COMPARISMBETWEEN PRICING IN INDUSTRIAL PRODUCT AND CONSUMER PRODUCT

INDUSTRIAL PRODUCT

PRODUCT

AND

CONSUMER

INTRODUCTION PRICING IN INDUSTRIAL MARKETING

Price is not an independent variable. It is intertwined with product promotion and distribution strategies. T h e real quite price of an industrial from the f a ct o r s customer list l i ke p r i ce ; pays this is is and the and different t he

b e c a u se

de l i ve r y changing pr e m i u m s

i n s t a l l at i o n c o s t , t r a i n i ng cost, discounts, financing cost, trade in allowances etc. B y the seller, changing t he quantity of goods & services provided by d i s c o u n t s t ha t a r e of f e re d , c h a n g i ng t he t i me a n d place of payment and also in numerous other ways product prices and can be changed. decisions, Compare the to distribution decision

regarding pricing is more flexible.

The complimentary and substitute product sold by the same company should be considered at the time of deciding price for industrial goods. P r i ce s c a n be r e s o l ve d t hr o u g h ne g o t i at i o n i n m a n y a c a s e s. I n most project of the cases the industrial buyers to prices who are are the established by competitive bidding on a project by basis. Industrial and able experienced estimate

v e n d o r s approximate production costs expect the increasing price to be justifiable on the b a s i s o f e it he r product.
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prices are affected by several econom ic factors such as inflation,c h a n g e exchange rates rates, fluctuation is etc. problem particularly

critical for the marketer locked in to long term contract w i t h n o escalation clause.

COMPARISM Meaning: Industrial Product The industrial marketers should understand the various aspects of the p r i c i n g , s i n c e p r i c i n g i s t h e m o s t c r i t i c a l part of industrial marketing strategy. Different

strategies such as market segmentation strategy, product strategy, and p r o m o t i o n s t r a t e g y a r e r e l a t e d t o p r i c i n g strategy. In order to achieve the dual objective such as to meet the company objective and satisfy the market n e e d s , the industrial marketer has to integrate the various strategies. When the members of buying committee of a buying firm, purchase a particular i n d u s t r i a l p r o d u c t , they are buying a given level of technical service,

p r o d u c t quality, and delivery reliability.

Consumer Product Meaning Merchandise or other item of common or daily use, ordinarily bought by individuals or households for private consumption. See

also consumer goods.

The science of marketing categorizes all the consumer products and services into four major groups: Types of consumer productt

convenience offerings shopping offerings specialty offerings unsought offerings

All the four types of consumer products are, of course, represented by certain goods or services. All the offerings are available in the market, promoted and sold for bringing profit to the company. However, products that represent each of the 4 groups, differ by marketing strategies applied to them, consumers perception, and channels of delivering particular products to customers.

Marketing and Delivering Convenience Consumer Products Convenience offerings are usually products that people use in everyday life, such as bread, milk or matches. People do not devote

too much time to choosing what particular brand to buy. Some people do prefer some brands, but will buy another if the favorite one is not available. Convenience products are usually

comparatively cheap and sold in many places. The great number of places where they are found can be explained by the peculiarities of marketing convenience offerings: a company tries to deliver a product to as many places as possible for the offering to always be available to a buyer. This stimulates consumers to buy convenience products even if they didnt plan the purchase in advance, or to make impulse purchases.

Peculiarities of Shopping Products Marketing Somewhat different are shopping offerings. These products and services are usually more expensive and, therefore, consumers usually do some preliminary research. People compare quality and prices of different manufacturers and retailers, as well as compare brands. Since such purchases are rather significant events for the consumer, he or she devotes some time to exploring opportunities and options.

The peculiarity of marketing shopping offerings is advertising campaigns that educate people on the advantages of the particular product. However, brand name also matters: some people might choose a more expensive brand for its good reputation. For that reason brand building is also an important aspect of shopping goods marketing.

Marketing and Branding for Specialty Offerings A totally different thing is specialty offerings. Specialty products are expensive, not manufactured in large quantities, and not sold in many places. Marketing of luxury products usually calls for building a strong brand name. These items are not purchased too often, but many people wish to own them as attributes of status and authority. Among such products would be a Harley Davidson motorcycle, a Ferrari or a dress from Dior.

Unsought Products and Services Unsought offerings is a very specific category of products and services. People usually have no desire to shop for such items,

because in most cases these are goods and services people dont need or use unless some special occasion requires. Marketing of these offerings is always specific. What companies are trying to achieve is public awareness about their products or services: they dont hope to sell right away, they hope people will come to the company they know when its needed. Towing and funeral services are examples of unsought offerings. The major 4 types of consumer products in marketing are convenience, shopping, specialty and unsought products and services. Among the main differences between these categories are marketing strategies (one-to-one marketing, 4Ps or value marketing, for instance) applied to each, consumers perception, channels of distribution, and importance of brand names.

REFERNCES Hawaldar, K. Krishna (2002), M a r k e t i n g ( 1 ste d . ) , T A T A McGraw-Hill Company Limited, New Delhi. Industrial Publishing

http://www.businessdictionary.com/definition/consumerproduct.html#ixzz20WNUbD7V

 Richard M.Hiii, Ralph S.Alexander & James S.Cross (2003), IndustrialMarketing(4the d . ) , All India T r a v e l l e r B o o k S e l l e r P u b l i s h e r s A n d Distributors, Delhi. Robert R.Reeder, Edward G.Brierty & B e t t y H . R e e d e r ( 2 0 0 1 ) , Industrial Marketing (2nded.) , Prentice-Hall of India Private Limited,New Delhi

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