Market-Oriented Pricing: Strategies for Management

Market-Oriented Pricing: Strategies for Management

Market-Oriented Pricing: Strategies for Management

Market-Oriented Pricing: Strategies for Management


This volume offers a comprehensive guide to market-based pricing strategies. The authors present pricing as a relatively simple but extremely powerful marketing tool--a creative variable that managers can manipulate to accomplish a wide variety of ends. Arguing that companies must move away from the traditional, short-term, reactive methods relied upon to set and manage prices, the authors call for a systematic, strategic and market-based approach to the pricing problem. Their central unifying theme is that pricing begins and ends with the customer and that every pricing action should be part of a larger pricing program built around the realities of customer needs and competitor pressures.


When a business firm attempts to mold its whole policy to meet the prices of its competitor, that business is entering a labyrinth the center of which is the chamber of despair. Highest quality never can be given nor obtained at the lowest prices. If a price must be sacrificed, quality must be sacrificed. If quality is sacrificed, society is not truly served.

H. T. Garvey

I suspect we agree that business is not a very precise science. and of the many business functions, pricing emerges as one of the least understood. Like most fuzzy areas, it has generated more than its share of books, seminars, and articles. It's sort of a contradiction. Pricing, one of the great Pillars of Marketing, is loaded with vagueness and inconsistency. As practiced by many, pricing is anything but a planned and coordinated business function. An example:

A manufacturer of business and computer forms is trying to get in with a major national bank. the forms company is a division of one of Fortune's Fifty and has some of the advantages of a conglomerate's corporate clout. the competition, a medium-sized company, has been selling to the bank for years. the dialogue:

"Hell, the bank's V.P. Purchasing is so fond of them there's no way we can get in."

"How about price?"

"Price? We just might get a piece of it if we went in at cost or even shaded that a bit. After we are in, maybe we could bring the price up. Problem is getting it past our legal people. Predatory pricing ain't pretty words, George."

"Here's another idea. As a conglomerate, we have loads of different division bank . . .

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