International pricing directly impact the success of product in international market.Right pricing strategies and methods of pricing helps in making the brand hit in global market.
This chapter discusses international pricing. It identifies the objectives, factors, and approaches that determine export prices. There are two main types of costs in export marketing: production costs and selling/delivery costs. Pricing is affected by objectives, costs, competition, differentiation, exchange rates, markets, image, and governments. Cost is a key factor along with supply, demand, and competition. The chapter also covers transfer pricing, pricing steps, quotations, and information needs.
The document discusses various considerations for international pricing strategies. It outlines different pricing methods like cost-based pricing, market-based pricing, and competitive pricing. It also discusses factors that affect international pricing such as competition, costs, product differentiation, exchange rates, and economic conditions of importing countries. The document then provides examples of pricing strategies such as using a standard worldwide price, competitive pricing based on market prices, and marginal pricing. It also gives the example of how Tata Nano might be priced if launched in the European market. Finally, it briefly introduces INCOTERMS which are international commercial terms of sale.
There are several types of international countertrade practices that allow companies to exchange goods and services without using cash, including barter, switch trading, counter-purchase, buyback, compensation trade, and offset agreements. These practices allow companies to expand exports, achieve mutually satisfactory outcomes, gain access to new markets, and diversify risks when foreign currency is limited. However, they also introduce complexity regarding working capital, pricing, and managing multiple commercial relationships. Governments may also engage in countertrade agreements to facilitate imports in key industries.
Promotional strategies in international marketingDr. Sneha Sharma
The document discusses factors to consider when developing a global marketing strategy, including identifying the target audience, communication objectives, and key messages. It outlines challenges of overcoming language and cultural barriers in different markets and whether to standardize or customize advertising approaches globally. The document also examines the impact of globalization and regulations on international advertising approaches.
This ppt describe the Definition of TP with introduction to Transfer pricing and Objectives with types of TP addressed.
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This document discusses various entry strategies for international marketing. It outlines 10 main strategies: exporting, licensing, franchising, contract manufacturing, management contracts, joint ventures, strategic alliances, mergers and acquisitions, wholly-owned subsidiaries, and turnkey projects. Each strategy is briefly defined and an example is provided. The strategies range from more indirect, lower commitment options like exporting and licensing, to higher commitment options that involve greater control like wholly-owned subsidiaries.
Method of exporting affects international channel. Exporting can be done in two ways namely direct exporting and indirect exporting. Important foreign intermediaries in the export business include importers, retailers, distributors, wholesalers, government departments, joint ventures and licenses.
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This document discusses factors to consider when making international pricing decisions. It covers pricing psychology, elements like pricing decisions and policies. Key factors discussed are supply and demand, elasticity, exchange rates, market share, tariffs, distribution costs, culture and purchasing power. Other topics covered are pricing strategies, competition, product differentiation, economic conditions in importing countries and government factors. The goal is to strategize international pricing by understanding these various influencing elements.
This chapter discusses international pricing. It identifies the objectives, factors, and approaches that determine export prices. There are two main types of costs in export marketing: production costs and selling/delivery costs. Pricing is affected by objectives, costs, competition, differentiation, exchange rates, markets, image, and governments. Cost is a key factor along with supply, demand, and competition. The chapter also covers transfer pricing, pricing steps, quotations, and information needs.
The document discusses various considerations for international pricing strategies. It outlines different pricing methods like cost-based pricing, market-based pricing, and competitive pricing. It also discusses factors that affect international pricing such as competition, costs, product differentiation, exchange rates, and economic conditions of importing countries. The document then provides examples of pricing strategies such as using a standard worldwide price, competitive pricing based on market prices, and marginal pricing. It also gives the example of how Tata Nano might be priced if launched in the European market. Finally, it briefly introduces INCOTERMS which are international commercial terms of sale.
There are several types of international countertrade practices that allow companies to exchange goods and services without using cash, including barter, switch trading, counter-purchase, buyback, compensation trade, and offset agreements. These practices allow companies to expand exports, achieve mutually satisfactory outcomes, gain access to new markets, and diversify risks when foreign currency is limited. However, they also introduce complexity regarding working capital, pricing, and managing multiple commercial relationships. Governments may also engage in countertrade agreements to facilitate imports in key industries.
Promotional strategies in international marketingDr. Sneha Sharma
The document discusses factors to consider when developing a global marketing strategy, including identifying the target audience, communication objectives, and key messages. It outlines challenges of overcoming language and cultural barriers in different markets and whether to standardize or customize advertising approaches globally. The document also examines the impact of globalization and regulations on international advertising approaches.
This ppt describe the Definition of TP with introduction to Transfer pricing and Objectives with types of TP addressed.
Subscribe to Vision Academy YouTube Channel
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
This document discusses various entry strategies for international marketing. It outlines 10 main strategies: exporting, licensing, franchising, contract manufacturing, management contracts, joint ventures, strategic alliances, mergers and acquisitions, wholly-owned subsidiaries, and turnkey projects. Each strategy is briefly defined and an example is provided. The strategies range from more indirect, lower commitment options like exporting and licensing, to higher commitment options that involve greater control like wholly-owned subsidiaries.
Method of exporting affects international channel. Exporting can be done in two ways namely direct exporting and indirect exporting. Important foreign intermediaries in the export business include importers, retailers, distributors, wholesalers, government departments, joint ventures and licenses.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
This document discusses factors to consider when making international pricing decisions. It covers pricing psychology, elements like pricing decisions and policies. Key factors discussed are supply and demand, elasticity, exchange rates, market share, tariffs, distribution costs, culture and purchasing power. Other topics covered are pricing strategies, competition, product differentiation, economic conditions in importing countries and government factors. The goal is to strategize international pricing by understanding these various influencing elements.
