Actively pricing products across their life steering wheel is more than and more important, particularly in instauration-intensive industries. Failing to do so whitethorn forego potential profits or even subvert value.
OCTOBER 2010 Walter L. Baker Michael V. Marn, and Craig C. Zawada
Source:Â Marketing & Sales Practice
In the fresh 1990s, the worlds three major independent producers of hard-disk drives invested or so $6.5 billion in research and development in the assembly line of just four years. During the next decade, the bytes that can be stored per whole of a drives surface force field increase a thousandfoldâ€"while the price per unit of that surface area dropped 70 percent. The three companies created enormous value for customers. Yet their mischance to price products correctly throughout this period of significant innovation contributed to net losses totaling almost $800 million.
Entire industries can conform to when companies fail to grasp the importance of pricing products or function across the life cycle, particularly in innovation-intensive sectors such as consumer electronics and consumer durables, IT hardware and software, medical devices, and pharmaceuticals. Thats especially true today. Companies go into products more regularly, with life cycles often measured in months, not years. Theres external pressure for low prices from customers expecting more for less and internal pressure from the belief that pricing is a make-or-break factor when products launch. And a company may have a number of related products in the marketplace simultaneously, which complicates their life cycle pricing.If you want to get a full essay, order it on our website: Orderessay
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