Case_In_Point_7th_Edition_Page001_183_2

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Summarize the case and verif y the o bective.Ask j if there are any other objectives - such as why does
the CEO want to enter this market?
A sk industry and company questions. What are the industry trends? Is it being flooded with new
entrants? How have they done? Does one company dominate the market? (Think iPad.) In which part of
the pricing range has the most growth occurred? What is the competitive advantage o f ur o client’s
product?
Lay out y our structure.Traditionally there are four ways to price a product: competitive analysis, costbased
pricing, price-based costing and company objective. You need to look at all four before you make
a decision. (See Pricing Strategies on page 38.) Also, if you didn’t ask why the CEO wants to enter this
market, you need to now. CEO motivation, be it profits (usually pricing the product high) or market share
(usually pricing the product low) will give you great guidance in your decision.