10+International+Pricing+St

10+International+Pricing+St - International Pricing n n n n...

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International Pricing n One of the most complicated decisions for international marketers. n Market prices at the consumer level are much more difficult to control than within one country. n Transfer pricing as a tool n Countertrading (“non-cash pricing”) is an important tool to include in pricing policy.
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Drivers of Foreign Market Pricing n C ompany q Goals (market share vs. profits) q Costs (floor) n C ustomer Demand (ceiling) n C ompetition q Cross-Border Price Differentials q Price vs. Nonprice q Piracy n Distribution C hannels q Trade Margins q Length of Channels q Parallel Imports (Gray Market) n Government Policies
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§ Tariffs § Administrative Costs § Insurance § Inflation § Exchange Rate Fluctuations Costs of Exporting>>>  >>>Price Escalation
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Managing Price Escalation n Reduce Costs q Eliminate costly features (or make them optional) q Downsize the product or lower quality q Assemble or manufacture the product in different places q Adapt the product to escape tariffs levies q Rearrange the distribution channel n Position the product as premium
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This note was uploaded on 11/15/2011 for the course BUS-M 401 taught by Professor Sasha during the Spring '11 term at IUPUI.

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10+International+Pricing+St - International Pricing n n n n...

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