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.
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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.
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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.
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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.
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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
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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
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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
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11. Logistic Involves the Integration of
International Marketing
Information
1. Transportation
2. Inventories
3. Warehousing
4. Material Handling
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12. Main Logistic Target
International Marketing
• Right time
• Right Place
• Right People
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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.
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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
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17. Factors affecting international
retail expansion, success and
International Marketing
failure
Motives.
Culture.
Human resource management.
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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
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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
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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.
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