INTERNATIONAL MARKETING Export Pricing Strategies参考.ppt

INTERNATIONAL MARKETING 6e Export Pricing Strategies Price Pricing is the only revenue generating element of the marketing mix. Pricing is a means of attracting and communicating an offer to a potential buyer. Pricing is a competitive tool. Pricing can be used to position the product or service in the marketplace. Pricing Challenges/Strategies Skimming Using high-priced unique products to achieve the highest possible contribution in a short initial time period, then gradually lowering the price as the market. Market Pricing Following competitive pricing in the target market; adjusting production and marketing mix to competitive conditions. Penetration Pricing Offering low pricing to generate volume sales which hopefully will compensate for low margins. The Setting of Export Prices Factors affecting customer purchasing decisions ability to pay price-quality relationship reaction to marketing mix market support Export Pricing Strategy Cost-oriented pricing Standard worldwide price- regardless of buyer’s location in the market(s) Dual pricing differentiates between domestic and export prices Cost-plus method allocates domestic and foreign costs to the product. Marginal cost method considers direct costs of producing and selling exports as floor (lowest) price. Market-differentiated pricing based on the dynamics of the marketplace changes in competition, exchange rates, etc. Export-related Costs Export-related costs Cost of modifying a product for a foreign market Operational costs of exporting Cost incurred in entering the foreign market Price escalation for exports results from Clear-cut and hidden costs Methods for combating price escalation Reorganize the channel of distribution Product adaptation Change tariff or tax classifications Overseas assembly or production Terms of Sale Incoterms are the internationally accepted standard definitions for terms of sale set by the International Chamber of Commerce (ICC) since 1936. Incoterms exworks (EXW) free carrier (FCA)