Can marketers affect consumer sensitivity to price changes?
7 reasons why marketing should work with finance to master the art of price management
The first time I interviewed Mark Ritson, the UK’s inflation rate had hit a 40-year record high. It was June 2022, and the harmless colloquialism ‘everything in the world comes with a price tag’ echoed like an intimidating command. I asked Mark if there was an easy way out for marketers. “It’s simple, Mary”, he said. “They can’t afford to leave money on the table anymore; they’ve got to get pricing right”. He went on to explain how he split pricing into 1. Price setting activity, 2. The price itself and the results from the price setting, 3. The communication of the price and how we frame and contextualise it.