Pricing Decisions In International Marketing

The pricing decision in international marketing is very complex. Different pricing strategies are required for different markets. Whatever pricing strategies the organisation follows, it should reflect the true value for money. The international business environment is very complex and it is influenced by many variables due to the fluctuations in the internal as well as external business environment.
When one talks of international business, it is indispensible to have a proper knowledge of the price structure of products in different markets. The pricing decision affects the demand for the product and has an inverse relationship with it. It is not easy to have the price standardised across markets. This is due to government regulations, promotional

The prices of developed country products are comparatively higher compared to products of developing countries due to large scale demand and economies of scale in production of goods in developing countries.
Brand Image: The products of companies with a strong brand identity such as Apple, Google, Sony etc. are comparatively higher. These companies can charge a premium price in the international market due to their higher brand image.
Government Regulation: Companies exporting their goods should be familiar with the demand and supply of the concerned country so that they can fix the price of their products. Generally the government regulates the price of the few essential products that must be followed by the exporting companies. It can influence the price level by directly regulating the price or by setting the price ceilings (maximum price for a product) or fixing the price floors (lowest price for the

Smaller shipments order is more expensive compared to the largest ones. It becomes economical to place larger orders to reap the benefits of economies of scale.
Positioning Strategy: A positioning strategy should be developed by the firm for exporting its products to the foreign countries. They can go for value positioning strategy (low average unit cost) or quality positioning strategy (high quality products). International marketers can also use demographic strategy based on the people’s taste and preferences or it can go for competitive positioning strategy based on the competition in the foreign market.
Environmental Concerns: The mass media and other social networking sites have made the customers aware of the impact of environment protection. Many products that are sold in the developed countries make use of environmental friendliness of the product for deriving price advantages. Many customers in the developed countries are willing to pay price premiums for goods that are recyclable and environment friendly. There is a huge demand for ‘green goods’ in most of the advanced