Industrial Pricing

Road Map
Pricing Strategy Pricing in Industrial Markets Controls Influencing factors Pricing Strategies Price analysis
Examples

Industry Examples
NPD Cost-benefit Analysis & ROI Budgetary pricing Bidding Government Quotations filling Entertainment pricing

Pricing Strategy
How does a company decide what price to charge for its products and services? What is the price anyway? doesnt price vary across situations and over time? Some firms have to decide what to charge different customers and in different situations They must decide whether discounts are to be offered, to whom, when, and for what reason

Pricing in Industrial Marketing

In price competition, a seller regularly offers products priced as low as possible and accompanied by a minimum of services. In non-price competition, a seller has stable prices and stresses other aspects of marketing. With value pricing, firms strive for more benefits at lower costs to consumer. With relationship pricing, customers have incentives to be loyal-- get price incentive if you do more business with one firm.

Control of Price
Market needs Customer Values Manufacturing costs Competition Economic Conditions

Government Regulations
Reseller profit margins

Influencing factors
Internal
Costs Product-line

External
Demand Competition

Marketing Strategy
Management Judgement

Channels
Product life-cycle

Economic conditions
Politico-legal system

Pricing Strategies
Product mix pricing strategies
Holistic approach Consider different products, their costs, competition & demand

Product Life Cycle Considerations

Decisions based on product life-cycle Market Penetration & Skimming

Technology Adoption cycle Pricing strategies over business cycle

Based on an assessment of general economic environment

Pricing Strategy influenced by Government Competitive Pricing strategies

Bidding & negotiating strategies

Pricing Analysis
Break even analysis Return on investment Expected pay-off Analysis Competitive Bidding & Negotiation Cost Benefit Analysis Budgetary quote Final quote

Industry Examples

Thank you