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    Notes On Global Pricing Strategies

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    Suraj Nainwal
    This document discusses key factors in global pricing strategies. It identifies environmental factors like government influences, inflation, and currency fluctuations that affect pricing. Market factors such as competitors' strategies and GDP are also important to consider. Additionally, firm-level priorities around objectives, positioning, and market entry modes influence pricing decisions. When determining prices, companies also evaluate service-related factors like features, quality, and cost structure. The document outlines several pricing strategies and methods that can be used, and discusses whether companies should standardize or differentiate prices across markets.

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    Notes On Global Pricing Strategies

    Uploaded by

    Suraj Nainwal
    146 views3 pages
    This document discusses key factors in global pricing strategies. It identifies environmental factors like government influences, inflation, and currency fluctuations that affect pricing. Market factors such as competitors' strategies and GDP are also important to consider. Additionally, firm-level priorities around objectives, positioning, and market entry modes influence pricing decisions. When determining prices, companies also evaluate service-related factors like features, quality, and cost structure. The document outlines several pricing strategies and methods that can be used, and discusses whether companies should standardize or differentiate prices across markets.

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    Notes on Global Pricing Strategies

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    This document discusses key factors in global pricing strategies. It identifies environmental factors like government influences, inflation, and currency fluctuations that affect pricing. Market factors such as competitors' strategies and GDP are also important to consider. Additionally, firm-level priorities around objectives, positioning, and market entry modes influence pricing decisions. When determining prices, companies also evaluate service-related factors like features, quality, and cost structure. The document outlines several pricing strategies and methods that can be used, and discusses whether companies should standardize or differentiate prices across markets.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    146 views3 pages

    Notes On Global Pricing Strategies

    Uploaded by

    Suraj Nainwal
    This document discusses key factors in global pricing strategies. It identifies environmental factors like government influences, inflation, and currency fluctuations that affect pricing. Market factors such as competitors' strategies and GDP are also important to consider. Additionally, firm-level priorities around objectives, positioning, and market entry modes influence pricing decisions. When determining prices, companies also evaluate service-related factors like features, quality, and cost structure. The document outlines several pricing strategies and methods that can be used, and discusses whether companies should standardize or differentiate prices across markets.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 3

    Notes on 7: Global Pricing Strategies

    Key factors in global pricing


    Price is an integral part of the marketing mix that can be changed quickly without huge
    cost implications.
    Price is the only element in the mix that generates revenue, whilst all the others are
    cost generating, and this makes it a very important strategic marketing instrument.
    However, price should not be treated in isolation as a quick fix, but should be integrated
    with the other marketing mix elements.
    The environmental factors in pricing
    Environmental factors are the external and uncontrollable variables in the foreign markets.
    Environmental factors include:
    government influences and constraints: import controls, taxes, price controls
    inflation
    currency fluctuations
    business cycle stage.
    The market factors in pricing
    The market factors are arguably the most important in determining price, and in particular,
    the Gross Domestic Product.
    Market factors include:
    government influences and constraints: import controls, taxes, price controls
    inflation
    currency fluctuations
    business cycle stage
    competitors objectives, strategies and relative strengths/weakness.
    The firm-level factors in pricing
    There are several important firm-level ingredients, not least of which are the market
    objectives and strategies.
    Firm-level factors include:
    corporate and marketing objectives global or country-specific
    competitive strategies
    firm positioning
    service development proactive or reactive
    market entry modes.
    The service factors in pricing
    The critical factor is the relationship between the price being charged and the perceived
    value of the product, since consumers will see the price as being too high if they cannot
    relate it to their value of the product.

    1
    Service factors include:
    position in range of services prime, intermediate or secondary service
    most important service features: quality, reliability, speed etc.
    positioning in the market - unique selling points
    cost structure.
    Pricing strategies in global marketing
    There are six key strategies available:
    return on investment (ROI)
    market stabilisation
    early cash recovery
    prevent new entrants
    pricing to reflect service differentiation
    market penetration.
    Pricing methods
    There are many pricing approaches available to the global marketer:
    market skimming
    cost plus pricing
    determining the base price
    penetration pricing
    marginal cost pricing
    market holding.
    Price standardisation or differentiation
    The general guidelines adopted by the organisations lead to either standardisation or
    differentiation of prices.
    Price differentiation is determined by differences in:
    average industry prices
    price segments
    methods and importance of special offers
    importance of own brands
    strength of local competitors
    retailer power
    terms and conditions
    consumer preferences
    price interest and awareness.
    Price standardisation is determined by:

    2
    internationalisation of competition
    homogenisation of competitive structures
    international activities of large retail organisations
    increased danger of cross-border arbitrage.
    Terms of sale and payment
    In the hospitality industry, the sale of services, and payment for them, will have some impact
    on the pricing policy, although it could be the reverse - the pricing strategy of the business
    will affect the required terms of sale and payment.
    There are several different options available within the industry:
    self-service technology
    cash/card/cheque payments
    package deals
    credit systems
    business accounts
    online services.
    Other considerations in pricing
    The additional factors to consider in pricing strategies are the three other aspects of the
    marketing mix:
    product
    promotion
    place.

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