Pricing Strategy - Mobile Data Networks

A hat tip to Phil Wheeler for spotting this great example of pricing strategy - as mobile network operators grapple with the challenge of setting competitive, but fair pricing for the increasingly amount of mobile bandwidth we are all using.

The idea of tiered pricing is discussed.  Whilst that term isn’t one which you’ll find in the current business textbooks, it is a concept which students can probably handle.  In essence tiered pricing is about customers paying for the level of service they require.  For example, how much bandwidth they want to be able to use in a given period.  As the Vodafone executive is quoted:

“The principle here must be that, a bit like motorways or hotels, every class of service must have its own price and customers must be able to pay for whatever level of service he or she wants - we cannot penalise those who pay more.”

A good class exercise would be to ask students to identify a range of services where tiered (or service level-based) pricing already exists, and also where it might be introduced.

Revision Presentation - Marketing Mix: Introduction to Pricing [17 May 2012]
Marketing analysis: the UK supermarket battleground [3 May 2012]
What’s going wrong at Superdry? [23 Apr 2012]
Brand Logos (there’s an app for that) [20 Apr 2012]
Simple solutions to everyday problems - Spanx [11 Mar 2012]
Pricing and the consumer - a question of haggling? [10 Feb 2012]
The 7p Valentines Day Card [1 Feb 2012]
Crazy Frog-Great example of a targeted marketing mix? [28 Jan 2012]
WiiU- How a strong brand name could confuse the customer. [28 Jan 2012]
Tesco’s Big Price Drop - on the Stock Market, or, Porter and Ansoff in action [12 Jan 2012]
Pricing - Daftest In Store Deals! [14 Dec 2011]
Cut price cup cake deal goes wrong…... [22 Nov 2011]
Promotional Pricing at its Worst [7 Nov 2011]
Revision Quiz - Marketing: Promotion [1 Nov 2011]
Revision Quiz - Marketing: Pricing [1 Nov 2011]
The Business of Newcastle United [12 Oct 2011]
The Marketing Mix Song [10 Oct 2011]
Virtual shopping - Tesco in South Korea [6 Oct 2011]
Pricing tactics - cheap flights (no feckin way) [22 Aug 2011]
Strategy Video - Innovation through technology at Fern Howard [10 Jun 2011]
An end to outsourcing? [18 May 2011]
Using Chucklevision to Teach Business [8 May 2011]
Discounters move into UK shopping malls [19 Apr 2011]
The Profit Margin Bloodbath of UK Recession [6 Mar 2011]
Extreme icecream [1 Mar 2011]
The Business Studies of Angry Birds [22 Feb 2011]
Revision games - Marketing Basics (True / False) [16 Feb 2011]
CSR - Charities hit by corporate stinginess [6 Feb 2011]
Q&A - How can a business use contribution pricing? [2 Jan 2011]
Q&A - What is competitor-based pricing? [2 Jan 2011]
Q&A - Why might a business use psychological pricing? [2 Jan 2011]
Q&A - What is predatory pricing? [2 Jan 2011]
Q&A - Outline what is meant by cost-based pricing [2 Jan 2011]
Q&A - Outline how market research can help a business set its prices [2 Jan 2011]
Q&A - Distinguish between price and cost [2 Jan 2011]
Q&A - Should a business use a “loss leader” as part of its pricing tactics? [31 Dec 2010]
2011 - A chance for retailers to slip in some sneeky price rises? [14 Dec 2010]
Euro Disney - an HRM & Finance Nightmare? [24 Nov 2010]
The foods that make billions [23 Nov 2010]
Segmentation & Pricing - the Ice-Cream Price Pyramid [17 Nov 2010]
Revision Crossword - Pricing Basic [6 Nov 2010]
Cash flow Clue-doh! The Mystery is Revealed… [2 Nov 2010]
Making the FT Brand Sweat! [19 Oct 2010]
