Page 219 - GLOBAL STRATEGIC MARKETING

End of Unit Summary

The unit discussed how and why pricing decisions are much more complex
than that of the domestic market but having said that, it is one of the most

flexible elements of the marketing mix as it can determine an immediate
response. Therefore, this reinforces the need for pricing to be flexible,

especially with regards to economic uncertainty in the market. It can be
changed and adapted relatively easily. The development and
implementation of pricing strategies was discussed in terms of the

environment, pricing decisions, evaluation, implementation and price
management. Pricing decisions also need to take into consideration the

complex nature of different markets such as economic development and
prosperity, levels of disposable income, competitor pricing strategies and
country infrastructure to name a few. Pricing decisions need to reflect

organisational objectives and what the company intends to achieve in its
international markets such as market share, profit, return on investment,

recuperation of production and research costs and shareholder value.
Other areas that were discussed were the need for companies to be aware
of foreign exchange rates. The UK is a member state of the European

Union but has its own currency and therefore needs to monitor the
exchange range more carefully than member states who trade in the Euro.

Finally, pricing and positioning as well as price differentials across markets
were highlighted. This is an important area of pricing decisions as
consumers need to see value in the exchange. Therefore, seeing the right

price is essential to encourage and maintain demand and positive
association about the brand/product.