Marketing Update: The Importance of Pricing - PowerPoint PPT Presentation

1 / 18
About This Presentation
Title:

Marketing Update: The Importance of Pricing

Description:

Marketing Update: The Importance of Pricing Mailers Technical Advisory Committee Stephen M. Kearney Vice President Pricing & Classification October 28, 2004 – PowerPoint PPT presentation

Number of Views:94
Avg rating:3.0/5.0
Slides: 19
Provided by: AliceVa2
Category:

less

Transcript and Presenter's Notes

Title: Marketing Update: The Importance of Pricing


1
Marketing UpdateThe Importance of Pricing
Mailers Technical Advisory Committee
Stephen M. Kearney Vice President Pricing
Classification October 28, 2004
2
The Importance of Pricing
  • Pricing is the moment of truth all of
    marketing comes to focus in the pricing
    decision.
  • E. Raymond Corey, Industrial Marketing Cases and
    Concepts
  • (Englewood Cliffs N.J. Prentice Hall, 1962)

3
Pricing Delivers Results
  • Simplify
  • 99-Cent Menu
  • Customize
  • Value Meals
  • Encourage Efficiency
  • 2 for 2.22

4
Pricing Delivers Results
  • Simplify
  • PCs come equipped
    with basic software
    installed
  • Customize
  • Enhance systems via downloads
  • Encourage Efficiency
  • Specific suites for home, office, business,
    educators, developers, and professionals

5
USPS Pricing Strategy
Simplify
Customize
Encourage Efficiency
  • To Grow Our Core Business

6
Simplify
  • DMM Transformation
  • Priority Mail Flat Rate Box
  • Electronic Return Receipts

7
SimplifyDMM Transformation
  • Clear pathways to confident decisions
  • Consumer and small business versions are a hit
  • Commercial version coming in early 2005

8
SimplifyPriority Mail Flat Rate Box
  • Focus on convenience
  • Two shapes (garment, shoes), one price
  • Boxes go anywhere in US 7.70
  • Implement November 20, 2004

9
SimplifyElectronic Return Receipts
  • Electronic option to replace green card
  • Receive e-mail notification with signature
  • Bulk version too
  • 1.30 versus 1.75 green card
  • Implemented September 9, 2004

10
Customize
  • Negotiated Service Agreements
  • Consistency in Mailing Standards
  • Parcel Return Services
  • Customized MarketMail

11
CustomizeNegotiated Service Agreements (NSAs)
  • Designed to introduce customized, negotiated
    pricing to incent more volume
  • First NSA exceeding expectations
  • Two new equivalent agreements Bank
    One and Discover
  • Implement Discover NSA January 1, 2005
  • Much customer interest in spite of uncertainty

12
CustomizeConsistency in Mailing Standards
  • Important to retain and build business
  • MTAC work group
  • PC Communications via e-mail
  • New First-Class Mail and Standard Mail content
    language
  • PCSC in New York

13
CustomizeParcel Return Services
  • Returns becoming a key strategy
  • Leverage first and last mile
  • Ease of use and partnership
  • Started October 19, 2003 as an experiment
  • 14 million revenue through the second week of
    October 2004

14
CustomizeCustomized MarketMail
  • Adding excitement and creativity to direct mail
  • Started August 10, 2003
  • 278 mailings, 3.2 million pieces mailed, 2.21
    million revenue the first year

15
Encourage Efficiency
  • Annual Price Changes
  • Periodicals Co-Palletization

16
Encourage EfficiencyAnnual Price Changes
  • Predictability for customers and our planning
  • Lower cost of uncertainty
  • Same time, each year, known in advance
  • 2-year phasing with equal increments

17
Encourage EfficiencyPeriodicals Co-Palletization
  • Testing new price incentives to increase
    Periodicals efficiency
  • Publications working with printers to combine on
    pallets
  • Started April 20, 2003
  • 1.7 million sacks eliminated, 72.7 million pieces
    moved to pallets through September 2004
  • 2-year experiment to include heavy journals
    implemented on October 3, 2004

18
The Importance of Pricing
Simplify
Customize
Encourage Efficiency
To Grow Our Core Business
Write a Comment
User Comments (0)
About PowerShow.com