From the course: CMO Foundations: Measuring Marketing Effectiveness (ROI)

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Measuring pricing performance

Measuring pricing performance

From the course: CMO Foundations: Measuring Marketing Effectiveness (ROI)

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Measuring pricing performance

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- From my 30 years of experience, I will tell you that pricing is the scariest part of marketing. Why? Changing price is so easy. The click of a button can change the price of all your products, just like that. And in doing so, you have affected your bottom line for better or worse immediately. Price is the most enigmatic, frustrating, and dangerous of the classic four Ps of marketing, so let's explore how to measure it. A price is nothing more than a signal of value, so you need to track how your customers perceive the value of your products versus the price they're being charged. It sounds simple, and it is. The challenge is that you need to invest in ways to track it, and that can depend a lot on the industry you're in and your ability to collect price information. For example, in the airline industry, these companies get immediate feedback how small price changes, higher or lower, affect demand. They collect…

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