Pricing Decisions in Global Marketing Lecture
Whether dealing with a single home-country market or multiple country markets, marketing managers must develop pricing objectives as well as strategies for achieving those objectives. Remember: Price is an independent variable; as a marketing tactic, managers can raise, lower, or maintain prices as part of the overall marketing strategy. However, a number of pricing issues are unique to global marketing. The pricing strategy for a particular product may vary from country to country; a product may be positioned as a low-priced, mass-market product in some countries and a premium-priced, niche product in others
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LEARNING OBJECTIVES OF THE LECTURE:
1 Review the basic product concepts that underlie a successful global marketing product strategy.
2 Identify the different pricing strategies and objectives that influence decisions about pricing products in global markets.
3 Summarize the various Incoterms that affect the final price of a product.
4 List some of the environmental influences that impact prices.
5 Apply the ethnocentric/polycentric/geocentric framework to decisions regarding price.
6 Explain some of the tactics global companies can use to combat the problem of gray market goods.
7 Assess the impact of dumping on prices in global markets.
8 Compare and contrast the different types of price fixing.
9 Explain the concept of transfer pricing.
10 Define countertrade and explain the various forms it can take.
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