Skip to main content
SpringerLink
Log in
Book cover

Price Management pp 329–388Cite as

Implementation

  • Chapter
  • First Online:

  • 7914 Accesses

Abstract

In the previous chapters, we have dealt with price strategy, analysis, and decision-making. But the mission is not accomplished. Price decisions need to be implemented, and this in turn requires that processes and responsibilities are clearly defined. In the first part of this chapter, we will examine questions regarding setup and process organization in price management. This will include a discussion of the CEO’s tasks as well as the use of pricing software artificial intelligence and price consultants. The salesperson is central to successful price implementation. What pricing authority should salespeople have? How should a company set up its incentive systems, in order to achieve the desired objectives? Discounts, terms, and conditions likewise play a critical role. The effect of prices depends on the manner in which they are communicated. The topic of price communication therefore warrants a thorough treatment. The conclusion of the chapter will look at price monitoring and controlling. Ideally, this aspect should not be confined to price realization but include the overall pricing process. Throughout the chapter we will use real-life case studies from various industries to illustrate the respective topics.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   54.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD   69.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 1.

    From the transcript of an interview with Warren Buffett before the Financial Crisis Inquiry Commission (FCIC) on May 26, 2010

  2. 2.

    Original German slogan: “Bei diesen Preisen muss man reisen”

  3. 3.

    Original German slogan: “Große Weine. Kleine Preise”

  4. 4.

    Original German slogan: “Preise, die glücklich machen”

  5. 5.

    Original German slogan: “Gute Preise, gute Besserung”

References

  1. Freiling, J., & Wölting, H. (2003). Organisation des Preismanagements. In H. Diller, & A. Herrmann (Ed.), Handbuch Preispolitik: Strategien – Planung – Organisation – Umsetzung (pp. 419–436). Wiesbaden: Gabler.

    Chapter  Google Scholar 

  2. Dutta, S., Zbaracki, M., & Bergen, M. (2003). Pricing Process as a Capability: A Case Study. Strategic Management Journal, 24(7), 615–630.

    Article  Google Scholar 

  3. Wiltinger, K. (1998). Preismanagement in der unternehmerischen Praxis: Probleme der organisatorischen Implementierung. Wiesbaden: Gabler.

    Book  Google Scholar 

  4. Kossmann, J. (2008). Die Implementierung der Preispolitik in Business-to-Business Unternehmen. Nürnberg: GIM.

    Google Scholar 

  5. Fassnacht, M., Nelius, Y., & Szajna, M. (2013). Preismanagement – nicht immer ein Top-Thema bei Konsumgüterherstellern. Sales Management Review, 9(2), 58–70.

    Google Scholar 

  6. Nelius, Y. (2011). Organisation des Preismanagements von Konsumgüterherstellern – Eine empirische Untersuchung. Frankfurt am Main: Peter Lang.

    Google Scholar 

  7. Atkin, B., & Skinner, R. (1976). How British Industry Prices. Old Woking: The Gresham Press.

    Google Scholar 

  8. Ehrhardt, A., Vidal, D., & Uhl, A. (2012). Global Pricing Study. Bonn: Simon-Kucher & Partners.

    Google Scholar 

  9. Sodhi, M., & Sodhi, N. (2008). Six Sigma Pricing: Improving Pricing Operations to Increase Profits. Upper Saddle River: Financial Times Press.

    Google Scholar 

  10. Hofbauer, G., & Bergmann, S. (2012). Professionelles Controlling in Marketing und Vertrieb. Erlangen: Publicis Publishing.

    Google Scholar 

  11. Simon, H. (2013). How Price Consulting is Coming of Age. Journal of Professional Pricing, 22(1), 12–19.

    Google Scholar 

  12. PROS Holdings (2014). Annual Report 2014. http://investors.pros.com/phoenix.zhtml?c=211158&p=irol-reportsAnnual. Accessed 6 July 2014.

  13. Mühlberger, A. (2013). Chefsache Preis. Sales Management Review, 12(1), 8–11.

    Google Scholar 

  14. Tacke, G., Vidal, D., & Haemer, J. (2014). Profitable Innovation. http://www.simon-kucher.com/sites/default/files/simon-kucher_ebook_profitable_innovation_2014.pdf. Accessed 27 July 2015.

  15. Sawers, P. (2014). Be all-in, or all-out: Steve Ballmer’s advice for startups. http://thenextweb.com/insider/2014/03/04/steve-ballmers-advice-startups/#!za6rp. Accessed 6 July 2015.

