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Sales Marketing on the Communication of Price Increases
In times of the Corona pandemic and the Ukraine war, it is a difficult task to communicate price increases successfully. Under the title “Trapped in the Price Spiral”, the marketing magazine Absatzwirtschaft investigates the question of how brands can still succeed.
In the confusion of raw material shortages, tearing supply chains and record inflation as effects, it is becoming increasingly difficult for brand companies and retailers to adjust prices and to communicate this successfully. In answering the most important questions on the subject, the magazine also sought the assessment and advice of Hans-Christian Riekhof, Professor of International Marketing and expert in price management at the Private University of Göttingen.
Pricing expert Riekhof: Price controlling is underdeveloped in many companies
In response to the question of how marketing should accompany the communication of price increases, he assigns the task to marketing to announce increases and prepare end consumers for them. These messages would always also indirectly address competitors.
At the B2B level between manufacturers and retailers, the role of marketing is less. Here, marketing or product management must develop the line of argument, but the actual implementation of the price increases is the responsibility of sales, the pricing expert is quoted. Subsequently, good price controlling is required, i.e. the subsequent analysis of one’s own price strategy, “a function that is underdeveloped in many companies”, according to Riekhof.
Photo/Screenshot: ©Eva Vasari
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Links
Read the full article on absatzwirtschaft.de:
www.absatzwirtschaft.de/gefangen-in-der-preisspirale-233977
Read/download the full article as pdf:
https://www.unicconsult.com/wp-content/uploads/2022/08/Gefangen-in-der-Preisspirale-Absatzwirtschaft.pdf