Aligning the pricing organization to the market type in industrial markets

Not all industrial markets are alike, and therefore the pricing organizations within firms serving industrial markets are also dissimilar. In this article, we will examine the alignment of the firm's organizational structure, routines and tools used in pricing in relation to the market type. The analysis will be based on aligning the core pricing challenges facing the firm to the transactional landscape, where the transactional landscape is defined by the value and volume of transactions. Market types in the transactional landscape can be characterized as a niche opportunity (mouse), a high‐value/low‐volume transaction market (hawk), or a low‐value/high‐volume transaction market (seagull).