市场营销Glbal Pricing.pptVIP

Global Pricing;Outline;A. Basic Factors in Pricing;Pricing Basics;The Experience Curve Effect;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. ;;Global Pricing: Added to the Pricing Basics…;Unit sales;;EXCHANGE RATES – firms must be wary of devaluations; exchange rate fluctuations affect the performance of local subsidiaries HEDGING – purchasing insurance against losses because of currency fluctuations, firms make use of “forward contracts” or “swaps” GOVERNMENT INTERVENTION – various nations introduce stabilizing measures into financial systems via selective price controls and price discrimination laws;TRANSFER PRICE – the price paid for products shipped between units of the same organization when the shipment crosses national borders so that the correct duties related fees can be paid;COUNTERTRADE – transactions in which all or part of the payment is made in kind rather than cash. Examples are as follows:;For the seller evaluating a countertrade proposal, the following points must be considered:;E. Systems Pricing in Turnkey Sales;F. Global Coordination/Gray Trade;Gray trade and global pricing;Coordinating prices across the globe is difficult because… Currency exchange rates fluctuate Local retail prices can only be “recommended” Local distributors are independent Import prices to subsidiaries have to consider tariffs, taxes. Local competition varies across countries. One global price is unrealistic (although perhaps not for aircraft). ;ECONOMIC CONTROLS – influenc