Price Policy

2382 Words10 Pages
The purpose of this essay is threefold. First,to identify specific factors and the environment affecting an export price policy. Second, to analyse thisthese factors within our firm and to extract the best decisions given our starting point. Finally, to consider the above and to give guidelines governing thatwhat should be applied in the international marketing price. It should be noted that in some cases due to an information deficiency, assumptions should be madee. “Pricing is the moment of truth” (Stottinger,2001). Probably this affirmation is essentially valid in domestic marketing, even more in international marketing. Surprisingly, the literature in this area is characterized by a gapthere is a gap in the literature in this area.…show more content…
(Nagle, 1987). Theseis three characteristics should beare present in our product, therefore the customer should tend to be “inelastic” Competition is a pivotal factor and reflects supply in economic theory. Cost draws a minimum price, demand delineates a maximum price, and competitors will condition a final price between these limits. (Albaum & Duerr, 2008). Due to lack of information, it should be assumingassume some level of competition. The firm must expect some degree of competition, but owing to the kind of product (premium product for a pedigree animal) the market should be clearly delimited. Anyway, in this stage the advice for the firm should be to stay aware of our nearest competitors and extract value information of the background of our competitorsfrom our competitors’ background. Legal or political: widely speaking, after the Treaty of Maastricht and the constitution of the European Community the legal or political issues between European countries have been removed. It Ccan be interesting to mention one aspect of the legislation related with our product, and in last instance it can affect price decision. The European Parliament has passed some regulation concerning to animal feeds, certifying that Community legislation on animal health is properly binding and fulfilling. The law of the EU is directly applicable in UK, therefore, it should be noticed
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