Price Marketing

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Price marketing is a sales technique or discipline in which a targeted price is “balanced” by facts , advantages and economic benefits in the course of the negotiation in order to be perceived as well-balanced, logically supported. Instead of bringing the price into the negotiation at the end , it is presented in the form of economic aspects such as unit costs , ROI or payback time . This means that it is not so much the absolute price that counts, but the "distribution" of the price over a period of use. Small price differences have z. For example, in relation to 5 or 10 years, there is little effect on profitability and the price is de facto minimized.

Inexpensive certainty

Price scales / VRS

In the profitability consciousness of the decision-makers (decision-making committee), the price-value certainty is developed in order to achieve additional revenue with lower discounts (sales reductions such as discount, bonus or cash discount) and to keep the net price close to the gross price . After deducting the product costs (cost of goods), a higher yield (gross profit or contribution margin) should be achieved in order to achieve a higher profit after deducting the fixed costs for marketing including sales and administration. It becomes clear that with an operating result or a return on sales of z. B. 5% and an improvement in DB 1 by z. B. 5%, with constant fixed costs , the operating result can be increased by 100%. As a result, price marketing experiences a business orientation. The economic, comprehensible facts serve the development and the consolidation of a price-value certainty.

Economic function

The price thus has less of an image-building function than with consumer goods, but clearly an economic function. The decision-makers are “brought closer” to the product (the technology) as a means to an end. The purpose is the improved profitability for the buyer, which is logically substantiated by the better effectiveness and efficiency . Effectiveness is based on the measurable technical data, while efficiency focuses on the economical use of time and money. Price marketing demonstrates the systematic alignment of the negotiation technique and argumentation and makes it easier for the technical consultants to sell prices. The price flows into the presentation as an economic dimension and is not the final point in the room (to "hit the price").

Argumentation structure

The argumentation is made in a decision-maker-oriented manner, i.e. on the levels of technology , investment and competitive advantages in the market that come from the product. Each decision-making level is provided with the relevant facts, advantages and data on economic benefits. The scope is graded differently. So the technical information z. B. be done in 30 minutes. The information for the investors can be reduced to 3 minutes and ultimately the summary for the top management with regard to the competitive advantages only takes one minute or 30 seconds ( elevator pitch ).

The structure

TIM navigation field / VRS

Facts, advantages and economic benefits can be presented in different order depending on the negotiating experience. An incentive can be presented on the technical level (top line) , then the advantages, then the facts and finally the economic benefits. While the investment review (middle line) can begin with the facts, then the economic benefits and finally the benefits. The bottom line can contain the summary aimed at those who place the order and sign the sales contract. The focus here should be on the economic benefit, followed by the facts and finally the advantages. The resulting "checkerboard pattern" allows with the help of the field numbering (e.g. 1 to 9, as with a telephone keypad) or a location like with letters (e.g. TIM for technology, investment and market orientation or top management ) and the column numbers 1 to 3 enable you to quickly switch and find the argumentation fields that are used in a conversation on the phone or e.g. B. are important at the moment during a projector presentation. The systematic price marketing in connection with the homepage on the Internet is suitable for interactive communication and flexible response to the concerns of customers and their decision-makers. Due to the choice of the appropriate terms, the translation into the required foreign languages ​​is made easier in order to develop the certainty of value for money even in a foreign language with the domestic and foreign partners. So that the feeling prevails (emotional marketing ) that you can sign the order without hesitation or with a good "gut feeling".

The feeling will always be of great importance in seemingly rational decisions and the price marketing stimulates the "perceived price", combined with the insight that a balanced price-performance ratio has been achieved or negotiated as the basis for a balanced business relationship. Price marketing can thus be the basis for a long-term and mutually satisfactory business relationship. At the same time, the applied price marketing in sales is a possibility of differentiation and polarization in order to offer better and easier rivalries to other providers who do not value price certainty and price marketing, but instead use price as a weapon in cutthroat competition .

Income House / VRS

The price difference will "melt together" in relation to the long-term consideration of profitability. Price concessions may be necessary, but not to the same extent as in the pure price war, which in conventional negotiations is often fought at the end. The reflection on the price certainty is like a common platform to which a repetitive argumentation can refer in order to save the better / higher price over the negotiation rounds and z. B. to improve the yield by 5%.

Price marketing is successful in practice when slightly higher prices become enforceable in order to stabilize or increase profits.

