Product pricing in international markets

Product pricing in International Markets

Project by :- Shantanu Bhopale - 31 &

Gaurav Jadhav - 57

Introduction

• International Marketing

• Marketing mix

• Meaning of pricing

PRODUCT PRICING IN INTERNATIONAL MARKETS

Factors for determining price in

international markets• Cost of product

• Competition

• Elasticity of demand

• Government policies

• Incentives offered by the government

• Frequency of purchase

• Brand image

• Miscellaneous factors


Importance of pricing in international

Markets

• Goal oriented

• Increases profitability

• Helps to penetrate the market

• Helps to skim the cream

• Increases market share

• Creating brand image and loyalty

• Helps to face competition

• Reflects the quality of product


Methods of costing

• Cost plus Approach

• Marginal costing


Export pricing strategies

• Skimming pricing strategy

• Penetration pricing strategy

• Transfer pricing strategy

• Marginal cost pricing

• Market oriented pricing

• Competitors pricing


Information required for pricing in

International Markets

Information required at Micro level

• Cost of production

• Cost of distribution

• Cost of marketing

• General information

• Other information


Information required at Macro level

• Information about product

• Information about demand

• Information about Market

• Information about competitors

• Information about charges and levies in foreign market

• Other information


Impact of incentives on export pricing

• Duty drawback

• Rebate on income tax

• Exemption on sales tax

• Exemption on excise duty

• Rail/sea/air freight concession

• Financial assistance


Conclusion

• Customer attitude & customer perception

• Environmental factors of markets

• Life Cycle of the product

• Short term and long term profits

• Setting the right strategy


Business

Product pricing in international markets