Chapter "global pricing". After studying this chapter you will be able to understand: The dynamic growth in the region, the importance and slow growth of Japan, the importance of the Bottom-of-the-Pyramid Markets, the diversity across the region, the interrelationships among countries in the region, the diversity within China. | Global Pricing Chapter 12 PowerPoint Chapter Overview 1. Drivers of Foreign Market Pricing 2. Managing Price Escalation 3. Pricing in Inflationary Environments 4. Global Pricing and Currency Fluctuations 5. Transfer Pricing 6. Global Pricing and Antidumping Regulation 7. Price Coordination Chapter 12 Copyright © 2017 John Wiley & Sons, Inc. Introduction Global pricing is one of the most critical and complex issues in international marketing. Price is the only marketing mix instrument that creates revenues. All other elements entail costs. A company’s global pricing policy may make or break its overseas expansion efforts. Multinationals also face the challenges of how to coordinate their pricing across different countries. Chapter 12 Copyright © 2017 John Wiley & Sons, Inc. 1. Drivers of Foreign Market Pricing Main drivers affecting global pricing: Company Goals Satisfactory ROI Market Share Specified Product Goal Company Costs Cost-Plus Pricing Incremental Costs Chapter 12 Copyright © 2017 John Wiley & Sons, Inc. Exhibit 12-1: Retail Price Comparison across Cities Chapter 12 Copyright © 2017 John Wiley & Sons, Inc. 1. Drivers of Foreign Market Pricing Customer Demand Competition Cross-Border Price Differentials Nonprice Competition Distribution Channels Variations in Trade Margins and Length of Margins Issues of Everyday Low Prices (EDLP) Parallel Imports (Gray Market) Government Policies Chapter 12 Copyright © 2017 John Wiley & Sons, Inc. Exhibit 12-3: Price Promotions in Chinese Cultures with End-8 Prices Chapter 12 Copyright © 2017 John Wiley & Sons, Inc. Exhibit 12-4: Average Quarterly Sales and Ex-Factory Selling Prices of Antidepressants (1988, Q1−1999, Q1) Chapter 12 Copyright © 2017 John Wiley & Sons, Inc. 2. Managing Price Escalation Options to lower the export price: 1. Rearrange the distribution channel 2. Eliminate costly features (or make them optional) 3. Downsize the product 4. Assemble or | Global Pricing Chapter 12 PowerPoint Chapter Overview 1. Drivers of Foreign Market Pricing 2. Managing Price Escalation 3. Pricing in Inflationary Environments 4. Global Pricing and Currency Fluctuations 5. Transfer Pricing 6. Global Pricing and Antidumping Regulation 7. Price Coordination Chapter 12 Copyright © 2017 John Wiley & Sons, Inc. Introduction Global pricing is one of the most critical and complex issues in international marketing. Price is the only marketing mix instrument that creates revenues. All other elements entail costs. A company’s global pricing policy may make or break its overseas expansion efforts. Multinationals also face the challenges of how to coordinate their pricing across different countries. Chapter 12 Copyright © 2017 John Wiley & Sons, Inc. 1. Drivers of Foreign Market Pricing Main drivers affecting global pricing: Company Goals Satisfactory ROI Market Share Specified Product Goal Company Costs Cost-Plus Pricing Incremental Costs .