  16. Doyle, M. (2018). Elon Musk pricing strategy email to Tesla dealers – we all can learn from this email. https://www.linkedin.com/pulse/elon-musk-pricing-strategy-email-tesla-dealers-we-all-michael-doyle/?trackingId=BfNlN2X11WonSdTlP65w1g%3D%3D. Accessed 10 March 2018.

  17. Anonymous. (2005, April 27). The Wall Street Journal, p. 22.

    Google Scholar 

  18. Earnings Conference Quarter II 2011.

    Google Scholar 

  19. Anonymous. (2008). Handelszeitung, No. 27, pp. 2–3.

    Google Scholar 

  20. Stewart, T. A. (2006). Growth as a Process. https://hbr.org/2006/06/growth-as-a-process. Accessed 7 July 2015.

  21. Diller, H. (2007). Preispolitik (4th ed.). Stuttgart: Kohlhammer.

    Google Scholar 

  22. Credit Suisse (2010). Global Equity Strategy, 18. Oktober 2010. Zürich.

    Google Scholar 

  23. Lehmitz, S., McLellan, K., & Schulze, P. (2015). Pricing’s Secret Weapon: A Well-Trained Sales Force. McKinsey on Marketing and Sales. http://www.mckinseyonmarketingandsales.com/pricings-secret-weapon-a-well-trained-sales-force. Accessed 17 April 2015.

  24. Stadie, E., & Clausen, G. (2008). B-to-B-Pricing-Excellence. Marketing Review St. Gallen, 25(3), 48–51.

    Article  Google Scholar 

  25. Fassnacht, M. (2009). Preismanagement: Eine prozessorientierte Perspektive. Marketing Review St. Gallen, 26(5), 8–13.

    Google Scholar 

  26. Kern, R. (1989). Letting your Salespeople Set Prices. Sales and Marketing Management, 141(9), 44–49.

    Google Scholar 

  27. Mishra, B. K., & Prasad, A. (2004). Centralized Pricing Versus Delegating Pricing to the Salesforce under Information Asymmetry. Marketing Science, 23(1), 21–27.

    Article  Google Scholar 

  28. Stephenson, P. R., Cron, W. C., & Frazier, G. L. (1979). Delegating Pricing Authority to the Sales Force: the Effects on Sales and Profit Performance. Journal of Marketing, 43(2), 21–28.

    Article  Google Scholar 

  29. Walker, O. C., Orville, C., Churchill, G. A., & Ford, N. M. (1977). Motivation and Performance in Industrial Selling: Present Knowledge and Needed Research. Journal of Marketing Research, 14(2), 156–168.

    Article  Google Scholar 

  30. Lal, R., & Staelin, R. (1986). Salesforce Compensation Plans in Environments with Asymmetric Information. Marketing Science, 5(3), 179–198.

    Article  Google Scholar 

  31. Nimer, D. (1971). Nimer on Pricing. Industrial Marketing, 56(3), 48–55.

    Google Scholar 

  32. Zarth, H. R. (1981). Effizienter verkaufen durch die richtige Strategie für das Preisgespräch. Markenartikel, 43(2), 111–113.

    Google Scholar 

  33. Voeth, M., & Herbst, U. (2011). Preisverhandlungen auf Commodity-Märkten. In Commodity Marketing: Grundlagen – Besonderheiten – Erfahrungen (pp. 149–172). Wiesbaden: Gabler.

    Chapter  Google Scholar 

  34. Krafft, M. (1999). An Empirical Investigation of the Antecedents of Sales Force Control Systems. Journal of Marketing, 63(3), 120–134.

    Article  Google Scholar 

  35. Weinberg, C. B. (1978). Jointly Optimal Sales Commissions for Nonincome Maximizing Sales Forces. Management Science, 24(12), 1252–1258.

    Article  Google Scholar 

  36. Joseph, K. (2001). On the Optimality of Delegating Pricing Authority to the Sales Force. Journal of Marketing, 65(1), 62–70.

    Article  Google Scholar 

  37. Bhardwaj, P. (2001). Delegating Pricing Decisions. Marketing Science, 20(2), 143–169.

    Article  Google Scholar 

  38. Roth, S. (2011). Koordination von Preisentscheidungen in konkurrierenden Wertschöpfungsketten. In H. Corsten, & R. Gössinger (Ed.), Dezentrale Koordination ökonomischer Aktivitäten: Markt, Hierarchie, Hybride (pp. 91–122). Berlin: Erich Schmidt.

