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B2B Marketing
Presentation on
PRICING IN B2B MARKETING
Group Members:
1. Jafar Ghori (X012-18)
2. Manish Kumar (X015-18)
PGEXP Batch: 2018-20 3. Ujjwal Kumar (X021-18)
4. Shyam Kumar Paswan (X019-18)
Term-4
5. Rohan Kumar (X017-18)
Customer Value
Core
Benefits
Add-on
Customer
Value Acquisition
Sacrifices Processing
Usage
Replacement costs
Disposal costs
Cost
Customer Competitor
Price
End use
• Importance of the
product/service in the
Switching costs cost structure of the End-market focus
customer’s product
Harvest
Penetration
Skimming
Customer
Competitor Channels
• Also ‘environment’
• Elements
• Economic outlook
• Currency fluctuations
• Regulatory environment
• Price discrimination
Transactional
• Bundling vis-à-vis unbundling
• Milking customers
• Short-term ROI vs. CLV
(Customer Lifetime value)
Collaborative
• Premium pricing opportunities
• De-featuring
• Information sharing & value of
learning
• Price reduction pressure and trust
Intra-organisational Aspects
Finance More control and say
Shorter-term perspective
All products must always make profit
Accounts Cost-plus
All costs fully allocated
Less inclined to respond to market pressures
Marketing Respond to competitive action
Build customer relationships
Generate demand for complementary products
Sales Informed decision on pricing – incentives based on bottom-line
Lesser authority – more margins
Pricing decisions leading to sub-optimal profits
•Path of least resistance
•Insufficient knowledge of customer price sensitivity
•Price war
•More aggressive negotiation from buyers
IIM Ranchi PGP 2018-20
Leasing