The document discusses the international marketing mix and whether companies should standardize or customize their approach across different markets. It covers the key elements of the marketing mix - product, place, price, and promotion. While standardization can reduce costs, customization may be necessary when consumer tastes and regulations vary significantly between countries. The document provides several examples of companies that have both standardized and customized their marketing mix internationally.
This document discusses factors that affect international pricing and pricing strategies. It identifies 14 factors that influence international price determination, including cost of production, competition, and exchange rates. It then lists and defines 8 common international pricing strategies: penetration pricing, economy pricing, price skimming, premium pricing, and others. It provides the definition of "dumping" in international trade and discusses terms of sale in international trade transactions.
International business earns foreign exchange by exporting goods and services worldwide, which helps make profits and strengthen the home economy. It optimally utilizes resources from around the world, such as using finance and technology from rich countries and raw materials and labor from poor countries. International business can easily achieve its objective of high profits by using the best technology, employees, managers, and selling high-quality goods globally. It spreads business risks across multiple countries so losses in one place can be offset by gains elsewhere. International business improves efficiency through modern management techniques, qualified employees and managers, and training and incentives. Governments provide it benefits and facilities due to the foreign exchange it brings in.
International Marketing Management - IntroductionSOMASUNDARAM T
The document provides an overview of international marketing, defining it as marketing goods and services across national borders. It discusses the reasons companies engage in international business, the differences between domestic and international marketing, and challenges such as cultural and legal differences in foreign markets. Finally, it examines factors that have influenced the dynamic environment of international trade over time, such as globalization, trade agreements, and the shift towards more open trade policies.
Global marketing environment and current scenarioSourav Karmakar
This document discusses global marketing and strategies for entering foreign markets. It outlines the key elements of the global marketing environment, including globalization, national business environments, and the international business environment. Some main reasons for firms to engage in global marketing are to gain access to new buyers, spread risk across international markets, and lower costs. Common strategies for entering foreign markets mentioned include exporting, licensing, joint ventures, and direct investment through foreign subsidiaries. The document also provides brief definitions of social marketing and relationship marketing in the global context.
Global marketing involves coordinating marketing activities across countries to create exchanges that satisfy individual, organizational, and societal goals. It evolves from developing a core business strategy, internationalizing that strategy, and then globalizing the strategy. When internationalizing, companies look to increase their customer base, offset risks and costs, and take advantage of opportunities abroad. However, internationalization also presents disadvantages like cultural barriers, regulations risks. Success in global marketing requires balancing local and global concerns through localized implementation with global coordination.
This document discusses various strategies for entering global markets. It begins by defining a global entry strategy and identifying key considerations such as target markets, goals, and entry modes. It then covers major issues in global entry like political risks. Different rules for selecting entry modes are presented, including naive, pragmatic, and strategic rules. Benefits of going global such as new revenue streams and talent pools are outlined. Finally, factors affecting entry mode selection, examples of modes like exporting, and their advantages/disadvantages are summarized.
International marketing involves planning and executing marketing strategies across national borders. There are some key differences between domestic and international marketing. For international marketing, companies must consider various legal, political, cultural, economic and technological factors in different countries. When developing marketing strategies, companies segment target markets and aim to "think globally but act locally". Successful international marketing requires an understanding of cultural and structural differences between countries.
The document discusses various pricing methods used by companies. It outlines cost-based methods like cost-plus pricing and marginal cost pricing. It also discusses competition-oriented methods like sealed bid pricing and going rate pricing. Further, it explains demand-oriented pricing such as price discrimination and perceived value pricing. Finally, it elaborates on different strategy-based pricing methods including market skimming, market penetration, two-part pricing, block pricing, and commodity bundling.
This document discusses international promotion. It defines international promotion as promoting business worldwide across national borders. The key functions are developing and spreading credible communication about offers. Methods include below-the-line promotion like PR, sales promotions, and sponsorship, and above-the-line promotion using mass media like TV, newspapers, and the internet. International promotion has many uses for businesses and involves identifying target audiences, objectives, messages, budgets, and communication mixes. The advantages are increasing sales, attracting customers, encouraging loyalty and awareness, and expanding markets.
International Marketing Management - Promotion & Distribution StrategiesSOMASUNDARAM T
Promotions; international advertising; sales promotion in international markets; international advertising; direct mailing; personal selling; exhibition; generic promotions in international marketing
Global Distribution; distribution as competitive advantage; rationalizing local channels; wholesaling; retailing; global logistics; parallel distribution; global channel design; Entry modes: Licensing, Strategic Alliances, Manufacturing Subsidiaries; optimal entry strategies.
International promotion involves promoting a business globally through various above and below the line methods, including multi-lingual advertising, public relations, sponsorships, and digital marketing, in order to increase brand awareness, sales, and customer loyalty in overseas markets. Businesses promote themselves internationally for reasons such as raising demand, market share, and brand awareness, as well as expanding into new areas. Promotional strategies can involve either a push approach that directly markets to customers, or a pull approach that motivates customers to seek out the brand.
