精品课程国际市场营销学-英文ch09export pricing strategies

1、Export Pricing StrategiesChapter 9Price DynamicsPricing is the only revenue generating element of the marketing mix.Pricing is a means of attracting and communicating an offer to a potential buyer.Pricing is a competitive tool.Pricing can be use to position the product or service in the marketplace.

2、Price DynamicsSkimmingUsing high-priced unique products to achieve the highest possible contribution in a short initial time period, then gradually lowering the price as the market.Market PricingFollowing competitive pricing in the target market; adjusting production and marketing mix to competitive

3、 conditions.Penetration PricingOffering low pricing to generate volume sales which hopefully will compensate for low margins.The Setting of Export PricesEXTERNALMarket-related factorsNature of demand/target audience characteristicsGovernment regulations (e.g., duties)Exchange rate stabilityIndustry-

4、related factorsCompetition intensityNature of competitionINTERNALMarketing MixProduct (e.g., old/new; standardized/differentiatedDistribution system (e.g., length)Promotion needs (e.g., sales efforts)Company characteristicsExtent of internationalizationCountries exported toManagement attitudesImport

5、ance of exportsOverall price position of firmASSESSMENT OF PRICING ENVIRONMENTSPricing Policy SelectionPricing Strategy DeterminationSetting of Specific PriceThe Setting of Export PricesCustomer Purchase Factorsability to payprice-quality relationshipreaction to marketing mixmarket supportPricing Po

6、licies Factorsprofit maximizationmarket sharesurvivalreturn on investmentcompetitive policiescopy competitive pricingfollow competitive pricingprice to discourage competitive entryExport Pricing StrategyCost-oriented pricingStandard worldwide price- regardless of buyers location in the market(s)Dual

7、 pricing differentiates between domestic and export pricesCost-plus method allocates domestic and foreign costs to the product.Marginal cost method considers direct costs of producing and selling exports as floor (lowest) price.Market-differentiated pricingbased on the dynamics of the marketplacecha

8、nges in competition, exchange rates, etc.Export-Related CostsExport-related costsCost of modifying a product for a foreign marketOperational costs of exportingCost incurred in entering the foreign marketPrice escalation for exports results fromClear-cut and hidden costsMethods for combating price es

9、calationReorganize the channel of distributionProduct adaptationChange tariff or tax classificationsOverseas assembly or productionTerms of SaleIncoterms are the internationally accepted standard definitions for terms of sale set by the International Chamber of Commerce (ICC) since 1936.Incotermsexw

10、orks (EXW)free carrier (FCA)free alongside ship (FAS)free on board (FOB)cost and freight (CFR)delivered duty paid (DDP)delivered duty unpaid (DDU)Negotiating Terms of PaymentConsiderationsThe amount of payment and the need for protection.Terms offered by competitors.Practices in the industry.Capacit

11、y for financing international transactions.Relative strength of the parties involved.The Risk TriangleBUYERS PERSPECTIVESELLERS PERSPECTIVESource: Adapted from Chase Manhattan Bank, Dynamics of Trade Finance (New York: Chase Manhattan Bank, 1984),5Terms of PaymentTypes of PaymentCash in AdvanceNot w

12、idely used except for first time transactionsLetter of CreditPromise to payIrrevocable, confirmed, revolvingDraftsSimilar to personal checkMust obtain shipping documents prior to deliveryDocumentary collectionBank acts as collection agentDraft may be sold at discounted rate for immediate cashManagin

13、g Foreign Exchange RiskForward rate exchange market“the exchange of currencies on a future date at an agreed upon exchange rate”Spot rate transaction“the exchange of currencies for immediate delivery”Possible price manipulation responses to currency movementsMake no change in the dollar price (pass-

14、through).Decrease the export price (absorption).Pass-through only a portion of the increase.Exporter Strategies Under Varying Currency ConditionsWEAK POSITIONStress price benefitsExpand product lineShift sourcing to domestic marketCash-for-goods tradeFull costingSpeed repatriationMinimize expenditur

15、e in local currencySTRONG POSITIONNon-price competitionImprove productivity/ cost reductionSourcing overseasPrioritize exportsCountertrade with weak currency countriesMarginal-cost pricingSlow collectionsBuy needed services abroadSources of Export FinancingCommercial banksfirst rate credit risks onl

16、yenhanced servicesoverseas reachForfeiting and Factoringuses bills of exchange or promissory notes to pay at time of shipmentmay use discounts to purchase receivablesOfficial Trade Financingloans or guaranteesPrice NegotiationsBe aware that price is only one part of a comprehensive package. Avoid ea

17、rly price concessions.Carefully consider concessions that reduce price or profitability.discounts, payment terms, product featuresKnow conditions in importers market.Focus negotiations first on substantive issues (quality and delivery), then on price.LeasingReduces the amount of investment required

18、to place the product in service, especially in less developed markets.May produce a total net e greater than that of an outright sale.Offers the opportunity to provide ancillary services that increase the total value of the exported asset.DumpingRanges of dumpingPredatory dumpingis intentional selling at a loss to increase market shareUnintentional dumpingoccurs when ma