Abstract
In this paper, we look at factors that affect how marketers set price. The final price for a product might be influenced by numerous factors, which can be categorized into two main groups, internal factors and external factors, both areas are discussed in further detail in this paper. In addition to discussing the factors that influence international marketing channels, which are the channels within which goods and services pass to reach their foreign customers. This suggests that manufacturers and consumers must be located in either the producers or customers country or having presence in both countries. Lastly, the paper will discuss standardized advertising versus localized advertising in an international market.
Highlights
In this paper, we look at factors that affect how marketers set price
Marketing decisions are directed by the overall objectives of the company
It is important to appreciate that all marketing decisions, including price, work to help achieve company objectives [4]
Summary
This paper has divided the factors, which affect pricing and piecing decisions into two main categories, both categories are explain in detail below: Internal factors. Return on Investment (ROI)-A firm may set as a marketing objective, the prerequisite that all products achieve a certain percentage return on the organization’s spending on marketing the product This level of return along with an estimate of sales will help determine suitable pricing levels needed to meet the ROI objective [5]. Cash flow-Firms might seek to set prices at a level that will insure that sales income will cover product production and marketing costs. This is most likely to happen with new products where the organizational objectives permit a new product to meet its expenditures while efforts are made to establish the product in the market [6]. Variable costs are assessed on a per-unit basis since the cost is directly connected to individual items [8,9]
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