The document discusses various pricing objectives that companies consider when setting prices. Pricing objectives provide guidelines for developing marketing strategies and pricing processes. Objectives can be related to profits, sales, competition, customers, or other factors. Common profit-related objectives include maximizing current profits and targeting return on investment. Sales objectives often focus on growth, market share, and increasing market share. Competition objectives may involve facing competition, keeping competitors away, or achieving quality leadership through pricing. Customer-related objectives typically aim to win customer confidence and satisfaction. Other objectives can include market penetration, promoting new products, maintaining image/reputation, skimming profits, price stability, and ensuring survival and growth. Pricing decisions are made in the context
This document discusses international strategic management. It begins by defining strategy and strategic management, which involves analyzing internal capabilities and external environments to meet organizational objectives. It then outlines the framework for international strategic management, including external/internal analysis, strategic choice, leveraging competitive advantages, and implementing strategic plans. Companies face strategic compulsions to go global to gain market share. Areas driving this include globalization, e-commerce, competition, and corporate social responsibility. The document also discusses standardization versus differentiation, strategic options, global portfolio management, global entry strategies, organizational issues, and controlling international business.
The document discusses reasons for the importance of international markets, such as stagnating domestic markets and opportunities for growth. It also covers various aspects of international advertising and promotion, including differences in cultural, economic, political and demographic environments across countries. Guidelines are provided for developing effective international advertising, promotion, and public relations strategies that consider these environmental differences.
This document provides an overview of channels of distribution from a presentation on sales and advertising management. It defines channels of distribution as the ways that goods and services are distributed from manufacturers to consumers. The document outlines various definitions of channels of distribution from different authors. It discusses the characteristics and elements of channels of distribution, including that they are routes that goods and services flow through composed of intermediaries like wholesalers and retailers. The document also covers the functions of channels of distribution, factors that determine choice of channels, and factors relating to products, companies, markets, middlemen, and the environment that influence channel selection.
This document discusses different international marketing orientations - ethnocentric, polycentric, regiocentric, and geocentric. It provides characteristics and examples of companies that exemplify each orientation. An ethnocentric orientation focuses on exporting the home country approach without adaptation. A polycentric approach localizes marketing to each host country. A regiocentric approach groups regions with similar characteristics. A geocentric orientation seeks to be responsive globally and locally. The document cautions that standardization versus adaptation are not binary and that understanding local differences is important for international success.
6. International Marketing, Market Selection, Modes of Entry in International...Charu Rastogi
This presentation defines international marketing, international marketing decisions, challenges of international marketing, and driving and restraining forces of international marketing. It goes on to discuss the process of market selection, firm related, market related and other factors effecting market selection. It also reflects on various modes of entry into foreign markets such as exporting (commercial strategy, commercial mode), foreign direct investment (industrial strategy, integrated modes) and associated or contractual modes (contractual strategy, competitive alliances). The presentation closes with a case study on the experience of Proctor and Gamble (P&G) in various international markets like Japan, China and India.
This document discusses international pricing considerations and strategies. It covers several key points:
1) Global pricing is one of the most critical and complex issues in international marketing, as companies must set prices that reflect local market conditions while coordinating prices across countries.
2) A company's pricing policy can make or break its overseas expansion efforts. Setting the right price that reflects the value to local consumers is important for success.
3) There are several approaches to international pricing, including full-cost versus variable-cost pricing, skimming versus penetration pricing, and adapting pricing policies versus maintaining uniform pricing globally.
This document discusses international pricing strategies and considerations. It begins by outlining learning objectives about pricing options in foreign markets, export price determinants, and setting prices abroad. It then examines pricing standardization versus adaptation, factors influencing export prices, and pricing approaches like cost-plus. Specific methods like competitive pricing, market pricing, transfer pricing, and dumping prices are also summarized. The document concludes with steps to set export prices competitively and considerations for currency fluctuations.
The document discusses the international marketing mix and whether companies should standardize or customize their approach across different markets. It covers the key elements of the marketing mix - product, place, price, and promotion. While standardization can reduce costs, customization may be necessary when consumer tastes and regulations vary significantly between countries. The document provides several examples of companies that have both standardized and customized their marketing mix internationally.
This document discusses factors that affect international pricing and pricing strategies. It identifies 14 factors that influence international price determination, including cost of production, competition, and exchange rates. It then lists and defines 8 common international pricing strategies: penetration pricing, economy pricing, price skimming, premium pricing, and others. It provides the definition of "dumping" in international trade and discusses terms of sale in international trade transactions.
International business earns foreign exchange by exporting goods and services worldwide, which helps make profits and strengthen the home economy. It optimally utilizes resources from around the world, such as using finance and technology from rich countries and raw materials and labor from poor countries. International business can easily achieve its objective of high profits by using the best technology, employees, managers, and selling high-quality goods globally. It spreads business risks across multiple countries so losses in one place can be offset by gains elsewhere. International business improves efficiency through modern management techniques, qualified employees and managers, and training and incentives. Governments provide it benefits and facilities due to the foreign exchange it brings in.
International Marketing Management - IntroductionSOMASUNDARAM T
The document provides an overview of international marketing, defining it as marketing goods and services across national borders. It discusses the reasons companies engage in international business, the differences between domestic and international marketing, and challenges such as cultural and legal differences in foreign markets. Finally, it examines factors that have influenced the dynamic environment of international trade over time, such as globalization, trade agreements, and the shift towards more open trade policies.
