Answer: S, You are absolutely right. Pricing is much broader than marketing.
The 4 P’s: Promotion, Product, Place, Price
First, as a marketing professor, let’s defend the 4 P’s. If you think of marketing as the process of managing the touch points with buyers, those 4 P’s are pretty reasonable. Promotions or advertising are a valuable touch point. The product is crucial to what the buyers are buying. The Place, or distribution network, is the point of sale to the customer and is critical. Finally, Price is an equally important touch point.
Next, nobody says Product is a part of marketing any more. Companies have Chief Product Officers. They have product management teams that don’t report into marketing. Anybody who uses the 4 P’s as a structure to organize their company will struggle.
Pricing: Customer Value and Infrastructure
Pricing is a verb, not a noun. I’d say 75% of pricing is creating, communicating and capturing value. To implement that 75% well requires product management, marketing and salespeople all to understand value and then do their best to enhance the market’s perception of that value.
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