《I-Marketing》 南京大学IMCH11.ppt

1、Copyright 2001 by Harcourt, Inc. All rights reserved. Requests for permissions to make copies of any part of the work should be mailed to the following address: Permissions Department, Harcourt, Inc., 6277 Sea Harbor Drive, Orlando, Florida 32887-6777.,INTERNATIONAL MARKETING 6e,Export Pricing Strat

2、egies,Chapter 11,Copyright 2001 by Harcourt, Inc. All rights reserved.,11-2,Price,Pricing 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 used to position the

3、product or service in the marketplace.,Copyright 2001 by Harcourt, Inc. All rights reserved.,11-3,Pricing Challenges/Strategies,Skimming Using high-priced unique products to achieve the highest possible contribution in a short initial time period, then gradually lowering the price as the market. Mar

4、ket Pricing Following competitive pricing in the target market; adjusting production and marketing mix to competitive conditions. Penetration Pricing Offering low pricing to generate volume sales which hopefully will compensate for low margins.,Copyright 2001 by Harcourt, Inc. All rights reserved.,1

5、1-4,The Setting of Export Prices,Factors affecting customer purchasing decisions ability to pay price-quality relationship reaction to marketing mix market support,Stages in Setting of Prices,Source: Reprinted by permission of Harvard Business Review. An excerpt from Alfred R. Oxenfeldt, “Multistage

6、 Approach to Pricing,” Harvard Business Review 38 (July-August 1960): 126. Copyright by the President and Fellows of Harvard College; all rights reserved.,Copyright 2001 by Harcourt, Inc. All rights reserved.,11-5,Export Pricing Strategy,Cost-oriented pricing Standard worldwide price- regardless of

7、buyers location in the market(s) Dual pricing differentiates between domestic and export prices Cost-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 pricing ba

8、sed on the dynamics of the marketplace changes in competition, exchange rates, etc.,Copyright 2001 by Harcourt, Inc. All rights reserved.,11-6,Export-related Costs,Export-related costs Cost of modifying a product for a foreign market Operational costs of exporting Cost incurred in entering the forei

9、gn market Price escalation for exports results from Clear-cut and hidden costs Methods for combating price escalation Reorganize the channel of distribution Product adaptation Change tariff or tax classifications Overseas assembly or production,Copyright 2001 by Harcourt, Inc. All rights reserved.,1

10、1-7,Terms of Sale,Incoterms are the internationally accepted standard definitions for terms of sale set by the International Chamber of Commerce (ICC) since 1936. Incoterms exworks (EXW) free carrier (FCA) free alongside ship (FAS) free on board (FOB) cost and freight (CFR) Cost, Insurance and freig

11、ht (CIF) delivered duty paid (DDP) delivered duty unpaid (DDU),Copyright 2001 by Harcourt, Inc. All rights reserved.,11-8,Selected Trade Terms,EXW,FCA(Named Inland Carrier at Named Inland Point of Departure,FCA(Named Inland Carrier at Named Inland Port of Exportation,FAS(Named Portof Shipment),F.O.B

12、.Vessel(Named Portof Shipment),Origin(Factory, Mine, Plantation, Warehouse),Inland Carrier,Dock at Port of Shipment,Vessel,United States,Copyright 2001 by Harcourt, Inc. All rights reserved.,11-9,Selected Trade Terms,CFR,CIF (Named Port of Destination,FAS(Named Portof Shipment),DDU / DDP(Named Place

13、of Destination),Inland Carrier,Dock at Port of Destination,Vessel,Country of Destination,Destination,Copyright 2001 by Harcourt, Inc. All rights reserved.,11-10,Distribution Adjustment to Decrease Price Escalation,Producer,ImportAgent,Processing and Packing Plant,Primary Wholesaler,Intermediary Whol

14、esaler,Small Wholesaler,Retailer,Producer,ImportAgent,Processing and Packing Plant,Retailer,Depots Distribution Wholesalers Distribution Centers,A. Retail Price: 170 yen/300g package,B. Retail Price: 128 yen/300g package,A. Conventional Route,B. Restructured Route,Savings of 25% by restructuring,Sou

15、rce: Michael R. Czinkota, “Distribution of Consumer Products in Japan: An Overview,” International Marketing Review 2 (Autumn 1985): 39-51.,Copyright 2001 by Harcourt, Inc. All rights reserved.,11-11,Negotiating Terms of Payment,Considerations The amount of payment and the need for protection Terms

16、offered by competitors Practices in the industry Capacity for financing international transactions Relative strength of the parties involved,Copyright 2001 by Harcourt, Inc. All rights reserved.,11-12,The Letter of Credit,Irrevocable versus revocable irrevocable letter cannot be cancelled, guarantee

17、ing payment Confirmed versus unconfirmed U.S. bank confirms letter, assumes collection risk Revolving versus nonrevolving Most letters are nonrevolving- good only for a single transaction.,Copyright 2001 by Harcourt, Inc. All rights reserved.,11-13,ForeignBank,U.S.Company,U.S.Bank,ForeignCompany,1,2

18、,3,4,5,6&7,Productexported,Import / Export Trade Financing,Minimizing the exposure of financial risk Trade financing using a Letter of Credit (L/C),Copyright 2001 by Harcourt, Inc. All rights reserved.,11-14,Drafts and Documentary Collection,Drafts are similar to personal checks, but have a document

19、ary requirement that the buyer to obtain shipping documents before taking possession of the imported goods. Documentary collection Seller ships goods, then bank acts as agent in collecting payment through a sight or time draft from the importer. The draft becomes a bankers acceptance and may be sold

20、 at a discounted rate if the exporter is in need of immediate cash.,Copyright 2001 by Harcourt, Inc. All rights reserved.,11-15,Most Advantageous Consignment Open Account Documents against Acceptance Letter of Credit Confirmed Letter of Credit Cash in Advance,Least Advantageous,High Risk/High Trust,

21、Low Risk/Low Trust,The Risk Triangle,Copyright 2001 by Harcourt, Inc. All rights reserved.,11-16,Adjusting to Foreign Currency Fluctuations,Forward 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

22、 immediate delivery” Possible price manipulation responses to currency movements Make no change in the dollar price (pass-through). Decrease the export price (absorption). Pass-through only a portion of the increase.,Copyright 2001 by Harcourt, Inc. All rights reserved.,11-17,Exporter Strategies Und

23、er Varying Currency Conditions,Weak Position Stress price benefits Expand product line Shift sourcing to domestic market Cash-for-goods trade Full costing Speed repatriation Minimize expenditure in local currency,Strong Position Non-price competition Improve productivity/ cost reduction Sourcing ove

24、rseas Prioritize exports Countertrade with weak currency countries Marginal-cost pricing Slow collections Buy needed services abroad,Copyright 2001 by Harcourt, Inc. All rights reserved.,11-18,Price Negotiations,Be aware that price is only one part of a comprehensive package. Avoid early price conce

25、ssions. Carefully consider concessions that reduce price or profitability. discounts, payment terms, product features Know conditions in importers market. Focus negotiations first on substantive issues (quality and delivery), then on price.,Copyright 2001 by Harcourt, Inc. All rights reserved.,11-19,Leasing,Leasing reduces the amount of investment required to place the product in service, especially in less developed markets. may produce a total net income greater than that of an outright sale. offers the opportunity to provid