Abstract
A chain is as strong as its weakest link. Companies pay the full price of inefficiencies when they are trapped in poor implementation, even when they have set out an effective Channel Strategy and Commercial Policy.
The Strategy won’t execute itself, this is why the last step of the BEST-X methodology focuses on the weakest elements of the chain: Execution. This chapter casts a wide net over the core pricing principles and provides valuable insights on Pricing Infrastructure, Systems and Data, Exception Management, Channel conflicts, Organization Design, and Processes. It concludes with a review of the key Pricing Strategies and Tactics, a core discipline to be mastered in any successful Distribution initiative.
At the end of this important section you will be able to identify and mitigate execution risks, build a proper infrastructure and reduce forgone revenues. Finally, you will learn how to anticipate channels risks and find ways to mitigate them.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Fast moving consumer goods.
- 2.
See Chap. 5.3 introducing the Gross-to-Net concept.
- 3.
In most legal environments manufacturers are not allowed to set retail pricing, even if several exceptions apply depending on the competitive circumstances.
- 4.
In the USA, gender discrimination is being challenged by courts, even at hair-salons, bars or dance club. Haircuts costs the same and some shops are targeting men (higher chair rotation) and other women as businesses usually cannot charge. differently solely based on gender.
- 5.
- 6.
“The Relationship Between Distribution and Market Share” Paul Farris, James Olver, Cornelis De Kluyver.
- 7.
Market Pulse, 2014: surveyed 1000 employees at large organizations in Australia, France, Germany, the Netherlands, the United Kingdom and the United States.
- 8.
For more details on Data please refer to the dedicated Chapter on business intelligence.
- 9.
The Global Trade Manager role typically found in multinational organizations is a senior cross-divisional leader overlooking the company’s commercial strategy and policy.
- 10.
Please refer to each methodology step for more details on the linked processes.
- 11.
For example Toys R Us, a leading retailer with over 1600 points of sale and 75,000 employees has filed for Chapter 11 in an attempt to restructure a $5 billion debt. It has not been able to retain customers that have switched to online retailers.
- 12.
Managing advertising and promotion for long-run profitability, Kamel Jedidi, Carl F. Mela, Sunil Gupta.
- 13.
See the Price tactics paragraph.
- 14.
It is however also one of the most legally challenged area as price points or promotions set solely on customer willingness to pay could be interpreted as unlawful ‘pricing discrimination’, therefore it is essential to consider the local legislation during the process.
- 15.
Dan Ariely, Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions by Ariely, Dan (2010) Paperback.
- 16.
Raj Sethuraman, V. Srinivasan, Doyle Kim: Asymmetric and neighborhood cross-price effects: some empirical generalizations.
- 17.
Lock-in costs which create barriers to market entry may result in antitrust action against a monopoly.
- 18.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer International Publishing AG, part of Springer Nature
About this chapter
Cite this chapter
Moretti, L. (2019). Phase 5: Execute. In: Distribution Strategy. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-319-91959-1_6
Download citation
DOI: https://doi.org/10.1007/978-3-319-91959-1_6
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-91958-4
Online ISBN: 978-3-319-91959-1
eBook Packages: Business and ManagementBusiness and Management (R0)