Global marketing environment and current scenarioSourav Karmakar
This document discusses global marketing and strategies for entering foreign markets. It outlines the key elements of the global marketing environment, including globalization, national business environments, and the international business environment. Some main reasons for firms to engage in global marketing are to gain access to new buyers, spread risk across international markets, and lower costs. Common strategies for entering foreign markets mentioned include exporting, licensing, joint ventures, and direct investment through foreign subsidiaries. The document also provides brief definitions of social marketing and relationship marketing in the global context.
Global marketing involves coordinating marketing activities across countries to create exchanges that satisfy individual, organizational, and societal goals. It evolves from developing a core business strategy, internationalizing that strategy, and then globalizing the strategy. When internationalizing, companies look to increase their customer base, offset risks and costs, and take advantage of opportunities abroad. However, internationalization also presents disadvantages like cultural barriers, regulations risks. Success in global marketing requires balancing local and global concerns through localized implementation with global coordination.
This document discusses various strategies for entering global markets. It begins by defining a global entry strategy and identifying key considerations such as target markets, goals, and entry modes. It then covers major issues in global entry like political risks. Different rules for selecting entry modes are presented, including naive, pragmatic, and strategic rules. Benefits of going global such as new revenue streams and talent pools are outlined. Finally, factors affecting entry mode selection, examples of modes like exporting, and their advantages/disadvantages are summarized.
International marketing involves planning and executing marketing strategies across national borders. There are some key differences between domestic and international marketing. For international marketing, companies must consider various legal, political, cultural, economic and technological factors in different countries. When developing marketing strategies, companies segment target markets and aim to "think globally but act locally". Successful international marketing requires an understanding of cultural and structural differences between countries.
The document discusses various pricing methods used by companies. It outlines cost-based methods like cost-plus pricing and marginal cost pricing. It also discusses competition-oriented methods like sealed bid pricing and going rate pricing. Further, it explains demand-oriented pricing such as price discrimination and perceived value pricing. Finally, it elaborates on different strategy-based pricing methods including market skimming, market penetration, two-part pricing, block pricing, and commodity bundling.
This document discusses international promotion. It defines international promotion as promoting business worldwide across national borders. The key functions are developing and spreading credible communication about offers. Methods include below-the-line promotion like PR, sales promotions, and sponsorship, and above-the-line promotion using mass media like TV, newspapers, and the internet. International promotion has many uses for businesses and involves identifying target audiences, objectives, messages, budgets, and communication mixes. The advantages are increasing sales, attracting customers, encouraging loyalty and awareness, and expanding markets.
International Marketing Management - Promotion & Distribution StrategiesSOMASUNDARAM T
Promotions; international advertising; sales promotion in international markets; international advertising; direct mailing; personal selling; exhibition; generic promotions in international marketing
Global Distribution; distribution as competitive advantage; rationalizing local channels; wholesaling; retailing; global logistics; parallel distribution; global channel design; Entry modes: Licensing, Strategic Alliances, Manufacturing Subsidiaries; optimal entry strategies.
International promotion involves promoting a business globally through various above and below the line methods, including multi-lingual advertising, public relations, sponsorships, and digital marketing, in order to increase brand awareness, sales, and customer loyalty in overseas markets. Businesses promote themselves internationally for reasons such as raising demand, market share, and brand awareness, as well as expanding into new areas. Promotional strategies can involve either a push approach that directly markets to customers, or a pull approach that motivates customers to seek out the brand.
The document discusses various pricing objectives that companies consider when setting prices. Pricing objectives provide guidelines for developing marketing strategies and pricing processes. Objectives can be related to profits, sales, competition, customers, or other factors. Common profit-related objectives include maximizing current profits and targeting return on investment. Sales objectives often focus on growth, market share, and increasing market share. Competition objectives may involve facing competition, keeping competitors away, or achieving quality leadership through pricing. Customer-related objectives typically aim to win customer confidence and satisfaction. Other objectives can include market penetration, promoting new products, maintaining image/reputation, skimming profits, price stability, and ensuring survival and growth. Pricing decisions are made in the context
This document discusses international strategic management. It begins by defining strategy and strategic management, which involves analyzing internal capabilities and external environments to meet organizational objectives. It then outlines the framework for international strategic management, including external/internal analysis, strategic choice, leveraging competitive advantages, and implementing strategic plans. Companies face strategic compulsions to go global to gain market share. Areas driving this include globalization, e-commerce, competition, and corporate social responsibility. The document also discusses standardization versus differentiation, strategic options, global portfolio management, global entry strategies, organizational issues, and controlling international business.
The document discusses reasons for the importance of international markets, such as stagnating domestic markets and opportunities for growth. It also covers various aspects of international advertising and promotion, including differences in cultural, economic, political and demographic environments across countries. Guidelines are provided for developing effective international advertising, promotion, and public relations strategies that consider these environmental differences.
This document provides an overview of channels of distribution from a presentation on sales and advertising management. It defines channels of distribution as the ways that goods and services are distributed from manufacturers to consumers. The document outlines various definitions of channels of distribution from different authors. It discusses the characteristics and elements of channels of distribution, including that they are routes that goods and services flow through composed of intermediaries like wholesalers and retailers. The document also covers the functions of channels of distribution, factors that determine choice of channels, and factors relating to products, companies, markets, middlemen, and the environment that influence channel selection.
This document discusses different international marketing orientations - ethnocentric, polycentric, regiocentric, and geocentric. It provides characteristics and examples of companies that exemplify each orientation. An ethnocentric orientation focuses on exporting the home country approach without adaptation. A polycentric approach localizes marketing to each host country. A regiocentric approach groups regions with similar characteristics. A geocentric orientation seeks to be responsive globally and locally. The document cautions that standardization versus adaptation are not binary and that understanding local differences is important for international success.
