Wrong pricing strategies are often a reason for reduced profit margins. An internal study by a manufacturing concern revealed that for long their sales staff were incentivized to sell newer models, so they would get away by quoting the minimum price possible. B2B firms especially are hit hard through such margin adjustments. A study was conducted by Bain and Company to understand what makes certain companies the pricing leaders. Three aspects were best understood that gave them an edge. One such practice is the incentives on offer for sales staff is geared towards prudent pricing. Best returns are assured on customer and product levels. The salesforce is also equipped with the most up-to-date tools for using business analytics and their data-driven approach. Pricing around the mean is always a dangerous trend. There must be adequate corporate training provided to sales personnel towards following the right pricing strategy. Forums also exist where they may further discuss any such on-the-job issues.

Source:http://www.bain.com/publications/articles/is-pricing-killing-your-profits.aspx

Uploaded Date:18 July 2018

The best performing B2B companies outperform their peers in price setting using three key initiatives. This was deduced from a study conducted by Bain and Company, involving 1,700 companies across forty-two pricing parameters. First of all, the pricing strategy ensures client returns get maximized. The salesforce is empowered with appropriate data warehousing capabilities and the tools to make use of this. The incentives are set such that prudent pricing gets encouraged. Tailored pricing standards ensures that it reflects the product levels. Among the companies that have solved these three, nearly four-fifths are the top performers.

Source:http://www.bain.com/publications/articles/three-ways-the-best-b2b-companies-set-and-get-the-right-price-snap-chart.aspx

Uploaded Date:27 June 2018

The influence of marketing tricks and techniques into human behavior is much more than previously assumed. A famous study conducted in 2008 showed how the perception towards wines changed immediately, just when price labels were changed. A term has been devised the BVMS- Brain’s Valuation and Motivation System- which values objects and experiences. Often, it is simply a placebo effect which enhances the reputation of some experience. Individual sensitivity towards the receptivity of rewards also varies. The vast majority feel incentivized with rewards, but some feel this more intensely. Marketers do have an ethical responsibility here. Digital marketing efforts must not look to conceal facts, but instead to leverage the brain’s propensity at a self-fulfilling propensity.

Source:https://knowledge.insead.edu/marketing/how-marketing-can-trick-our-brains-6901

Uploaded Date:27 June 2017

The traditional product-development loop is not well-suited to present-day fashion industry requirements. Social media induced digital marketing is now so strong that a few influencers and several individual users could end up promoting some trends which well sell out in a season. The misses meanwhile will never recover even with heavy discounting. That is why the very best of fashion retailers and brands outpace their competitors by using specific customer insights generated by business analytics tools. While developing concepts and creative processes, the fashion leaders make use of such tools. They are also quicker to market their produce with top priority set on improving supply chain efficiency. Consumer insights are packed in for major decision making. Not all kind of data is useful to these fashion brands, so they must know what all to pack in. Search data, social media mentions, competitor scans and product ratings must be on top of the pile. The supply-chain meanwhile must also be distributed into smaller segments such as a long cycle for basics, a shorter one for the stable seasonal products and quickest for most trendy in-season stuff. In addition, a test model needs to be adopted for the riskiest ones and a read-and-react for the untested lot.

Source:https://www.mckinsey.com/industries/retail/our-insights/the-need-for-speed-capturing-todays-fashion-consumer?cid=other-soc-twi-mip-mck-oth-1803&kui=tk-PMsL4NHTzF1qcebo0LA

Uploaded Date:23 June 2018