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The Kelsey Report® Advisory

Beyond Theory: Overcoming Value-Pricing Sales Challenges
Charles Laughlin,Michael Taylor , 9/15/2004

SUMMARY: The Yellow Pages industry is clearly in the midst of a movement toward greater pricing sophistication. Publishers including BellSouth in the United States and SEAT Pagine Gialle in Italy are rolling out tiered-pricing programs. This pricing approach is designed to move the cost of a particular heading closer to its true value, so that the justification for a display-advertising program is as compelling to a restaurateur or a taxi driver as it is for a plumber or siding contractor. This has not been an easy case to make in the one-price-fits-all Yellow Pages industry. But a number of facts have begun to move publishers away from the traditional pricing paradigm.

First and foremost is declining volume. As publishers lose advertisers year after year, they need to rethink the tenets of their business in order to find new ways to grow. Competition, and the ensuing price wars it can bring, also leads publishers to find ways to change the nature of the sales conversation with advertisers from whos cheaper to who offers the greatest value. This Advisory is not designed, however, to make the theoretical case for value-based advertising. Rather, its purpose is to examine some of the tactical challenges involved in implementing such a program at the local sales level.

Copyright � 2005 The Kelsey Group. All Rights Reserved.
This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under Federal law. The Kelsey Group disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.

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