Stage 4: MANAGED & MEASURED
Score 6
Currently your organization sits in the upper stratum of the pricing process –stage four, the measured and managed stage of pricing maturity.
Pricing is a collaborative effort across the organization with strong functional guidance provided across product teams. Globally, the right balance is struck between centralized and de–centralized activities. Your organization understands the impact pricing goals and initiatives can have on your business. Pricing processes are determined not only by customer behaviors, but value–based initiatives.
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Score 6Analytics are used for more than reporting the results of past transactions; they are also used for modeling the future –– the effect of simulating different pricing scenarios in order to select the best alternative. Simulations and what-if modeling requires special tools and training, such as those offered by Vistaar. Comparing similar products at different stages of their life cycle enables better anticipation of forthcoming market changes such as higher competitive intensity, loss of price leadership, and rising price sensitivity. This is critical input for price and product portfolio planning. |
Score 6 Customers are grouped for pricing purposes based on their shared purchasing behaviors and values, which can vary a lot, not just simplistic demographic similarities (i.e. industry, size, location). Through the use of cluster analysis, a sophisticated statistical/ mathematical method for analyzing past behavior, Vistaar helps clients determine what matters most and the most relevant groupings for pricing.
A combination of techniques are used to manage portfolios of products / services across their life cycle –– optimizing their relative prices and anticipating changes to market dynamics, such as elasticities, as each stage progresses. |
Score 6Companies in this stage of pricing maturity are well on their way to the next level. Prices have a profound influence on achieving financial, marketing, sales and supply chain goals. For this reason, at the most advanced stage of maturity and organizational development, the management of prices is kept close to the P&L manager of the business.
If you would like to learn specifically how Vistaar can help your company achieve pricing excellence, please contact Vistaar’s pricing specialists at 973–434–6196 for a call and demonstration of our solution |