International Marketing

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By:-Bishnu Shankar Singh

Diptartha KashyapManoranjan Kumar Singh

(SRPM-E-T3)

International Marketing

International Marketing

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International Pricing Technique

Pricing

• A Psychological element valuing product or service.

• Essential that products & services be competitively priced.

• Fair price reflects the perceived value of the product in question.

International Marketing

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Parts of International Pricing

1. Pricing decisions.

2. Pricing Policies.

3. Factors affecting international pricing.

4. Price quotations.

5. Dumping

6. Counter trade.

International Marketing

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Pricing Decisions

i. Supply & Demand.ii. Elasticity or cross Elasticity of Demand.iii. Exchange Rates.iv. Market Share.v. Tariffs and Distribution Costs.vi. Culture.vii. Purchasing Power.

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Factors Affecting International Pricing

1. Cost

2. Competition

3. Product Differentiation.

4. Exchange Rate.

5. Economic conditions of the importing country.

6. Government factors.

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Main Elements of price structure for export

1. Factory Price2. Export,Packaging,Marketing & Labeling3. Transportation from Factory4. Transport to dock or Airport5. Port or Airport Charges6. Documentation and Export duty 1 to 6 FOB Price

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Continued…….

7 .Ocean, Land & Air fright charges 1 to 7=(C&F)8.Insurance Premium 1 to 8 CIF Price9.Import Duty10.Clearing Agent 1 to 10=Landed Cost

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PRICING STRATEGY OF McDonald’s1) Premium Pricing.2) Penetration Pricing.3) Economy Pricing.4) Price Skimming.5) Psychological Pricing.6) Product Line Pricing.7) Optional Product Pricing.8) Captive Product Pricing9) Product Bundle Pricing.10)Promotional Pricing.11)Geographical Pricing.12)Value Pricing.

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Logistic

Logistics is the management of the flow of resources, not only goods, between the point of origin and the point of destination in order to meet the requirements of customers or corporations

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Logistic Involves the Integration of Information

1. Transportation

2. Inventories

3. Warehousing

4. Material Handling

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Main Logistic Target

• Right time • Right Place• Right People

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International Retailing

Definition :-

International Retailing :-All the activities involved in selling products and services to final international consumers for their personal consumption.

Domestic Retailing :-

Domestic retailing is the selling of a company products within a local financial market. It deals with only one set of competition and economic issues which make it more convenient to do.

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International Marketing

Types Of International RetailingInternational Retailers are classified under two categories:-

1. Global grocery retailers :-Products like food encompassing all types of fresh vegetables, fruits, juices, chocolates etc. , fashion and clothing including bed linen etc. , grocery, all types of branded consumables, as well as liquor and many more household goods under one roof.

Examples:- Wal-Mart, Carrefour, Metro, Tesco and Ahold etc.

2. International fashion Brands:-emergence of international fashion brands, luxury product brands dealing exclusively with branded clothing including sportswear, casual and formal wear, party wear, foot ware and accessories, luxury items including watches, perfumes, jewellery and many more items of personal use.

Example:- Ralph Lauren, Gucci, Zara, Hugo Boss, JC Penny, Benetton, Jimmy Choo, Swarovski, Dolce & Gabbana etc.

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International Marketing

Comparison between International and Domestic Retailing

• Dissimilarity in Currencies• Difference in legal systems• Difference in cultures• Difference in availability of resources• Internationalizing retail environment• Use of various sales training techniques

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International Marketing

Factors affecting international retail expansion, success and failure

Motives.Culture.Human resource

management.

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International Marketing

Benefits Of International Retailing

1. Exponential growth2. New Markets3. Favourable Regulations4. High living standard5. Increased socio economic welfare6. Wider market7. Utilisation of world resources8. Economies of scale9. Reduced risks

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International Marketing

Drawbacks Of International Retailing

1. Poor trading performance – sales, profits, market share2. Customer attitudes to the brand and shopping behaviour3. Closure of shops4. Neglect and lack of investment5. High staff turnover6. Changing methods of operation (e.g. from own shops to franchise)7. Exit from the market

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International Marketing

Conclusion

1) Both U.S. & European retailers expanding internationally.

2) Consolidation & acquisition among retailers.

3) Direct selling firms are most active in the growth markets.

4) Network marketing is growing rapidly, especially in emerging markets.

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International Marketing

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International Marketing