37 Ways for a Business to be More Competitive [24 Aug 2010]
Lesson Worksheet - Marketing Mix: Promotion Basics [1 Aug 2010]
Tyrrells Entrepreneur Does it Again - with Vodka! [14 Jul 2010]
Lessons from the business model of King & Allen [13 Jul 2010]
The Marketing Mix Challenge in reaching the Muslim Market [13 Jul 2010]
Sensory marketing [19 Jun 2010]
The Business of Festivals [8 Jun 2010]
Linking corporate objectives to management performance - the Vodafone way [4 Jun 2010]
BUSS4 UK Recession - More Profit & More Customers - How Sainsburys Did It [25 May 2010]
Book wars! [5 May 2010]
Marketing at Jaguar - Presentation to Download [2 Apr 2010]
Pricing strategy in action - John Lewis (video) [25 Mar 2010]
Market share gains for the fizzy pop Scots [22 Mar 2010]
Marketing strategy in a recession - is attack better than defence? [17 Feb 2010]
Can Greggs Become the Skoda of Pies? [16 Feb 2010]
Revision Quiz - Marketing Mix (20 Questions) [12 Feb 2010]
Taking Demand-based Pricing To Extremes [8 Feb 2010]
Video case study - substitute goods benefiting from the recession [1 Feb 2010]
What business students can learn from how businesses have handled the recession [1 Feb 2010]
Product, pricing and profitability in a changing market [20 Jan 2010]
Philips returns to the 4 Ps of marketing [15 Jan 2010]
Revision Presentation - Revenues and Demand [30 Dec 2009]
Video case study - competition drives down prices in India [28 Dec 2009]
Q&A - When is it appropriate for a firm to use penetration pricing? [21 Dec 2009]
Q&A - Explain price skimming [21 Dec 2009]
Q&A - What is the difference between pricing strategies & tactics? [21 Dec 2009]
Q&A - Explain what is meant by price positioning [21 Dec 2009]
Q&A - What factors should a business consider when setting its prices? [19 Dec 2009]
Q&A - How does pricing link to the objectives of a business? [19 Dec 2009]
Q&A - What is price and why is it so important in the marketing mix? [19 Dec 2009]
Video Case Study - Meet the CEO of Accurist Watches [14 Dec 2009]
A tale of two bakers [16 Nov 2009]
Emerging markets drive demand for oil [16 Nov 2009]
Santa goes back to basics in attempt to reduce the cost of Christmas [29 Oct 2009]
Q&A - How are businesses affected by unemployment? [27 Oct 2009]
Pricing strategies and tactics under investigation [15 Oct 2009]
Dyson launches a new premium product [14 Oct 2009]
Ukraine 1 England 0 - A match to remember? [12 Oct 2009]
Napster - Trying to compete, or getting desperate? [9 Oct 2009]
V-Water - from start up to exit [4 Oct 2009]
Packaging as part of the marketing mix [30 Sep 2009]
The lights go out for the nightclub market [26 Sep 2009]
Online retailing fluctuates [24 Sep 2009]
Sony cuts the PS3 price to extend its life cycle [30 Aug 2009]
More trouble in the skies [27 Aug 2009]
Sainsbury’s and Diageo pitch in to battle [17 Aug 2009]
Own label brands profit from the recession [4 Aug 2009]
Demand and supply in action - tea prices surge [4 Aug 2009]
The Death of Newspapers - to be replaced by Nichepapers? [2 Aug 2009]
Instore Takes a Pounding [6 Jul 2009]
Swimsuit malfunction - a failure of quality or just the wrong size? [2 Jul 2009]
U2 on Tour - Investment appraisal and capacity utilisation rolled into one! [2 Jul 2009]
Q&A - Outline the main costs and benefits of inflation [1 Jul 2009]
Q&A - Explain the causes of inflation [1 Jul 2009]
Q&A - What is inflation and how is it measured? [1 Jul 2009]
East Coast Rail Line is Nationalised [1 Jul 2009]
Recession Bites - new food shopping habits [29 Jun 2009]

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