It is short and long term monitization plan. At the high level, clear intent, quanitifiable goal and a time frame for execution.

Over next two years, we plan to increase the revenue by 40%, we will do it by establishing a premium price vs the market leader and discount price for growth consumer segment. This is beacause we believe in following.

• we can’t take drastic price move, market leader set the price accptance.
• we won’t lose core consumer as they are slightly price insensitive.
• we can communicate price advantage in growth group.

Clear objective, time frame, firm market position, how firm will treate each consumer segment.

The company best develop new products take the time to painstakingly document their pricing strategy and continually update it.

THE FOUR BUILDING BLOCK.
1.set clear goal - without a clear goal, you won;t have an effective pricing strategy, if you want to...

Monitization model is how customer pay for your product. And how you charge may trump what you charge. Choosing model without reflecting, stratigically thinking and testing you missed opportunity and made a huge mistake. Michelin created pay as you go model.

Monitizing model in itself is innovation, Netflix, introduce subscription than pay for a cd. Uber disrupted with daynamic pricing. Fixed Tv deal made them loose money. Proving a bad monitization model can be worse than bad pricing.

FIVE POWERFUL MODEL:
subscription model - customer spent year spent more money, and customer on subscription also likely to stay longer. It limit the customer buying decision and lock them in. Auto-renewal even take it further. Subscription also opens cross-selling and up selling opportunity. House of card by Netflix. Person on subscriptions are more sticky and even become unofficial brand embasdor.

...

Once you have segmented there are 2 core design decision to make. Product configuration[packaging] and bundling. Successful company get it right from the beginning.

PRODUCT CONFIGURATION DONE RIGHT.
Making the product with just the feature customer is willing to pay. Too many feature, feature shock especially if customer is not wild about them. If you didn’t provide the feature they are wild about, minivation. Feature for the customer won’t pay will lead to undead.

• core, product plus, logistic plus, best.

The key point here is that company put strong fences between the product. Company can offer low price because the value and coast are lower for base. Leaving out the feature from the product is extremely challanging for every company. But company must curb their instinct to please the customer by giving away value added functionality unless customer will pay for it. They must...

warm up-

• spiral twist.
  
• side band.
• running on the mat.
• cat and cow.
• forward and backbend.
• sitting and standing.

sun-salutations -

• Sivananda.
• Astanga.

Standing -

• Tikonasana. Parse. Half moon.
• Twisted [Tikonasan, Parse, Half moon.]
• forward bend, wide leg forward bend, one leg forward bend.
• worrier2, 1. Warrior 3 ( front )
• tadasana, tree, pads-husta, utkata. Garuda.

Backbend -

• salbhassana.
• upward dog.
• camel
• plane [purvotassana]
• dhanurasana.
• bridge.
• chakrasana.

Twist -

• seated twist.
• side jinu -sirsassna.
• ardha matesyndra.

Hip -

• sukhasana. Lotus.
• budhakonasan.
• wide angle seated forward.
• supta padagustana [side and front and revolve].
• tortoise.
• split.

*Forward Bend -

• dandassana.
• Janu sirsana.
• Paschimotassana.
• Lotus paschimottasana.
• Boat.

Arm - Balance -

• downward facing.
• chaturanga assana
• side balance.
• crane | side crane. [one leg, firefly]

Inversion -

• ...

The reality is your customers are different, whether you like it or not they have very different need, different ability to pay and they vary by the degree to which they value your product’s key benefits.

The prince and oozy might be similar in terms of prize but their need and characteristics are different. When it comes to innovation there is only one way to segment. Customer need, valu and their WTP.

From paper company some customer needed just in time delivery while other have warehouse, what feature and service really matters to most of the customer and what are they willing to pay. Price was the most important factor and then people were willing to pay for customer valued service which firm assumed is the cost to the firm.

• want price.
• want it now.
• want product only.
• want only the best. How high customer didn’t shed the light on what they wanted from the paper company.

...

When we say price, we mean it to be an indication of what customer value and how much they are willing to pay for that value. Your conversation must be around wtp.

Gillette, laser like focus drove inclusion of only most imp. Feature that were meaningful to our customer, and allowed the product to be offered at an offordable price. It observe them in their home and mall to see what features were must have and which ones are nice to have.

The benifits of early WTP.

• it will tell you right away wether you have an opportunity to monetize your product or not.
  • it will help you to prioritise feature and design the product with right feature.
• it will enable you to avoid four types of failure.

The entire process was driven by inside-out thinking. When company validated this with customer it turned out customer were willing to pay for only 10 out of 25 feature. And facebook feature was...

Usually pricing seems to be dirty and detrimental to true innovation.

Myths -

• it you simply build the great new product customer will pay fair value for it. Build it and they will come. J.K. Rowling is an exception not the norms.
• the new product and service must be controlled entirely by the innovation team working in isolation.
• high failure rate of innovation is normal and is even necessary.
• consumer must experince a new product before they can say how much they will pay for it.
• until organisation knows what it is building. It can not possibly asses what it is worth.

Actually, understanding if customer are willing to pay before you commit too much resource will dramatically increase your livelyhood to successed

Product driven culture develops feature shocks, firm with culture of playing it safe develop minivention, hidden gem in indulgent or overprotective core bussiness. Undead in top-down culture.

Feature shock -
Trying to cramp too many feature in one product, creating confusing and expensive mess. In a sincere effort to create all things to all people, end up creating a product that pleases very few. These products are over-engineered, hard to explain, costly to make, usually overpriced.

Feature shock start with uncertain or ambigious goals. The daynamics predestive cool but solve no pressing problem adn required a lot of battery. It is coming from We can add this but can’t articulate the new products value to customer. And it tend to be one size fit all. Instead of all channel most company created small package of channel.

Minivation - minivation nither capture product market full...

Instead of price point we are trying to understand perceive value. Customer wants large cup holder while porche engine. Porche didn’t make any breakthrough but designed the product around the price. While Chrysler took a hard look on the product. Perfection defined by Fiat.

The key is to rigorously determine the market for new product long before the products are built. And making sure market will pay before embarking the long journey to productising the innovation.

Usually people leave the pricing decision till the end. Hoping they will make the money out of it, not knowing. Price is not just dollar figure. It is an indication of what customer wants and how much he wants it.

Instead of design|build|market|price start with marketing and price and then build.

The monitizing innovation comes in four categories

• feature sock - too many feature, some time unwanted, end up creating...

Work -

• Montizing innovation.
• Phil knight.
• Marketing managements

Social -

• Relationship with Lin. [ challanges and solution ]

Health -

• Hatha pradipika.
• Self practice.

Spirituality -

• No off.