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B2B Pricing: Negotiation, Calculation, Strategy

Course code
MKT603
Course type
MSc Course
Weekly Hours
2,5
ECTS
5.0
Term
HS 2019
Language
Englisch
Lecturers
Prof. Dr. Ove Jensen
Please note that exchange students obtain a higher number of credits in the BSc-program at WHU than listed here. For further information please contact directly the International Relations Office.

The course content is organized around three themes:

1) Price negotiation

  • Understanding the strategy and tactics of professional buyers (Automotive guest lecture)
  • Distributive negotiation techniques (includes cases Hamilton Real Estate, HBS, and Dayton Foundry)
  • Integrative negotiation techniques (includes cases Moms.com, Kellogg, and Meo, Meo, WHU)
  • Multi-party negotiation (includes case Windblades, WHU)

2) Price calculation

  • Price-volume-costs
  • Price vs. payment terms vs. inventory
  • Cost-plus price calculation and activity-based costing (includes case Sippican, HBS)
  • Economic value calculation (includes case Atlantic Computers, HBS)
  • Price analytics

3) Price strategy

  • Opportunity selection and bid management (includes case Boise Automation, Ivey)
  • Getting money for service (includes case: Supply Chain Partners - Virginia Mason and Owens & Minor, HBS)
  • Dealer pricing systems
  • Compliance and corruption (includes case Albert Stanley, HBS)
Date Time
Monday, 02.09.2019 11:30 - 15:15
Monday, 02.09.2019 13:45 - 15:15
Monday, 02.09.2019 13:45 - 15:15
Monday, 02.09.2019 13:45 - 15:15
Monday, 02.09.2019 13:45 - 15:15
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Monday, 02.09.2019 13:45 - 15:15
Monday, 02.09.2019 13:45 - 15:15
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Monday, 02.09.2019 13:45 - 15:15
Monday, 02.09.2019 13:45 - 15:15
Monday, 02.09.2019 13:45 - 15:15
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Monday, 02.09.2019 13:45 - 15:15
Monday, 02.09.2019 13:45 - 15:15
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Monday, 02.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 11:30 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
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Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
Tuesday, 17.09.2019 13:45 - 15:15
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Tuesday, 17.09.2019 13:45 - 15:15
Friday, 20.09.2019 15:30 - 17:00
Monday, 23.09.2019 11:30 - 13:00
Monday, 23.09.2019 11:30 - 13:00
Monday, 23.09.2019 11:30 - 13:00
Monday, 23.09.2019 11:30 - 13:00
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Monday, 23.09.2019 11:30 - 13:00
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
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Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
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Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Monday, 07.10.2019 11:30 - 15:15
Tuesday, 15.10.2019 15:30 - 18:45
Monday, 21.10.2019 09:45 - 11:15
The course enhances five categories of competences. The practical orientation of the course shows in its emphasis on procedural knowledge:

1) In regard to factual knowledge, participants are enabled to

  • apply sales jargon to discussing the status of a negotiation (such as BATNA, ZOPA, walk-away price, logrolling, good cop – bad cop, and other idioms),
  • understand the specifics and terminology of pricing in various industry sectors (real estate, metals, wind energy, healthcare), and
  • define pricing performance indicators.

2) In regard to conceptual knowledge, participants are enabled to

  • analyze negotiation interests and positions,
  • evaluate alternative price strategies in a given market context,
  • interpret financial data, to analyze customer value,
  • calculate price-trade-offs against other profit drivers,
  • calculate activity-based costs of products and services, and
  • analyze deal profitability,

3) In regard to pricing-specific procedural knowledge, participants are enabled to

  • apply a structured negotiation process and blueprint,
  • demonstrate financial value to the customer,
  • evaluate price strategies in a commoditized market,
  • create a negotiation strategy,
  • deal with negotiation tactics and price objections, and
  • provide constructive feedback on negotiation behavior of others.

4) In regard to general business-relevant procedural knowledge, participants are enabled to

  • prepare for business meetings and internal committee sessions,
  • make the best out of a limited preparation time budget,
  • make concise contributions to meetings,
  • constructively build and comment on contributions by other participants in the meeting,
  • derive a course of action from a careful analysis of the situation and a structured evaluation of alternatives, and,
  • generally, to negotiate anything.

5) In regard to metacognitive knowledge, participants are enabled to

  • evaluate their own negotiation behavior and skills and
  • create a skill profile for price managers.
There is no required textbook. We have not found a book that covers the range of topics discussed by this course. The learning material for this course includes presentation slides, articles, case studies, role-plays, videos, and black board notes. These and further course-related information are available on the learning management system myWHUcourses (another name for it is “Moodle”).
The overall learning method mix across all class sessions of this course is:
  • 35% role-play sessions between students,
  • 30% case-based discussions with concluding mini-lectures,
  • 28% interactive concept lectures,
  • and 7% managerial guest lectures.

A video shows the style of case-based sessions: https://www.youtube.com/watch?v=IbNNsq1fC0A. This way of learning requires a great amount of energy, both from the student and from the teacher.

The grading policy in this course has two differentiating characteristics:
  • 100% individual performance. No team grades. No peer evaluation.
  • No sit-down, speed-writing exam under time pressure, no memorizing of PowerPoint slides, no black-out risk.

The course grade is composed as follows:

  • 14%: three class preparation notes (pdf, bullet points are enough, ca. 500-750 words)
  • 6%: one role-play log
  • 25%: three qualitative and three quantitative online quizzes
  • 55%: three individual take-home papers (pdf, essay)
Enrollment in this course is not limited by pre-experience prerequisites. In particular, it is not necessary to have taken my other courses in the program - this course stands alone. However, what you should be aware of before enrolling in this course is:
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