The Singapore Marketer: Why marketers should own the “fourth P”?
In any given organization, who claims ownership of pricing is often a topic of debate. Whether you work in consumer goods, healthcare, telecom, finance or technology, price strategy is not always top-of-mind, nor is it owned by a single department within a company.
Published at the Singapore Marketer (Oct-Dec 2017), our VP Price and Portfolio Management, Oskar Toerneld and Director Asia-Pacific, Robin de Rooij discussed why marketing should own pricing.
Why marketing should own pricing
“We’re all familiar with the four P’s of marketing: Product, Place, Promotion, and Price. For many of us, it seems natural for marketing own or at least be involved in the first three, but pricing is usually left to other functions.
“Pricing strategy is part of brand communication and it has to be in sync with the rest of the message.”
For a pricing strategy to make sense, it must work for consumers or they will stop buying the product. When this happens, it doesn’t matter if a theoretical profit model is being satisfied – focusing on consumers should always drive decision making, regardless of which P we’re talking about.
There are 3 big reasons why marketing should get involved and take ownership on that last P of marketing…”