The Underrated Power of Price in Marketing: A New Research Perspective

In the current business landscape, marketers seem to regard pricing as their least important responsibility, while profit margins are essential for business growth. Do you think pricing is merely a task for the finance department? Read on to discover why this perception could harm your business.

Despite the crucial role that pricing strategy plays in business, a recent study by Marketing Week, supported by Kantar, reveals that less than one-fifth of marketers consider increasing and defending profit margins through pricing as their primary task. This trend is even more pronounced in larger companies, where only 15.3% of respondents believe that raising and maintaining profit margins is a responsibility of the marketing department.

These findings suggest a potential imbalance in current marketing strategies. This has significant implications for both B2B and B2C companies, as most marketers underestimate how much their role can contribute to profit optimization. The impact of this perception is amplified by the current economic climate, in which many brands are raising their prices.

Possible solutions to this issue include a reconsideration of the role of marketers in pricing strategy. Marketers in larger companies, for example, could gain more influence over pricing decisions. Additionally, a renewed focus on the importance of pricing strategy in marketing education and training could help change this perception.

In light of these findings, Les Binet, a prominent marketer, warns against 'meaningless' price promotions and emphasizes the importance of a solid pricing strategy: "If your prices aren't right, you won't make money. Optimizing your prices in this turbulent world is priority number one, and to do that, you need to understand supply and demand in your sector."

Therefore, it is essential for marketers to shift their focus and place greater value on pricing strategy, thereby contributing to business growth and achieving corporate goals. By redefining their role in this way, they can exert more influence on profit optimization and ultimately have a positive impact on both the short- and long-term performance of their companies.

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