ABSTRACT
Of all of the component elements of the marketing mix, pricing is often the most problematic for marketing executives to manage. Unlike all other constituent parts of the mix, pricing is concerned with the determination of revenue and plays a crucial role in the derivation of product margins and profi t. In many fi nancial services organisations price is the one element of the mix that is not under the control of the marketing function. Indeed, it is commonplace for the marketing team to have no infl uence in the setting of prices but for them to be passive recipients of prices set in other parts of the organisation. In the case of an insurance company, prices are often prescribed by one of the actuarial functions. In banks, prices are often set by the fi nance or treasury division, while in building societies it is often the prerogative of the fi nance team. Thus, pricing is often the source of much internal organisational politicking and, therefore, must be handled with care to ensure that all relevant parties participate in the process in a suitably joined-up fashion.
