IBUS 465 Lecture Notes - Lecture 15: Marketing Mix, Barter, Perfect Competition
7 Dec 2018
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Document Summary
Pricing is an important part of the marketing mix, and is the only element that can be changed easily without large cost implications. International customers are usually sensitive to price changes. Price changes should not be considered a quick fix for all marketing problems. Pricing problems could arise when costs increase and sales do not materialize; or when competitors undercut prices. International pricing is much more complex and is affected by a number of additional external factors: Use of alternative payment methods like leasing; barter or countertrade. Product factors: presence of substitute products, key and innovative product features, stage in the product life cycle, place in product line, product positioning and cost structure, price escalation due to additional (intermediate) costs in international trade. Government controls import taxes, quotas, price controls. Currency fluctuations revaluation, devaluation of different national currencies. The purchasing power of the customer: client"s ability to pay.
