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7 Cards in this Set
- Front
- Back
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factors influencing international pricing |
competition pricing objective price escalation pricing controls target customer |
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setting regular prices factor |
how much a customer is willing to pay competition company's profit targets |
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skimming |
setting higher prices for a product in the early stages in order to maximize profit potential |
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penetration |
setting lower or more competitive prices for an item in order to gain sales in a new market |
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approaches to lessening price escalation |
lower cost of goods - manufacture in third world country lower tariffs - repackaging lower distribution costs - reduce middlemen use free trade zones - establish FTZs or ports use price dumping - selling a product at a lower price than it would go for in the home country |
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countertrade |
barter - direct exchange of goods between two parties compensation deals - involve payment of goods and cash counter purchase or offset trade - two contracts are negotiated product buyback - company promises to buy back some products produced in its subsidiaries |
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conditions for countertrade |
successful countertrade transactions require the marketer to: -accurately establish the market value of the goods -dispose of the bartered goods once they are received |
