Business to Business

Marketing
Chapter 10 – Pricing strategies
Hello!
I Am Heidi Skjäl
Senior lecturer at Vaasa University
of Applied Sciences
How does B2B pricing
differ from B2C?
o Perception
-B2C: in a relation to competitive
products
-B2B: relative value in supply chain

o Flexibility: discounting,
negotiations, tendering/bidding
Table of content to pricing
strategies in B2B markets
New Product •Price Skimming
Pricing •Penetration Pricing

Price Line
•Price Bundling
Pricing

Competitive •Leader Pricing

Pricing •Low-Price Supplier

Cost-based
•Cost-Plus Pricing
Pricing
New Product
Pricing
PRICE SKIMMING
1. In most skimming,
goods are sold at higher
prices
2. Sacrificing high sales to
gain a high profit =
"skimming" the market
3. This strategy is used
only for a limited
duration
4. Price skimming occurs
in mostly technological
markets as firms set a
high price during the first
stage of the product life
cycle.
5. When the product enters
maturity the price is
lowered
PENETRATION PRICING
1. Penetration pricing is
most commonly
associated with a
marketing objective of
increasing market share
or sales volume rather
than to make profit in
the short term.
2. The main disadvantage
with penetration pricing
is that it establishes long
term price expectations
for the product, and
image preconceptions
for the brand and
company.
Price Line Pricing
PRICE BUNDLING
Price bundling is a strategy
whereby a seller bundles
together many different
goods/items being sold and
offers the entire bundle at a
single price.
Competitive
Pricing
LEADER PRICING
Establishing a low price for
a very popular product in
an attempt to attract
customers who are likely to
purchase other products at
regular price.
LOW PRICE SUPPLIER
A pricing strategy in which
a company offers a
relatively low price to
stimulate demand and gain
market share.
Cost-based Pricing
1.Known as INSIDE-OUT
PRICING
1.Real costs
2.Used lot in B2B
3.Problematic

2.Versus OUTSIDE-IN PRICING

1.Considers customer´s
perception
Adapting prices
CASH AND TRADE SALES
QUANTITY PROMOTION
DISCOUNTS 1. Marketing techniques used to
An incentive build demand at the middleman
that a seller level as part of the trade
offers to a buyer marketing mix.
in return for 2. Trade promotions include special
paying a bill pricing and sales incentives,
owed before the discounted or free display
scheduled due fixtures, trade shows,
date. demonstrations, and no-
obligation gifts such as tickets to
sporting events or novelties
(pens, paperweights, calculators).

This Photo by Unknown Author is licensed under CC BY-SA-NC

Thank you!
Any questions?
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