Competitive pricing is an important strategy for businesses. There are two main types: competitive pricing aims to undercut competitors, though predatory pricing to force them out is illegal; cooperative pricing involves collusion between companies to set prices, such as through round table discussions or letting one company set the price that others follow. The document discusses the importance of pricing strategies and different cooperative approaches companies can take to coordinate pricing.

1. Competitive Pricing in Business
Markets
B2B Marketing
HKUST
Spring 2013
Professor Yi XIANG

2. Topic Today
Place
Price
Product
Promotion
Firm
Competitive
advantage
Company report &
market research
Strategic decision
& information
Industrial branding
Key account management
Sales force management
New products
Competitive pricing

3. Content
– Competitive pricing
– Cooperative pricing

4. Competitive pricing
q Predatory Pricing to deter entry or to
force a competitor to exit (illegal).
q Bidding

5. Cooperative pricing
Cooperative pricing methods
– Round table collusion (e.g. Telecom)
– “Umbrella pricing” and “price leadership” (e.g. Fortis)