To make effective pricing decisions for their products and services, companies rely on three types of information. Most companies focus mainly on ensuring that they understand the underlying cost structure to produce and distribute their products and services. Leading companies are increasingly looking to assess the sensitivity of customers to price and how that varies by customer segment, geography, time period, and other factors. But understanding cost and price sensitivity alone is not enough. As a manager of your company, you must also have a good understanding of the prices offered by competitors for similar or identical products. Customers have a choice and typically consider a number of alternatives before deciding from which company to make their purchase. Though gaining insight into cost dynamics and customer price sensitivity can be difficult, a company generally has the information at its disposal. Gaining insight into competitive pricing, however, requires gathering information that competitors often view as highly proprietary.
Before you can proceed with enhancing competitive pricing intelligence, you must be able to:
Assess the objectives of gathering competitive pricing intelligence and the types of data collection efforts that are consistent or inconsistent with legal and ethical standards.
Assess approaches to assembling B2C competitive pricing intelligence.
Assess approaches to assembling B2B competitive pricing intelligence.
Determine approaches to translate data into insight to facilitate improved decision making.
What do competitors charge customers for similar or identical products or services that your company offers? If companies do not disclose their prices, what methods can you use to effectively obtain this information? Assuming you are able to obtain the raw competitive pricing data, how can you translate that data into insight that can help guide better pricing decisions?
The Accenture Academy course Developing Competitive Pricing Intelligence provides an understanding of specific steps that you can take to develop data and insight into the prices competitors offer their customers for products that are similar or identical to those your company offers. This data and insight is a critical input to making effective pricing decisions.
Accenture Academy offers proven, cost-effective learning solutions for a more versatile workforce and a more agile organization. We provide a flexible learning approach that helps your people be more versatile and your entire organization be more agile in the marketplace. Curriculum includes Supply Chain Management, Finance, Procurement, Analytics, Leadership & Management and Specialty Skills.