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Summary (2 of 2) Controlling costs that lead to price escalation when exporting products is: One of the most challenging pricing tasks facing the exporter Countertrading is an important tool in pricing policy Pricing in the international marketplace Requires a combination of intimate knowledge of market costs and regulations An awareness of possible countertrade deals, Infinite patience for detail A shrewd sense of market strategy Roy Philip 18-* * Setting the right price for a product or service can be the key to success or failure. Even when the international marketer produces the right product, promotes it correctly, and initiates the proper channel of distribution, the effort fails if the product is not properly priced. An offering’s price must reflect the quality and value the consumer perceives in the product. Of all the tasks facing the international marketer, determining what price to charge is one of the most difficult. It is further complicated when the company sells its product to customers in different country markets. As the globalization of world markets continues, competition intensifies among multinational and home-based companies. All are seeking a solid competitive position so they can prosper as markets reach full potential. The competition for the diaper market between Kimberly-Clark, PG, and the smaller companies illustrates how price becomes increasingly important as a competitive tool and how price competition changes the structure of a market. Whether exporting or managing overseas operations, the manager’s responsibility is to set and control the actual price of goods in different markets in which different sets of variables are to be found: different tariffs, costs, attitudes, competition, currency fluctuations, and methods of price quotation. Opening Side * * What you should learn from Chapter 18? ?Components of pricing as competitive tools in international marketing; ?The pricing pitfalls directly related to international marketing;
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