Pricing Management Optimization From The Perspective Of COSO

As one factor of the4Ps (product, price, promotion and place), price is well known asan important marketing variables and the most sensitive factor in marketingmanagement. Price and pricing are regarded as a useful tool which can be applied toresponse the changing marketing environment, increase revenue, win a large marketshare and enhance corporation influence on market.However, most usually, management team only focus on the decision making level ofpricing and expect to accomplish the profit maximization through developing pricestrategies and improving pricing tools. The impact of controlling pricing process hasbeen greatly ignored. In which case, even the most scientific, reasonable pricingstrategy doesn’t work as expected due to be short of attention from the highestmanagement team, the inappropriate organization setting, and lack of internal control.Considering above circumstances, this paper aims to dig out the relationship betweenCOSO frame and pricing management process, so to find out how pricing processhelp to achieve the goal of enterprise risk management and also, to provide the leaderof the enterprise an idea that effective control on pricing management process willhave great positive impact on achieving the goal of enterprise.Leading by this idea, this paper also pick out some existing issues which are usuallymet in real pricing world. And by analyzing all the issues separately, severalsuggestions are also offered to address the importance of pricing processmanagement.