Pp prices

International Marketing Strategies

INTERNATIONAL MARKETING STRATEGIES

Study Abroad Program Barcelona Summer 2010

© Gabriel

International Marketing Strategies

Methodology • 50 % course is by teacher presentations • 25 % case studies • 25 % case debates and presentations
Grading 20%: Case studies teamwork and participation in class 30%: Presentation 50%: Mid-term exam and Finalexam Very important: If you miss some of the automatically you will get a NP for final grade. requirements,

International Marketing Strategies

Schedule of the course.

Topic
Presentation of the course, Introduction and International Marketing Plan Marketing Mix, Marketing Environment Press seminar (10) and Information Systems Marketing Research Product Adaptation and Pricing StrategiesMid-term oral Modes of entry Channel and distributions strategies International Marketing Organization International Communications Assignments Exam

Case study

Real Madrid (8)

Imaginarium (15)

Nestle (28) Zara (1)

Nine West (8)

International Marketing Strategies

What is a price?
Price is the amount of money charged for a product or service Price is the sum of all values thatcustomers exchange for benefits of having or using the product or service Fixed price policy is a recent concept that arose with the development of large-scale retailing at the end of the nineteenth century. Normally price results after a negotiation Pricing is not easy to be decided without errors: • Cost orientation • Low market orientation and flexibility to change • Reduce prices too quick giveerror messages to customers that becomes frustrated for previous buying • Marketing mix considerations abandoned

International Marketing Strategies

The Setting of Export Prices
ASSESSMENT OF PRICING ENVIRONMENTS
INTERNAL EXTERNAL
1. 1.

2.

Market-related factors • Nature of demand/target audience characteristics • Government regulations (e.g., duties) • Exchange rate stabilityIndustry-related factors • Competition intensity • Nature of competition

2.

3

Marketing Mix Product (e.g., old/new; standardized/differentiated • Distribution system (e.g., length) • Promotion needs (e.g., sales efforts) Company characteristics • Extent of internationalization • Countries exported to Management attitudes • Importance of exports • Overall price position of firm •

PricingPolicy Selection

Pricing Strategy Determination

Setting of Specific Price

International Marketing Strategies

Factors to consider when setting prices (Internal factors)
Internal factors: Marketing objectives, Marketing mix strategies, Costs, Organization considerations, export 1. Marketing objectives: Strategy for the product. Prices determine positioning in a high percentage a. Generalobjectives: profit maximization, market share leadership, product quality leadership, survival. b. Specific objectives: prevent competition from entering the market, keep loyalty, support resellers, avoid government intervention, create excitement for a product, help sales of other products on the company’s line c. Current profit maximization or market share leadership?

InternationalMarketing Strategies

Factors to consider when setting prices (Internal factors)
2. Marketing mix strategies a. Coordination with product design, distribution, and promotions to form a consistent and effective marketing program b. Start defining price and after tailoring them to marketing mix strategies and activities c. Target costing: it starts with an ideal selling price based on costumerconsiderations and then target cost that will ensure that the price is met. d. Create “non price” positions: emphasize quality. Customers do not buy only for price reasons e. High price positioning

International Marketing Strategies

Factors to consider when setting prices (Internal factors)
3. Costs

a. Cost of producing, distributing, selling must be covered together with the rate of return for...