ACTIVITY-FOR-PRICING-STRATEGIES.docx - Participants in the...

Participants in the Pricing
Activity
In a small business organization, the owner/manager will be heavily involved in,
and most
responsible for, pricing activities. In a large business organization, it is likely
that many
people within the organization will play a role in pricing activities.
Some of the individuals in a large organization who play a role in pricing
will have
very direct pricing involvement and responsibility. Here are some examples
of such
direct roles:
•
ꢀ
In a department store, it is usually the merchandise buyer who will do
most of the
price setting for the items he or she buys to be sold in the
store.
•
ꢀ
In many large consumer products organizations, a brand’s product
manager will
have much of the responsibility for setting the prices of a
brand.
•
ꢀ
In companies that sell to business customers, salespeople and their
managers
play a crucial role in the negotiation processes by which prices are
determined.
•
ꢀ
In service industries, such as airlines and hotels, there will often be
pricing
departments with specialists trained in revenue management , a set of
complex
price-setting techniques that are frequently used in these
industries.
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There are also likely to be many people in a large organization who participate
in pricing
activities but who do so in a way that is less direct. For example, employees in the
accounting
department often provide information about the costs of products and of the
operations
involved in getting products to the customer; accurate cost information is essential
for effective