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Where Should the Pricing Function Be Located?

Exploring the Pros and Cons of Pricing Reporting to Sales, Marketing, Finance, or the CEO

When looking to establish a formal pricing function, one of the first questions that comes to mind is around where it should be located organizationally. Because the organizational location can determine a great deal about how a function performs over time, this decision shouldn't be taken lightly or made in haste. In this research briefing, you'll learn about:

  • The four typical locations for Pricing: Sales, Marketing, Finance, or reporting directly to the CEO.
  • The reported pros and cons associated with each location, as well as the overarching rationale.
  • The strategic benefits of certain organizational locations and the tactical downsides of others.
  • The model that can provide an "insurance policy" on the decision about where to locate Pricing.

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