I am reviewing the article titled “Use Pricing Strategy to Boost Sales” by Rafi Mohammed dated July 02, 2012, published in the Harvard Business Review. The author is writing about the subject to make executives and businesses aware about the importance of a pricing strategy and how optimising the pricing of products can lead to many fold increase in profits (Mohammed, 2012). The basic premise of the article is that better pricing should be the top priority for any company selling any product. The author provides three important reasons for this premise and then goes on to provide brief strategy points for implementation of a better pricing method. The three reasons provided by the author for making better pricing the top priority in a company are that there are hidden profits to be tapped through better pricing, small changes in pricing can lead to greater change in overall profits, a term called yield management (Fontaine et al, n.d.), and changes in pricing can lead to immediate increase in profits in case of some industries. The author states that pricing can be improved through the use of 4 Cs, i.e. Confidence in sales force to let the customers know about the true value of the product, Compensation of the sales force being aligned to profit levels, Choices in price being offered to the customer and C-Level driving this change in pricing strategy (Mohammed, 2012). The article can be highly useful for designing the marketing strategy as it relates to the bottom line of the company, which can help with the target of any marketer of optimising revenue and profits through better pricing, a concept called optimal pricing (Fontaine et al, n.d.). In my opinion, the article touches very important concepts in a concise manner, which are easy to understand. However, it may have gone on to provide more examples of companies which have implemented best pricing strategies in order to maximise profits. But still I would recommend others to read the article to gain better understanding about the need for better pricing of products.
References
Mohammed, R. (2012). Use Pricing Strategy to Boost Sales. Harvard Business Review. Retrieved from https://hbr.org/2012/07/use-pricing-strategy-to-boost.
Fontaine, J. et al. (n.d.). Marketing: An Enterprise View. Retrieved from http://lc.gcumedia.com/mkt245/marketing-an-enterprise-view/v1.1/#/glossary
