95 questions, M.C. Textbook and lecture notes, no cases.
2 hours. 2 chapters not discussed in class, but need to read
Wednesday: last lecture and case
Wednesday: final exam
June 4 th
Pricing Strategies to use for final presentation:
Standard worldwide pricing: group all costs together and then convert using the
Dual (two tiered) pricing: all fixed costs allocated to home market and variable costs
from foreign market. Can be accused of dumping.
Market differentiated pricing: i.e. penetration pricing strategy to capture market share.
Such as limited time offer – meaning you can’t get charged with dumping because the
next shipment will be higher priced. Looking at everything to determine the price for that
Transfer pricing: Shipping products between one organization’s SBUs. However, more
of a problem internationally; could take advantage on tax laws.
Reducing price of a brand name can negatively impact the brand’s reputation.
Incoterms: when we send invoices to another country, we make sure to use the
international recognized wording.
Exports: two different costs you incur
1. Market Entry (one-time costs)
2. Market Maintenance (ongoing)
Distribution is challenging. Middleman needs to treat the product the same way you do.
Retarded distribution challenges i.e. Coca-Cola had to show China what a vending
machine is and how it works.
Chart on advantages and disadvantages of transportation modes. Airplanes are costly,
but shipping by boat is cheaper; but boat insurance is crazy high and it takes a long
time to receive, plus products aren’t handled well.
Factors influencing channel length: what alterna