edf40wrjww2CF_PaperMaster:Desc
Pricing Strategy for Business Markets: Pricing decisions cannot be made in a vacuum because of inherent tradeoffs between other marketing mix elements, pricing will depend on other product, distribution, and promotion decisions.
Pricing can never compensate the poor execution of the other elements of the marketing mix but ineffective pricing can prevent the successful efforts of these in positive financial results. There is no one best practice for establishing the price of new products or modifyingthe price of existing products. The firm’s objectives, markets, costs, competition and customer demand patterns must be integrated in every price setting decision. The role of price for organizational buyers A price is considered as a function of costs and benefits. The entire product a buying center buys is much more than a physical item. They are buying a given level of product quality, technical service and delivery reliability. There are other influences may be of importance for the buying decisions like the reputation of the supplier, a feeling of security and personal relationships. It could be summarized into 3 categories: Product specified attributes Company related attributes Salesperson related attributes The evaluation of a product based on benefit- dimensions to value them. Functional benefits ( design) Operational benefits (durability, reliability) Financial benefits (favorable terms, cost savings) Personal benefits (individual ...