Pricing: The Most Overlooked Growth Lever in the Marketing Mix

In marketing, we talk a lot about brand, innovation, and creative – and rightly so. These are the juicy elements that grab buyers’ attention. But in my experience, we talk much less about pricing – yet it is just as important, and a critical lever for growth.

As I write this piece, the global economy is in a state of shock. Again.

Inflationary pressures have been a mainstay over the past half decade, and the rate across the G20 countries is now expected to hit 4% this year – an unwelcome upward revision. Higher energy prices are already being felt by consumers and businesses, and suffice to say, the outlook for growth remains precarious.

Given this economic context, there are no doubt similar questions emanating from many boardrooms:

“What impact will inflation have on demand and buying dynamics?”
“What can we do to protect profit?”

In most categories, the answer is sitting in plain sight – pricing.

The classic 4Ps framework (Product, Price, Place, Promotion) exists for a reason: growth is not driven by one lever alone. It is the combined effect of what you sell, what you charge, where you sell, and how you create demand.

 

 

But within this framework, Price is different. It is the only P that turns value into revenue, yet most organizations treat it as a finance setting rather than a strategic marketing choice. Many businesses will agree that pricing is a tricky thing to get right – and many are likely making decisions on instinct rather than insight.

Every business, whether B2B or B2C, should have an insight- and evidence-led pricing strategy. When I was younger, my grandma used to say:

“Look after the pennies and the pounds will look after themselves.”

And that’s the thing about pricing – it’s about taking care of the details in what is, quite literally, a game of fine margins. When pricing is treated as a strategic lever, and those pennies are looked after, the benefits are substantial:

• Maximize demand and/or revenue with pricing that best satisfies customers

• Signal value more clearly, making it easier for buyers to choose you

• Avoid leaving money on the table by not pricing too cheaply and reflecting value and quality appropriately

• Avoid losing sales to competitors by not pricing too highly and justifying any premiums correctly

• Understand what creates value and prevent under- or over-valuing parts of your offer

• Protect and expand margin without relying on volume growth

• Identify areas that need improvement to warrant price premiums

• Reduce subsidization from uncontrolled or unnecessary discounting

• Build resilience in volatile markets by knowing where you have pricing power

Pricing is where strategy meets commercial reality. At this juncture, brands either lose potential value or use evidence to outperform.

 

 

Developing Insight-Led Pricing Strategies

Marketers and insight professionals have several research methods available to help optimize pricing. However, many of these approaches were designed for consumer markets and often need adapting for B2B contexts.

Having worked in both B2B and B2C research, I’ve seen first-hand how structurally different – and more complex – B2B markets are, and why they require tailored approaches.

Here are some of the key differences:

1. B2B purchases are inherently different

B2B categories comprise a mix of products and/or services, transacted for large sums of money. Prices are often negotiated based on contract terms, volumes, bundles, service levels, and negotiation dynamics. Two customers can pay different prices for what appears to be the same offer.

As a result, not all customers are created equal – regardless of what their firmographics may suggest on paper.

2. Packages and tiers add extra complexity

In B2B, what’s included – and what’s excluded – can matter as much as the cost. The wrong feature allocation across tiers can under-monetize premium value or make an entry package unattractive, distorting demand and conversion.

Buyers make decisions based on multiple factors at once, often involving trade-offs to find a package that suits their myriad needs.

3. There isn’t just one buyer

B2C decisions are often individual and fast. B2B decisions are typically slower and involve multiple stakeholders.

We know from The Superpowers Index that the average B2B decision-making unit comprises 7.5 people, and from start to finish, the average purchase decision takes 375 days. That’s a significant number of touchpoints – and it fundamentally changes how value is assessed and how price sensitivity shows up.

4. Buyers are not the only end users

Decision-makers are purchasing goods and services to meet the needs of their business and colleagues. These decisions require justification, evidence, reassurance, risk minimization, and above all, trust – the most influential decision driver in B2B buying for three years running.

