What Is The Price Strategy Of A Company To Enter Foreign Market?


0

Foreign Market

 

MNC’s face a lot of problem related to pricing for their products abroad. They must deal with price escalation, transfer prices, dumping charges and gray markets. The Co’s however can adopt different pricing strategies such as:-

 

  1. Setting a uniform price everywhere.

 

  1. Set a market based price in each country: According to the affordability for consumers in each country.

 

  1. Set a cost-based price-a standard mark-up of its cost everywhere.

 

Another problem arises when a co. sets a transfer price for goods it ships to its foreign subsidiaries. Sometimes it mat have to face dumping charges and other times it has to pay high tariff duties. Place (Distribution):

 

Seller   Seller’s Intl.   Channels   Channels within   Final Buyers
Markt. HQ between nations foreign nations

 

A seller should pay attention to how the product moves within the foreign country.

 

  1. Seller’s international market HQ ie the export deptt. Or international division makes decisions on channels and other marketing mix elements.

 

  1. Channels between nations:- gets the products to borders of foreign nations (agents, trading cos.) that are used, the type of transportation and financing and risk etc.

 

  1. The third link, channels with foreign nations, gets the products from their foreign entry point to find buyers. The channels vary from one to another country. These differences occur in the types and nos. Another differences is in the size and character of retail units abroad for eg. US has malls & marts whereas India has millions of tiny shops. Breaking bulk seminars the primary function of intermediaries and helps penetrate the long channels of distribution.

 

Thus Cos’ going for international marketing mix depending upon the local needs and availability.

 

 


Like it? Share with your friends!

0
BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected].

12 Comments


Warning: Undefined array key "html5" in /home/bmsnewco/public_html/wp-content/plugins/facebook-comments-plugin/class-frontend.php on line 140

Facebook comments:

This Website Is For Sale. Email us an offer we cannot refuse on [email protected] :)

X
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube and Vimeo Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format