Pricing Strategy Implementation: Translating Pricing Strategy into Results

✍ Scribed by Andreas Hinterhuber, Stephan M. Liozu

• Publisher: Routledge
• Year: 2019
• Tongue: English
• Leaves: 175
• Category: Library

✦ Synopsis

Pricing can truly transform organizations. The impact of pricing on organizations is a result of two factors: pricing strategy development and the implementation of these strategies. Implementation is arguably the most difficult part in the pricing strategy process where even seasoned practitioners demand guidance. Pricing strategy development requires creativity, analytical rigor, and an ability to master the internal political competition for scarce resources, but it takes place in a well-defined environment. Fast forward to strategy implementation: competitors that stubbornly fail to behave according to assumptions, new entrants, internal resistance, new opportunities, changing customer preferences, leadership changes, regulatory interventions, or market growth rates that change unexpectedly are some of the intervening variables between the pricing strategy originally developed and the strategy actually implemented. This book provides the theories and best practices that enable the effective implementation of pricing strategies. It offers:

a best practice overview on how to convert a pricing strategy into superior results
insights from current academic research on driving profits via pricing strategy implementation
examples on how to deal with digital transformation in the context of pricing
tools and insights into how to overcome internal resistance, align the organization, and forge win-win relationships with customers
Taking a new approach, Pricing Strategy Implementation is a critical and practical tool for practicing executives and managers, as well as academics and researchers in pricing, marketing strategy, and strategic management.

✦ Table of Contents

Cover
Half Title
Title Page
Copyright Page
Contents
List of Contributors
Part 1 Introduction
Chapter 1 Introduction: Implementing pricing strategies
Contents of the book
Structure of the book
References
Part 2 Aligning the organization around pricing strategy implementation
Chapter 2 Implementing pricing strategies: The frameworks to drive profits by pricing actions
Introduction
Frameworks of pricing strategy implementation
The 8-step change model
The Change Acceleration Process
Switch model
McKinsey influence model
The transformation triangle
The free spaces theory
The 5C model
The map and the territory
References
Chapter 3 Elevating the cost of doing nothing: An interview with Mark Shafer
Acknowledgments
References
Part 3 Pricing strategy implementation: The role of the sales force
Chapter 4 The role of the sales force in pricing strategy implementation
Notes
Chapter 5 The strategic account manager as ecosystem captain: Driving profits via pricing
Reference
Chapter 6 Designing sales force compensation programs to improve pricing execution
Introduction
Prior research
About the research
Findings
Conclusions and discussion
Limitations and future research
References
Part 4 Pricing strategy implementation: The role of marketing
Chapter 7 Implementing pricing strategy by developing and implementing effective discounting practices
Chapter 8 Designing and executing B2B customer segmentation
Introduction
A refresher on B2B customer segmentation
Get the design right to get the execution right
Without being operationalized, customer segmentation is just a theory
Recommended guidelines for superior execution
Conclusion
Chapter 9 Training programs to boost pricing execution
Step 1: Rethink how pricing training works
Step 2: Plan and create a roadmap
Step 3: Get the blend of methods right
Step 4: Work to help each individual absorb the material
Summarizing the training best practices for pricing execution
Chapter 10 Implementing a structured pricing strategy approach
Introduction
Introducing the “value language”
Pricing trainings
Pricing tools
Strategy tool: a web-based tool to support the set up and sharing of a pricing strategy
LeveragePoint®: one of the most used value management tools at Bayer
Repeating and repeating
The guideline document
Support from internal audit
External surveys to show the impact
Summary
Reference
Part 5 Implementing pricing strategies that win deals
Chapter 11 Pricing large deals: Insights into capabilities and tools that help to win large deals profitably
Offer dispersion in B2B: highly concentrated
Pricing: the most important, but frequently most neglected, profit driver
Value quantification: a key requirement for sellers in industrial markets
Value quantification in practice
Mapping B2B purchase criteria
Putting the idea into practice
Acknowledgments
References
Chapter 12 Pricing to win: A framework for strategic bid decision-making
Introduction
Pricing to Win: a framework for strategic decision making
Following a four-step approach to master the bidding challenge
Step 1: Understand customer demand
Step 2: Understand the competition
Step 3: Assign value and measure
Step 4: Strategic bid positioning
Key learnings
References
Chapter 13 Value quantification: Processes and best practices to document and quantify value in B2B
Introduction
About the research
The process
Examples of effective quantified value propositions
Further considerations
Acknowledgments
References
Chapter 14 Implementing pricing strategies via quantified value propositions
Value conceptualization
Business culture
Customer culture
Value quantification
References
Chapter 15 Adopt value selling: Best practices to drive sustainable organizational change
Value selling: realize the potential value of differentiated offerings through better sales execution
Two reasons value-selling initiatives fail
Sales and marketing alignment: value propositions to fit the sales process
How to accelerate a value-selling initiative
Map for value-selling success: a checklist
Value propositions for customer-centric selling
References
Chapter 16 Executing price control in five simple steps
Introduction
Five steps to controlling price
Implications for pricing execution
Chapter 17 Eight best practices to improve pricing execution
1. Define the right key performance indicators (KPIs) to focus on execution
2. Use dashboards to promote execution
3. Mobilize your project management office (PMO)
4. Learn about change management
5. Bring value or pricing coaches to your team
6. Distribute knowledge about execution discipline
7. Launch a 4DX initiative for your project
8. Allocate budget for execution
Index