6. International Marketing, Market Selection, Modes of Entry in International...Charu Rastogi
This presentation defines international marketing, international marketing decisions, challenges of international marketing, and driving and restraining forces of international marketing. It goes on to discuss the process of market selection, firm related, market related and other factors effecting market selection. It also reflects on various modes of entry into foreign markets such as exporting (commercial strategy, commercial mode), foreign direct investment (industrial strategy, integrated modes) and associated or contractual modes (contractual strategy, competitive alliances). The presentation closes with a case study on the experience of Proctor and Gamble (P&G) in various international markets like Japan, China and India.
This document discusses international pricing considerations and strategies. It covers several key points:
1) Global pricing is one of the most critical and complex issues in international marketing, as companies must set prices that reflect local market conditions while coordinating prices across countries.
2) A company's pricing policy can make or break its overseas expansion efforts. Setting the right price that reflects the value to local consumers is important for success.
3) There are several approaches to international pricing, including full-cost versus variable-cost pricing, skimming versus penetration pricing, and adapting pricing policies versus maintaining uniform pricing globally.
This document discusses international pricing strategies and considerations. It begins by outlining learning objectives about pricing options in foreign markets, export price determinants, and setting prices abroad. It then examines pricing standardization versus adaptation, factors influencing export prices, and pricing approaches like cost-plus. Specific methods like competitive pricing, market pricing, transfer pricing, and dumping prices are also summarized. The document concludes with steps to set export prices competitively and considerations for currency fluctuations.
International pricing decisions involve complex issues due to economic, financial, and mathematical implications. Firms must consider objectives like controlling end prices across broad product lines and numerous countries. They also face challenges like parallel imports and price escalation due to exchange rate fluctuations and higher costs. Approaches to international pricing include cost-plus, skimming, and penetration pricing. Firms try to minimize price increases through measures such as lowering production costs, reducing tariffs and distribution costs, and using foreign trade zones or countertrade agreements.
This document provides an overview of international marketing and pricing strategies. It discusses topics such as international pricing objectives, approaches to setting international prices including full cost versus variable cost and skimming versus penetration pricing. It also covers pricing issues like dumping, transfer pricing strategies, and factors that influence pricing decisions including costs, competition, demand, and the experience curve effect. The document provides examples and definitions of concepts like price escalation, countertrade, and various pricing methods used in international business.
This document summarizes key concepts in international pricing, including:
1) Drivers of foreign market pricing such as company costs/goals, customer demand, competition, and distribution channels. Government policies also impact pricing.
2) Strategies for managing price escalation and pricing in inflationary environments, such as modifying products/sourcing or including escalator clauses.
3) Managing the effects of currency fluctuations through strategies like passing gains/losses to customers or pricing-to-market. Common currency quotation can share risk.
This presentation has information about International pricing methods & factors affecting International pricing & Incoterms used in International trade
1. Drivers of Foreign Market Pricing
2. Managing Price Escalation
3. Pricing in Inflationary Environments
4. Global Pricing and Currency Movements
5. Transfer Pricing
6. Global Pricing and Antidumping Regulation
7. Price Coordination
8. Countertrade
Global pricing is more complex than domestic pricing due to factors like currency fluctuations, tariffs, and regulations. Microeconomic pricing theories have limitations for global markets. Export and multinational pricing must consider additional factors beyond basic pricing considerations like costs, demand, and competition. These include currency risks, transfer pricing between subsidiaries, and coordinating prices globally to prevent gray markets. Counter-trade and turnkey project pricing present additional challenges for determining appropriate prices internationally.
This document discusses export pricing and the factors that determine export prices. It outlines both internal factors like costs, objectives of the firm, the product, and image, as well as external factors like competition, demand, consumers, economic conditions, and channels of distribution. It also lists the basic data required for export pricing decisions, including product costs, distribution costs, export-related costs, cost estimates, regulations in exporting and importing countries, and other relevant market data. The goal of considering these many factors is to determine an acceptable price where the seller is willing to sell and buyer is willing to buy in the export market.
This presentation would cover the following:
• Objectives of pricing
• Factors affecting pricing decisions
• Terms of sale used in international transaction
• Major pricing methods and practices in international
• Discuss pricing process and strategy
• Concept of transfer pricing and methods
• Types of conter trade
• The pricing angles and issues in counter trade
This document discusses various considerations for pricing decisions and strategies. It covers topics such as pricing objectives, analyzing demand curves, cost-based pricing, competition-based pricing, differential pricing strategies, product line pricing, psychological pricing techniques, and adjusting prices. Key factors that influence pricing decisions are identified, such as costs, demand, competition, target markets, and product life cycles. Different pricing strategies like price skimming, penetration pricing, and bundling are also explained.
Cost-based pricing methods include mark-up pricing, absorption cost pricing, target rate of return pricing, and marginal cost pricing. Demand-based pricing methods are determined by what the traffic can bear, skimming pricing, and penetration pricing. Other pricing methods include competition-oriented pricing, product line pricing, tender pricing, affordability-based pricing, and differentiated pricing. Pricing strategies must be appropriate for achieving the desired objectives of the firm.
The document discusses various pricing methods and objectives that companies consider when setting prices. It identifies the key steps in determining pricing objectives, which include considering financial, marketing and strategic company objectives as well as consumer factors. Some common pricing objectives mentioned are maximizing profit, increasing sales or market share. The document then outlines different methods for setting prices, including based on costs, competition, demand as well as strategic approaches like price skimming, penetration pricing, bundled pricing and cross-subsidization.
