Reaping What You Sow
Customer-driven Pricing Strategies Help Harvest Profits
Marketing Management
March/April 2004

Abstract:
Pricing strategy is an essential element of new product introductions, and realized price is the "harvest" for what is often a long and expensive development journey. But many companies fail to capture a pricing and profit harvest from new product and service offerings. Why is new product pricing such a challenge? In managing the development of new offerings, the business objectives should be to establish pricing strategy and policy that ensure optimal profitability throughout the new offering's life cycle and provide a stream of profits to fund future offering developments. Managers who institute customer driven new product cycles find their new products and services achieve greater adoption and increased profitability.

Read the Article