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International Marketing




                                      International Marketing
                     By:-
              Bishnu Shankar Singh
               Diptartha Kashyap                 1
             Manoranjan Kumar Singh
                  (SRPM-E-T3)
International Marketing
International Pricing Technique




                                              2
Pricing




                                                           International Marketing
• A Psychological element valuing product or service.

• Essential that products & services be competitively
  priced.

• Fair price reflects the perceived value of the product
  in question.




                                                                       3
Parts of International Pricing




                                                         International Marketing
         1.   Pricing decisions.
         2.   Pricing Policies.
         3.   Factors affecting international pricing.
         4.   Price quotations.
         5.   Dumping
         6.   Counter trade.




                                                                     4
Pricing Decisions




                                                     International Marketing
  i.     Supply & Demand.
  ii.    Elasticity or cross Elasticity of Demand.
  iii.   Exchange Rates.
  iv.    Market Share.
  v.     Tariffs and Distribution Costs.
  vi.    Culture.
  vii.   Purchasing Power.



                                                                 5
Factors Affecting International




                                                        International Marketing
            Pricing

   1.   Cost
   2.   Competition
   3.   Product Differentiation.
   4.   Exchange Rate.
   5.   Economic conditions of the importing country.
   6.   Government factors.



                                                                    6
Main Elements of price structure




                                             International Marketing
          for export


1.   Factory Price
2.   Export,Packaging,Marketing & Labeling
3.   Transportation from Factory
4.   Transport to dock or Airport
5.   Port or Airport Charges
6.   Documentation and Export duty
          1 to 6 FOB Price


                                                         7
ConTinUed…….




                                      International Marketing
7 .Ocean, Land & Air fright charges
           1 to 7=(C&F)
8.Insurance Premium
            1 to 8 CIF Price
9.Import Duty
10.Clearing Agent
             1 to 10=Landed Cost



                                                  8
pRiCing STRATegY of MCdonAld’S




                                  International Marketing
1)    Premium Pricing.
2)    Penetration Pricing.
3)    Economy Pricing.
4)    Price Skimming.
5)    Psychological Pricing.
6)    Product Line Pricing.
7)    Optional Product Pricing.
8)    Captive Product Pricing
9)    Product Bundle Pricing.
10)   Promotional Pricing.
11)   Geographical Pricing.
12)   Value Pricing.                          9
Logistic




                              International Marketing
Logistics is the
management of the flow
of resources, not only
goods, between the point
of origin and the point of
destination in order to
meet the requirements of
customers or corporations
                                      10
Logistic Involves the Integration of




                                       International Marketing
             Information

        1.   Transportation
        2.   Inventories
        3.   Warehousing
        4.   Material Handling




                                               11
Main Logistic Target




                       International Marketing
  • Right time
  • Right Place
  • Right People




                               12
International Retailing




                          International Marketing
                                  13
Definition :-




                                                             International Marketing
International Retailing :-
     All the activities involved in selling products
     and services to final international consumers
     for their personal consumption.




Domestic Retailing :-

   Domestic retailing is the selling of a company
   products within a local financial market. It deals with
   only one set of competition and economic issues
   which make it more convenient to do.
                                                                     14
Types Of International Retailing




                                                                                            International Marketing
International Retailers are classified under two categories:-

1. Global grocery retailers :-Products like food encompassing all types of fresh
   vegetables, fruits, juices, chocolates etc. , fashion and clothing including bed linen
   etc. , grocery, all types of branded consumables, as well as liquor and many more
   household goods under one roof.

       Examples:-
        Wal-Mart, Carrefour, Metro, Tesco and Ahold etc.


2. International fashion Brands:-emergence of international fashion brands, luxury
   product brands dealing exclusively with branded clothing including
   sportswear, casual and formal wear, party wear, foot ware and accessories, luxury
   items including watches, perfumes, jewellery and many more items of personal
   use.

        Example:-                                                                                   15
          Ralph Lauren, Gucci, Zara, Hugo Boss, JC Penny, Benetton, Jimmy
Choo, Swarovski, Dolce & Gabbana etc.
Comparison between
International and Domestic




                                                International Marketing
        Retailing
 •   Dissimilarity in Currencies
 •   Difference in legal systems
 •   Difference in cultures
 •   Difference in availability of resources
 •   Internationalizing retail environment
 •   Use of various sales training techniques




                                                    16
Factors affecting international
  retail expansion, success and




                                   International Marketing
             failure



Motives.
Culture.
Human resource management.




                                       17
Benefits Of International
        Retailing




                                          International Marketing
  1.   Exponential growth
  2.   New Markets
  3.   Favourable Regulations
  4.   High living standard
  5.   Increased socio economic welfare
  6.   Wider market
  7.   Utilisation of world resources
  8.   Economies of scale
  9.   Reduced risks




                                                  18
Drawbacks Of International
        Retailing




                                                                      International Marketing
1. Poor trading performance – sales, profits, market share
2. Customer attitudes to the brand and shopping behaviour
3. Closure of shops
4. Neglect and lack of investment
5. High staff turnover
6. Changing methods of operation (e.g. from own shops to franchise)
7. Exit from the market




                                                                          19
Conclusion




                                                                             International Marketing
1)   Both U.S. & European retailers expanding internationally.

