Seminar 5






Pricing Methods and Strategies

Here the various aspects of pricing decisions are covered, especially in competitive environments. Pricing methods and pricing strategies are specifically contrasted, and the use of such techniques as CVP analysis and linear programming in the pricing area are discussed. Risk averse pricing strategies and their limitations are also covered in this topic.

  • Cost-plus and Target Pricing
  • Competitive and Customer-based Pricing
  • Cost-Volume-Profit (CVP) in Pricing
  • Volume-based Pricing Strategies
  • Risk Averse Pricing Strategies
  • The Price-Promotions Link


Pricing in International Markets

This topic extends the discussion of the previous section on pricing, and considers pricing within a competitive international market.  It is shown that setting a selling price in a foreign market has, in addition to strategic marketing considerations, some unique international financial dimensions, especially due to the lengthening of the channels of distribution and the impact of multiple currencies.

  • Channels of Distribution
  • Multiple Currencies
  • Pricing in Domestic Markets
  • Pricing Internationally
  • Company Factors in International Pricing
  • Cost-Price Relationships
  • Price Escalation
  • Pricing and Exchange Exposure Management
  • Case Study in Pricing


Accounting for Marketing Product Management

This topic looks at the interface between management accounting and marketing related “product management” especially in competitive environments. The “product” is the first “P” in the 4-Ps of marketing, the others being price, promotion and place distribution, which will be discussed in detail in later topics.  It is shown that as a product moves through various stages of its life cycle, there are differing financial aspects that need to be focused on for competitive positioning. It is demonstrated that the company’s management accountant possesses the tools and techniques required to provide the product managers with decision-orientated information.

  • Financial Aspects of the Product Line
  • Life Cycle Costing and Decision Making
  • Risk and Uncertainty in Portfolio Decisions
  • Product Abandonment Approaches
  • Packaging and After-Sales Service