Pricing For Export Market Is The Most Important Factors Determining The Performance Of Export Ventures

International marketing or business is uniquely different from the local market because the product price, place and promotion is vastly different from what is been offered to local customers (Johansson, 2000) With the emergence of the information technology, cross border marketing has never been a distant dream. However, it has never been easier even for giant multinational companies to face challenges that come in international business. The biggest challenge comes from the culture which varies from country to country.

Pricing is a pertinent issue in procurement and acquisition in organizations. Consumers buying the commodities of an entity should get clarity on pricing related issues. There is uncertainty in Pro

Success in world competition turns on efficiency in production, distribution, marketing, and management, and inevitably becomes focused on price. The most effective world competitors incorporate superior quality and reliability into their cost structures. They sell in all national markets the same kind of products sold at home or in their largest export market. They compete on the basis of appropriate value- the best combinations of price, quality, reliability, and delivery for products that are globally identical with respect to design, function, and even fashion. If a company forces costs and prices down, and pushes quality and reliability up, while maintaining reasonable concern for suitability, customers will prefer its world-standardized products. The global competitor will seek constantly to standardize his offering everywhere. The strategy of standardization not only responds to the worldwide homogenized markets but also expands those markets with aggressive low pricing.

Our paper factory (Australian paper) situated in laverton in Melbourne Australia . we have a really good quality Australian made paper ,which is very popular in Australia wide .we are one of the biggest supplier around Australia. We are planning to business with some overseas countries like china , India ,Malaysia

Costs play an important role in setting international prices. Travelers abroad are often surprised to find that goods that are relatively inexpensive at home may carry outrageously higher price tags in other countries. Besides, such price escalation may result from differences in selling strategies or market conditions. In most instances, however, it is simply a result of the higher costs of selling in foreign markets such as the additional costs of modifying and packaging the product, higher shipping and insurance costs, import tariffs and taxes, costs associated with exchange rate fluctuations and higher channel and physical distribution costs. Futhermore, Milo also adopted Promotional Pricing strategy. Selling products is challenging when shelves are lined with similar-quality products, and customers are bombarded with advertising messages. Promotional pricing helps differentiate Milo’s product with its competitor and leverage a potential customer's attention long enough to purchase the Milo products. Promotional pricing involves lowering the price of a product, distributing coupons or offering specials, such as buy-one-get-one-free offers. For example, Milo offer promotional pricing for its product in weekly catalogue to create excitement and a sense of

As is known, pricing is one of the most important steps for business plan which needs good research, calculations and formulations. There are different pricing strategies to put into effect due to the market and product conditions, such as premium pricing, penetration pricing, economy pricing, price skimming(Voice Marketing, 2012). These four pricing strategies are main pricing policies. They form the bases for the exercise. However there are other important approaches to pricing. These pricing strategies are: Psychological pricing, product line

Pricing product effectively can drive success or failure for a product. But what should be considered

The strategy for setting a product’s price often has to be changed when the product is part of a product mix. In this case, the firm looks for a set of prices that maximizes its profits on the total product mix. Pricing is difficult because the various products have related demand and costs and face different degrees of competition.

Based on these 6 factors in setting a price: selecting the pricing objective, determining demand, estimating costs, analyzing competitors costs, prices and offers, selecting a pricing method and selecting the final price, Singapore GP Pte Ltd employed 2 different pricing strategies. They are

Pricing chiefly implies towards the total sum an individual shell out for the product or service (Kotler and Keller, 2006). The price factor is extremely vital as it determines the company’s profit and as a result, existence. With respect to ABC salon it is highly evident that the corporation operates within a highly competitive business atmosphere where there are several corporations providing similar provisions and users could any time move on to corporations providing superior services at reasonably lesser costs. Thus, the prices of the offered products and services should be fixed considering the prices set by the competitors for the similar

Pricing strategy, a very critical component of the marketing mix. Price is usually an important factor affecting the success of the transaction, but also the most difficult to determine the marketing mix of factors. The goal of enterprise pricing is to promote sales and profit. This requires enterprises to consider both the cost of compensation, but also to consider the ability of consumers to accept the price, so that the pricing strategy has a bidirectional decision-making characteristics of buyers and sellers. In addition,

Course Modules help instructors select and sequence material for use as part of a course. Each module represents the thinking of subject matter experts about the best materials to assign and how to organize them to facilitate learning. Each module recommends four to six items. Whenever possible at least one alternative item for each main recommendation is included, as well as suggested supplemental readings that may provide a broader conceptual context. Cases form the core of many modules but we also include readings from Harvard Business Review, background notes, and other course materials. I. Overview of suggested content (HBS cases unless otherwise noted) Title 1. Module Overview

Within a given organization, one of the most important factors in creating a successful strategy is that of pricing. If your organization sets the price for the goods or services too high, potential customers may be driven away and left to search for a more reasonable alternative. If prices are set too low, your profit margin will shrink and it will be tougher to be a successful company. Setting the right price is a delicate operation, with factors constantly changing and evolving over the life cycle of the product. A manager must know the cost associated with the good or service before they may set an appropriate price. Two key elements in determining product cost are operating expenses and the cost of goods. Operating costs is the expense it takes to keep the business running, which includes factors such as overhead, payroll, office supplies, and marketing. The cost of goods is the amount paid for the product, as well as any associated shipping and handling. Whatever strategy is used in determining pricing, the retail price of the products should always cover the product cost and the operating expenses. If pricing is set below costs, there is no way to be profitable and succeed.

When goods are imported, they usually go to an importer’s warehouse, from which they are sold to retailers, and then to customers, so there is always a marking up of the price at each step. If possible, it pays for a business to do the importing direct from the country, but this usually involves a large outlay, however, once the goods have arrived, the business can make an even larger fair profit. On the other hand, exporting is part of the manufacturing side of business, and involves many difficulties. One has to buy materials, pay staff, and find overseas customers. But it happens. If you can produce something people want at a fair price, your business will work, and if it were too difficult, which it isn’t, hardly anyone would bother to try.

The framework for this literature review is primarily based on Cavusgil (1988), because it provides an exhaustive classification the variables influencing export pricing, though this review considers only five elements (except the element - U.S. government regulation). After reviewing the literatures, I categorized the determinants of each article into this framework. The interaction of these internal and external determinants provides distinctive feature to the pricing strategies to different environments. To be precise, these determinants are the background forces limiting managers’ choice of adopting various export pricing strategies. The following section discusses five of the six categories proposed by Cavusgil (1988).