2)   Consolidation & acquisition among retailers.

3)   Direct selling firms are most active in the growth markets.

4)   Network marketing is growing rapidly, especially in emerging markets.




                                                                                 20
International Marketing
                          21

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International pricing technique

  • 1. International Marketing International Marketing By:- Bishnu Shankar Singh Diptartha Kashyap 1 Manoranjan Kumar Singh (SRPM-E-T3)
  • 3. Pricing International Marketing • A Psychological element valuing product or service. • Essential that products & services be competitively priced. • Fair price reflects the perceived value of the product in question. 3
  • 4. Parts of International Pricing International Marketing 1. Pricing decisions. 2. Pricing Policies. 3. Factors affecting international pricing. 4. Price quotations. 5. Dumping 6. Counter trade. 4
  • 5. Pricing Decisions International Marketing i. Supply & Demand. ii. Elasticity or cross Elasticity of Demand. iii. Exchange Rates. iv. Market Share. v. Tariffs and Distribution Costs. vi. Culture. vii. Purchasing Power. 5
  • 6. Factors Affecting International International Marketing Pricing 1. Cost 2. Competition 3. Product Differentiation. 4. Exchange Rate. 5. Economic conditions of the importing country. 6. Government factors. 6
  • 7. Main Elements of price structure International Marketing for export 1. Factory Price 2. Export,Packaging,Marketing & Labeling 3. Transportation from Factory 4. Transport to dock or Airport 5. Port or Airport Charges 6. Documentation and Export duty 1 to 6 FOB Price 7
  • 8. ConTinUed……. International Marketing 7 .Ocean, Land & Air fright charges 1 to 7=(C&F) 8.Insurance Premium 1 to 8 CIF Price 9.Import Duty 10.Clearing Agent 1 to 10=Landed Cost 8
  • 9. pRiCing STRATegY of MCdonAld’S International Marketing 1) Premium Pricing. 2) Penetration Pricing. 3) Economy Pricing. 4) Price Skimming. 5) Psychological Pricing. 6) Product Line Pricing. 7) Optional Product Pricing. 8) Captive Product Pricing 9) Product Bundle Pricing. 10) Promotional Pricing. 11) Geographical Pricing. 12) Value Pricing. 9
  • 10. Logistic International Marketing Logistics is the management of the flow of resources, not only goods, between the point of origin and the point of destination in order to meet the requirements of customers or corporations 10
  • 11. Logistic Involves the Integration of International Marketing Information 1. Transportation 2. Inventories 3. Warehousing 4. Material Handling 11
  • 12. Main Logistic Target International Marketing • Right time • Right Place • Right People 12
  • 13. International Retailing International Marketing 13
  • 14. Definition :- International Marketing International Retailing :- All the activities involved in selling products and services to final international consumers for their personal consumption. Domestic Retailing :- Domestic retailing is the selling of a company products within a local financial market. It deals with only one set of competition and economic issues which make it more convenient to do. 14
  • 15. Types Of International Retailing International Marketing International Retailers are classified under two categories:- 1. Global grocery retailers :-Products like food encompassing all types of fresh vegetables, fruits, juices, chocolates etc. , fashion and clothing including bed linen etc. , grocery, all types of branded consumables, as well as liquor and many more household goods under one roof. Examples:- Wal-Mart, Carrefour, Metro, Tesco and Ahold etc. 2. International fashion Brands:-emergence of international fashion brands, luxury product brands dealing exclusively with branded clothing including sportswear, casual and formal wear, party wear, foot ware and accessories, luxury items including watches, perfumes, jewellery and many more items of personal use. Example:- 15 Ralph Lauren, Gucci, Zara, Hugo Boss, JC Penny, Benetton, Jimmy Choo, Swarovski, Dolce & Gabbana etc.
  • 16. Comparison between International and Domestic International Marketing Retailing • Dissimilarity in Currencies • Difference in legal systems • Difference in cultures • Difference in availability of resources • Internationalizing retail environment • Use of various sales training techniques 16
  • 17. Factors affecting international retail expansion, success and International Marketing failure Motives. Culture. Human resource management. 17
  • 18. Benefits Of International Retailing International Marketing 1. Exponential growth 2. New Markets 3. Favourable Regulations 4. High living standard 5. Increased socio economic welfare 6. Wider market 7. Utilisation of world resources 8. Economies of scale 9. Reduced risks 18
  • 19. Drawbacks Of International Retailing International Marketing 1. Poor trading performance – sales, profits, market share 2. Customer attitudes to the brand and shopping behaviour 3. Closure of shops 4. Neglect and lack of investment 5. High staff turnover 6. Changing methods of operation (e.g. from own shops to franchise) 7. Exit from the market 19
  • 20. Conclusion International Marketing 1) Both U.S. & European retailers expanding internationally. 2) Consolidation & acquisition among retailers. 3) Direct selling firms are most active in the growth markets. 4) Network marketing is growing rapidly, especially in emerging markets. 20