This document provides an overview of key concepts in international marketing and pricing strategies. It discusses how companies must adapt their marketing mix to different international markets. Specifically, it covers international market segmentation, how product attributes vary across cultures and economic development levels, and different international pricing approaches like price discrimination, strategic pricing, and experience curve pricing. It notes that aggressive pricing strategies can violate antidumping regulations.
The document discusses various pricing strategies and determinants of price. It covers cost-based pricing approaches like cost-plus pricing and marginal cost pricing. It also discusses competition-based pricing strategies like penetration pricing. Other topics include product life cycle pricing, price discrimination, export pricing, and peak load pricing. The key factors that influence pricing decisions are the degree of competition, objectives of the firm, costs of production, demand in the market, and supply of the product.
This document discusses various factors that companies consider when setting prices, including costs, demand, competitors, and objectives. It outlines different pricing strategies such as cost-based pricing, value-based pricing, competition-based pricing, product-mix pricing, discount pricing, and geographical pricing. Price is an important variable that is impacted by internal company factors as well as external market forces.
The importance of marketing mix to the Travel, Tourism and Hospitality manage...Paul Solaman Srilal 🇱🇰
The document discusses the components of the marketing mix and their importance to the travel, tourism, and hospitality industry. It analyzes pricing strategies and policies related to the industry. The marketing mix, also known as the 8Ps, includes product, price, place, promotion, people, packaging, programming, and partnership. Pricing strategies discussed include those for new product introduction, growth, maturity, and decline stages of the product lifecycle. Factors influencing pricing decisions such as costs, demand, and competition are also examined.
This document discusses various concepts and strategies for global pricing decisions. It addresses setting price floors and ceilings, determining optimal prices based on demand, and ensuring consistency with global opportunities and constraints. The document also covers market price strategies like market skimming and penetration pricing, as well as how to set objectives and develop pricing strategies. Additional topics include terms of sale, environmental influences on pricing like currency fluctuations and government regulations, and strategies for adapting prices across international markets.
This document discusses various pricing strategies and concepts. It begins by outlining different pricing objectives like survival, maximum profit, market share, etc. It then covers determining demand, estimating costs, analyzing competitors, and choosing a pricing approach. The key pricing approaches discussed are cost-based pricing, value-based pricing, and competition-based pricing. The document also discusses adapting prices based on geography, discounts, and differentiated pricing. Overall, it provides an overview of the different factors and strategies to consider when setting prices.
Retail Image refers to how a retailer is perceived by customers and others.To succeed, a retailer must communicate a distinctive, clear, and consistent image.
Store layout is an arrangement of the store that include space management, product display, network of passages, arrangement for amenities and customer convenience and other facilities required.
Hypothesis is a formal statement that represents the expected relationship between an independent and dependent variable.
It is an assumption about the relationship between two or more variables and is predictive in nature
This document discusses the stages of internationalization that companies go through as they expand globally. It begins by outlining several drivers of corporate internationalization including cost drivers, government drivers, competitive drivers, and market drivers. It then describes 5 stages of internationalization that companies typically progress through: 1) Domestic Company, 2) International Company, 3) Multinational Company, 4) Global Company, and 5) Transnational Company. For each stage, it provides details on the company's strategy, view of world markets, orientation, key assets, and the role of country units. It concludes by summarizing the differences between each stage in a chart.
Douglas Wind and Pelmutter advocated four approaches to international business: the ethnocentric approach, polycentric approach, regiocentric approach, and geocentric approach. The ethnocentric approach involves exporting the same products designed for the domestic market to foreign countries. The polycentric approach decentralizes decision-making to foreign executives. The regiocentric approach markets similar products designed for a region to neighboring countries. The geocentric approach operates subsidiaries globally as independent companies coordinated by the headquarters.
International Business Environment- Domestic, Foreign & Global Environment Vijyata Singh
The document discusses the influence of domestic, foreign, and global environments on international business. It identifies controllable variables such as finance, production, human resources, and marketing. It also identifies uncontrollable variables including the domestic environment, foreign environment, and global environment. The global environment encompasses factors like the international economic environment, regional economic groups and agreements, and international financial institutions. Understanding the business environments is important for businesses to determine market potential, how to enter foreign markets, production scale, labor deployment, financing operations, marketing strategies, and compensation.
This document provides an overview of tools for analyzing a company's marketing environment, including SWOT analysis and Porter's Five Forces model. SWOT analysis involves examining a company's strengths, weaknesses, opportunities, and threats. Porter's Five Forces model analyzes the bargaining power of buyers and suppliers, threat of substitutes, threat of new entrants, and rivalry among existing competitors. The document was created by an assistant professor to provide guidance on marketing environment analysis.
This document discusses various retail formats categorized by ownership. It identifies the main ownership models as independent stores, chain stores, franchising, leased department stores, vertical marketing systems, and consumer cooperatives. Independent stores are owned and operated by a single retailer, while chain stores have two or more outlets owned under joint control. Franchising involves a contractual agreement where a franchisee pays fees to a franchiser in exchange for using their brand name and operating format. Leased department stores involve renting space within a larger store. Vertical marketing systems integrate manufacturers, wholesalers, and retailers to facilitate product flow. Consumer cooperatives are owned by their customers.
