Pricing Strategy for Business Markets Pricing decisions cannot be made in a vacuum due to inherent trade-offs between other elements of the marketing mix , pricing will depend on other product, distribution and promotion decisions. compensate for poor execution of other elements of the marketing mix, but ineffective pricing can prevent successful efforts from leading to positive financial results. There is no single best practice for pricing new products or changing the price of existing products. Company objectives, markets, costs, competition and customer demand patterns must be incorporated into every pricing decision. The Role of Price for Organizational Buyers A price is considered based on costs and benefits. The entire product that a shopping center purchases is much more than a physical item. They purchase a given level of product quality, technical service and delivery reliability. There are other influences that may be important to purchasing decisions, such as supplier reputation, sense of security, and personal relationships. They can be summarized into 3 categories: • Product-specified attributes • Company-related attributes • Seller-related attributes Price decisions and product policy decisions are inseparable. The buyer considers the cost of a commercial product to be much higher than the seller's price. The evaluation of a product based on dimensions of benefits to value it. • Functional benefits (design) • Operational benefits (durability, reliability) • Financial benefits (term benefits, cost savings) • Personal benefits (individual benefits from a relationship with a supplier) Costs include not only price, but also transportation, possible administrative and associated costs.The industrial pricing processThe decision to price an industrial product is a multidimensional continuous process.Pricing objects must be consistent with the marketing and company objectives, i.e. -say a certain return on the market, market share objectives or the fight against competition. Pricing objects must be established carefully because of their far-reaching effect. Two main pricing strategies are Du Pont's skimming strategy which focuses on specialty products that carry a high margin and Dow's penetration strategy focuses first on pricing low margin commodity products to build a dominant market. part, then on the maintenance of this dominant part. Demand drivers can vary significantly in terms of potential demand, price sensitivity and potential profitability across market segments. Due to the individual perceived value of a product by each market segment and the evaluation of cost/benefit trade-offs, the marketer must establish the pricing strategy. Price elasticity of demand also needs to be examined and is affected by the unique value effect: features/benefits of a product that make it unique, thereby reducing the price sensitivity of potential customers and increasing consumer willingness to pay higher prices.