth School of Business has one of the most highly regarded
faculty of any business school in the world and the most productive researchers in the country.
Rigorous, interactive, and dynamic, the faculty presents topics in a variety of ways, including lectures, case studies,
and small group discussions, using a range of media. Accomplished teachers and active consultants, this programs
faculty offer a blend of academic excellence, rigorous scholarship, real-world relevance, and practical application that
provide participants with unparalleled opportunities to expand their horizons.

Sanjay K. Dhar
Faculty Director of the Kilts Center of Marketing
and James H. Lorie Professor of Marketing
The University of Chicago Booth School of Business
Sanjay Dhar has been a Chicago faculty member since
1992. Many sources have recognized Professor Dhar for his
excellence in teaching. He received the 2008 Hillel Einhorn
Teaching Award voted by executive MBA students in Asia, the
prestigious McKinsey Teaching Award in 2000 awarded once
every two years, was cited among the outstanding faculty in
Business Weeks Guide to Best Business Schools (McGraw-Hill,
1997, 1999, and 2001), and in 1994 was awarded the Emory
Williams Teaching Award by students for outstanding teaching
performance. In 2006, the Economic Times (India) identified
Professor Dhar as one of 12 Indians who have made a global
impact on marketing research and thought. He currently
serves as faculty director of the Kilts Center of Marketing and
was recently rated as one of six must-have professors at
Chicago Booth by Veritas Prep in 2010 Annual Report on
Chicago Booth.
Dr. Dhar received the 2008 Paul Green Award, which recog-
nizes the best article in the Journal of Marketing Research.
He was honored for his research Consumer Packaged Goods
in the United States: National Brands, Local Branding. In
addition he has won the 1995 John D. C. Little Best Paper
award for his research The Introduction and Performance of
Store Brands and an honorable mention award for the 2003
William R. Davidson Awards for his research Effective Category
Management Depends on the Role of the Category.
Dr. Dhars research and teaching focuses on advertising
strategy; brand management; marketing strategy; pricing
and promotion strategy; private labels; consumer promotion
evaluation and planning; internet marketing; new product
development, management and strategy; retail management
best practices, loyalty reward programs, every day low pricing
(EDLP); trade promotions; category management; purchase
incidence, and brand choice. He has published widely in
leading academic journals he is also on the editorial boards
of several top journals in marketing.
Dr. Dhar is considered a leading expert in marketing and is
regularly interviewed by leading newspapers, news agencies,
and business magazines and has been interviewed by major
television programs. He is frequently invited as a keynote
or featured speaker in company management conferences,
major industry association meetings, and has also conducted
research studies sponsored by major firms and trade
associations. He has also provided consulting to, and conducted
training sessions with, FORTUNE 100 companies and has served
as an expert witness.
He earned his doctoral degree in management from the Univer-
sity of California at Los Angeles in 1992. Prior to that, he served
in several management positions at Lipton India Ltd.
In Executive Education, Professor Dhar is the academic director
of New Product Innovation, Development, and Implementation
Strategies and Pricing: Strategy and Tactics, and also teaches in
Strategic Marketing Management and the Chicago Management
Institute.
Georg Mller
Associate Partner, Monitor Group
Georg Mller is an associate partner at Monitor Group and a
senior leader of the firms pricing practice and co-lead of its
analytics group. His client work focuses on helping companies
make more profitable pricing decisions through better analytical
insights, clearer linkages between customer needs and strategic
choices, and improved organizational capabilities. He has
worked in a variety of industry sectors that include publishing,
distribution, technology, and consumer products.
He started his career as a marketing professor at the Leavey
School of Business at Santa Clara University, where he won
teaching awards for his courses on marketing strategy. He has
also taught at the University of Chicago and in the executive
program at the University of Minnesota.
Dr. Mller is a frequent presenter at industry conferences and
has spoken at the Professional Pricing Society, the Association
of International Product Marketing and Management, and Eye
for Retail. He has published peer-reviewed articles on pricing
and marketing strategy, economics, and healthcare.
He received his MBA and PhD in marketing and statistics from
the University of Chicago Graduate School of Business and a
BA in mathematics, also from the University of Chicago.
 12C55001 WEBpdf

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h #12C55001 April 2 6, 2012 $8,295

h #12C55002 September 24 28, 2012 $8,295 Name: h Mr. h Ms. h Dr.

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date. Cancellations received after that time will be charged 25 percent
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Transfer requests received within 30 days of the program start will be Substitutions of registrants in a session may be made, without
subject to a $200 transfer fee to cover administrative costs. Any late penalty, any time prior to the programs commencement.
transfers followed by a cancellation will be charged 25 percent of the
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photos taken during program activities for promotional purposes.
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to pay fee increases, should any take place.
 Pricing: Strategy and Tactics
April 26, 2012
September 2428, 2012

Cutting-edge content Very focused, practical. It gives the right basic framework
World-class faculty to think about pricing as a major profitability driver.

Antonio Ferreira, Managing Director,
State-of-the-art facilities Johnson & Johnson Produtos Profissionais Brasil

Profitable pricing requires understanding and managing the trade-off between pricing for
higher margins and pricing for higher volumes. In this program, you will learn how to use
financial measures to facilitate, rather than dominate, pricing decisions. You will also learn
to integrate hard data on costs with soft judgments about customer and competitor
response to maximize profitability.

We are more than a business school. We are a business force.

For More Information Contact:

Executive Education
Manage costs, customers, The University of Chicago
and competition for profit. Booth School of Business

Register for this informative 450 N. Cityfront Plaza Drive, Suite 514
Chicago, IL 60611-4316
program today! chicagoexec.net
Angela Tong
Associate Director of Executive Education
Tel 312.464.8732
Fax 312.464.8731
angela.tong@ChicagoBooth.edu

chicagoexec.net