    Google Scholar 

  39. Roth, S. (2006). Preismanagement für Leistungsbündel. Wiesbaden: Gabler.

    Google Scholar 

  40. Hansen, A.-K., Joseph, K., & Krafft, M. (2008). Price Delegation in Sales Organizations: An Empirical Investigation. Business Research, 1(1), 94–104.

    Article  Google Scholar 

  41. Alavi, S., Wieseke, J., & Guba, J. H. (2015). Saving on Discounts through Accurate Sensing – Salespeople’s Estimations of Customer Price Importance and Their Effects on Negotiation Success. Journal of Retailing, 96(1), 40–55.

    Article  Google Scholar 

  42. Wieseke, J., Alavi, S., & Habel, J. (2014). Willing to Pay More, Eager to Pay Less: The Role of Customer Loyalty in Price Negotiations. Journal of Marketing, 78(6), 17–37.

    Article  Google Scholar 

  43. Wiltinger, K. (1996). Der Einfluß von Umweltcharakteristika auf die Delegation von Preiskompetenz an den Außendienst. Schmalenbachs Zeitschrift für betriebswirtschaftliche Forschung, 48(11), 983–998.

    Google Scholar 

  44. Krafft, M. (1995). Außendienstentlohnung im Licht der Neuen Institutionenlehre. Wiesbaden: Gabler.

    Book  Google Scholar 

  45. Schmidt, S., & Krafft, M. (2005). Delegation von Preiskompetenz an Verkaufsaußendienstmitarbeiter. In H. Diller (Ed.), Pricing-Forschung in Deutschland (pp. 17–28). Nürnberg: Wissenschaftliche Gesellschaft für Innovatives Marketing.

    Google Scholar 

  46. Albers, S., & Krafft, M. (1992). Steuerungssysteme für den Verkaufsaußendienst. Manuskripte aus den Instituten für Betriebswirtschaftslehre, No. 306, Christian-Albrechts-Universität zu Kiel.

    Google Scholar 

  47. Zoltners, A. A., Sinha, P., & Lorimer, S. E. (2006). The Complete Guide to Sales Force Incentive Compensation: How to Design and Implement Plans that Work. New York: Amacon.

    Google Scholar 

  48. Albers, K., & Krafft, M. (2013). Vertriebsmanagement: Organisation – Planung – Controlling – Support. Wiesbaden: Gabler.

    Book  Google Scholar 

  49. Spiro, R. L., Stanton, W. J., & Rich, G. A. (2007). Management of a Sales Force. Boston: McGraw-Hill.

    Google Scholar 

  50. Meffert, H., Burmann, C., & Kirchgeorg, M. (2011). Marketing: Grundlagen marktorientierter Unternehmensführung: Konzepte – Instrumente – Praxisbeispiele (11th ed.). Wiesbaden: Gabler.

    Google Scholar 

  51. Steffenhagen, H. (2003). Konditionensysteme. In H. Diller, & A. Herrmann (Ed.), Handbuch Preispolitik: Strategien – Planung – Organisation – Umsetzung (pp. 576–596). Wiesbaden: Gabler.

    Google Scholar 

  52. Pechtl, H. (2014). Preispolitik: Behavioral Pricing und Preissysteme (2nd ed.). Konstanz: UVK.

    Book  Google Scholar 

  53. Williamson, P. (2012). Pricing for the London Olympics 2012. Simon-Kucher & Partners World Meeting, Bonn.

    Google Scholar 

  54. Bertini, M., & Gourville, J. T. (2012). Pricing to Create Shared Value. Harvard Business Review, 6. https://hbr.org/2012/06/pricing-to-create-shared-value/ar/1. Accessed 17 May 2015.

  55. Teekampagne (2017). Exclusive Darjeeling tea at an affordable price. https://www.teacampaign.com /Transparency/Exclusive-Darjeeling-tea-affordable-price. Accessed 19 February 2018.

  56. Best Buy Price Match Guarantee (2016). http://www.bestbuy.com/site/clp/price-match-guarantee/pcmcat290300050002.c?id=pcmcat290300050002. Accessed 21 December 2016.

  57. Stech, J. (2015). Bonner Unternehmen Simon-Kucher: Der Trick der Pizzabäcker. General-Anzeiger Bonn. http://www.general-anzeiger-bonn.de/bonn/wirtschaft/der-trick-der-pizzabaecker-article1677143.html. Accessed 12 July 2015.

