Course summary (International Pricing policy):
Global prices and Incoterms. Pricing options available to the exporter. Strategy when entering new export markets. Competitors price
Course objectives:
- The primary objective of this learning unit is to understand the importance
of an appropriate pricing strategy when entering new export markets.
- We are going to examine the pricing options available to the exporter and
outline the criteria to be used when establishing a pricing strategy.
- We will also look at the criteria defined in pricing under
Incoterms.
One of the most complicated aspects of Foreign trade is pricing policy. An
incorrect pricing policy can lead to total failure in international markets.
First of all we should find out about prices in various international markets, this information will allow us to have some real criteria for setting our export
prices.
However, we will meet the familiar dilemma of global or local prices.
From another point of view the price is attached to the selected Incoterms, in
the more competitive markets it is habitual to deliver product to client´s
premises, thereby offering DDP prices. In some countries this is impossible, and
it will cause us problems.
When designing our international pricing policy we will have previously
carried a survey of our competitor's prices in our different target markets. We
will be able to act according to this information one-way or the other. It will
be a basic reference when establishing our own prices. In this respect, Internet
is a valuable research tool for the exporter.
Example of the course International Pricing policy:
The pricing strategies to be followed in foreign markets are often closely
linked to the product life cycle. We must examine pricing strategies for various
stages of the cycle:
1- Introduction Strategies. Basically there are two product introduction
strategies:
- Setting low prices for penetration.
- "Skimming" the market.
2- Strategies for existing products. The strategies for existing products are
usually based on:
- Maintaining prestige prices.
- Maintaining a given low price, when commercializing mass sale products.
- Corrective actions.
International, Pricing, policy, Strategies, Export, Prices, Products, life, cycle, Incoterms, Pricing options, Pricing strategy, entering, new, Export markets, competitors prices, Master, international business
International Business
Course learning materials: 
