Task Eight International Pricing Strategies（课件）- 《国际市场营销实务》同步教学（对外经贸大学·2011）

Task Eight International Pricing Strategies I Pricing Considerations for International Marketing 1. Importance of Pricing in International Marketing First, price is the bridge connecting a company’s expenses with its revenues. Second, price can serve as an indicator of a product’s value. 2. Factors Affecting International Pricing 2.1 Internal Factors 2.1.1 Corporate Factors (1) Marketing Objectives Profit Maximization Market Share Expansion---Look at Mini-Case 8.1 Return on Investment (2) Production Costs (3) Transportation Costs (4) Overseas Distribution Costs 2.1.2 Product Factors (1) Product Value and Positioning (2) Stage of Product Life Cycle—Look at Mini-Case 8.2 2.2 External Factors 2.2.1 Environmental Factors (1) Taxes (2) Financial Risks 2.2.2 Market Factors Supply Demand Competition Look at Mini-Case 8.3 II The International Market Pricing Approaches When launching new products or adjusting existing pricing strategies, international marketers will use different pricing approaches. 1. Cost-Based Pricing Fixed costs refer to those which do not vary with the quantity of products. The equipment, buildings, rent and management salaries all belong to this category. Variable costs mean costs that change with the quantity produced, such as raw materials and components. 1.1 Cost-Plus Pricing 1.2 Variable Cost Pricing In calculation, this method only takes variable costs such as direct materials, direct labor, etc. into consideration. Fixed costs such as rent or building are discounted. 1.3 Break-Even Pricing Break-even point is the point at which the costs and revenues are equal When the quantity of products increases, the total cost increases as the variable costs are added. At the beginning, the total revenue is less than total cost. Gradually, as the quantity is more than 500 and less than 600, the total revenue and total cost converge at a point—the break-even point. This method is not only used to find out the quantity of break-even point, but also used t