Pricing Strategy Implementation: Translating Pricing Strategy into Results

Description

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. 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