Page 178 - International Marketing

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180 International Marketing BRILLIANT'S

the product side of the product life cycle, not the consumer side, thereby
stressing the supply side. Selling 'older' products to a lesser developed
market does not work if transportation costs for imports is low and informa-
tion is accessible globally through the Internet and satellite TV.
Foreign markets are not just composed of average income consum-
ers, but contain multiple segments. The research did not consider the
emergence of global consumer segments. 
PRICING DECISIONS
Q.26. Which factors affect the “Pricing Policy Decisions” in overseas
market? Prepare a list of these factors and describe any five
factors. [MBA 2011]
OR
Write a short note on: Pricing Decisions for overseas market.
[MBA(FT) 2008]
OR
Explain the various pricing policies available to an interna-
tional marketer.
Pricing
Pricing is the only component of a marketing mix decision that is
often adopted in international markets with least commitment of firm's
resources. Price is the sum of values received from the customer for the
product or service. We generally refer to price in terms of amount of money,
but it may also include other tangible and intangible items of utility. Pricing
is that value at which producer, manufacturer or businessman sell their
products in foreign markets or in home country. It is a critical and complex
variable in global marketing.
Pricing should be perfect for both home and foreign market. A good
pricing helps to make a place in international market. On the other hand,
wrong pricing is the cause of exit from the market. Pricing decisions are
very difficult to be taken. The marketing manager should do a lot of exercise
to decide the price.
Pricing decisions in international markets are extremely significant
for developing and least developed countries primarily because of the
following reasons:
(a) The lower production and technology base often results in higher
cost of production.
(b) As the market share of developing countries is relatively lower
and these countries are marginal suppliers in most product
categories, they have little bargaining power to negotiate. This