© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS LESSON18-1 GOALS Identify the factors that must be considered by businesses when setting prices. Describe

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS

LESSONLESSON 18-118-1GOALSGOALS

Identify the factors that Identify the factors that must be considered by must be considered by businesses when businesses when setting prices.setting prices.

Describe pricing Describe pricing methods used by methods used by businesses.businesses.

Discuss some pricing Discuss some pricing factors that are unique factors that are unique to global markets.to global markets.

INTERNATIONAL PRICING ACTIVITIES

2


Price Planning for International Marketing

CostsConsumer demandCompetition

3


Markup Pricing

Markup is the amount added to the cost of the product to determine the selling price.

Example:Example:Percentage × Cost = Markup

40% × $50.00 = $20.00

Cost + Markup = Selling Price$50.00 = $20.00 = $70.00

4


New Product Pricing

Competitive pricingSkim pricingPenetration pricing

5


Psychological Pricing

Promotional pricingLoss leaderOdd-even pricingPrestige pricingPrice lining

6


Discount Pricing

Seasonal discountsCash discountsQuantity discountsTrade discounts

7


Pricing in Global Markets

CountertradeDumping


LESSONLESSON18-218-2GOALSGOALS

Contrast direct and Contrast direct and indirect channels of indirect channels of distribution.distribution.

Describe the activities of Describe the activities of agents, wholesalers, and agents, wholesalers, and retailers.retailers.

Explain the role played Explain the role played by global intermediaries.by global intermediaries.

GLOBAL DISTRIBUTION ACTIVITIES

9


Intermediaries

Common Distribution Channels

Channel A Channel B Channel C Channel D

Consumer Consumer Consumer Consumer

Producer Producer Producer

Retailer

Wholesaler

Agent

Retailer Retailer

Wholesaler

Producer

10


Distribution Channel Members

AgentWholesalerRetailer

Convenience storesGeneral merchandise retailersSpecialty storesDirect sellersOnline retailersAutomatic vending

11


Global Intermediaries

Export management company (EMC)Export trading company (ETC)Freight forwarderCustoms broker


LESSONLESSON18-318-3GOALSGOALS

Summarize the shipping Summarize the shipping requirements for requirements for international distribution.international distribution.

Compare transportation Compare transportation modes available to modes available to international distributors.international distributors.

MOVING GOODS AROUND THE WORLD

13


Preparing for Shipping

Packing and labelingDocumentation

Bill of ladingCertificate of originExport declarationDestination control statementInsurance certificate

14


Transportation in the Global Market

Motor carrierRailroadWaterwayPipelineAir carrierIntermodal movements

Documents

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS LESSON18-1 GOALS Identify the factors that must be considered by businesses when setting prices. Describe