{"id":4043,"date":"2014-05-08T18:22:33","date_gmt":"2014-05-08T18:22:33","guid":{"rendered":"http:\/\/www.marketingteacher.com\/international-marketing-and-price\/"},"modified":"2015-07-02T11:02:35","modified_gmt":"2015-07-02T11:02:35","slug":"international-marketing-and-price","status":"publish","type":"post","link":"https:\/\/marketingteacher.com\/staging\/5483\/international-marketing-and-price\/","title":{"rendered":"International Marketing and Price"},"content":{"rendered":"<h1>International Marketing and Price<\/h1>\n<h2>How should we set prices for international markets?<\/h2>\n<p>This lesson considers the basics of pricing for international   marketing. As with all of the   international marketing lessons, every country and culture within it   will influence price. So   here we are going to look at some of the common influences upon pricing   decision-making, the   impact of grey markets, international approaches to pricing, and more   mainstream marketing approaches to   pricing that can be applied to an international context.<\/p>\n<h2>Generic Marketing Approaches to Pricing.<\/h2>\n<ul>\n<li>Premium Pricing.<\/li>\n<li>Penetration Pricing.<\/li>\n<li>Economy Pricing.<\/li>\n<li>Price Skimming.<\/li>\n<li>Psychological Pricing.<\/li>\n<li>Product Line Pricing.<\/li>\n<li>Optional Product Pricing.<\/li>\n<li>Captive Product Pricing<\/li>\n<li>Product Bundle Pricing.<\/li>\n<li>Promotional Pricing.<\/li>\n<li>Geographical Pricing.<\/li>\n<li>Value Pricing.<\/li>\n<li><a href=\"https:\/\/marketingteacher.com\/staging\/5483pricing-strategies\/\">More&#8230;<\/a><\/li>\n<\/ul>\n<h2>Influences on pricing for international marketing.<\/h2>\n<ul>\n<li>The cost of manufacturing, distributing and marketing your product.<\/li>\n<li>The physical location of production plants might influence price.   For example, Toyota have plants in their European market, in the United   Kingdom   and Turkey.<\/li>\n<li>Of course fluctuations in foreign currencies affect pricing. Many   companies are benefiting   from a relatively low US Dollar price during the 2010s. This make   imports to the United States   expensive, but exports relatively cheap to other nations. However   fluctuations make it very   difficult for companies to make long-term decisions &#8211; such as building   large factories in   global markets i.e. costs of production are cheap today, but could be   expensive in the future,   impacting upon the price that your business is forced to charge.<\/li>\n<li>The price that the international consumer is willing to pay for your   product.<\/li>\n<li>Your own business objectives will influence price. For example,   large international companies   such as Starbucks may operate at a loss in some locations but still need   a local presence in order   to maintain their economies of scale, as well as their reputation as a   global player.<\/li>\n<li>The price that competitors in international markets are already   charging.<\/li>\n<li>Business environment factors such as government policy and taxation.<\/li>\n<\/ul>\n<h2>Grey Markets<\/h2>\n<p>A business can expect problems with <em>grey markets<\/em> where it   trades across national boundaries.   So if Company Y is English it will trade in Stirling or Pound notes. If   it trades in the United   States during the 2010s, to be competitive it will need to sell at a   reduced price in the US.   However, there is little to stop an entrepreneur from traveling to the   US, filling up a transport container   with products, which have been exported from Company Y in England, then   returning them back to England and marketing   the same product at a lower price than Company Y is willing to trade.   This is an example of   parallel trade, which is legal &#8211; just. Therefore it is known as <em>grey   marketing<\/em>.<\/p>\n<h2>International Pricing Approaches<\/h2>\n<ul>\n<li><strong>Export Pricing<\/strong> &#8211; a price is set for by the   home-based marketing managers for the international   market. The pricing approach is based upon a whole series of factors   which are driven by the   influences on pricing listed above. Then mainstream approaches to   pricing may be implemented &#8211;   see below.<\/li>\n<li><strong>Non-cash payments<\/strong> &#8211; less and less popular these   days, non-cash payments include counter-trade   where goods are exchanged for goods between companies from different   parts of the World.<\/li>\n<li><strong>Transfer Pricing<\/strong> &#8211; prices are set in the home   market, and goods are effectively sold to the   international subsidiary which then attaches its own margin based upon   the best price that local   managers decide that they could achieve. Then mainstream approaches to   pricing may be   implemented &#8211; see below.<\/li>\n<li><strong>Standardization versus adaptation<\/strong> &#8211; do you use a   standard, common approach to pricing in   each market, or do you decide to adapt the price to local conditions?<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>This lesson considers the basics of pricing for international marketing. As with all of the international marketing lessons, every country and culture within it will influence price. So here we are going to look at some of the common influences upon pricing decision-making, the impact of grey markets, international approaches to pricing, and more mainstream approaches to pricing.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[23],"tags":[],"class_list":["post-4043","post","type-post","status-publish","format-standard","hentry","category-international-marketing"],"_links":{"self":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/comments?post=4043"}],"version-history":[{"count":0,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4043\/revisions"}],"wp:attachment":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/media?parent=4043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/categories?post=4043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/tags?post=4043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}