Page 209 - GLOBAL STRATEGIC MARKETING

As with any element of the marketing mix, it is necessary to analyse and
take into consideration the environment and markets in which the

company operates. Considerations need to be made with regards to the
company objectives, the product/service (whether it is an existing or new
product), market considerations such as demand, price sensitivity or price

insensitivity and competitor strategies as well as environmental
considerations such as the new market, demand, PEST forces, consumer

purchasing power and key competitor strategies. The strategic
considerations and the ‘process’ in which decisions can be achieved is
highlighted in Figure 9.1.

Figure 9.1.: The development and implementation of pricing

strategies

Development and

Factors Confirm Selectio Dealing
affecting impact of n of with
pricing: corporate most internati
Company strategies appropri onal
and on pricing ate pricing
product policy pricing problem
Market option s

(Band,

This highlights that an analysis of the new market is necessary in terms of
company, product, market and environmental influences as this has a

direct impact on corporate objectives and ultimately the pricing policy that
is adopted across markets. Each market needs to be evaluated in context,

as a price differential approach might need to be adopted – this is where
the pricing decisions are different across many different markets. The

company also needs to be aware of pricing problems and manage this