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This document discusses different store-based retail formats. It identifies convenience stores, supermarkets, food-based superstores, and limited-line stores as food-based retailers. For general merchandise retailers it outlines specialty stores, full-line discount stores, factory outlets, membership clubs, flea markets, off-price chains, and traditional department stores. The document provides brief descriptions of each retail format's characteristics including store size, product assortments, pricing, and target customers.
The document discusses various retail formats categorized by ownership. Independent stores are owned by a single retailer, while chain stores have two or more outlets owned under joint control. Franchising involves a contractual agreement where a franchisee pays fees to the franchiser in exchange for using their brand name and operating format. Leased department stores section off areas of a larger store to outside retailers paying monthly rent. Vertical marketing systems integrate manufacturers, wholesalers, and retailers to different degrees to facilitate product flow from creation to consumer. Formats provide options for retailers based on their resources and target markets.
This document discusses rural consumers in India. It provides information on the profile of rural consumers, including their low literacy and income levels, scattered population across many villages, and principal occupations in farming and trades. It describes the types of rural consumers as household consumers, rural industrial users, and rural resellers. It also outlines different groups of rural consumers based on their buying behavior, such as habitual, cognitive, emotional, and impulsive groups. Finally, it briefly discusses factors that influence rural consumer behavior, including stimuli, perception, attitudes, needs, demographics, culture, and social influences.
The document compares rural and urban marketing in India, noting key differences in their philosophies, buyer motivations, marketing objectives, mix, research methods, technologies used, and development strategies. Rural marketing focuses on inclusive growth and uses simple research methods, while urban marketing emphasizes fashion, lifestyle, and sophisticated research. The marketing mix also differs, with rural using the basic 4 P's and urban utilizing an expanded 7 P's approach.
The document discusses the rural environment and is divided into several sections. It covers the demographic environment including changes in rural population, family structures, age, education, and occupation. The physical environment discusses rural settlements and housing patterns. The socio-cultural environment examines socio-cultural regions, village communities, and the caste system. The political environment analyzes panchayati raj institutions and gram sabhas. The technological environment addresses rapid mechanization and the growth of information and communication technology. Finally, the rural economic environment describes the transitioning rural economy, economic structure, rural enterprises, income disparity, and spending.
This document outlines the evolution of rural marketing in India through four phases:
Phase I (prior to 1960) consisted of agricultural marketing and exchanges of crafts and utensils; Phase II (1960-1980) saw the entry of consumer goods companies and changes in rural demand due to the Green Revolution; Phase III (1990-2000) included new service sectors, pro-rural government initiatives, and companies launching rural-focused products; Phase IV (after 2000) featured financial inclusion, media expansion, hiring of rural staff, and improved standards of living through various government programs.
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- Rural markets have consumers located in rural areas with different behaviors than urban consumers. Transactions can be rural-to-urban or urban-to-rural.
- Rural marketing focuses more on development than transactions, customer satisfaction, and increasing living standards through a mutually beneficial process.
- Rural markets are large and diverse but scattered, with low incomes mainly from agriculture. They face challenges like high distribution costs, seasonal demand, and lack of infrastructure.
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Global Growth Starts With Translation - How To Unlock Global Markets - Tim Kirby
International pricing
1. INTERNATIONAL
PRICING
B Y V I J YATA
A S S I S TA N T P R O F E S S O R ( D E P T T. O F M B A )
R A N C H I W O M E N ’ S C O L L E G E , R A N C H I U N I V E R S I T Y
2. INTRODUCTION
Of the 4Ps of the marketing mix, pricing receives the least
attention but success in international marketing depends on
right pricing of the product.
3. OBJECTIVE OF PRICING IN
INTERNATIONAL MARKETING
The main objective of pricing in overseas marketing should be to meet the customer
demand in competitive situation in such a way that sales and profit are maximised.
Additionally there can be these following objectives too specific to market and product :
• PENETRATION- quoting a low price to divert demand or to generate new demand
• SKIMMING – to charge premium price after having a strong foothold in market
• HOLDING MARKET SHARE – to react with price adjustments with competitors and
exchange rate fluctuations( single country
market )
• ENHANCING SHARE – out-pricing competitor either by enhancing cost efficiency or by
quoting price based on direct costs and not on total costs
4. FACTORS AFFECTING PRICING
DECISIONS
• Cost of the Product
• Competition in the foreign market
• Demand for the product in the foreign market
• Exchange rate fluctuations
• International transportation cost
• Governing trade policies and price regulations
• Varying inflation and interest rates in different countries
• Micro and Macro marketing environments of the overseas as well
as domestic market
5. PRICING PROCESS
Price Quotation and term of sale
Calculation of Price Structure
Determination of Pricing Objectives
Determination of price limits
Lower limits : cost limit Upper Limits : Market limits
Marketing Analysis
Market size, segment and competition Price levels and price categories
Cost Analysis
Cost of product Cost of distribution and marketing
6. ELEMENTS OF COST IN EXPORT
1. Direct Cost i.e Material , labor, other direct charges
2. Indirect Cost + Factory overhead = Factory Cost
3. General and Administrative expenses = Total Cost
4. Distribution and selling Expenses
5. Marketing Support cost = Total cost of Sale
6. Export packaging , marketing and labelling
7. Port/Dockyard/Airport handling charges
8. Documentation fees
9. Duties and taxes related to exporting
10.Importer’s, Wholesaler’s, Retailer’s and agent’s margin and mark-
up
7. INTERNATIONAL PRICING METHODS
• Cost Plus Method
• Marginal Cost Pricing
• Differential Pricing
• Probe Pricing
• Penetration Pricing
• Skimming Pricing
• Competitive Pricing
• Transfer Pricing
8. COST PLUS METHOD
This implies charging the total costs plus profit. Here
includes all costs incurred in international trade like special
packaging, labelling, transportation , insurance , handling
duties, taxes and levies at different stages from the place of
origin in the exporting country to the foreign country ,
depending on terms of sale.
