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Selling Disscussion

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Submitted By edyspragge1991
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Chapter 8 Discussion questions

1. What are the three reasons why so many organizations struggle to implement and maintain pricing strategies? * The inherently cross-functional nature of pricing provides many opportunities for the strategy to “come off the tracks” because there is no clear ownership of, and responsibility for, pricing outcomes. * Another reason is the conflicted motivations of decision-makers translate into inconsistently applied pricing policies. * The inconsistent application of pricing strategies is that managers often do not have the necessary information and tools to make profitable pricing decisions.
3. Name the two dimensions of the pricing function which provide the basis for the three archetypal structures for the pricing function named in the text. Name and describe these three structures.
The two dimensions are role and degree of centralization.
First structure: known as the Center of Scale where pricing is managed at a corporate level.
Second structure: referred as the Center of Expertise that reflects what an organization thinks of its members. Pricing decisions are supported by corporate pricing.
Third structure: referred as to Dedicated Support Unit where independent pricing organizations exist in each business unit.

5. After the organization structure has been established and decision rights have been defined, what is the next step for organizing the pricing function? The next step for organizing the pricing function is the creation of precisely defined set of pricing processes.
7. What are some of the tools used to monitor changes in customer behavior? * Price bands * Customer profitability * Price waterfalls * Performance trend analysis
9. Name some levers which will help transform an organization to ascribe to and execute on the principles of strategic pricing. * Senior management

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