A Proposal to Boston Scientific International

1. Teaching Objectives:

Pricing is one of the most important and least understood marketing decisions. This two-day semair aims to equip participants with proven concepts, techniques, and frameworks for assessing and formulating pricing strategies. We will learn the process of making pricing decisions and explore innovative approaches for setting prices.

This course consists of two modules. The first module develops the economic and behavioral foundations of pricing. The second module discusses several innovative pricing concepts including price customization, nonlinear pricing, and product line pricing.

Upon completion of this course, participants will

· Gain a solid understanding of current pricing practices in both manufacturing and service industries

· Learn proven frameworks for analyzing pricing decisions

· Master the essential techniques for making profitable pricing decisions

2. Course Materials and Approach

In the course we will use the classic textbook by Nagle and Holden and a Harvard Business school case called Eastman Kodak Company: Funtime Film. In addition, lecture notes and handouts will be made available throughout the quarter. The textbook is designed to introduce basic concepts and principles. The case will allow us to examine, in detail, the application of particular concepts and principles in a real company setting. We will sometimes make visits to websites to conduct a “quick survey” of actual prices charged by firms.


Schedule of Class Meetings

Date Topic Book Chapters

_______________________________________________________________________

MODULE I: ECONOMIC AND BEHAVIORAL FOUNDATIONS OF PRICING

October 7

9:00 – 10:20 am Overview and Introduction 1

Customers: Understanding and Influencing Purchase Decision 4

10:30 am - Noon Costs: How Should They Affect Prices 2, 3

Lunch Break

2:00 – 3:20 am Competition-Driven Pricing 5

3:30 – 5:00 pm Foundations for More Profitable Pricing 6, 12

SUMMARY


MODULE II: INNOVATIVE PRICING CONCEPTS AND TOOLS

October 8

9:00 – 10:20 am Price Customization: Segmentation Pricing 9

10:30 am - Noon Price Customization: Nonlinear Pricing

LUNCH

2:00 – 3:20 pm Product Line Pricing 7, 10

3:30 – 5:00 pm Time Customization of Prices 10

CASE DISCUSSION

CASE: Eastman Kodak Company: Funtime File

(HBS 9-594-111))

ASSIGNMENTS

SUMMARY

3. Fees

The fees breakdown is as follows:

Time (in days) Amount ($)

Development and Customization of Materials 0.5 $ 3,000

Teaching 2.0 $12,000

Conuslting 0.5 $ 3,000

TOTAL 3.5 $18,000

The total fee is payable upon the completion of the course and consulting assignment.

Course Outline 2 Boston Scientific Iternational