  58. Simon, H. (1992). Preismanagement (2nd ed.). Wiesbaden: Gabler.

    Book  Google Scholar 

  59. Eskin, G. J. (1982). Behaviour Scan: A State of the Art Market Research Facility Utilizing UPC Scanning and Targetable Television. Paper presented at The European Congress on Automation in Retailing.

    Google Scholar 

  60. Chaudhuri, S. (2016). Mind the Gap: Toblerone Customers Feel Short-Changed by Shape Change. The Wall Street Journal. http://www.wsj.com/articles/mind-the-gap-toblerone-customers-feel-short-changed-by-shape-change-1478612997. Accessed 21 December 2016.

  61. Verbraucherzentrale Hamburg (2015). Anbieter sparen – Verbraucher zahlen: Kleinere Menge zum gleichen Preis!. www.vzhh.de/ernaehrung/32535/Versteckte%20Preiserhoehungen.pdf. Accessed 7 July 2015.

  62. Anonymous. (2017, January 21). Evian ist Mogelpackung des Jahres. Frankfurter Allgemeine Zeitung, p. 18.

    Google Scholar 

  63. Cox, J. (2001). Can Differential Prices be Fair?. Journal of Product and Brand Management, 10(4/5), 264–275.

    Google Scholar 

  64. Winkelmeier-Becker, E. (2015, January 16). Reiseportale müssen bei Flügen stets den vollen Endpreis nennen. Frankfurter Allgemeine Zeitung, p. 23.

    Google Scholar 

  65. Bundesgerichtshof (2015). Preisdarstellungen bei Flugbuchungen im Internet. http://juris.bundesgerichtshof.de/cgi-bin/rechtsprechung/document.py?Gericht=bgh&Art=pm&Datum=2015&Sort=3&nr=71812&pos=0&anz=133. Accessed 9 September 2015.

  66. Xia, L., & Monroe, K. B. (2004). Price Partitioning on the Internet. Journal of Interactive Marketing, 18(4), 63–73.

    Article  Google Scholar 

  67. Morwitz, V. G., Greenleaf, E. A., & Johnson, E. J. (1998). Divide and Prosper: Consumers’ Reactions to Partitioned Prices. Journal of Marketing Research, 35(4), 453–463.

    Google Scholar 

  68. Herrmann, A., & Wricke, M. (1998). Evaluating Multidimensional Prices. Journal of Product and Brand Management, 7(2), 161–169.

    Article  Google Scholar 

  69. Huber, C., Gatzert, N., & Schmeiser, H. (2012). Price Presentation and Consumers’ Choice. Zeitschrift für die gesamte Versicherungswissenschaft, 101(1), 63–73.

    Article  Google Scholar 

  70. Völker, S. (2002). Preisangabenrecht (2nd ed.). München: Beck.

    Google Scholar 

  71. Government Publishing Office (2018). Electronic Code of Federal Regulations. https://www.ecfr.gov/cgi-bin/text-idx?SID=866b1c600a4f619ef31ce1d14ad49a2c&mc=true&tpl=/ecfrbrowse/Title16/16cfrv1_02.tpl#0. Accessed 19 February 2018.

  72. Gourville, J. T., & Soman, D. (1998). Payment Depreciation: The Behavioral Effects of Temporally Separating Payments from Consumption. Journal of Consumer Research, 25(2), 160–174.

    Article  Google Scholar 

  73. Ailawadi, K. L., & Neslin, S. A. (1998). The Effect of Promotion on Consumption: Buying More and Consuming it Faster. Journal of Marketing Research, 35(3), 390–398.

    Article  Google Scholar 

  74. Busch, R., Dögl, R., & Unger, F. (2008). Integriertes Marketing: Strategie – Organisation – Instrumente. Wiesbaden: Gabler.

    Book  Google Scholar 

  75. Gourville, J. T. (1998). Pennies-a-Day. The Effect of Temporal Reframing on Transaction Evaluation. Journal of Consumer Research, 24(4), 395–408.

    Article  Google Scholar 

  76. Professional Pricing Society, Atlanta 2007.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Simon-Kucher & Partners Strategy and Marketing Consultants, Bonn, Germany

    Hermann Simon

  2. WHU – Otto Beisheim School of Management, Chair of Marketing and Commerce, Düsseldorf, Germany

    Martin Fassnacht

Authors
  1. Hermann Simon
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Martin Fassnacht
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Simon, H., Fassnacht, M. (2019). Implementation. In: Price Management. Springer, Cham. https://doi.org/10.1007/978-3-319-99456-7_9

Download citation

Publish with us

Policies and ethics

Search

Navigation