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6

Pricing Orders: Pricing Strategies


Part 2: Capturing Orders
Order Management and Fulfillment Cloud Implementation

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Learning Objectives

After completing this lesson, you should be able to:


• Describe what a pricing strategy is
• Explain customer pricing profiles
• Describe the purpose of a pricing segment
• Explain pricing strategy assignment
• Derive a pricing strategy for a customer
• Explain the concepts of matrixes and how they are used

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Order-to-Cash Process

APPROVALS
TRANSPOR- ORDER
TATION PROMISING
CREDIT PLANNING
VERIFICATION ORCHESTRATE
FULFILLMENT
COMPLIANCE SHIPPING,
SCREENING INVENTORY,
RECEIVING
ORDER
PRICING EXPORT/IMPORT
DOCUMENTS

PRODUCT
CONFIGURATION
TRANSPORTATION
EXECUTION
SOCIAL
NETWORKING
ORDER INVOICE &
CAPTURE COLLECT

Capture & Book Promise Orchestrate

Order Pricing Configuration Global Order Trade Transportation Inventory/Account


Promising Compliance Management Management

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Topics

• Pricing in Order Management


• Pricing Strategies
• Setups: Matrixes

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Pricing Strategies

Capture Orders

Enter Orders

Navigation Infolets/
Create Order
Model Overview Page

Configure
Price Order
Order Lines
Tax

Transform
Orders

Import Orders

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Pricing Solution
Pricing Strategies

Customers

Pricing
Pricing and Shipping Rules
Setup

Prices Discounts Costs Shipping Guidelines

Execution
Process

Price Execution Process


Order Priced Order

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Business Use Case

You are a pricing administrator at Vision Corporation. Your team is responsible for pricing
implementation and activities of establishing your pricing segments and strategies, defining
prices, managing discounts, and defining shipping charges for your products.
As part of the company’s annual pricing review, you will focus on the areas that impact
pricing for the customer Computer Service and Rentals.
• Pricing Segments and Strategies
• Price Lists
• Discount Lists
• Shipping Charge Lists
• Guidelines

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Topics

• Pricing in Order Management


• Pricing Strategies
• Setups: Matrixes

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Pricing Strategies: Overview

• Configurable process to derive the pricing


Customer Profile
strategy by using:
– Customer pricing profile
– Pricing segment
Pricing
– Pricing strategy assignment Segments

• Pricing strategy is the container for the Revenue High Value Low Cost to
Potential Accounts Serve
pricing rules.
– Price lists, discount lists, shipping
charge lists, cost lists, currency
conversion lists, guidelines, and Pricing
more Strategies

Pricing Rules

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Topics

• Pricing in Order Management


• Pricing Strategies
• Setups: Matrixes

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Pricing Strategies: Customer Pricing Profiles

• Set of pricing-related attributes that describes a customer’s buying behavior


• Date-effective to accommodate changes in a customer profile

Computer Service and


Rentals

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Pricing Strategies: Pricing Segments

• Is a grouping of customers who exhibit a common set of characteristics and similar


buying behaviors
• Identifies targeted groups of customers in order to apply specific pricing strategies
• Leverages extensibility of matrix

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Pricing Strategies: Pricing Strategy Assignments

• Is the assignment of pricing segment to pricing strategy


• Provides a mechanism to employ different pricing strategies for the same pricing
segment in different selling scenarios
• Uses extensibility of the matrix

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Pricing Strategies

Defines the approach for achieving a specific goal around selling and pricing products

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Price Execution: Derive Pricing Strategy
Execution
Process

Order Priced Order

Customer Pricing Pricing Pricing


Pricing Profile Segments Strategy Strategy
Assignments

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Demonstration: 6-1

• Reviewing Pricing Segment and Strategy

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Topics

• Pricing in Order Management


• Pricing Strategies
• Setups: Matrixes

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Matrixes: Overview

Define a set of dynamic conditions and results in a tabular format


Consists of 3 components
Matrix Classes
• Matrix Classes
• Matrix Types
• Matrix Rules

Matrix Rules Matrix Types

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Matrixes: Overview

• Matrix class is an intuitive framework that a pricing administrator uses to define a


multidimensional matrix to evaluate certain results based on a set of conditions.
• The conditions, results, and a comparison operator are defined as columns in a
spreadsheet-like UI within Pricing Administration.
• Matrixes are composed of the following components:
– Matrix class: Associated with a pricing entity type, such as pricing segment and
strategy assignment
– Matrix type: Used to map matrix class and pricing entities
– Matrix rule: Leverage the matrix class definitions in pricing entities

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Matrix Classes

• Contains the details of the


matrix structure
• Manage the condition and
result columns

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Matrix Types

Map matrix classes to matrix types

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Matrix Rules

• Create multidimensional rules based on conditions and results

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Practice 6-1: Reviewing Pricing Segment and Strategy

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Summary

In this lesson, you should have learned how to:


• Price an order
• Describe what a pricing strategy is
• Explain customer pricing profiles
• Describe the purpose of a pricing segment
• Explain pricing strategy assignment
• Derive a pricing strategy for a customer
• Explain the concepts of matrixes and how they are used

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