Advanced Strategies in Pricing Management (Part 3)

In the constantly changing business environment, setting up and managing a pricing function effectively is vital for maintaining profitability and securing a competitive edge. This workshop explores the key aspects of setting up and managing an organizational pricing function, highlighting the critical roles of C-level executives and organizational champions. It offers insights into aligning pricing strategies with business objectives and discusses the transition between new and legacy pricing models, focusing on profitability and competitive advantage.

Executive Impact on Pricing

• Overview of various ways an organizational pricing function can be set up.
• Impact of C-level executives on pricing through objectives, incentives, cultural changes
• The role of organizational champions in support of the pricing function.
• How to organize functional teams, specifically the pricing function in firms.
• Determining whether a separate function team focusing on pricing and pricing research is suitable for an organization.

Implementing new pricing models:

• Decentralized pricing versus center-supported pricing: Advantages and disadvantages of the models (Comparing decentralized pricing strategies, where individual units set prices, to centralized models, where pricing is controlled from a central point, considering factors like market responsiveness, consistency across the organization, and profit margins.)
• Rethinking revenue as a measurement of success versus profit and process improvement.
• Identifying the right alignment between pricing strategies and the business.
• Determining the required internal support and training before implementing a new pricing model as it relates to the finance team, sales team, manufacturing/engineering team (Emphasizing the importance of preparing teams for a seamless transition to new pricing models, ensuring all relevant departments are aligned and equipped to enhance profit rates and internal processes)
• Ensuring a smooth transition between new pricing models and legacy models (Strategies for effectively transitioning from existing pricing structures to new models, minimizing disruption, maintaining customer trust and satisfaction, and improving profit rates.)

Reading: How Strategy Shapes Structure by Prof. W. Chan Kim and Prof. Renee Mauborgne (INSEAD Business School) — published by Harvard University Business Review

https://hbr.org/2009/09/how-strategy-shapes-structure

This workshop structure is recommended by AllaVolodina (AllaVolodina Rate My Prof), who has an extensive background in creating a variety of courses and outlines in different fields such as management, marketing, and financial management. (www.allavolodina.com)