Chapter 15 16 môn Mar quốc tế ppt

INTERNATIONAL MARKET

Welcome to GROUP 4
BÔNG BLUE

02/12/2021 – GROUP 4


7! HELLO
1.Lê Huỳnh Lan Anh

2.Vũ Trúc Uyển Nhi

3.Lê Thị Hoàng Anh

4.Phạm Thị Ngọc Linh

5.Trần Võ Tường Vy

6.Diêu Tiểu Yến

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7.Nguyễn Thị Như Quỳnh

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Session 7 – Chapter 6

Pricing

3

International
Markets
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O-U-T-L-I-N-E
▹

LO1 Components of pricing as competitive tools
in international marketing

▹

LO2 How to control pricing in parallel import or gray markets

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LO3 Price escalation and how to minimize its effect

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LO4 Countertrading and its place in international marketing practices

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LO5 The mechanics of price quotations

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LO6 The mechanics of getting paid

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LO1
Components of pricing as competitive
tools in international marketing

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Setting prices and changing prices are strategies that determine importance in marketing.

-

Set the fit for a product or service that can be the key to success or failure.

-

The calculated price remains the main source of revenue for most businesses .

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Price is one of the important and effective factors that help companies attract customers, maintain
their loyalty and satisfaction.

=> This shows that price is becoming more and more important as a tool of competition and price
competition changes the structure of the market.
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What is the price?

Price is money is the feature for a product or a
service.

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Price policy
The policy updates the subject to how a company prices its services and products based on the country in which business
is conducted, product type, value, demand, production costs, and availability market competition. The policy is necessary
for all companies as it provides a guideline for making profits.

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Pricing Objectives
- Pricing decisions are made in two directions:

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Pricing as an active tool to accomplish further goals.
Pricing as a factor in a business decision.

- The more control a company has over the final selling price of its products, the better it can achieve its subsequent goals.

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Parallel import
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The activity of importing goods outside the agreed distribution channels specified in the
contract by the manufacturer.

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This method is profitable when there is a large difference between the prices of the same
product in different countries.

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Gray market
The gray market refers to the activities of exchanging goods legally but informally, without
authorization and against the wishes of the manufacturer of such goods or the will of the regulatory
authorities. the country regulates the market.
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What are the effects of the gray
market?
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Parallel imports may cause lasting damage to the market for trademarked products.

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Customers who inadvertently purchase illegally imported goods have no assurance of the
quality of the item they purchase, warranty support, or authorized service.

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Moreover, when a product is defective, consumers blame the trademark owner and the
product's quality image is tarnished.

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Measures
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To prevent parallel markets from developing when such pricing and marketing strategies are used, companies must
maintain tight control over distribution and pricing.

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Companies that are serious about restricting the gray market must establish and monitor controls to effectively
protect distribution channels.

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LO2:How to control pricing in parallel import
or gray markets
Let’s start

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Full-Cost versus
Variable-Cost Pricing

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Full-Cost versus –
Variable-Cost Pricing
Variable Pricing (Marginal cost pricing)is

Full cost pricing is a method that companies use

a pricing method where the selling price

to price their goods and services. Price is

equals marginal cost.

calculated as the sum of overhead offsets, Average
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Variable Costs troops to produce the expected
level of output,Gross profit

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Full-Cost versus - Variable-Cost Pricing
• Variable-cost pricing
- Firm is concerned only with the marginal or
incremental cost of producing goods to be sold in
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overseas markets
• Full-cost pricing

- Companies insist that no unit of a similar product is different
from any other unit in terms of cost
- Each unit must bear full share of the total fixed
and variable cost

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Skimming versus Penetration Pricing

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Price Skimming

A product pricing strategy whereby a company sets a price for a product as high as a
customer can pay at an early stage, and then lowers it over time.

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Example
For example, Apple launched the first iPhone for $ 599 with the
most advanced technology at that time to serve the sophisticated
and tech-savvy people. Six months later, Apple released versions
with memory reduced to 16GB and 8GB for cheaper prices of $

499 and $ 399 to attract more customers. This way Apple can
extract maximum revenue from many different market
segments..

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Price Penetration

A marketing strategy used to attract customers to buy a new product or service, by offering a
lower price in the initial offering.

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Example
For example, Spotify allows customers to experience the platform for free, if
customers upgrade their account, they will get a free trial for 3 months when they
sign up to buy Premium package with Visa, MasterCard, Amex, JCB cards .

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Skimming versus Penetration Pricing
•

Apply the production enterprise that has a reputation for high

•

quality image in the market.

•

Advantages: There is a certain amount of potential customers
willing to buy the product at a high price,The high price does

product or who are loyal to a competitor's product.

•

Advantages: Penetration pricing attracts many people,
especially bargain hunters

not attract many competitors...

•

Apply to a market of customers who have never bought a

Disadvantages:In the long run, it doesn't help attract more
price-sensitive, lower-income customers.

•

Disadvantages: Once the price level has been

established, raising the price will be difficult or even
impossible.

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LO3 Price escalation and how to minimize its
effect

Let’s start

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