Pricing really encompasses almost every department inside your company, because when you think about it, pricing is how do we capture that?
And so now it’s all about value, what’s value to the customer. In fact, what’s perceived value to the customer and we can work our way backwards and say salespeople on a one-on-one basis, talking to customers are trying to help each individual customer understand how much value our product might be able to deliver.
“Product teams create value. Marketing communicates value. Sales helps buyers understand their specific value. Pricing captures value. Everyone is coordinated.”
– Mark Stiving
Marketing, on the other hand, looks at a whole bunch of people and says, what’s the type of value that most people are looking for. How can I communicate that value?
How can I communicate that we’re solving problems for those people?
And then we take a step back to the product management or product development piece, and they better be building products that provide value to our customers.
The only way they can do that is if they actually understand what value means.
So in my view, all roads lead back to pricing because pricing understands value, at least the concept of value better than most other departments.
However, every other department probably understands the value of any specific product, better than price.
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