Pricing Strategy

The pricing strategy sets the tone for the entire price management process. A robust pricing strategy ensures that pricing decisions allow you to effectively meet corporate, divisional, and product goals. It also serves as the foundation that ensures all pricing related decisions are consistent throughout the process and that pricing is considered throughout the lifetime of the product. Yet the pricing strategy must also be adaptive to changes in corporate strategy, market conditions, or results from price/sales monitoring. Often times poorly defined pricing strategies are the underlying cause of many pricing problems.

SKP can help you address the following pricing strategy issues:

• How can the pricing strategy be tailored to best achieve corporate, divisional, and/or product goals?
• How can the pricing strategy be used to guide key decisions throughout the pricing process (i.e. base price levels, discount structures and levels, and sales force incentives)?
• How should the pricing strategy be used to influence pricing decisions throughout the product’s lifetime?
• How should the pricing strategy be communicated throughout the organization to ensure that it is executed efficiently?
• Who should be involved in developing, revising and updating the pricing strategy?

One natural consequence of studying the pricing strategy can be questions regarding the corporate or divisional strategy. For more information on this topic, please follow the link to our Corporate Strategy page.

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