Blog: The Discipline of Pricing | Stephan Liozu

pricing-discipline | Photo Courtesy of thinkstockphotos.com http://www.thinkstockphotos.com/image/stock-photo-office-work/184888041/Pricing is a discipline. And that discipline has existed for more than a century and has evolved from a pure economics discipline to be part of the marketing construct. The reality is that pricing is still a fairly neglected element of the marketing mix (the 4 Ps), and that most firms ignore the need to embrace pricing as a discipline.Only 5% of Fortune 500 companies have a dedicated pricing team. Just 9% of business schools teach a dedicated pricing class. Top executives dedicate but a fraction of their attention to pricing programs. The end result is that pricing activities are fragmented and allocated to various departments in the firm, including sales, accounting, finance, marketing, business operations and, in smaller businesses, top management.

What is pricing then? I find this definition very relevant as it depicts pricing as a multi-disciplinary function in the firm. It also acknowledges both the importance and the complexity of the pricing function, and hints about the powerful impact it can have on organizations.

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