Embed Size (px)
DESCRIPTION
Gathering competitive pricing information is a serious challenge in all industries, particularly so for those who serve B2B markets. This is because competitors' prices are an essential reference point for setting price for your own products. This webinar shares best practices for how companies collect, analyze, and make strategic decisions with competitive pricing intelligence. Learn how competitive pricing intelligence is getting more complicated, why typical data collection tools for pricing are not good enough, and how you can enhance your competitive pricing intelligence strategy.
Citation preview
Copyright © 2012 by LeveragePoint Innovations Inc. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means —
electronic, mechanical, photocopying, recording, or otherwise — without the permission of LeveragePoint Innovations Inc. This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.
COMPANY CONFIDENTIAL
Competitive Intelligence and Pricing with
Brian Clarke, IDC
Monthly Webinar Series – September 19, 2012
2
Sponsored by LeveragePoint the Software Solution for Value-based Pricing
3
Today’s Presenter Competitive Intelligence and Pricing
Brian Clarke is Program Vice President of IDC's Pricing
Evaluation and Leasing Evaluation Services. His services are used by all of the major IT vendors to assist them in establishing successful price and product positioning strategies, by dozens of lessors and financial institutions to predict the residual risk of their portfolios, and by hundreds of corporate IT buyers and lessees who want to make informed purchase and lease decisions. His opinions are often quoted in numerous business and daily newspapers including USA Today, The Wall Street Journal, Investor's Business Daily, Business Week and The New York Times.
Sep-12 © IDC 4
The Golden Age of Competitive Pricing Intelligence
Source:/Notes:
Never been easier to collect
competitive pricing intelligence
Heightened market awareness –
Amplifies pricing actions and
reactions
Democratic – Competitors and
customer have access to tools
Sep-12 © IDC
Growing Complexity of Competitive Pricing Intelligence
More data equals a glut of information
Trend towards marketing custom or “build to order” solutions
modularizes offerings into endless pricing combinations
Additional markets to cover – geographies, and buying groups
Shortened product lifecycles, plus more products grouped into more
segments
New pricing models SaaS, cloud, utility
5
Sep-12 © IDC
A Challenge For Those Tasked With Pricing Products and Services
Competitive price tracking typically part of the job
However, outside inputs are typically limited:
Reliance on “inwardly-focused tools” such as CRM
Ad-hoc spreadsheets, like bid analysis, or web collection
6
Sep-12 © IDC
Data and Tools to Collect Pricing Widely Available
7
Wealth of Data in Public Domain
Published price lists – GSA, state
Online stores, both vendor and retail
Media monitoring
Many tools for data collection
Web Harvesting (spiders, scrappers)
OCR software
Cheap labor
You Can Build Competitive Pricing Tools
As simple as an automated spreadsheet
Or complex as a large scale business intelligence tool
Sep-12 © IDC
Still Not a Complete Picture
Vendor and retail pricing typically reflect only MSRP or single quantity
street
Published contracts show discounts but only to one buying segment and
timestamp is questionable.
A large segment of enterprise products have minimal pricing on the web.
Representative pricing hard to determine, will always be anomalies
8
Sep-12 © IDC 9
Getting to the Whole Pricing Story Expand Collections and Tools
Dig deeper into pricing
Special bid
Customer buy price
Channel cost
Combine with supporting data
Product specifications
Sales rank
Other pricing impacts –promotions, rebates,
inventory
Build analysis that is flexible, repeatable
Sep-12 © IDC 10
The Many Lenses of Pricing
CIO’s Office CIO
VP IT Strategy & Planning
CTO
Sourcing VP Global IT Sourcing
VP/Dir IT Sourcing
VP xyz Tech Sourcing
Product or Service
Geography
• Region
• Country
• City
Customer
• Corporate
• Government
• End user
• Educational
Size
• Segment (SOHO)
• Purchase band (50-100 seats)
Delivery
• BTO
• SaaS
A product or service can have any number of combined pricing
lenses, each with a unique set of pricing
Showing a price without its context is dangerous
Sep-12 © IDC 11
How IDC Enhances Competitive Pricing Intelligence
Retailers
eValuator
Database
Retailers Retailers
Retailers
Retailers Retailers
Retailers Distributors
Retailers Retailers
Retailers Vendors
Syndicated Feeds
Consistent, fresh, proven
End-user (Street) Pricing
End-user Rebates
Est. Cost
Channel Promotions
Channel Inventory
List Pricing
Specifications Product Comparison Builder
Product Data Spreadsheet
Historical Pivot Table
Reports
Reliable, repeatable
Example: =IDC_LIST_HISTORY_QUARTER(A1,"US")
MS Excel API
Flexible, extendable
Sep-12 © IDC
Using MS Excel IDC Functions
12
An HP product web page enhanced with
a wealth of competitive intelligence
Sep-12 © IDC
Product Comparison Tools
13
Sep-12 © IDC
Detailed Analysis of Combined Hardware, Software and Services
14
Complex multi-vendor
review of multiple pricing
lenses
15
Up Coming Events in October
“Pricing… It Matters!”
Western PA Pricing Professionals
Friday, October 12th
Rivers Club, Pittsburgh, PA
For More Information: bit.ly\OaHeDv
Professional Pricing Society
Fall Conference
October 23rd – 26th
Omni Orlando Hotel, Orlando, FL
For More Information: bit.ly\S2wPoc
16
Thanks for Watching!
www.leveragepoint.com
(617) 252-2876
Brian Clarke
(508) 935-4765
