Objective
One of the central issues of pricing strategy is the specific control of revenue and profit. Price management is a key driver for specifically controlling profit, revenue and volume targets for different business units and regions. This control tool has to be clearly aligned by the management. If used correctly, pricing strategy is an important management control tool for aligning single business units and regions with the companies’ targets. It is designed to integrate the following aspects into a consistent and strategic framework:
- Individual business unit targets (earnings, growth, revenue etc.)
- Company’s (price) positioning
- Targeted price image
- Competitive behavior (e.g. price leadership and price dynamics)
- Target customer segments
- Customer expectations
Implementation
During joint workshops with the relevant managers and the management board, we consequently derive the pricing strategy from the overall business strategy. In doing so, we jointly identify markets with strong potential, as well as the company’s strengths and weaknesses in comparison to the competition. In this way, we create the basis for specific and differentiated price optimization measures in the following process steps.
Prof. Dr. Oliver Roll
Prof. Dr. Oliver Roll is Chair of “International marketing and price management” at Osnabrück University of Applied Sciences. He is a member of the European Pricing Platform’s Academic Advisory Board. Prof Roll gained extensive management experience at Simon-Kucher & Partners, before moving to Roland Berger Strategy Consultants to establish their Pricing Excellence Unit. He has managed marketing and pricing projects for numerous international companies. Prof. Roll also speaks at various management conferences on the topic of price management, and has published numerous articles concerning different aspects of the pricing process.
Steffen Kampmann
Steffen Kampmann is a partner at Prof. Roll & Pastuch – Management Consultants and heads the Chemicals, Plastics and Raw Materials divisions. He has been working as a consultant in the international environment for multinational corporations and medium-sized companies for more than 13 years. Mr. Kampmann brings extensive experience from a variety of strategy, pricing and sales projects. He also publishes professional articles and regularly appears as a moderator and speaker on the topics of strategy, pricing and sales.