Price on its own is far less of a differentiator. Value is assessed based on what the solution will deliver and how it fits into the buyer’s world – now and in the future.

5. Value is measured in outcomes

Consumer willingness to pay can be driven by identity, emotion, and convenience. In B2B, value is more often framed as ROI: hours saved, risk reduced, revenue unlocked, compliance achieved.

Pricing must map to clear business impact – and be evidence-based and defensible to procurement and finance teams.

 

 

Pricing as a Strategic Lever

In B2B categories, pricing rarely operates in isolation. It shapes buyer choices by signaling whether your offering is worth it – whether it will deliver what the buyer needs at an acceptable price compared to competitors.

The latest edition of The Superpowers Index shows that being “competitively priced” is a key differentiator for winning B2B brands. Strong performers pair price with support, dependability, and tangible business impact, creating trust in their ability to deliver.

 

 

 

Small price savings alone are unlikely to encourage buyers to switch if doing so creates disruption and risk. Equally, higher prices do not automatically signal better service – especially if the package is not aligned to the buyer’s needs.

Pricing goes beyond the number. It signals value, ease, and commercial effectiveness – underlining its role as a critical strategic lever.

Knowing the optimal mix of prices and products is therefore crucial:

• It sets expectations of value and credibility. Cheaper does not always mean better – pricing too low can signal commoditization
• It can remove you from consideration early if the price-to-value story is unclear
• It is where money is most often left on the table – under-pricing remains a common issue

In practice, pricing mistakes tend to show up in four predictable ways:

• Limiting demand by pricing the entry point too high or designing misaligned tiers
• Eroding margin through inconsistent discounts and weak governance
• Mispricing features – charging for what buyers don’t value and giving away what they do
• Losing winnable deals due to hard-to-defend price architecture

The uncomfortable truth is that in many B2B markets, pricing issues go unnoticed until they are significant – because the impact is spread across thousands of micro-decisions.

 

 

Optimizing Pricing Through Research and Evidence

If pricing is a strategic lever, research gives you the strength to pull it effectively.

Brands quickly discover if the market perceives their pricing as too high – but rarely hear that it is too low. This is where research plays a vital role: optimizing pricing in the cold, hard reality of the market.

Establish guardrails and directional sensitivity

• Priced purchase intent to assess acceptance at current and alternative price points
• Gabor-Granger to understand willingness to pay and elasticity patterns

 

Gabor Granger example

 

• Van Westendorp Price Sensitivity Meter to determine acceptable ranges

 

Van Westendorp example

 

• Brand Price Trade-Off (BPTO) to simulate real brand choices at specific price points

 

Brand Price Trade-Off (BPTO) example

 

Connect price to value drivers

This is where pricing becomes more than a number.

Techniques such as value driver analysis, prioritization exercises, and SIMALTO uncover what matters most – helping businesses design packages that maximize both demand and margin.

Simulate real choices and trade-offs

When complexity increases, more advanced methods are required.

Choice-Based Conjoint (CBC) quantifies how buyers evaluate trade-offs between features, benefits, and price – enabling more confident decisions and better package design.

 

 

Where existing methods fall short, innovation fills the gap.

The RIVR Model, developed by Thomas Grubert (Head of Statistics), models the appeal of tiers and prices to maximize revenue potential. We’ve applied this successfully with global B2B brands to simplify highly complex pricing challenges.

We’ve also developed a two-dimensional Gabor-Granger approach to better reflect B2B realities – with more innovation to come.

 

 

The Price Is Right

Given the challenges in the global economy – and the inherent complexity of B2B markets – it’s critical not to overlook the power of Price within the 4Ps.

• When did you last properly review your pricing strategy – not just adjust it?
• Do you know what truly drives value and willingness to pay?
• Are your tiers and discounting rules designed to maximize both demand and margin?

If you’re ready to start looking after those pennies – and turn pricing into a true strategic growth lever – get in touch.

 

 

 

To discuss how our tailored insights programs can help solve your specific business challenges, get in touch and one of the team will be happy to help.