Bài giảng Marketing công nghiệp: Chapter 9 - Ph.D. Đinh Tiến Minh

1/3/2017<br /> <br /> Chapter 9<br /> <br /> Pricing in Business Marketing<br /> www.dinhtienminh.net<br /> <br /> DINH Tien Minh (Ph.D.)<br /> University of Economics HCMC<br /> <br /> Objectives<br /> Examine the special meaning of price.<br /> Understand and analyze the factors influencing<br /> the pricing decisions.<br /> Study the different price-setting methods and<br /> pricing strategies.<br /> Learn pricing policies for different types of<br /> customers<br /> Examine the practical aspects of commercial<br /> terms and conditions.<br /> Describe the role of leasing in business<br /> Marketing.<br /> 2<br /> <br /> Content<br /> 9.1 Special Meaning of Price<br /> 9.2 Factors influencing Pricing Decision<br /> 9.3 Pricing Methods and Strategies<br /> 9.4 Pricing Policies<br /> 9.5 Commercial Terms and Conditions<br /> 9.6 Role of Leasing<br /> <br /> 3<br /> <br /> 1<br /> <br /> 1/3/2017<br /> <br /> 9.1 Special meaning of Price<br /> <br /> What do you think when a business<br /> buyer buys a product from XYZ<br /> supplier which is in competition<br /> with several other suppliers of the<br /> similar product?<br /> <br /> 4<br /> <br /> 9.1 Special meaning of Price (con’t)<br /> Quality of materials<br /> Production<br /> Manager<br /> Reliability of delivery<br /> Lowest cost<br /> Perception<br /> of Value<br /> <br /> Financial<br /> Manager<br /> Liberal payment<br /> Reputation<br /> Purchase<br /> Manager<br /> <br /> Dependable<br /> salesperson<br /> <br /> Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition, p313.<br /> 5<br /> <br /> 9.1 Special meaning of Price (con’t)<br /> Price<br /> Transportation<br /> cost<br /> <br /> Total cost<br /> <br /> Transit insurance<br /> cost<br /> <br /> Installation cost<br /> Risk cost<br /> <br /> Product failure<br /> Late delivery<br /> Poor technical<br /> support<br /> <br /> Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition, p313.<br /> 6<br /> <br /> 2<br /> <br /> 1/3/2017<br /> <br /> 9.1 Special meaning of Price (con’t)<br /> <br /> Price Should Align with Value<br /> 7<br /> <br /> 9.1 Special meaning of Price (con’t)<br /> <br /> 8<br /> <br /> 9.1 Special meaning of Price (con’t)<br /> <br /> In out of over 100 purchase decisions, the lowest price<br /> bidder was not selected in over 40% of the cases*.<br /> <br /> Source: J. Patrick Kelly and James W. Coaker, “Can we generalize about choice<br /> criteria for industrial purchasing decisions?”, in Kenneth L. Bernhardt, ed.,<br /> Marketing: 1776-1976 and beyond (Chicago: AMA, 1976), pp330-33.<br /> 9<br /> <br /> 3<br /> <br /> 1/3/2017<br /> <br /> 9.2 Factors influencing Pricing Decision<br /> <br /> Customer<br /> perceptions of<br /> value<br /> <br /> Other Internal &<br /> External<br /> considerations<br /> <br /> Product costs<br /> <br /> Price ceiling<br /> <br /> Price floor<br /> <br /> No demand above<br /> this price<br /> <br /> No profits below<br /> this price<br /> <br /> Source: Philip KOTLER, Gary AMSTRONG (2008), Principle of Marketing, 12th edition,<br /> Pearson Education International, Prentice Hall, p.267<br /> <br /> 10<br /> <br /> 9.2 Factors influencing Pricing Decision<br /> 1. Pricing objectives<br /> 2. Demand analysis<br /> Pricing<br /> decision<br /> <br /> 3. Cost analysis<br /> 4. Competition analysis<br /> 5. Government regulations<br /> <br /> Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition, p313.<br /> 11<br /> <br /> 9.2 Factors influencing Pricing Decision<br /> Survival<br /> Maximum short-term<br /> profits<br /> <br /> 1. Pricing<br /> objectives<br /> <br /> Product-Quality<br /> leadership<br /> <br /> Superior<br /> quality<br /> <br /> Slightly higher<br /> price<br /> <br /> Market penetration<br /> Market skimming<br /> <br /> Be regarded fair<br /> by customers<br /> <br /> Other pricing<br /> objectives<br /> <br /> Try to stabilize the<br /> market<br /> <br /> Meeting the<br /> competition<br /> Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition, p314.<br /> 12<br /> <br /> 4<br /> <br /> 1/3/2017<br /> <br /> 9.2 Factors influencing Pricing Decision<br /> <br /> 2. Demand analysis<br /> P’2<br /> <br /> P2<br /> <br /> P’1<br /> <br /> P1<br /> <br /> Q2 Q1<br /> <br /> Inelastic demand<br /> <br /> Q’2<br /> <br /> Q’1<br /> <br /> Elastic demand<br /> <br /> 13<br /> <br /> 9.2 Factors influencing Pricing Decision<br /> <br /> Example 1: If a manufacturer of steel sheets increases<br /> the price by 2% and the demand (quantity sold) falls by<br /> 5%, what is the price elasticity of demand in this case?<br /> Example 2: If a machine tools manufacturer decreases<br /> the price by 10% and the demand (quantity sold) rises by<br /> 5%, what is the price elasticity of demand in this case?<br /> <br /> 14<br /> <br /> 9.2 Factors influencing Pricing Decision<br /> <br /> Conditions determining price elasticity of demand:<br />  There are few competitors.<br />  No availability of substitute products from other<br /> industries.<br />  The buyers think the higher prices are justified by<br /> normal inflation or change in government<br /> policies.<br />  The products are technically sophisticated,<br /> customized, or important for buyer’s operation.<br /> <br /> 15<br /> <br /> 5<br /> <br />