Subject (Course): International Pricing Policy. Export prices. Syllabus:
Objectives of the subject "International Pricing Policy":
The main purpose of this subject is to understanding the importance of an appropriate pricing strategy when entering new export markets.
This will be achieved by:
Sample of the subject - International Pricing Policy:
Subject Description (International Pricing Policy):
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 prices. In this respect, the Internet is a valuable research tool for the exporter.
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:
- Setting low prices for penetration.
2- Strategies for existing products:
- Maintaining prestige prices.