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B2B 4 432

This document discusses pricing strategies and considerations for business-to-business (B2B) markets. It outlines that pricing is based on perceived value by different customer roles as well as total cost of ownership. Pricing objectives, demand analysis, cost analysis, and competitive analysis must all be considered. Different pricing strategies can be used including skimming, penetration, and those applied across the product lifecycle. The document also reviews pricing policies, payment terms, communication mix, and the roles of advertising, sales promotion, and public relations in industrial marketing.

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33 views

B2B 4 432

This document discusses pricing strategies and considerations for business-to-business (B2B) markets. It outlines that pricing is based on perceived value by different customer roles as well as total cost of ownership. Pricing objectives, demand analysis, cost analysis, and competitive analysis must all be considered. Different pricing strategies can be used including skimming, penetration, and those applied across the product lifecycle. The document also reviews pricing policies, payment terms, communication mix, and the roles of advertising, sales promotion, and public relations in industrial marketing.

Uploaded by

subbugss
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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PRICING IN B2B MARKETS

Pricing
Value proposition.

Perceived value and cost of the product or


service. Perceived value differs from person to person. production manager : quality n reliability. Finance manager: low cost n credit Purchase manager : reputation and dependability Total cost of product: price + transportation + ins + installation. Risk of pdt failure, delivery delay etc Volume discount cash discount etc.

Factors affecting the Industrial pricing


Government Regulation Pricing objectives

Demand
Analysis

Factors affecting the Industrial pricing


Cost Analysis Competitive Analysis

Pricing objective
Survival

Maximum short term profits


Maximum short term sales Maximum short term growth Maximum short term market skimming Product quality leadership Others

Demand and cost analysis


Price elasticity of demand (pcd/pcp). Depends on

Few competitors No substitute products Buyers thinking Small portion of final cost

Cost benefit analysis.


Hard and soft benefits Life cycle costing concept.

Classification of costs

Economies of scale
BEP Experience curve.

Competitive analysis
Competitive information is valuable in IM
Firms sales people Dealers Disguised method Market research By buying

Competitors response to price changes


Study major competitors Anticipate the expected reaction.

GOVT regulation
MRTP Act Price discrimination Predatory pricing

Pricing strategies
Competitive bidding in competitive markets
Open / closed bidding

Pricing new products


Skimming pricing .
Penetration pricing.

Pricing across the PLC.


Growth, maturity, decline strategies

PRICING POLICIES
Key terms associated with pricing

List price
Trade discounts Quantity discounts Cash discounts Geographical pricing
Ex factory pricing
FOR/FOB destination

Commercial terms and conditions of industrial marketing


Direct payment

Payment through bank


Letter of credit Documents against payment 95/5,98/2 payments Bank guarantee

Price basis
Price variation clause

Price ruling at the time of delivery.

LD/penalty.

What is letter of Credit?

Its a kind of written document issued by a bank on

application of the importer in which the bank promises to pay on certain conditions.

Role of leasing
Lease v/s purchase Types of leases Financial leases Operational leases

Communication mix
Personal selling

Advertising
Sales promotion

Direct marketing
Publicity and public relations

Communication programme
1. Determine the Communication objectives

2. Identify the target audience


3. Determining the promotional budget

4. Developing message strategy


5. Select the media

6. Evaluate the promotion results


7. Integrate the promotion programme

Determine the Communication objectives Buyers awareness level Changes in buyers attitudes Buying action Identify the target audience Identify the buying organization Identification of the attitudes and buying

factors of BC Determining the promotional budget Affordable method Percentage of sales method Competitive parity method Objective-task method

Developing message strategy Rational appeal Informed customer Customer benefits. Select the media Target audience Communication objective Budget Products utility Evaluate the promotion results Integrate the promotion programme

Role of advertising in IM
Creating awareness Reaching members of buying centre Increasing sales Reminder Lead generator Support to intermediaries

Media used in IM
General trade publication and journals
Horizontal publication Vertical publication

Advertising agencies

Importance of SP, PR,DM in IM


Sales promos
Trade shows Catalogs Sales contests Promotion novelties Entertainment

Promotional letters Seminars and demonstrations

Public relation Direct marketing


Direct mail Telemarketing Online marketing channels

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