MARGINAL COST PRICING
In some circumstances , exporter may charge price to
cover only prime cost or just material cost-plus packing and
other direct export marketing cost.This is known as Marginal
cost pricing method . It is used to penetrate into foreign
markets.
9. DIFFERNTIAL PRICING
Different prices are charged in different markets
and different segments based on competition and
business environment varying from country to
PROBE PRICING
A new entrant into a foreign market having
little/no knowledge of the market tries to probe the
prospects of the market by quoting price
approximation relating to sales volume and value.
plus profit and competitor’s prices are used for setting
probe pricing parameters.
10. PENETRATION PRICING
This price may yield marginal surplus over the total
cost, or just cover the full cost or in some cases even the
total cost may not be realised, but there are considerable
chances of realising them in future.
SKIMMING PRICING
If the exporter has very strong foothold in foreign
market with very unique selling proposition and
competitive advantage with favourable positive image,
higher prices may be charged to maximise gains.
11. COMPETITIVE PRICING
Adjustment and adaptations of pricing depending on the
prices quoted by competitors is know as competitive pricing.
TRANSFER PRICING
In international marketing, different units under the same
corporate body but located in different foreign countries,
goods and services among themselves, the pricing of such
exchanges is known as transfer pricing. Transfer pricing takes taxes
and duties leviable in the countries concerned , their marketing
conditions, paying potential of prospect clients , profit transfer rules
and varying government rules into account.
12. TRANSFER PRICING METHODS
Alternative approaches to transfer prices are :
Transfer at cost :
This approach assumes that lower costs lead to better
performance by the subsidiary/affiliate and also helps in keeping
duties low at the receiving end. The transferring company do not
have expectation of profit , rather the receiving subsidiary is
expected to generate profit by subsequent sale.
Transfer at cost plus overhead and margin
This approach assumes that profit must be shown at every
stage of movement through the channel. But this may result in
pricing unrelated to competition or demand condition in foreign
market.
13. Transfer at price derived from end market prices
Under this method the price is derived from the
competitive foreign market prices. Here , there are chances of
not meeting the production cost by the seller or the margins
may be too low but, it helps in establishing name into a new
market.
Transfer at “ Arm’s length price”
Using this method , the transfer price is the price that
unaffiliated parties in a similar transaction agreed on.
14. DUMPING
One of the challenging issues in international pricing is dumping.
Dumping refers to the practice of charging a very low price for imported
goods to the detriment of the same product manufactured domestically.
Dumping can be sporadic when the manufacturer with unsold inventories
wants to dispose it in other countries, at lower price. By means of
Predatory dumping company gains access to overseas market by selling
initially at a loss to drive out competition.
Reverse dumping is another form of dumping where overseas demand is
less elastic and will tolerate a higher price. In this case , dumping occurs in
the home market.
Dumping can be legal or illegal based on the laws of the market in which
it takes place.
15. COUNTER-TRADE
Counter- trade is one of the practice in international pricing.
Counter trade refers to a government mandate to pay for goods and
services with something other than cash. Counter trade can be in the
form of barter where one product is exchanged for another (parallel
barter), where two contracts or a set of parallel cash sales agreement
is effected.
The main reasons for spread of counter trade are :
i. It provides a trade financing alternative to the countries having
international debt and liquidity problems.
ii. It facilitates access to new market
iii. It fits well with the growth of bilateral trade agreements between
governments.
16. GLOBAL PRICING ALTERNATIVES
Finns operating in international markets follow three
pricing approaches, predominantly:
Ethnocentric approach
Polycentric approach
Geocentric approach
17. ETHNOCENTRIC APPROACH
A company following an ethnocentric approach follows the
same pricing policy throughout the world. The importer of
the product will bear the freight and import duties. This
approach is convenient to adopt because there is no need
to make any modifications to price based on competitive
or market conditions. The firm need not put in efforts to
collect information on these market conditions. But by
adopting tins approach, a firm might fail to make optimum
profits by not fixing the prices of the products based on
regional market conditions
18. POLYCENTRIC APPROACH
A firm following this approach allows its regional managers
to fix the product prices based on the circumstances in
which they operate. Tins approach might prove to be not
so good, when the disparity in product prices from one
region to another is higher than transportation costs and
duties. When this condition prevails, customers will buy the
products in markets where they are available at low price
and ship them to where the prices are relatively high. This
will result in loss of revenue for the firm following this
approach.
19. GEOCENTRIC APPROACH
A firm adopting this approach takes a medium position
between fixing a single price worldwide and fixing different
prices based on the requirements of subsidiaries. One of
the fundamental assumptions underlying tins approach is
that markets are unique, and specific factors related to
them have to be taken into account while making a pricing
decision. Also the approach takes into consideration tire
price coordination necessary at headquarters to deal with
international accounts and product arbitrage. This
approach is the most practical of all because it takes into
consideration both global competition and local rivalry in
establishing prices.
20. THANK YOU
F O R F E E D B A C K / S U G G E S T I O N S M A I L AT
V I J YATA . R W C @ G M A I L . C O M