literature

  • Philip Kotler, Kevin Lane Keller, Friedhelm Bliemel : Marketing Management - Strategies for Value-Creating Action. 12th edition. Pearson Studium, Munich 2007, ISBN 978-3-8273-7229-1 .
  • Heribert Meffert, Christoph Burmann, Manfred Kirchgeorg: Marketing. 10th edition. Gabler Verlag, Wiesbaden 2008, ISBN 978-3-409-69018-8 .
  • Florian Kraus: The transfer of market orientation across hierarchical levels - an empirical multi-level study. Gabler Verlag, Wiesbaden 2008.
  • Philip Kotler, Gary Armstrong, Veronica Wong, John Saunders: Basics of Marketing. 5th edition. Pearson Studium, Munich 2010, ISBN 978-3-86894-014-5 .
  • Günter Wöhe, Ulrich Döring: Introduction to general business administration. 25th revised edition. Verlag Vahlen, ISBN 978-3-8006-4687-6 .
  • Wolfgang Eisele: Technique of business accounting: bookkeeping and accounting, cost and performance accounting, special balance sheets. Vahlen, 2002, ISBN 3-8006-4350-2 .
  • Ralf Burmester: Innovation management: From the product idea to successful marketing. 3. Edition. Verlag Schäffer Poeschel, 2005, ISBN 3-7910-2355-1 .
  • Heribert Meffert: Marketing: Basics of market-oriented corporate management. Concepts - instruments - practical examples. 11th edition. Marketing Edition, 2012, ISBN 978-3-8349-2760-6 .
  • Siegfried Hummel: Cost accounting 1 Basics, structure and application. Gabler-Verlag, 1986, ISBN 3-409-21132-2 .
  • Gabriel Rivas Perez: Direct Costing contribution margin accounting systems in marginal cost accounting. Grin Verlag, 2009, ISBN 978-3-638-66389-2 .
  • Larry Wilson: The minute salesman. 7th edition. Rowohlt TB, ISBN 978-3-499-61438-5 .
  • Spencer Johnson, Kenneth Blanchard: The Minute Manager. 15th edition. Rowohlt TB, 2007, ISBN 978-3-499-61434-7 .
  • Gert Schilling: Sales training The practical guide for advisory sales talks. Verlag Schilling, 2006, ISBN 3-930816-61-X .
  • Dirk Kreuter: Training for the field service Sales and work techniques - tips for organization. 5th edition. Cornelson Publishing House, ISBN 978-3-06-450719-7 .
  • Werner Melchior: A comparison of negotiation techniques. The Harvard Concept and the Matthias Schranners Model Is there an alternative to the Harvard concept? Verlag GRIN, ISBN 978-3-656-40459-0 .

Individual evidence

  1. ↑ Uwe Engler, Ellen Hautmann: Basic knowledge of marketing. Cornelsen, ISBN 978-3-589-23715-9 , p. 95 the marketing instruments in a classic orientation. Marketing authors name exemplary marketing orientations, whereby the focus on price or profitability requires a different structure and the move away from the 4P or 7P model towards the price-value ratio in the sense of a comparison of price and performance (orientation towards a balanced price-performance -Relation).
  2. ^ Peter Hingston: Marketing. DK Professional, ISBN 3-8310-0213-4 , p. 30 ff, pricing, p. 47 ff, export, p. 138 ff, sales techniques, p. 172 ff, dealing with the competition
  3. ^ Lothar Goetsch, Stefan Rödel: Turnover with return: Controlling. ISBN 3-478-85160-2 ,… emphasize on p. 45 according to the Boston model that “knowledge of authority” is practiced, since superiors tend to withhold knowledge in order to keep the level of information of the employees lower. This is where the development of autonomous sales begins in sales, which should be able to independently assess the effects of its negotiation results on earnings and profit and control the price negotiations accordingly. Issue of lack of discipline in sharing information. Provide a comprehensive insight into operative marketing controlling on p. 68 ff and show the step-by-step contribution margin calculation. - In particular, the agreement of target sales prices to ensure success. Represent the principle of economic efficiency (p. 147) in the context of a planning building. And the quality of planning as the sum of effectiveness and efficiency. Including the step-by-step contribution margin calculation.
  4. ↑ Horvath & Partners: The Controlling Concept, The Path to an Effective Controlling System. 7th edition. Beck-Wirtschaftsberater im dtv, ISBN 978-3-423-05812-4 , p. 120 ff, functional process matrix, p. 135 Amortization calculation, p. 136, capital value method, p. 134 Investment calculation method, p. 160 Annual planning process, sales price plan , P. 161, price policy for capital goods, p. 232, strategy description and communication with strategy map and balanced scorecard, value lever model, p. 236, strategy map, p. 276, decision-making process / Lutz Irgel, Gabler's economic knowledge for practitioners, reliable orientation in all commercial question, 5th, completely revised edition, ISBN 3-409-19112-7 , p. 261 ff, partial cost accounting, as a basis for decision support. Gradual fixed cost calculation
  5. ^ Vry: Marketing and sales in an industrial company. 7th, updated and expanded edition. Textbooks for vocational training, ISBN 978-3-470-63137-0 , p. 137 Pricing policy, active and passive page 148, retrograde calculation and contribution margin calculation, page 161 ff, pricing policy for capital goods, discount factors, discount policy, delivery and terms of payment, supplier credit, factoring
  6. ↑ Monika Hauner Dinger, Hans-Jürgen Probst: BWL made easy. The important instruments and methods of corporate management. 1st edition. 2008, ISBN 978-3-636-01538-9 , p. 161, starting points for the condition policy, ff, p. 166 Corporate behavior in line with corporate communication and design. This gives rise to the knowledge of the extent to which the sales staff has an influence on the external image in order to develop competitive advantages through personal commitment, p. 166 Corporate behavior in harmony with corporate communication and design. This gives rise to the knowledge of the extent to which the sales staff has an influence on the external image in order to develop competitive advantages through personal commitment, p. 169 ff. E-Commerce / E-Business
  7. ^ Hans-Dieter Zollondz: Basics of Marketing, Crash Course. ISBN 3-589-23791-0 , p. 75, ff magical price policy triangle and the price policy instruments and page 78 ff perform price control and definition of communication policy as well as page 80 communication models, p. 82 push and pull communication, p. 87 die three additional Ps in the Marketing Mix, p. 92 Internet Marketing and Net Economy