Pricing strategy refers to the consideration of the pricing models as a way of obtaining a strategic advantage in business. For pricing strategy to work, management ought to show deliberate leadership. The first article, “Is it time to rethink your pricing strategy?” by Hinterhuber and Liozu, suggests that we ought to re-examine the concept of pricing strategy. They hold the view that price setting and price getting can only be achieved through discipline. They assert that the reason as to why most businesses fail is their failure to exercise discipline. In addition to discipline, the author call for consistency. On the other hand, the article “pricing new products”, by Zawada, Roegner and Marn, poor contempt on the marketing concept of introducing a new product at a price lower than its real value. They admit that this could be effective as a marketing gimmick but observe that it is not sustainable and would lead the business to collapse. They insist that businesses should get it right initially by charging right. Lastly, the article, “pricing strategy and execution” by Davidson and Simonetto suggest that development of the pricing strategy should be a managerial concerned and would be implemented through leadership, management and software incorporation.
The three articles complement showing the place of pricing in the success of any business. While the first one reminds managers of consistency and discipline in price setting and price setting, the second article reminds managers of getting it right on the onset through charging right rather than undercharging. The last article emphasises on the place of pricing as a managerial concern. All the three articles place the onus on the management to secure a pricing strategy. The articles are in consensus about the place of pricing in business. The authors suggest that implementation of pricing strategy would enable businesses achieve their objectives to the letter.
The articles relate to my professional experience in various ways. First, the works confirm the fundamental role that pricing strategy plays in the success of any business. Any business intending to post successful performance have to consider the pricing tactfully and ensure they address all concerns as relates price. It also confirms the often misleading supposition that pricing needs to be on the lowest level possible. Although consumers are usually motivated and swayed by low prices, they also consider the quality and would be willing to part with more coins just for the right quality that would satisfy their appetites.
The articles also clearly put a case for the integration of technology in pricing decisions. As is suggested, pricing remains a management function but needs to be executed in connect with input from software that have excellent competencies and hence higher accuracy. Finally, the articles expressly dictate for discipline and consistency in pricing strategy. Nothing could be further than the truth. In the managerial concern, discipline and consistency play an essential role for success. This is not limited only on pricing strategy. It applies across board for any managerial activity. To keep the focus and determination to achieve the overall objectives of any business, consistency and discipline play an essential role. One needs to consider the application of pricing strategy not only on paper, but practically. This should be accompanied with discipline and consistency. It is imperative to appreciate that pricing does not work in a vacuum, but should be supported by other activities as well.
References
Davidson , A., & Simonetto, M. (2005). Pricing strategy and execution: an overlooked way to increase revenues and profits. Delloite.
Hinterhuber , A., & Liozu, S. (2012). Is It Time to Rethink Your Pricing Strategy? MITSloan Management Review. Retrieved from http://sloanreview.mit.edu/article/is-it-time-to-rethink-your-pricing-strategy/
Marn, M. V., Roegner, E. V., & Zawada, C. C. (2009). Pricing new products. McKinsley Quarterly.
