Pricing of Industrial Products and Services

In: English and Literature

Submitted By shahrukhmsheikh
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PRICING OF INDUSTRIAL PRODUCT AND SERVICES

Introduction “Price is the measure by which industrial customers judge the value of an offering and it strongly impacts brand selection among competing alternatives”. (Shipley and Jobber (2001, p. 301). Pricing is a process where a business firm sets the price at which it will sell its products and services in such a way that it can generate profit as well as satisfy the customer, and it may be a part of the business’s marketing plan. Price management is a very critical element in marketing and competitive strategy and a key determinant of performance. Among different pricing strategies, marketing managers can choose their preferred type. The overall objective of pricing is to increase sales and profits globally (Kigan, 2001).Global Pricing subject can be fully integrated and considered into the product design process (Kigan, 2001) As the ultimate aim of the industry is to earn profits so pricing of industrial products and services should be based on desire of the customer.
A company set the price for the first time for the following items i.e. when a new item is manufactured or a new product comes from normally when an item is directed to a new distribution channel, or it is offered to a new geographic area. Companies need to decide the positions of their product in terms of their quality and price.
Literature review
Research shows marketing scholars have devoted only little effort to pricing theory and practice. This lack of academic research in the field of industrial pricing is also evident when it comes to new product pricing, since review of relevant literature reveals limited number of empirical studies. Since none of the studies has focused on the antecedents of the alternative new product pricing strategies that an industrial firm may formulate. All classical marketing describe three basic strategies for…...

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