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InternationalMarketing,18e(Cateora)
Chapter18PricingforInternationalMarkets
1)Settingtherightpriceforaproductcanbethekeytosuccessorfailureininternationalmarkets.
2)Companiesthatusepricingtoachievemarketingobjectivesusepricingasastaticelement.
3)Aproductsoldinonecountrymaybeexportedtoanotherandundercutthepriceschargedinthatcountry.
4)Thepossibilityofaparallelmarketoccurswhenpricedifferencesarelessthanthecostoftransportationbetweentwomarkets.
5)Torestrictthegraymarket,companiesmustestablishandmonitorcontrolsthateffectivelypolicesaleschannels.
6)Companiesshouldusethefull-costpricingapproachwhenithashighfixedcostsrelativetoitsvariablecosts.
7)Incountrieswherelargesharesofthepopulationaremovingintomiddle-incomeclasses,penetrationpricingwilldepressmarketgrowth.
8)Deflationresultsinever-decreasingprices,creatingapositiveresultforconsumers,butputtingpressureoneveryoneinthesupplychaintolowercosts.
9)Withdeflation,consumersfaceever-risingpricesthateventuallyexcludemanyofthemfromthemarket.
10)WhentheU.S.dollarstrengthens,U.S.exportswilldecrease.
11)Priceescalationcouldleadtothesalesofexportedgoodsbeingconfinedtoalimitedsegmentofwealthy,price-insensitivecustomers.
12)Theinternationalmarketermustrelyonexperienceandmarketingresearchtodeterminemiddlemancostsbecausenoconvenientsourceofdataonmiddlemancostsisavailable.
13)Eliminatingcostlyfunctionalfeaturesofaproductorloweringoverallproductqualitycanreducepriceescalation.
14)Longerchannelsofdistributionaremoreusefulforkeepingpricesundercontrolthanshorterchannelsofdistribution.
15)Involvingfewermiddlemen
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