Pricing issues in channel management

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Presentation transcript:

Pricing issues in channel management Week 10 Instructor: Jungwan Lee

Anatomy of channel pricing structure

Annual statement studies, 1996 (Robert Morris Associates)

Guidelines for effective channel pricing strategies Profit margins Different classes of resellers Rival brands Special arrangements Conventional norms in margins Margin variation on models Price points Product variations

Five other issues in channel pricing Exercising control in channel pricing Changing price policies Passing price increases through the channel Using price incentives in the channel Minimizing the gray market and free riding