A strategic approach to industrial product pricing: The pricing plan

Price planning is one of the most overlooked areas in industrial marketing. Traditionally, emphasis is placed on product development, advertising strategy, and distribution channel formation before any consideration is given to pricing. The result is that industrial pricing decisions are made quickly without the necessary market and cost factors included in the final decision. The pricing decision is at the core of every business plan and impacts directly on the critical components of a company's marketing strategy. In this article, the importance of price planning in industrial marketing is discussed including the major components needed to make an industrial pricing strategy successful.