市场营销GlobalPricing.pptVIP

* * * * * * * * * * * * * * * * * * * * Global Pricing Chapter 12 Outline Pricing Basics Global Pricing Issues Countertrade Pricing Strategies to Control Gray Trade Global Pricing Strategies 14-* A. Basic Factors in Pricing Costs Experience Curve Competition Demand 14-* Pricing Basics The Role of Costs The standard pricing procedure for exporting consists of A cost-plus formula Price escalation: The added costs in exporting mean that export prices tend to escalate over the domestic prices. Experience Curve Pricing Use of cost-based pricing has increased due to the “experience curve” effect The experience curve shows how unit costs go down as successively more units of a product are produced Experience curve pricing has been adopted primarily by companies entering an existing market in the maturity stage, because of the need to be competitive. 14-* The Experience Curve Effect UNIT COST P** BREAKEVEN TIME PROFIT MARGIN 0 PROFIT MARGIN 0 ACCUMULATED PRODUCTION = q 14-* Competition The premium price differential refers to the degree to which the firm might be granted a higher price by the market because of the particular strengths of its product. Because of competition, prices in foreign market are sometimes lower than at home, contrary to the price escalation effect. Demand The strength of demand tends to vary with the PLC stage, the growth stage typically showing strongest demand. Demand and supply: Whether or not price can be high in a strong demand market, is also determined by the supply from competitors. 14-* SETTING A PRICE PREMIUM ON THE BASIS OF DIRECT COMPARISONS WITH COMPETITION (Caterpillar example) $ 20,000 IS THE COMPETITOR’S PRICE $ 3,000 IS THE PREMIUM FOR SUPERIOR DURABILITY $ 2,000 IS THE PREMIUM FOR SUPERIOR RELIABILITY $ 2,000 IS THE PREMIUM FOR SUPERIOR SERVICE $ 1,000 IS THE PREMIUM FOR LONGER WARRANTY $28,000 IS THE TOTAL VALUE $ 4,000 DISCOUNT $24,000 FINAL PRICE Competitive Value Pricing 14-* Global Pricing: Added t